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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
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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Improvements in Existing Product
Change in packaging , new SKUs launch, etc
Position without adding any features
Aluminum Package Plastic Package
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