This document discusses different types of new products: 1) innovative products that open entirely new markets, 2) new product lines that allow firms to enter existing markets, and 3) additions to existing product lines. It provides examples of each type and discusses the strategic reasons why firms develop new products, such as increasing market share, appealing to new segments, or taking advantage of new technologies.

3.  A new product that opens entirely new market
 A product that adopts or replaces an existing product.
 A product that significantly broadens the market for an existing product
 An old product introduced in a new market
 An old product packaged in a different way
 An old product marketed in a different way

5.  Innovative products - really new to the market
 New product lines – to allow the firm to enter an existing product. The product is not
new to the world, but new to the market.
 Addition to product line – to supplement the firm’s existing product line or simple
line extensions
 Improvements and revisions of existing product – current product made better
 Repositioned products – existing product target at new market
 Cost reduction new product that provide similar performance at lower cost

7.  Innovative product - polaroid camera, iPod and iPad, Laser printer, selfie stick
 New product lines – P&G’s first shampoo or coffee, Hallmark gift items, AT&T’s Universal
credit card
 Adding to existing product lines – P&G’s Tide Liquid detergent, Special line extensions
(drinks, snack bars, and cereals), Bud Light
 Improvements and revisions to existing products - ivory soap and Tide laundry detergents
 Repositioning – Arm & Hammer baking soda repositioned as a drain or refrigerator deodorant

9.  Increase/defend market share by offering more choice or updating older products
 Appeal to new segments
 Diversify into new markets
 Improve relationship with distributers
 Make better use of the organization’s resources

11.  To create stars and cash cows for the future
 To take advantage of new technology to replace declining product
 To maintain or increase the market share of the organisation
 To defeat rivals or to keep up with rivals
 To fill gap in the market