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New product design


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New Product Design, Process and Issues

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New product design

  2. 2. NEW PRODUCT A product is defined as the things or services which satisfy the needs of person. As a competitive age of business, design or innovation of the new product is essential for every business house. New product doesn’t only means of producing new conceptual products. A old or existing product for a company may new product for another company. The definition and level of new product is differ in terms of nature of the organization. So, new product is the product which is differ form the existing product. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  3. 3. NEW PRODUCT New product development process is integration of different research work. Simply, new product doesn’t mean a new conceptual product.They are designed as follows:1. The design of new products2. The redesign of existing products3. The identification of new uses for existing products4. The improvement of packing of existing products BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  4. 4. The design of new products This method is suitable of financially strong MNC and big manufacturing houses as it needs heavy cost, time, and technology. It is risky job. This method need heavy investment in R&D. Launching a new products requires different kind of skills in product design, production and marketing. The new product may be as follows:New product can be integrated into current product line:MahendraExisting Product: Four WheelersNew Product: Two WheelersNew product entirely unrelated to current product line:Chaudhary GroupExisting Product: Noodles, BeveragesNew BIRODH ADHIKARI, Product: Apartments, Housing SSMC, CHITWAN, NEPAL
  5. 5. The redesign of existing products New product redesign is also method of development of new product. It is less risky then development of conceptually new product. This is widely used method of development of new product. In this method the company adds some utilities to the existing product or redesign its features or physical re design. It is also used to reduce production cost as well. It is widely used for automobiles.Hero Honda SplendorHero Honda Splendor- ( Euro)Hero Honda Splendor PlusHero Honda Splendor Super- Self ADHIKARI, BIRODH Start SSMC, CHITWAN, NEPALHero Honda Splendor NXG
  6. 6. The identification of new uses for existing products Identification of new uses for existing products also a method of new product development. Some multiple uses of product is find out through applied research work. Hence the market coverage of the product is board and sell will be increase.Banks and FisSaving Product- Existing Product and traditional uses.Telephone Bill Payment-Additional uses of saving product.Tractors- Transportation and cultivation- traditional uses.Motor and gen set- additional uses of the tractors BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  7. 7. The improvement of packing of existing products This is widely used new design of products without change in its utility and uses. This method is used only after the conclusion research work, what model, what color, what size consumer want? Different Consumable Product frequently changes its packaging.LG TelevisionFrequently changes its size 14’’ 17’’ 24’’ 32’’Colors- Black, White, Grey etc. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  8. 8. New Product design needs research work Market Research Applied Product Pure Research Configuration Pilot Run. Resear ch Production ProcessNew Product design is the process of integration of different work.Different research work together to developed new product.Big Corporate House has established R&D Development of New Product. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  9. 9. New Product design needs research work Pure research is the process of concept development of the product. The immediate result of applied research work is the creation of a physical model of the product, demonstrating that the ideas underlying the product are practical. The process of establishing the characteristics of the final product is usually called product configuration. After the product development, market research and pilot run is done to find out the potential market perspectives. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  10. 10. New Product Development – Final Slide Any Questions?? BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  12. 12. Product life cycle Everything in the world have its own life cycle. The stages of the life cycle of the product is a factor in product design. The Product Life Cycle is concerned with the pattern of demand of product from its introduction on market to the point where the product has very less or no demand. It’s a hierarchy of product demand form the market. Time of The product life cycle is differ form the nature of the product it may be some hours to decades. It is namely divided in to the following stages:Introduction:Growth:Maturity:Decline: BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  13. 13. Stages of Product life cycle Cell Phone Automobile Dot-Matrix Printer Internet Radio3G MOBILE B&W TVIntroduction Growth Maturity Decline BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  14. 14. Introduction Introduction is essential stage of new product development. Sales is slowly increasing, no profit is available due to low sales volume. Heavy advertising is needed to grow the sales. It is a trial stage of the product so the success of new product depends on how the introduction stage react? In this stage the product development and design are of considerable importance. Examples: 3G Mobiles BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  15. 15. Growth It is the second phase of product life cycle. Sales revenue is in large in amount, profit is increasing. The firms are focus on increasing market share by focusing different marketing strategies. Due to the increasing in the sales POM has crucial role in increase quality product in desired time and quantity. It is more important stage of product life cycle in terms of making profit form the market.Examples: Internet Radios BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  16. 