New product development 20120630
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Transcript of New product development 20120630
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1www.DAREnDEAL.comProprietary and Confidential © 2011-2012 DAREnDEAL. All Rights Reserved.
New Product Development
1st July 2012
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2www.DAREnDEAL.com
What is New Product Development (NPD)?
NPD is the complete process to develop, test and assess the viability of products or services that are new to the market to ensure growth and survival of
an organization.
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Not all NPD has to do with completely new products it can be about existing products
Market Development
Market Penetration
Diversification
Product Development
New Market
Existing Market
Existing Product New Product
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It is important to know the stages of new product / service development
New Product Strategy Development
Idea Generation
Screening& Evaluation
Development Business Analysis
Launch / Commercialization
Market Testing
Post-Launch Monitoring
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Now lets deep dive into each of the stages
Identify product’s focus and unique selling points, approach and guidelines
New Product Strategy Development
Purpose of the stage Marketing Methods
Use members from different company departments and levels
Idea Generation
Screening and Evaluation
Business Analysis
Development
Market Testing
Launch / Commercialization
Post-Launch Monitoring
Brainstorm concepts for potential products / services
Ideas from R&D, employees, competitors and focus groups
Eliminate bad ideas and focus on strong products
Identify screening criteria and key performance indicators
Analyze the products features, marketing strategy and financial plans
Create marketing plan consider 4Ps Financial, legal & economic state
Create prototype product to understand all intricacies
Laboratory tests Consumer tests
Pilot product and marketing in the market on a small scale
Simulation testing Test small market samples
Position product in marketplace Product Positioning Potential for Regional Growth
Monitor progress and identify possible areas for improvement and growth
Gather Customer Feedback Create Surveys
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Idea Generation
Suppliers & Distributors
• Go up and down the value-chain to recognize spaces to capture
Internal Resources
• Use resources within the company to identify and generate ideas and leads
Competitors
• Analyze existing landscape to identify gaps that can be filled
Customers
• Ask the client!• Customers are the
closest to their needs
Idea Generation
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Screening and Evaluation
Eliminate bad ideas and focus on good ones based on the criteria below
Scalability Product Price Development Duration Cost to Develop Return on Investment
Screen & Evaluate
Proceed with Products that pass criteria
Eliminate Products that do not pass criteria
No Go Go
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Business Analysis
Business Analysis
Marketing Strategy Financials
Legal and Competitive landscape Macro-Economic conditions
Make financial plan and projections for product / service
Analyze investment needed and available sources for funding
Check overall economic conditions
– Political Risks– Employment– Currency Risks
Are there more opportunities or threats in the current economic status
Are there legal barriers to entry Do competitors have any edge Test for available similar products
or substitutes
Create full marketing plan Think through all 4Ps
– Product– Price– Promotion– Place
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Development
Idea Physical Product / Service
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Market Testing
Standard Test Market
• All-out marketing campaign
• Small geo coverage
Controlled Test Market
• Agree with specific outlets to carry new product
• Negotiate an agreement
Simulated Test Market
• Try on small sample size of consumers in a simulated environment or test group
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Commercialize and Launch!
This is the phase in which you must build and create demand for the new product or service offering Allocate resources and spending according to plan to get new product to market
Revenue
GrowthEntry Mature Time
Initiate Product Life Cycle
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