Presented To: Mam Amara Presented By: Muhammad Faisal Rao BS(IT)4 th Roll No.07-49

3 What are the objectives of the new product development process? What are the different stages in new product development? What are some ways to increase the efficiency of the NPD process? How might NPD differ over the different stages of the industry life-cycle?

4 Maximize fit with customer requirements Value proposition should be clear Better features or lower costs Minimize development cycle time First mover advantages Reduced costs Controlling development costs Higher margins

6  Employees  Customers (users)  Suppliers  Competitors/Complementors  Ideas often evolve due to interaction among the above groups

7 3. Business Analysis 1. Idea Generation 2. Idea Screening 4. Development 5. Test marketing 6. Commercialization

8 3. Business Analysis 1. Idea Generation 2. Idea Screening 4. Development 5. Test marketing 6. Commercialization Employees, customers, suppliers, competitors

9 3. Business Analysis 1. Idea Generation 2. Idea Screening 4. Development 5. Test marketing 6. Commercialization Many -- employees, customers, suppliers, distributors, competitors Reduce # quickly

10 3. Business Analysis 1. Idea Generation 2. Idea Screening 4. Development 5. Test marketing 6. Commercialization Many -- employees, customers, suppliers, distributors, competitors Reduce # quickly S/F/C criteria; decision making under uncertainty

11 3. Business Analysis 1. Idea Generation 2. Idea Screening 4. Development 5. Test marketing 6. Commercialization Many -- employees, customers, suppliers, distributors, competitors Reduce # quickly S/F/C criteria; decision making under uncertainty Processes for reducing costs

12 3. Business Analysis 1. Idea Generation 2. Idea Screening 4. Development 5. Test marketing 6. Commercialization Many -- employees, customers, suppliers, distributors, competitors Reduce # quickly S/F/C criteria; decision making under uncertainty Processes for reducing costs Experiment with small numbers Launch new product!!

13 Test Marketing Standard Test Market Introduction in a small market supported by a full-fledged marketing campaign

14 Time Dollars Introduction Growth Maturity Decline Industry Sales Sales Industry Profits Profits 0

15 New product development is risky, but can provide high returns Not engaging in NPD will surely result in failure Managing the various stages of the NPD process is critical

Starts with Positioning Target Benefit(s) Frame of Reference Support Sales Plan – Who will sell it, where will it be sold? Advertising Media Plan – How will we advertise it? Promotion Plan – Consumer promotion (coupons), Trade promotion (on- sale) Production Plan – How will we make it? Plants Lines Financial Plan – How do we make the profit necessary to satisfy our share holders? Fixed Costs - Capital investment, overhead Variable Costs – Cost to produce – ingredients, packaging, distribution Breakeven/Targeted Return on Investment