managing new product development process

MANAGING THEProduct Development

Process

IdeaGeneration…

Step 1

• IS the Idea worth Considering ?

INTERACTION WITH OTHERS

INTERACTION WITH EMPLOYEES

STUDYING COMPETITORS

IdeaScreening…

Step 2

• IS the Idea compatible with company objectives and goals?

Two Possible ErrorsIn

Screening…

Dismissing a Good Idea…

1.Drop Error..

Not Dismissing a Bad Idea…

2.NOT Dismissing a Poor Idea Early

Enough..

Concept Development and

Testing..

Step 3

• Can we find a concept the customer would try ?

Concept Development

Concept Development

Stage 1. Category Concept

Concept Development

Stage 2. Brand Concept

CONCEPT TESTING

Marketing Strategy And

Development

Step 4

• Can we find a affordable marketing Strategy ?

Three part Strategy….

Part 1 describes :

(a)Market Size

Part 1 describes :

(b)Market Structure

Part 1 describes:

(c)Market Behaviour

Part 1 describes:

(d)Planned Market Postioning

Part 2 describes :

(a)Planned Price..

Part 2describes :

(b)Distribution Strategy

Part 3 describes:

(c)Marketing Budget

Part 3 describes :

(a)Long run sales..

Part 3 describes :

(b)Profit Goals

Part 3 describes:

(c)Marketing Mix Strategy

Business Analysis

Step 5

• Will the product meet our profit goal ?

Estimating Total Sales..

Estimating Costs and

Profits…

Product Development

Step 6

• Have we got a technically and commercially sound product ?

Quality Functional DeploymentQFD

Quality Functional DeploymentQFD

(a)Customer Attributes(CA)

Quality Functional DeploymentQFD

(b)Engineering Attributes (EA)

Physical Prototypes

Customer Tests

Alpha Testing: Within Company

Customer Tests

Beta Testing: Outside Company

Market Testing

Step 7

• Has the product met sales expectations ?

Consumer Goods Market Testing

1.Sales Wave Research

Consumer Goods Market Testing

2.Simulated Test Marketing

Consumer Goods Market Testing

3.Test MarketsHow many cities? Which ones ?

Duration ?

Consumer Goods Market Testing

Business GoodsMarket Testing

Commercialization

Step 8

• Are products meeting Sales expectations ?

WHEN?Timing!

WHEN?Timing!

1.First EntryMaybe good. My backfire.

WHEN?Timing!

2.Parallel EntryMarket Pays more attention.

WHEN?Timing!

3.Late EntryMay address faults and hence

succeed.

WHERE??

Place!

To WHOM??

Target Market Prospects!

HOW ?

Introductory Market Startegy.

RECAP

Thank You !

Chandra Has Dondapati