Soma Giri

Disclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons

What is Product?• A product is anything that can be offered to a market that

might satisfy a want or need

• It is more than physical products; includes services, places, persons, and ideas

• To create successful new products, the company must:– understand it’s customers, markets and competitors – develop products that deliver superior value to customers.

• Products go through life cycles• Product planning-involves making decisions about the

production and sale of a business’s products.

Why do Products fail?

• Doesn’t match current company objectives• Make room for other products• Overestimating market size• Poor marketing research• Obsolete• Lost its appeal• No longer profitable• Conflicts with other products in the same product line • Design problems• Excessive development costs• Incorrectly positioned, priced, or advertised• Competitive reaction

Seller’sservices

Productquality Physical

characteristicsof goods

Price

Brand

Design

PackagingProductwarranty

Seller’sreputation

Colour

Improving and updating product lines is crucial for the

success for any organisation.

Failure for an organisation to change could result in a

decline in sales and with competitors racing ahead.

The process of NPD is crucial within an organisation.

Products go through the stages of their lifecycle and

will eventually have to be replaced

Why crawl when you can run?

Staying still resembles a rock

NPD Strategy• Original products• Acquisition• Product improvements• Product modifications• New brands through the firm’s own R&D efforts.

New Product Development

Growth Productivity Quality Improvement

Brand Maintenance

• New Products• New Packages

Reduce Cost• Formulas• Packages•Manufacturing

Quality of Design • Conformance• Special Situations• Regulatory• Environmental• Specifications

New Product Development Process

Commercialization

Test Marketing

Product Development

Business Analysis

Marketing Strategy

Concept Development and Testing

Idea Generation and Screening

Idea Generation (Opportunity Identification)

Internal sourcesCompany employees at all levels

External sourcesCustomersCompetitorsDistributorsSuppliersOutsourcing

Idea Screening

This process involves shifting through theideas generated above and selecting oneswhich are feasible and workable todevelop.

Pursing non feasible ideas can clearly becostly for the company.

Concept Development and Testing Done by Marketing and/or Advertising

Agency Conducting “Focus Groups”Objectives• Judge whether the concept fits the opportunity area, and constraints

•Refine and / or describe the product conceptWhat it is :What benefit(s) will it deliver to the userKey information – size, varieties, package,

price

Market Research Options (Strategy)

Qualitative Depth InterviewsFocus GroupsExpert Judgment

Quantitative

Pre-Prototype Post-Prototype

SurveysConceptual TestsPerceptual MapsConjoint Analysis

Product Use TestLab Test MarketTest Market

Business Analysis

Evaluate the marketing plan will specialemphasis on sales , cost, profit estimates.Must pass the business test criteria forfurther development

Product Development

• Initial stages with broad design parameters• Produce early prototypes• Show and obtain feedback from end users• Refine design

• Fine tune & finalise design• Vary formulations on key ingredients• Conduct product testing amongst end users• Experimental designs offer most powerful learning

• Optimise final design and packaging

Test Marketing• Simulated Test Market• Live Test Market

Live Test Market (LTM)• To measure actual sales volume

• Controlled – Behaviour Scan• Conventional –normal channels

• Track sales rate, trial, repeat• Compare to goals and identify gaps• Investigate and close gaps

Simulated Test Market (STM) Similar to Concept Test but with product Provide samples to consumers who are Interested in the concept Measure both trial potential and reaction to product Reaction to product is used to forecast repeat rate Volume is forecasted on basis of both the trial forecast and the repeat forecast

Commercialisation

• National expansion of product

• Develop market rollout plan

• Can involve significant capital investment

•Brick & Mortar : Equipment

• Can involve distribution costs

•Slotting fees : Sales incentives

• Build product into a “Platform”

•Maintain growth and sustain competitive advantage

MAJOR PRODUCTS