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8/6/2019 Mktg Articles

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NEW PRODUCT DEVELOPMENTNEW PRODUCT DEVELOPMENT

TEN ARTICLES SHIVANATH N SUKANYA

ABIRAM


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1.1. 006 NEW PRODUCT006 NEW PRODUCT

DEVELOPMENTDEVELOPMENT

New Product development is a method of out ofbox innovation.

Product development:The process thattransforms technical ideas or market needs

and opportunities into a new product and onto the market Increased uncertainty of the new product

development process. No standard rules of thumb can be applied to

develop the product, thus a more open ideafinding phase is necessary.

Four basic stages of product innovation : policyformulation, idea finding, strict development,and realisation.


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Product developmentProduct developmentprocessprocess

Product development process is acreative and iterative set of steps andphases that converts ideas into

saleable products and/or services. Steps: strategy, organisation, concept

generation, product, and marketingplan creation and evaluation, and the

commercialisation of a new product. Phases: policy formulation, idea finding,

and strict development.


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Flow DiagramFlow Diagram


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The divergent activity explores andredefines problems, generates ideas,and combines concepts.

The convergent activity imposes valuejudgments and includes methods tomake sense of information, prioritiseitems, compare solutions, assess ideas

and select concepts. Linear Process, but it can contain iterative

cycles.


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New productNew producttechnologiestechnologies

New product technologies can be asource of inspiration for new productdevelopment, since these technologies

often add value when incorporated intoa new product.

Examples: eco-materials,nanotechnology, renewable energysources, and Information andCommunication Technology (ICT).


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AdvantagesAdvantages

Increased savings through energy and resource efficiency, reduced toxicity,

and improved reusability or recyclability.


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Eco-materials are new materials that have farless impact on the environment and play animportant role in new product developments.

Nanotechnology is a growing field that offersgreat innovation potential in the realm ofsustainable materials (smaller, lighter, andmore intelligent).

Renewable energy sources, such as human

powered devices, fuelcells and photovoltaicsoffer great sustainable enhancement potentialfor portable products. Used in Tv, calculators,ticket machines; torch mobile chargers;automobiles, fuelling stations.

ICT easily contributes to new productdevelopment by advancing sustainablefunctionalities or features in existing products.Intelligent products can be developed toreduce energy use, improve connectivity and

improve functionality. Such as low energy


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2.2.NEW PRODUCT DEVELOPMENT OR

LAUNCH


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A product can be defined as bundle of

attributes that satisfies a consumerdemand.

Consumers purchase different productswhich are useful and agreeable to

them. It has various features such as physical

attributes, brand, design, color, shape,

size etc. New product launch means introducing a

new product into the market or addinga new product in the existing product

line of the company.


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Stages of launchStages of launch

Generating new product ideas of productwith promising marketing prospects.

Idea Screening.

Concept Testing. Business Analysis.

Marketing Analysis.

Actual development of a new product Test marketing

Commercialization


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Product:Product: NATURE Plus HairNATURE Plus HairShampooShampoo

Main aim: make it India's largest sellingshampoo.

Main benefits: strengthens weak hair,

prevents hair breakage, softens roughdry hair, shine for thick and healthyhair, and contains antidandruffingredient.


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New ideas and a latestNew ideas and a latestconceptconcept

Strengthens weak hair, prevents hairbreakage, softens rough dry hair, shinefor thick and healthy hair, and contains

anti-dandruff ingredient. The packaging of the product should be in

such a way that it should be very eyecatching and attractive.

Plus here indicates that it containsscientific as well as ayurvedic variant.


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Testing of the productTesting of the product

The product should be prepared by RNDdepartment and it should be tested.

It should not have any side effects.

Whether the Shampoo is really effectiveor not.


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Business AnalysisBusiness Analysis

The total expenditure should becalculated.

The market structure, the companys

market share, companys goodwill andimage plays vital role.


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Marketing analysisMarketing analysis

Market Share of HLL

Strategies used againstCompetitors:a) Low pricing strategytargeting medium class.b) Pull Strategy Free trial

packets should be distributed. Targetplaces for such campaigns should bemalls, parlors, bazzar etc.


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PricingPricing

Sachet 7.5 ml Rs. 02

Bottle 25 ml Rs. 05

100ml Rs. 30

200 ml Rs. 55

300ml Rs. 90

Nature Plus 200ml Rs. 60

Bubble Pack 30ml Rs. 08


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PromotionPromotion

Reduction in prices Buy One Get One Free Bubble Pack: as sachet is difficult to

store 25 ml for Rs. 5 Promotion of Nature Plus in various hair

saloons and beauty parlours across

India Promotion of Nature Plus in various health

clubs across India Promotion of Nature Plus in rural areas

across India with the help of weekly

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