product offerings and its process.

1. BY-
NISHU JINDAL- 41710058
MANSI BANSAL-41710079
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2. CONTENTS
Introduction
New product options
Types of new product
Challenges
Process
Consumer adoption process
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3. NEW PRODUCT OPTIONS
Make or Buy
A company can add new products through acquisition or
development. The acquisition route can take three forms:-
The company can buy other company.
It can acquire patents from other company.
Or it can buy a license or franchise from another company.
Example:- Tata Tea increased its presence in the
international market through acquisition of the Tetley brand .
Coca cola acquired Thumbs up , a soft drink brand owned by
Parle , to increase its market share in India.
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4. At some point , there becomes a pressing need for organic
growth- the development of new products from within the
company. For product development , the company can create
new products in its own laboratories , or it can contract with
independent researchers or new product development firms to
develop specific new products or provide new technology
Example:- Samsung
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5. TYPES OF NEW PRODUCT
 New-to-the-world:-
These types of new products create an entirely new market. For
example, microwave ovens, microprocessors and copiers.
 New-to-the-firm:-
New products may allow a company to enter an established market
for the first time. Philips has developed flat TV to target a new
segment of already crowded CTV market.
 Addition to existing product line:-
New products can supplement a company’s established product lines.
For instance, McDonald’s introduced pudina flavored burgers for
Indian consumers.
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6.  Improved and revised in existing product:-
These are the new products that replace existing products by providing
improved performance or greater perceived value. For example, Microsoft
replaced its MS-DOS by Windows as an improved, user-friendly GUI
(Graphical User Interface) based operating system. They also updated
Windows regularly and launched the versions of Windows 95, 98, 2000 and
XP.
 Repositioning:-
Existing products can be targeted to new markets or market segments. For
example, Sahara Airlines is revising its fares to target the railway AC 2/3 tier
passengers.
 Reduction in cost:-
New products may be developed that provide similar performance at lower
cost. The mobile service providers like Airtel, Hutch and Reliance India
Mobile are introducing new post-paid schemes with low rental and outgoing
facility.
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7. CHALLENGES IN NEW PRODUCT
DEVELOPMENT
New-product success:-
 See the future through the eyes of your customer
 Intellectual property and brand power are key assets
 Use digital technology to create tools for customers
 Build a championship team
 Innovation is a state of mind
 Speed is critical, so push your organization
 Partner up if you’re not the best
New-product failure:-
 Shortage of ideas
 Fragmented markets
 Social and governmental constraints
 Cost of development
 Capital shortages
 Faster required development time
 Shorter product life cycles6/8/2018 7

8. PROCESS OF NEW PRODUCT
DEVELOPMENT
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9. IDEA GENERATION
Internal
External
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10. IDEA GENERATION CREATIVITY
TECHNIQUES
 Attribute listing
 Forced relationships
 Morphological analysis
 Reverse assumption analysis
 New contexts
 Mind mapping :-
• Gas stations + food
• Cafeteria + Internet
• Cereal + snacking
• Candy + toy
• Audio + portable
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11. IDEA SCREENING
Company must avoid 2 types or error.
1. Drop error:- occurs when the company dismisses a good
idea.
2. Co error:- occurs when the company permits a poor idea
to move into development and commercialization
 Absolute product failure:-loses money, its sales do not
cover variable costs
 Partial product failure:-losses money , but its sales cover
all its variable costs and some fixed costs
 Relative product failure:-yields a profit lower than the
company’s target rate of return
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13. CONCEPT DEVELOPMENT AND TESTING
Presenting product concept to target customers.
Example:-milk
Conjoint analysis:- consumer preference for alternative product
concept can be measured with conjoint analysis , a method for
deriving the utility values that consumers attach to varying
levels of product’s attributes.
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14. COJOINT ANALYSIS
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15. CONCEPT TESTING
 Communicability and believability
 Need level
 Gap level
 Perceived value
 Purchase intention
 User targets, purchase occasions, purchasing frequency
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16. MARKETING STRATEGY
DEVELOPMENT
3 part strategy…
 Target market size, structure & behavior
brand positioning , sales , market share.(first few years)
 Planned price , distribution & marketing budget for 1st year.
 Long run sales & profit goals and marketing mix strategy over time.
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17. BUSINESS ANALYSIS
Manager evaluates proposed business attractiveness.
Includes:-
 Estimating total sales
 Estimating costs & profits
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20. PRODUCT DEVELOPMENT
Job of translation target customers requirements into a working
prototype is helped by a set of methods known as quality
function development(QFD).
Customer tests:-
 Alpha testing- is testing the product within the firm to see how
it performs in different applications.
 Beta testing- outside the firm means customers.
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21. MARKET TESTING
CONSUMER –GOODS MARKET TESTING
 Sales-Wave Research
 Simulated Test Marketing
 Controlled Test Marketing
 Test Markets:-
• How many test cities ?
• Which cities ?
• Length of test ?
• What information to collect ?
• What action to take ?
BUSINESS-GOODS MARKET TESTING
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22. COMMERCIALIZATION
 When (timing):-
 First entry
 Parallel entry
 Late entry
 Where (geographical strategy)
 To whom (target-market prospects)
 How (introductory market strategy)
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23. THE CONSUMER ADOPTION PROCESS
Awareness
Interest
Evaluation
Trial
Adoption
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26. Thank you
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