new product dovelepment slides

2. Presented By:
MANSOOR SALEEM
SHAHID IQBAL
TAHIRULLAH KHAN
INTERNAL GROWTH
STRATEGIES

3. Presenter:
Mansoor Saleem(0006)
TOPICS TO COVER
Firm Growth Overview
Internal Growth Strategy
New Product Development
Keys to Effective New Product Development
Reasons for Product Failure

4. The term strategy means a well-planned, deliberate and overall course of
action to achieve specific objectives
FIRM GROWTH
Internal growth
strategy
External Growth
Strategy
Firm Growth
Strategies
The growth strategies
are divided into two
types as shown i.e.
a. Internal Growth
Strategy
b. External growth
strategy
This is what the main
focus of presentation is..
“INTERNAL GROWTH
STRATEGY”

5. 5
Growth Strategies
• Involve investment in resources to achieve growth in sales
(assuming the industry is attractive)
• Investments over time may involve a redefinition/expansion of
organizational scope
• Three concerns:
• what activities and resources to invest in
• the implications for scope and complexity
• the timing relative to competitors

6. Growth Strategies

7. INTERNAL GROWTH STRATEGY
• Internal Growth Strategy = Organic Growth because it does
not rely on outside intervention (interruption).
• It involves all the efforts taken within the firm with the purpose of
increasing sales revenue & profitability.
• The attributes for internal growth strategy consists off:
• Market penetration
• Market development
• Application development
• Product development

8. INTERNAL GROWTH STRATEGIES
Other Product
Related Strategies
International
Expansion
New Product
Development

9. 14-9
Advantages and Disadvantages of Internal Growth Strategies
Advantages Disadvantages
• Provides maximum control.
• Preserves organizational culture.
• Encourages internal entrepreneurship.
• Allows firms to promote from within.
•Slow form of growth.
• Need to develop new resources.
•Investment in a failed internal growth
strategy can be difficult to recoup.
• Adds to industry capacity.

10. NEW PRODUCT DEVELOPEMENT
Presented by:
Shahid Iqbal

11. NEW PRODUCT DEVELOPEMENT
• New product development (NPD) is the complete process
of bringing a new product or service to market.
• New product development may be done to develop an
item to compete with a particular product or may be done
to improve an already established product.

12. New Product Development
• Examples
• This type of development is considered the preliminary
step in product or service development and involves a
number of steps that must be completed before the
product can be introduced to the market.
• Fair & lovely.
• Samsung Mobile

13. New product development process
• Market Research/Opportunity Scan
• Concept Testing
• Prototype Development
• Market Testing
• Product Launch

14. Why New Products?
• New product development is essential to any business that
must keep up with market trends and changes.
• Approximately one-third of the revenue a business
generates is coming from products they did not sell five
years ago
• Changing environment creates new demands and needs

15. New Products necessity
• A way of getting new and keeping old customers
• Effective way of obtaining a competitive advantage
• Source of growth and excitement

16. Reasons For New Product Failures
• Poor marketing research
• Technical problems
• Insufficient marketing effort
• Bad timing
• The wrong group was targeted.
• Unrealistic forecast.
• Insufficient level of awareness.

17. OTHER PRODUCT RELATED
STRATEGIES
Presented by:
Tahir Khan Wazeer

18. Other Product Related Strategies
Improving
Existing
Product
Increasing
Market
Penetration
of an
Existing
Product
Extending
Product
Lines
Geographic
Expansion

19. Improving an Existing Product
• A business can increase it’s revenue by improving an existing
product.
Improving it’s
durability
Making it
more up
to date
Attractive
value
adding
features
Making it
more
convenient
to use
Reasonable
pricing
Enhancing it’s Quality

20. Improving an Existing Product (Cont’d)
Improving an item means increasing its value and price
potential through customer’s perspective.
• Examples:
Software firms routinely increase revenue by placing updated
versions of existing products.

21. Market Penetration of Existing Products
It involves actions taken to increase the sales through greater
marketing efforts or increased production capacity & efficiency.
Such as:
Increased social media efforts
Increased the sales force size
Increased Advertising
Expenditures
Offering Sales
Promotions
Lowering Price
Offering Seasonal
Discounts

22. Market Penetration Example

23. 23
Market development
• Objective: Cultivate new market segments (demographic,
geographic, psychographic) for existing products
• Invest: Marketing programs, new distribution channels, new
sales staff, capacity...
• Scope: Increases the number and type of markets served

24. Extending Product Lines
• It involves making additional versions of a product so that be
different to clients.
Example:
A computer manufacturer
Different versions of the same computer typically represents good, better
and best alternatives based on processor speed, memory capacity, monitor
size graphic capabilities and others.

25. Geographic Expansions
• Many entrepreneurial businesses grow by simply expanding
from their original location to geographical sites.
• Examples:
McDonald has 32000 worldwide locations.

26. Any Question?
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