The document discusses the process of new product development (NPD). It explains that NPD involves developing, testing, and assessing new or modified products and services to ensure business growth. The key stages of NPD are identified as idea generation, screening and evaluation, business analysis, development, market testing, and commercialization. Each stage of the process is then described in more detail regarding its purpose and relevant marketing methods.

1. New Product Development
1st July 2012
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2. What is New Product Development (NPD)?
NPD is the complete process to develop, test and
assess the viability of products or services that are
new to the market to ensure growth and survival of
an organization.
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3. Not all NPD has to do with completely new products it
can be about existing products
New
Market Market Diversification
Development
Existing
Market Market Product
Penetration Development
Existing Product New Product
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4. It is important to know the stages of new product /
service development
New Product Idea Screening
Strategy Generation & Evaluation
Development
Market Testing Development Business
Analysis
Launch / Post-Launch
Commercialization Monitoring
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5. Now lets deep dive into each of the stages
Purpose of the stage Marketing Methods
New Product Strategy  Identify product’s focus and unique  Use members from different
Development selling points, approach and guidelines company departments and levels
 Brainstorm concepts for potential  Ideas from R&D, employees,
Idea Generation products / services competitors and focus groups
Screening and  Eliminate bad ideas and focus on  Identify screening criteria and key
Evaluation strong products performance indicators
 Analyze the products features,  Create marketing plan consider 4Ps
Business Analysis marketing strategy and financial plans  Financial, legal & economic state
 Create prototype product to  Laboratory tests
Development understand all intricacies  Consumer tests
 Pilot product and marketing in the  Simulation testing
Market Testing market on a small scale  Test small market samples
Launch /  Position product in marketplace  Product Positioning
Commercialization  Potential for Regional Growth
Post-Launch  Monitor progress and identify possible  Gather Customer Feedback
Monitoring areas for improvement and growth  Create Surveys
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6. Idea Generation
Internal Resources
• Use resources within the
company to identify and generate
ideas and leads
Suppliers & Customers
Distributors
Idea • Ask the client!
• Go up and down • Customers are the
the value-chain to Generation closest to their
needs
recognize spaces
to capture
Competitors
• Analyze existing landscape to
identify gaps that can be filled
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7. Screening and Evaluation
 Eliminate bad ideas and focus on good ones based on the criteria below
Screen &
No Go Evaluate Go
Eliminate Products that Proceed with Products
do not pass criteria that pass criteria
 Scalability
 Product Price
 Development Duration
 Cost to Develop
 Return on Investment
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8. Business Analysis
Marketing Strategy Financials
 Create full marketing plan  Make financial plan and
 Think through all 4Ps projections for product / service
– Product  Analyze investment needed and
– Price available sources for funding
– Promotion
– Place
Business
Analysis
Legal and Competitive landscape Macro-Economic conditions
 Are there legal barriers to entry  Check overall economic
 Do competitors have any edge conditions
 Test for available similar products – Political Risks
or substitutes – Employment
– Currency Risks
 Are there more opportunities or
threats in the current economic
status
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9. Development
Idea Physical Product /
Service
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10. Market Testing
Standard Test Controlled Test
Market Market
• All-out marketing • Agree with specific
campaign outlets to carry new
• Small geo coverage product
• Negotiate an
agreement
Simulated Test
Market
• Try on small sample
size of consumers in
a simulated
environment or test
group
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11. Commercialize and Launch!
 This is the phase in which you must build and create demand for the new product or service offering
 Allocate resources and spending according to plan to get new product to market
Initiate Product Life Cycle
Revenue
Entry Growth Mature Time
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12. THANK YOU
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Maadi, Cairo, Egypt
+20 2 2750 9088
b2b@darendeal.com
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