PPT On New Product Development

New Product Development PPT

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New Product Development Presentation Transcript:

1. WHAT IS PRODUCT PRODUCT LIFE CYCLE NEW PRODUCT DEVELOPMENT TYPES OF NEW PRODUCT CHALLENGES IN NEW PRODUCT DEVELOPMENT WHY NEW PRODUCT FAILS NEW PRODUCT DEVELOPMENT PROCESS

2. Before knowing what is New Product Development we must know what is product ? A product is anything that can be offered to a market to satisfy a need or want. Or We can say that product is anything which have the capability to satisfy the needs and wants of the customers or end users.

3. New Product Development (NPD); is “The term used to describe the complete process of bringing a new product or service to market.” “New product development refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development” Or We can say that “The process of designing and launching the product into the market. Products that are either original, improved modified or new brands by means of research and development activities.”

4. Bozz, Hamilton & Allen identified six categories of New Products:- New to the world product New product lines Addition to the existing product lines Improvement & revisions of existing products. Repositioning Cost reduction

5. Several factors tend to hinder the new product development :- Social and government constraints. Shortage of ideas in certain areas. Fragmented market. Cost of developments Capital shortage. Faster required development time. Shorter product life cycle.

6. Poor organization system for handling New Product Ideas. Poor market planning. Poor forecasting and market research. High product development cost. Questionable pricing strategy. Bad timing of introduction of new product. Lack of advertisement. Poor product decision. Over optimism about market plans.

7. The following steps which are followed in New product development process are as follows:- Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Marketing strategy Test marketing Commercialization

8. It is necessary for growth of enterprises. It ensures the sales and profit maximization of the firm. All products decline with time (life cycle)‏ The market is dynamic. Technical innovation is permanent etc…….

9. So to conclude we can say that new product development is necessary to establish an effective organization for managing the development process. Marketing should participate with other departments in every stage of new product d development.

10. Thanks.