New product design

NEW PRODUCT DESIGN

-birodhji@gmail.com BIRODH ADHIKARI,
SSMC, CHITWAN, NEPAL

NEW PRODUCT
 A product is defined as the things or services which
satisfy the needs of person.
 As a competitive age of business, design or innovation
of the new product is essential for every business
house.
 New product doesn’t only means of producing new
conceptual products.
 A old or existing product for a company may new
product for another company.
 The definition and level of new product is differ in terms
of nature of the organization.
 So, new product is the product which is differ form the
existing product.
-birodhji@gmail.com BIRODH
ADHIKARI, SSMC, CHITWAN, NEPAL

NEW PRODUCT
 New product development process is integration of
different research work.
 Simply, new product doesn’t mean a new conceptual
product.
They are designed as follows:
1. The design of new products
2. The redesign of existing products
3. The identification of new uses for existing products
4. The improvement of packing of existing products


The design of new products
 This method is suitable of financially strong MNC and big
manufacturing houses as it needs heavy cost, time, and
technology.
 It is risky job.
 This method need heavy investment in R&D.
 Launching a new products requires different kind of skills in
product design, production and marketing.
 The new product may be as follows:
New product can be integrated into current product line:
Mahendra
Existing Product: Four Wheelers
New Product: Two Wheelers
New product entirely unrelated to current product line:
Chaudhary Group
Existing Product: Noodles, Beverages
New -birodhji@gmail.com BIRODH ADHIKARI,
Product: Apartments, Housing

The redesign of existing products
 New product redesign is also method of development of
new product.
 It is less risky then development of conceptually new
product.
 This is widely used method of development of new product.
 In this method the company adds some utilities to the
existing product or redesign its features or physical re
design.
 It is also used to reduce production cost as well.
 It is widely used for automobiles.
Hero Honda Splendor
Hero Honda Splendor- ( Euro)
Hero Honda Splendor Plus
Hero Honda Splendor Super- Self ADHIKARI,
-birodhji@gmail.com BIRODH Start
Hero Honda Splendor NXG

The identification of new uses for existing products
 Identification of new uses for existing products also a
method of new product development.
 Some multiple uses of product is find out through
applied research work.
 Hence the market coverage of the product is board and
sell will be increase.
Banks and Fis
Saving Product- Existing Product and traditional uses.
Telephone Bill Payment-Additional uses of saving
product.
Tractors-
Transportation and cultivation- traditional uses.
Motor and gen set- additional uses of the tractors

The improvement of packing of existing products
 This is widely used new design of products without
change in its utility and uses.
 This method is used only after the conclusion research
work, what model, what color, what size consumer
want?
 Different Consumable Product frequently changes its
packaging.
LG Television
Frequently changes its size 14’’ 17’’ 24’’ 32’’
Colors- Black, White, Grey etc.


New Product design needs research work

Market Research

Applied Product
Pure Research Configuration Pilot Run.
Resear
ch

Production Process

New Product design is the process of integration of
different work.
Different research work together to developed new
product.
Big Corporate House has established R&D
Development of New Product.

New Product design needs research work
 Pure research is the process of concept
development of the product.
 The immediate result of applied research work is
the creation of a physical model of the
product, demonstrating that the ideas underlying
the product are practical.
 The process of establishing the characteristics of
the final product is usually called product
configuration.
 After the product development, market research
and pilot run is done to find out the potential
market perspectives.

New Product Development – Final Slide
 Any Questions??


PRODUCT LIFE CYCLE


Product life cycle
 Everything in the world have its own life cycle.
 The stages of the life cycle of the product is a factor in
product design.
 The Product Life Cycle is concerned with the pattern of
demand of product from its introduction on market to
the point where the product has very less or no
demand.
 It’s a hierarchy of product demand form the market.
 Time of The product life cycle is differ form the nature
of the product it may be some hours to decades.
 It is namely divided in to the following stages:
Introduction:
Growth:
Maturity:
Decline:

Stages of Product life cycle

Cell Phone

Automobile
Dot-Matrix
Printer

Internet Radio
3G MOBILE B&W TV

Introduction Growth Maturity Decline


Introduction
 Introduction is essential stage of new product
development.
 Sales is slowly increasing, no profit is available
due to low sales volume.
 Heavy advertising is needed to grow the sales.
 It is a trial stage of the product so the success of
new product depends on how the introduction
stage react?
 In this stage the product development and design
are of considerable importance.
 Examples:
 3G Mobiles

