The document outlines the new product development process, which includes idea generation, idea screening, concept development and testing, business analysis, market and beta testing, technical implementation, commercialization, and pricing. It discusses each stage in the process, from coming up with initial ideas through testing prototypes, analyzing market potential, launching the product commercially, and determining price. The goal of the new product development process is to systematically transform a market opportunity into a new product available for sale.

1. NEW PRODUCT
&
Development Process
Presentation By:
Eliya Shrestha
12248

2. Whatisproduct?????

3. Concept of Product
 an article or substance that is manufactured or refined
for sale.
 a thing or person that is the result of an action or
process.

4. New Product:
 New product is the complete process of bringing a new
product to the market till its consumption and
feedback from the end user of the business chain
through the systematic procedure and parameter.
 It may be a Consumable product, service or idea.

5. Different meaning of New products from
different perspective.
 Firms perspective: it is a product to be new if the firm is
manufacturing it for the first time. Firms often consider copies
of a competitor’s product as new.
 Market Perspective: From the view point of a market, if the
product has been introduced to the market for the first time, it
is a new product.
 Customer perspective: it suggests that newness of a product
should be based on customers perception. If a customer group
feels that a product is new, it should be treated as new.
 Product perspective: From the product perspective a new
product is viewed on its disruptive effects on the current
consumption pattern.

6. Innovations
 It is original products that are introduced to the
human race for the first time.
 Many innovative products are being introduced into
the market every day.
 Innovative products entail high costs and risks.
 Innovation involves considerable time as well as
money

7. Modification
 Many organization avoid innovation due to high cost
and risk factors.
 And adopt new products modification strategy as long
as possible.
 Modified product can be termed as a new product as it
requires major change in the marketing mixes.

8. Product modification entails
1. Quality Modification: it is changes relating to a product’s
dependability and durability. It involves alteration of the materials
and production process used.
2. Functional modifications: are changes in the product’s
effectiveness, convenience and safety. It involves redesigning the
product.
3. Style modification: is targeted at enhancement of the sensory
appeal of the product by altering sound, taste, texture, smell or
visual characteristics.

9. New Product Development
 It is the complete process of bringing a new product to
market.
 New product development is described in the literature as
the transformation of a market opportunity into a product
available for sale.
 it can be tangible (that is, something physical you can
touch) or intangible (like a service, experience, or belief).
 A good understanding of customer needs and wants, the
competitive environment and the nature of the market
represent the top required factors for the success of a new
product.

10. New product development process
Ideation
screening
Concept
Developme
nt &
Testing
Business
Analysis
Market &
Beta
Testing
Technical
Implementati
on
Commerciali
zation
Product
pricing

11. Idea Generation
 Ideas for new products can be obtained from basic research using
a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats).
 Lots of ideas are generated about the new product. Out of these ideas
many are implemented. The ideas are generated in many forms. Many
reasons are responsible for generation of an idea.
 Idea Generation or Brainstorming of new product, service, or store concepts -
idea generation techniques can begin when you have done your
OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase

12. Idea Screening
 It involves a preliminary elimination process in which
a large number of product ideas are screened in terms
of the organization’s objectives, policies, technical
feasibility, and financial viability
 Total ideas are categories into three group. They are,
promising ideas, marginal ideas and rejected ideas.

13. Development and Testing
 It is based on the notion that the product idea is the
most critical element in a product and consumers can
easily react to product concepts without seeing the
physical product itself.
 The concept tests are conducted on the belief that
people usually are attracted by the idea behind the
product before they become interested in the physical
product.

14. Business Analysis
 Estimate likely selling price based upon competition
and customer feedback
 Estimate sales volume based upon size of market.
 Estimate profitability and break-even point.

15. Beta Testing and Market Testing
 Produce a physical prototype or mock-up.
 Test the product (and its packaging) in typical usage situations.
 Conduct focus group customer interviews or introduce at trade show
 Make adjustments where necessary.
 Produce an initial run of the product and sell it in a test market area to
determine customer acceptance

16. Technical Implementation
 New program initiation
 Finalize Quality management system
 Resource estimation, Requirement publication
 Publish technical communications such as data sheets
 Program review and monitoring
 Resource plan publication

17. Commercialization
 Launch the product
 Produce and place advertisements and
other promotions.
 Fill the distribution pipeline with product.
 Critical path analysis is most useful at this stage.

18. New Product Pricing[
 Impact of new product on the entire product portfolio
 Value Analysis (internal & external)
 Competition and alternative competitive technologies
 Differing value segments (price, value and need)
 Product Costs (fixed & variable)
 Forecast of unit volumes, revenue, and profit

19. THANK YOU

20.  The promising ideas are carried on for further testing
and analysis while marginal ideas are stored for future
use. The rejected ideas are dropped altogether.