16. Maturity When the sales revenue is increasing, the competitors also introduce same nature product. Thus the competition is increasing . The firm is pressure in price cut due to increasing competition. Profit is decreasing due to price cut. It needs additional expenditure in product modification. None of the new users introduce, so every force focus on retain the existing customers.Examples: Cell Phone, Automobiles BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  17. 17. Decline Once the saturation point reached, then decline stage is begin. When the product reached to the decline stage, the product is replaced by the new innovation. Sales revenue reached to zero level, competition reached pick. Product modification and searching the new market is worthless. Reduction of the different expenditure is only way to exist in market. Manufacturing cost control is only weapons to make profit. The company wants to invest to innovate new product in the place of the existing productExamples: BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL B&W Television
  18. 18. Operational Issues in Product life CycleAs a student of POM we are discussed as the operational issues in different stages of Product Life Cycle.Phases and Issues Introduction Growth Maturity DeclineProduct Different Varieties Increasing Emergence of CommodityVariety Standardization dominant design CharacteristicsProduct Low Increasing High DecreasingVolumeIndustry Small or no Normal Few large SurvivorsStructure competition Competition CompetitionForm of Product Product quality and Price and PriceCompetition Characteristics availability Dependability BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  19. 19. Conclusion and Discussion Product Life Cycle BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  20. 20. Product Development BIRODHADHIKARI, SSMC, CHITWAN, NEPAL
  21. 21. What is product development? What is product development? BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  22. 22. Sources of Product/Service InnovationNew Product development is not a sole opinion of Management, the concept of the new product are the source of: Customers Managers Marketing Operations Engineering Research and Development (R&D)  Basic research  Applied research BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  23. 23. Product development BIRODHADHIKARI, SSMC, CHITWAN, NEPAL
  24. 24. Steps in Developing New Products New Product and Service development has its own process.1. Need Identification.2.Technical and economic feasibility studies3. Prototype design, development and engineering4. Design of production model5. Market sensing/evaluation and economic evaluation of the prototype6. Market/performance/process testing and economic evaluation of production model7. Product Use and Support BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  25. 25. Need Identification. Need Identification is the preliminary stage of product development. Need of the customers can be find out by the different research work. The success of the product is depends on how the company identify the needs as per the customers desire and want in terms of quality, price and place. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  26. 26. Technical and economic feasibility studies Need Identification is not sufficient to develop the new products. The need of the customer should be technically and economically feasible. For this the company should assess SWOT. Market analysis, financial strength, level of technology, human resource should be considered in this stage. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  27. 27. Prototype design, development and engineering In this stage the production and operation department advance design the product and developed the engineering. Several engineering activities are carried out to analyze experiment and collect data for product development. The product should be: Functionality Reliability Maintainability Manufacturing• Computer analysis, simulations and physical prototypes are used for testing and evaluation design alternatives of the product. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  28. 28. Design of production model Product design doesnt only mean to develop new concept of the product. It includes the design of production process. Production model plays vital role in the success of the product. In this stage, production planning, controlling, and associated human resource system are also developed. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  29. 29. Market sensing/evaluation and economic evaluation of the prototype This is the evaluation stage of the designed product in terms of market and economic issues. The answers of the following questions should be searched:What is our target market?What are the Promotional tools and its economic feasibility? BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  30. 30. Market/performance/process testing and economic evaluation of production model This is the evaluation stage of the chosen production model or process can be evaluated. The answers of the following questions should be searched:What is production process?What is the level of technology we are using?What is the cope of technology?What is the condition of repair and maintenance of production process? BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  31. 31. Product Use and Support This is the final stage of product development process. After lunching the product this stage comes in implementation. After sales services may include in this stage. The customers needs and expectations can be enhanced by one or more of the following activities.Educating the people on the application of the productProvide warranty repair and after sales servicesImprove the design of product as required. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL
  32. 32. Conclusion There is no hard and fast rule for product development process. The nature of the product may differs in the development process. The corporate houses establish R & D department which continuously working for development of the new product. BIRODH ADHIKARI, SSMC, CHITWAN, NEPAL