new product development & plc

8/8/2019 new product development & plc

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A Presentation on

NEW PRODUCT DEVELOPMENT

BY- Vivek Shukla Guide Col. V.J.Gomes


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Objective

To know about -

The Categories of new product

New product development process Product life cycle

Why Product fails


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Categories of New Products

New-to-the-World

New-to-the-World

New Product Lines

Product Line Additions

Product Line Additions

Repositioned Products

Price Reduction

Improvements in Existing Product



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New product development process

Idea Generation

Idea Screening

Concept development and testing

Market strategy development

Business Analysis

Market testing

Commercialization


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Idea Generation

Customers

Employees

Distributors

Competitors

Vendors

R & D

Consultants

Sources of

New-ProductIdeas

Internal & External


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Idea Screening

Drop Poor ideas

Drop Poor ideas

-Minimize the risk

-Avoid two type of Ideas

Drop-error, Go-error

-Dose Product meet a need

-Will customer in T.M benefit

from the product

-Is we have enough resources todevelop product


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Concept Test

Concept TestConcept TestConducting Survey & Focus

Group

Who will use the product?What primary benefit of

product?

When people consume?


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Market Strategy & Development

Describe the Plan for

Short term

Mid term

Long term

Market Size

Final Positioning

Sales Plan

Media Plan

Promotion Plan

Product Plan

Financial plan


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Business AnalysisBusiness Analysis

Considerations inConsiderations inBusiness AnalysisBusiness Analysis

StageStage

Demand

Cost

Sales

Profitability


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Product Development

Product idea Translate in technology & commercially feasible

Product

Creation of prototype

Packaging, branding,

labeling

Final government approvalsif needed


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Test Marketing

Test

Marketing

Alfa (market )

Beta(product)

Test

Marketing

Alfa (market )

Beta(product)

The limited introduction

of a product and amarketing program to

determine the reactions

of potential customers in

a market situation.


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Commercialization

Production

Inventory BuildupInventory Buildup

DistributionDistribution

Sales TrainingSales Training

Trade AnnouncementsTrade Announcements

Customer AdvertisingCustomer Advertising

When

Whom

Where

How


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Product life cycle


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Product Life Cycle of Maggi

Introduction

Low pricing strategy to make product Affordable.

Promoted with tag line bas 2 minute.

Growth stages

Enjoyed 50% market share valued at 250 Crore.

Maggi become the no. 1 brand in instant noodle market.

prices were kept normal.

promoted with tag line good to eat fast to cook.


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PLC of Maggi cont.

Maturity

Extending product line.

Entrance of new players.

Introduces the variety of products like atta noodles,chicken

etc. Prices starting Rs.5, they reduced the Quantity instead of

increasing price.

Decline stage

New products launched but failed.

Dal atta noodles sambar flavor.

Tough competition from top ramen.

Failure of other products like soups, cooking aids etc.


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PLC of Maggi cont.

Reintroduction of product

Change the Formation of product.

Company increase the distribution of the product. Along with

children and working Women company also focused on othersegments also.

Company come up with various Interesting ads


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Why New Product Fails?

Overestimating market size

Poor marketing research

Design problems

Excessive development costs

Incorrectly positioned, priced,

or advertised

Competitive reaction


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Brand failure: Ponds toothpaste

-People were not able to differentiate.

-when the Ponds name and imagerywere attached to the toothpaste, no-one was

interested.

-The main attribute of a toothpaste is taste, this

mismatch between taste and fragrance created adissonance in the minds of consumers.


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New to the world

iPod

portable media player

A iPod Camera Connector

A iPod USB

A iPod In-Ear Headphones

A Third-party accessoriessuch as speakers, headsets,microphones.

etc

Digital Camera

displaying images on a

screen

storing thousands of images

on a single small memory

device

Image editing

crop pictures

etc


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New product line

In new product line Pass Pass mouth freshener has

available in Mint, Katha, Pan and Meetha Magic

lines, packed in trendy flip tops, sachets and dining

table packs.


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Repositioning of brand

MILO CONTAINS

Nonfat milk

Sugar

Corn syrup

Calcium phosphate

Magnesium

Iron

Vitamin B6 and vitaminB12

ADDCONTAINS

fruits flavor

Dry fruit powder

Calorie free sugar


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Price Reduction

Maximum cost reduction occurred in -

Electronics goods(TV, Refrigerator, mobile, etc)

Apparels (like discount in jacket, jeans, etc)


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Change in packaging , new SKUs launch, etc

Position without adding any features

Aluminum Package Plastic Package

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