Growth
 It is the second phase of product life cycle.
 Sales revenue is in large in amount, profit is
increasing.
 The firms are focus on increasing market share by
focusing different marketing strategies.
 Due to the increasing in the sales POM has crucial
role in increase quality product in desired time and
quantity.
 It is more important stage of product life cycle in
terms of making profit form the market.
Examples:
 Internet Radios

Maturity
 When the sales revenue is increasing, the
competitors also introduce same nature product.
 Thus the competition is increasing .
 The firm is pressure in price cut due to increasing
competition.
 Profit is decreasing due to price cut.
 It needs additional expenditure in product
modification.
 None of the new users introduce, so every force
focus on retain the existing customers.
Examples:
 Cell Phone, Automobiles

Decline
 Once the saturation point reached, then decline stage is
begin.
 When the product reached to the decline stage, the
product is replaced by the new innovation.
 Sales revenue reached to zero level, competition
reached pick.
 Product modification and searching the new market is
worthless.
 Reduction of the different expenditure is only way to
exist in market.
 Manufacturing cost control is only weapons to make
profit.
 The company wants to invest to innovate new product
in the place of the existing product
Examples:
 B&W Television

Operational Issues in Product life Cycle
As a student of POM we are discussed as the
operational issues in different stages of Product
Life Cycle.
Phases and Issues Introduction Growth Maturity Decline

Product Different Varieties Increasing Emergence of Commodity
Variety Standardization dominant design Characteristics

Product Low Increasing High Decreasing
Volume

Industry Small or no Normal Few large Survivors
Structure competition Competition Competition

Form of Product Product quality and Price and Price
Competition Characteristics availability Dependability


Conclusion and Discussion
 Product Life Cycle


Product Development
process


What is product development?
 What is product development?


Sources of Product/Service Innovation
New Product development is not a sole opinion of
Management, the concept of the new product are the
source of:
 Customers
 Managers
 Marketing
 Operations
 Engineering
 Research and Development (R&D)
 Basic research
 Applied research


Product development Stages


Steps in Developing New Products
 New Product and Service development has its own
process.
1. Need Identification.
2.Technical and economic feasibility studies
3. Prototype design, development and engineering
4. Design of production model
5. Market sensing/evaluation and economic
evaluation of the prototype
6. Market/performance/process testing and
economic evaluation of production model
7. Product Use and Support

Need Identification.
 Need Identification is the preliminary
stage of product development.
 Need of the customers can be find out by
the different research work.
 The success of the product is depends on
how the company identify the needs as
per the customers desire and want in
terms of quality, price and place.


Technical and economic feasibility studies
 Need Identification is not sufficient to
develop the new products.
 The need of the customer should be
technically and economically feasible.
 For this the company should assess
SWOT.
 Market analysis, financial strength, level
of technology, human resource should be
considered in this stage.


Prototype design, development and engineering
 In this stage the production and operation
department advance design the product and
developed the engineering.
 Several engineering activities are carried out to
analyze experiment and collect data for product
development.
 The product should be:
 Functionality
 Reliability
 Maintainability
 Manufacturing
• Computer analysis, simulations and physical
prototypes are used for testing and evaluation
design alternatives of the product.

Design of production model
 Product design doesn't only mean to
develop new concept of the product.
 It includes the design of production
process.
 Production model plays vital role in the
success of the product.
 In this stage, production planning,
controlling, and associated human
resource system are also developed.


Market sensing/evaluation and economic evaluation of the prototype

 This is the evaluation stage of the designed
product in terms of market and economic
issues.
 The answers of the following questions
should be searched:
What is our target market?
What are the Promotional tools and its
economic feasibility?


Market/performance/process testing and
economic evaluation of production model

 This is the evaluation stage of the chosen
production model or process can be
evaluated.
 The answers of the following questions
should be searched:
What is production process?
What is the level of technology we are using?
What is the cope of technology?
What is the condition of repair and
maintenance of production process?

Product Use and Support
 This is the final stage of product development
process.
 After lunching the product this stage comes in
implementation.
 After sales services may include in this stage.
 The customers needs and expectations can be
enhanced by one or more of the following
activities.
Educating the people on the application of the
product
Provide warranty repair and after sales services
Improve the design of product as required.

Conclusion
 There is no hard and fast rule for product
development process.
 The nature of the product may differs in the
development process.
 The corporate houses establish R & D
department which continuously working for
development of the new product.


New product design

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