The document outlines the 8 step new product development process: [1] Idea generation and screening, [2] Concept development and testing, [3] Marketing strategy development, [4] Business analysis, [5] Product development, [6] Test marketing, [7] Commercialization. It then discusses each step in the process and provides examples of idea sources, concept testing methods, and commercialization strategies. The conclusion emphasizes that the process is iterative and many companies complete steps concurrently to reduce time to market.

2. A Presentation by:-
•Chandan Jagtap
•Sachin Methree
•Ajit Mangarulkar
•Nikhil Kadam
•Umesh Panaskar

3. Causes of New Product Failures
•Overestimation of Market Size
•Poor quality of products
•Non delivery of promised benefits of
product
•Product Incorrectly Positioned
•Rapid change in economy
•Too little marketing support
•To create successful new products, the
company must:
 understand it’s customers, markets and
competitors
 develop products that deliver superior
value to customers.

4. New Product Development
Process
Idea Generation and Screening
Concept Development and
Testing
Marketing Strategy
Business Analysis
Product Development
Test Marketing
Commercialization

5. New Product Development Process
Step 1. Idea Generation
Systematic Search for New
Product Ideas
•Internal sources
•Customers
•Competitors
•Distributors
•Suppliers

6. New Product Development Process
Step 2. Idea Screening
Process to spot good ideas and drop
poor ones
Criteria
• Market Size
• Product Price
• Development Time & Costs
• Manufacturing Costs
• Rate of Return

7. New Product Development Process
Step 3. Concept Development &
Testing
1. Develop Product Ideas into
Alternative
Product Concepts
2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One

8. New Product Development Process
Step 4. Marketing Strategy
Development
Marketing Strategy Statement Formulation
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share
Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget
Part Three - Long-Term:
Sales & Profit Goals
Marketing Mix Strategy

9. New Product Development Process
Step 5. Business Analysis
Step 6. Product Development
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If No, Eliminate
Product Concept
If Yes, Move to
Product Development

10. New Product Development Process
Step 7. Test Marketing
Standard
Test Market Controlled
Test Market
Full marketing campaign
in a small number of A few stores that have
representative cities. agreed to carry new
products for a fee.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.

11. New Product Development Process
Step 8. Commercialization
Commercialization (often considered post-
NPD)
Company decide the introduction
timing.
Company decide where to launch the
product.
Primary target consumer group will
have been identified earlier in research
and test marketing.

12. Conclusion
•These steps may be iterated as needed.
•To reduce the time that the NPD process takes, many
companies are completing several steps at the same time
(referred to as concurrent engineering or time to
market)
• Many industry leaders see new product development
as an ongoing process (referred to as continuous
development) in which the entire organization is
always looking for opportunities.