Stages in new products development Presented by: Kavitaamit Prasad Geetanjali kumar

New Product Development (NPD) New product development (NDP) is a process which designed to develop, test and consider the viability of products which are new to the market in order to ensure the Growth or survival of the 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 develop NDP : To add to product portfolio To create stars and cash cows for the future To replace declining product To take advantage of new technology To maintain/increase market share To keep up with rivals To maintain competitive advantage To full gap in the market

New product can be used : New product can be used Increase/defend market share by offering more choice or updating older products Appeal to new segments and to diversify into new markets Improve relationship with distributors Maintain the firm’s reputation a leading edge company.

Stage 1: Idea generation Idea generation is continuous, systematic search for new product opportunities. It involves delineating sources of new ideas and methods for generating them. New product ideas have to come from somewhere. But where do organisations get their ideas for NPD? Some sources include: Within the company i.e. employees Competitors. Customers Distributors, Supplies and others.

Stage 2: Idea Screening This process involves shifting through the ideas generated above and selecting ones which are feasible and workable to develop. Pursing non feasible ideas can clearly be costly for the company. In product screening poor, unsuitable or otherwise unattractive ideas are weeded out form further actions

Stage 3: Concept Development and Testing Concept testing present the consumer with a proposed product and measure attitudes and intention at this early stage of development. The organisation may have come across what they believe to be a feasible idea, however, the idea needs to be taken to the target audience. What do they think about the idea? Will it be practical and feasible? Will it offer the benefit that the organisation hopes it will? or have they overlooked certain issues? Note the idea and concept is taken to the target audience not a working prototype at this stage.

Stage 4: Marketing Strategy and Development How will the product/service idea be launched within the market? A proposed marketing strategy will be written laying out the marketing mix strategy of the product, the segmentation, targeting and positioning strategy sales and profits that are expected.

Stage 5: Business Analysis Business analysis for the remaining product concepts is much more detailed than product screening The company has a great idea, the marketing strategy seems feasible, but will the product be financially worth while in the long run? The business analysis stage looks more deeply into the cashflow the product could generate, what the cost will be, how much market shares the product may achieve and the expected life of the product.

Stage 6: Product Development Product development converts a product idea into a physical form and identifies a basic marketing strategy Finally it is at this stage that a prototype is finally produced. The prototype will clearly run through all the desired tests, and be presented to the target audience to see if changes need to be made.

Stage 7: Test Marketing Test marketing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan Test marketing means testing the product within a specific area. The product will be launched within a particular region so the marketing mix strategy can be monitored and if needed, be modified before national launch.

Stage 8: Commercialization Commercialization involves implementing a total marketing plan and full production If the test marketing stage has been successful then the product will go for national launch. There are certain factors that need to be taken into consideration before a product is launched nationally. These are timing, how the product will be launched, where the product will be launched, will there be a national roll out or will it be region by region?