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Planning for new product


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Planning for new product

  1. 1. Topic: Planning new product Prepared by: Mahrukh sheikh
  2. 2. outline  New product planning as a customer driven process  Steps in new product  Idea generation  Screening , evaluating , and business analysis  Product and process development  marketing strategy and testing  Commercialization  Variation in the generic new product planning
  3. 3. Importance of a new product • Innovation is essential to all the organizations’ continuing growth and performance in the global market place. • Innovation takes many forms, including goods and services, organizational process, and business designs.
  4. 4. New product planning as a customer driven process • New product classifications: 1. Newness to market 2. Extent of customer value created • New product types: – Transformational innovations – Substantial innovation – Incremental improvements
  5. 5. Customer value analysis Objective is to identify needs for: 1. New products 2. Improvements to existing products 3. Improvements in production processes 4. Improvements in supporting services Finding Customer Value Opportunities
  6. 6. Finding Customer Value Opportunities Matching Capabilities to Customer Value Opportunities – Fit between capabilities and product offering Transformational Innovations – “new-to-the-world” ideas – Customers not always the best guides
  7. 7. Characteristics of Successful Innovations Creating an Innovative Culture Selecting the Right Innovation Strategy Developing and Implementing Effective New Product Processes Making Resource Commitments Leveraging Capabilities STRATEGIC INITIATIVES
  8. 8. Developing an Innovation Culture  Innovation Workshop for top executives to develop an innovation plan.  Innovation Statement highlighting objectives and senior management’s role and responsibilities.  Training programs for employees and managers.  Communicate the priority of innovation.  Speakers to expose employees to innovation authorities.
  9. 9. New product planning Customer Needs Analysis Idea Generation Screening and Evaluation Business Analysis Marketing Strategy Development Product Development Testing Commercialization
  10. 10. Idea generation • Idea search: targeted or open-ended? • How extensive and aggressive? • What specific sources are best for generating a regular flow of new product ideas? • How can new ideas be obtained from customers? • Where will responsibility for the new product ideas search be placed? • What are potential threats from alternative (or disruptive) technologies?
  11. 11. Idea generation Methods of generating idea Direct Search Linking Marketing and Technology Facilitating Lead User Analysis Creative Methods National Policy Exploratory Customer Studies Alliances/ Acquisition/ Licensing Technological Innovation
  12. 12. Screening , evaluating and business analysis Idea generation Screening (fit/feasibility) Concept evaluation Business analysis
  13. 13. Business Analysis • Revenue Forecasts • Preliminary Marketing Plan • Cost Estimation • Profit Projections • Other Considerations
  14. 14. Product and process development New product concept Market strategy development Product development and use testing Market testing Launch
  15. 15. Product and process development • Development of the new product includes: – Product design – Packaging design – Decisions to make or purchase product components • Product Development Process: – Product Specifications – Industrial Design – Prototype – Use Tests – Process Development • Collaborative Development
  16. 16. Marketing strategy and testing • Marketing Strategy Decisions – Market Targeting – Positioning Strategy • Market Testing Options – Simulated Test Marketing – Scanner – Based Test Marketing – Conventional Test Marketing – Testing Industrial Products – Selecting Test Sites – Length of the Test – External Influences
  17. 17. Commercialization The Marketing Plan – Complete marketing strategy – Responsibilities for execution – Cross – functional approach Monitoring and Control – Real – time tracking – Role of the Internet – Include product performance metrics with performance targets
  18. 18. Variation in generic product planning • Technology Push Processes • Platform Products • Process – Intensive Products • Customized Products