PRODUCT DEVELOPMENT
“DON’T FIND CUSTOMERS FOR YOUR
PRODUCTS, FIND PRODUCTS FOR YOUR
CUSTOMERS”
-SETH GODIN
AGENDA
• NEW PRODUCT DEVELOPMENT.
• NEED FOR PRODUCT DEVELOPMENT.
• PRODUCT DEVELOPMENT MODEL.
• REASONS FOR FAILURE OF NEW PRODUCT.
• CASE STUDIES.
• QUESTIONNAIRE:-CHECK LIST.
• CONCLUSION.
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PRODUCT
DEVELOPMENT
The development of a new product (here
onto New product development – NPD)
by a company begins when the need to
create a new product appears either due
to the emergence of a new technology, or
the appearance of a competitive product
or a change in the existing legal
framework and is completed with the
final introduction of the product in the
market.
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NEED FOR PRODUCT
DEVELOPMENT
A company or an enterprise may proceed
to a new product development whether
that company or enterprise is part of a
rapidly changing market or not.
Those new products may be based on other already
existing ones and act as a complement or
improvement to existing offerings, or may be totally
new products based on new technology without the
need of support from others (Stand alone products).
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RESEARCH &DEVELOPMENT
CUSTOMER NEEDS
SELECTION OF PRODUCTION PRODUCT
BRAIN STORMING DESIGN & REDESIGN
PRODUCT STRATEGY IDEA PREPARATION OPTIMISATION
OBJECTIVES PRODUCT RIPENNING RESULTS
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PRODUCT DEVELOPMENT
MODEL
1. Creation of ideas.
2. Evaluation of ideas.
3. Product development .
4. Manufacture of prototype.
5. Product promotion.
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CREATION OF IDEAS
Customer or users of company product.
Market research.
Competitors.
Company employees or dealers.
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IDEA COMPARISON &
ASSESSMENT(SCREENING)
A. Assessing ideas based on company
objectives .
B. Assessing ideas based on sales and
company profit .
C. Assessing ideas based on big customers
and users.
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PRODUCT DEVELOPMENT
Research & development
1. Finances.
2. Perplexity.
3. Manpower.
4. Management.
5. Suppliers.
Environmental restrictions.
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MANUFACTURE OF PROTOTYPE
PROTOTYPING
Each prototype should provide answers to specific questions.
The prototype should be as detailed and complex as necessary to provide the required information.
If there are multiple ideas, then it is necessary that multiple prototypes be developed.
Decisions should be made during the development of the prototype and one should not await its final form.
The swifter the prototype development, the swifter the overall development of the new product.
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MARKET TESTING
TESTING:-STUDY PRIOR TO TESTING:- STUDY AFTER
THE INTRODUCTION IN THE THE INTRODUCTION IN
MARKET THE MARKET
Market focusing -identification. Reliability study.
Market behavior study . Study on optimization needs.
Focusing on involved customers. Study on new advertising strategies.
Testing the product idea.
Testing the product name & packaging.
Product testing.
Study on possibility to copy the product.
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PRODUCT PROMOTION
FINAL STRATEGIC PLAN AND INTRODUCTION OF THE
MARKETING OF THE PRODUCT IN THE
PRODUCT MARKET
Use. Tests & packaging.
Appearance . Market selection.
Easy maintenance. Distribution & delivery.
Low cost communication.
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REASONS FOR FAILURE OF NEW PRODUCT
Underestimation of competitors.
Overestimation of the number of potential consumers.
Overestimation of the price of the product.
Lack of or failure to identify mature markets for the distribution of the product.
CASE STUDIES
DEVELOPMENT OF PRODUCTS BASED ON EXISTING ONES
• The «Gillette» company started its business
activity as a manufacturer of razors and
shaving blades. However, it realized that it
could provide its customers with much more.
Therefore, it developed products such as
shaving foam, various gels, as well as after-
shave skin care products. Furthermore, the
company proceeded in the elaboration of
the changing shaving-blades technique,
those blades however only fit in razors
manufactured by the same company. The
above development is an example of those
companies that were not based on the
development of brand new products, but of
products that came as a natural continuance
of an already successful product.
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PARTICIPATION OF THE SUPPLIERS IN NEW PRODUCT DEVELOPMENT
• “Philips Medical Systems (PMS)” is
part of the “Royal Philips
Electronics” company in Holland. It
is involved in the development of
products such as X-ray equipment,
ultrasound devices, etc. In an
attempt to reduce the new product
development cost, it introduced the
participation of the suppliers of the
various parts forming its products,
during the new product development
procedure within the research and
development department. This led to
a significant reduction of the new
product development time and cost.
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QUESTIONNAIRE-CHECK LIST
QUESTIONNAIRE-CHECK LIST
INITIAL DEVELOPMENT
• Are there the necessary funds to develop a new product or service?
• Does the company have the technological ability to support the development of a new product or service.
• Is there the necessary time for such a development ?
• How do the consumers – customers view the possible introduction of such a product or service in the market ?
• Is the new product or service unique.
• Has the new product or service been sufficiently researched ?
• Is the new product based on current or future trends in the market? If so, what are they
• Is there the manpower for such a development ?
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QUESTIONNAIRE-CHECK LIST
PRODUCT PLANNING RESEARCH & DEVELOPMENT
• How many people should be involved in research & planning ?
• How much will research cost and where will the resources be found?
• Who will the suppliers be and how reliable are they ?
• Are there time and money margins for unexpected events during planning ?
• Which will be the rules governing the various procedures from the beginning to the end of the development ?
• How much will the creation of a prototype and its assessment from the buyers help ?
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QUESTIONNAIRE-CHECK LIST
INTRODUCTION OF THE PRODUCT IN THE MARKET
• Has the way the product will be distributed in the market been decided ?
• What are the positive features of the product ?
• Is there a possibility to improve the product ?
• What is its estimated value?
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CONCLUSION
TO PROVIDE GOODS OR PRODUCT OF BEST QUALITY.
IT HELPS IN PROVIDING MAXIMUM CUSTOMER SATISFACTION.
TO REPLACE DECLINING PRODUCT & TAKE ADVANTAGE OF NEW TECHNOLOGY.
TO MAINTAIN/INCREASE MARKET SHARE WITH COMPETITIVE ADVANTAGES.
TO FILL GAP IN THE MARKET. 25
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THANK YOU
PRESENTED BY- DHARMESH SAVITA [BBA-SEM-4(B)]