Product Development - Obi

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This presentation is a training material for the product development for entrepreneurs and startups owner at early stage, he I explain the process of product development and to create a successful product that reaches the markets

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Product Development - Obi

  1. 1. Product Development
  2. 2. New Product Development Process  Idea Generation and Screening  Concept Development and Testing  Marketing Strategy  Business Analysis  Product Development  Test Marketing  Commercialization
  3. 3. Generating the idea  Systematic Search for New Product Ideas  Internal sources  Customers  Competitors  Distributors  Suppliers
  4. 4. Idea validation and screening  Define the idea market size  The product expected price  The time and the costs of developing the product  RIO and benefits
  5. 5. Developing the concept and testing the product Modifying the idea into a valid product Test the product with customers Take inputs and feedback Create the final product
  6. 6. Developing the product marketing strategy General strategy • The overall strategy and plans for the product and sales and market share Long term strategy • Sales, profit expected and marketing mix Short term strategy • Price, distribution and marketing and promotional budget
  7. 7. Business analysis If No, Eliminate Product Concept If Yes, Move to Product Development Business Analysis Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives
  8. 8. Marketing test Standard Test Market Full marketing campaign in a small number of representative cities. Controlled Test Market A few stores that have agreed to carry new products for a fee. Simulated Test Market Test in a simulated shopping environment to a sample of consumers.
  9. 9. Product Life Cycle Sales and Profits ($) Sales Profits Time Product Development Losses/ Investments ($) Introduction Growth Maturity Decline
  10. 10. Introduction stage of the Product Life Cycle Sales Low sales Costs High cost per customer Profits Negative Create product awareness and trial Marketing Objectives Product Offer a basic product Price Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers
  11. 11. Growth Stage Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing Objectives Maximize market share Product Price Offer product extensions, service, warranty Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market
  12. 12. Maturity Stage Sales Peak sales Costs Low cost per customer Profits High profits Marketing Objectives Maximize profit while defending market share Product Price Distribution Advertising Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits
  13. 13. Decline Stage Sales Declining sales Costs Low cost per customer Profits Declining profits Marketing Objectives Reduce expenditure and milk the brand Product Phase out weak items Price Cut price Distribution Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers Advertising

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