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Product planning & development
 

Product planning & development

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    Product planning & development Product planning & development Presentation Transcript

    • Soma GiriDisclaimer: - 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
    • Product quality Physical Seller’s characteristics services of goods Seller’s Pricereputation Colour Brand Product Packaging warranty Design
    • Why crawl when you can  Improving and updating product lines is crucial for the run? success for any organisation.Staying still resembles a  Failure for an organisation to change could result in a rock 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
    • NPD Strategy• Original products• Acquisition• Product improvements• Product modifications• New brands through the firm’s own R&D efforts. New Product Development Quality Brand Growth Productivity Improvement Maintenance• New Products Reduce Cost Quality of Design • Conformance• New Packages • Formulas • Special Situations • Packages • Regulatory •Manufacturing • Environmental • Specifications
    • New Product Development Process Idea Generation and Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization
    • Idea Generation (Opportunity Identification) Idea ScreeningInternal sources This process involves shifting through theCompany employees at all levels ideas generated above and selecting ones which are feasible and workable toExternal sources develop.CustomersCompetitors Pursing non feasible ideas can clearly beDistributors costly for the company.SuppliersOutsourcingConcept Development and Testing Market Research Options (Strategy) Done by Marketing and/or Advertising Qualitative Depth Interviews Agency Conducting “Focus Groups” Focus Groups Objectives Expert Judgment• Judge whether the concept fits the Quantitative opportunity area, and constraints Pre-Prototype Post-Prototype•Refine and / or describe the product concept What it is : Surveys Product Use Test What benefit(s) will it deliver to the user Conceptual Tests Lab Test Market Key information – size, varieties, package, Perceptual Maps Test Market price Conjoint Analysis
    • Business AnalysisEvaluate 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 MarketSimulated 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 forecastLive 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
    • 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