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new product development,plc,operations in npd
 

new product development,plc,operations in npd

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    new product development,plc,operations in npd new product development,plc,operations in npd Presentation Transcript

    • WHY ALL THE COMPANIES ARELOOKING TO DEVELOP AEXISTING PRODUCT ORINTRODUCING A NEW PRODUCT?
    • # “ When the changes outside is better than changes inside, the end is near ”.# To make more profit.# To expand their market.
    • NEW PRODUCT DEVELOPMENT Definition: Development of original products, product improvement, product modification, inventing new product through the firm’s own R&D efforts.
    • PROCEDURES OF NEW PRODUCT DEVELOPMENT
    • IDEA GENERATION Internal source # Research and Development # employees External source # customers # competitors # suppliers # distributers
    • IDEA SCREENINGProcess to spot a good idea and drop poor ones # Selecting an idea which is feasible and workable to develop. # Online blogs may discuss customers dissatisfaction with a certain product, which may provide ideas to inventors or a new product or service..
    • CONCEPT DEVELOPMENT AND TESTING It provide full details of the new product’s idea. # Will it be practical and feasible? # What benefits the product will provide ? # How will consumers react to the product? # What will it cost to produce it ? # Testing the concept by asking a number of customers what they think of the idea
    • MARKET STRATEGY & DEVELOPMENT 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.
    • BUSINESS ANALYSIS The business analysis stage looks more deeply into the Cash flow the product could generate, what the cost will be, how much market shares the product may achieve and the expected life of the product.
    • PRODUCT DEVELOPMENT At this stage the prototype is produced. The prototype will clearly run through all the desired tests, and presented to a selection of people made up of the target market segment to see if changes need to be made.
    • TEST MARKETING 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 modified before national launch.
    • COMMERCIALIZATIONThere are certain factors that need to be taken into account before a product is launched nationally. These include: timing of the launch, 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?
    • CONT… Finallythe commercialisation stage involves careful planning to maximise product success, a poor launch will affect product sales and could even affect the reputation and image of the new product.
    • PRODUCT LIFE-CYCLE STRATEGIES # The Product Life Cycle (PLC) has Five Stages. # Product development # Introduction # Growth # Maturity # Decline
    • PRODUCT LIFE CYCLESales andProfits ($) Sales Profits Time Product Introduction Growth Maturity Decline Develop- mentLosses/Investments ($)
    • PRODUCT LIFE-CYCLE STRATEGIES PLC Stages  Begins when the company Product development develops a new-product Introduction idea Growth  Sales are zero Maturity  Investment costs are high Decline  Profits are negative
    • PRODUCT LIFE-CYCLE STRATEGIES PLC Stages  Low sales Product development  High cost per customer Introduction acquired Growth  Negative profits Maturity  Innovators are targeted Decline  Little competition
    • MARKETING STRATEGIES:INTRODUCTION STAGE Product – Offer a basic product Price – Use cost-plus basis to set Distribution – Build selective distribution Advertising – Build awareness among early adopters and dealers/resellers Sales Promotion – Heavy expenditures to create trial
    • PRODUCT LIFE-CYCLE STRATEGIES PLC Stages  Rapidly rising sales  Average cost per customer Product development  Rising profits Introduction  Early adopters are Growth targeted Maturity  Growing competition Decline
    • MARKETING STRATEGIES:GROWTH STAGE Product – Offer product extensions, service, warranty Price – Penetration pricing Distribution – Build intensive distribution Advertising – Build awareness and interest in the mass market Sales Promotion – Reduce expenditures to take advantage of consumer demand
    • PRODUCT LIFE-CYCLE STRATEGIES PLC Stages Product development  Sales peak Introduction  Low cost per customer Growth  High profits Maturity  Middle majority are Decline targeted  Competition begins to decline
    • MARKETING STRATEGIES:MATURITY STAGE  Product – Diversify brand and models  Price – Set to match or beat competition  Distribution – Build more intensive distribution  Advertising – Stress brand differences and benefits  Sales Promotion – Increase to encourage brand switching
    • PRODUCT LIFE-CYCLE STRATEGIES PLC Stages  Declining sales Product development  Low cost per customer Introduction  Declining profits Growth  Laggards are targeted Maturity  Declining competition Decline
    • MARKETING STRATEGIES:DECLINE STAGE Product – Phase out weak items Price – Cut price Distribution – Use selective distribution: phase out unprofitable outlets Advertising – Reduce to level needed to retain hard-core loyalists Sales Promotion – Reduce to minimal level
    • OPERATIONS OF NEW PRODUCTDEVELOPMENT New Product Lines: They allow the business to enter a completely new market segment. Additions to existing Product Lines: These are new items to the business, but they fit within an existing product line that the business already produces. They may represent a fairly new product to the market. Repositioning: These are new applications for existing products. They involve the retargeting of an old product to a new market segment.
    • CONT… Improvements and Revisions to ExistingProducts: These “not so new” products arereplacements of existing product lines. These“new and improved” product lines areincremental innovations . Cost Reductions: designed to replace existing product lines while providing similar benefits and performance but at significantly lower costs to the business.
    • Thank you 