This document outlines the key components of developing a new product strategy. It discusses analyzing customer needs, generating product ideas, screening ideas, developing a business analysis, product development, creating a marketing strategy, test marketing, and product launch. It also covers evaluating ideas from internal and external sources. Additionally, the document proposes strategic options like establishing objectives, reviewing products, and identifying problems. It provides strategies for improving product performance through the product line, mix, distribution, pricing, sales force, and promotion. Finally, it discusses analyzing the market size, target markets, price elasticity, and sales forecasts when setting objectives.

1. Md. Hassan Kawsar

2. New Product Strategy
A new product strategy involves the decision making regarding –
• What product to produce
• How product should be modified
• When to discontinue
Product strategy consists of –
• Deciding how to position of a business unit for the product offering
to serve its target market.
• Selecting strategic objectives for the product offering.
• Selecting a branding strategy.
• Developing and implementing a management strategy for new and
existing product.

3. New Product Planning Process
• Customers need analysis
• Idea generation
• Screening and evaluation
• Business analysis
• Product development
• Marketing strategy development
• Test marketing
• Launching the product

4. Sources of New Product Ideas
Internal Sources
• Research & Development
• Marketing
• Employee suggestion
• Others
External Sources
• Consumers
• Competition
• Inventors & Patents
• Acquisition
• Others
Evaluation
Commercialization
Development
Testing

6. Strategic Option for a New Product

7. Strategic Option
• Establish product performance objectives
• Product review system
• Identification of problems of products
• Strategy for eliminating the problems

8. Strategy for Improving Product Performance
A) Product line strategy
• Add new products
• Eliminate specific products
• Cost reduction
• Product improvement
• After marketing strategy
B) Product mix strategy
• Add new product lines
• Delete product lines
• Change product lines strategy
C) Distribution strategy
• Deciding how to reach end user target market
• If use intermediaries, selecting their role that they are in the
channel network

9. Factors affecting distribution strategy
Distribution to the end user -
• End user consideration
• Product characteristics
• Financial & control consideration
Channel of distribution strategy
• Type of channel arrangement
• Distribution intensity (+ is exclusive distribution, ++++ is selective
distribution & ++++++ is intensive distribution)
• Channel configuration
Distribution network
• Manufacturer
• Distributor / Whole seller
• Retailers / Dealers
• End user

10. Formulation price strategy
• High Active Price Strategy
• Low Active Price Strategy
• High Passive Price Strategy
• Low Passive Price Strategy
D) Price strategy
• Target market and objective
• Products strategy
• Distribution strategy
• Promotion strategy

11. Steps in developing sales force strategy
• Describe & analyses the people & organization to be contacted by
the sales force.
• Decide the role of sales force.
• Set their objective.
• Determine the size & deployment of sales force.
• Recruit, train & manage the sales force.
E) Promotion strategy
• Market target and marketing program positioning strategy
• Communication strategy
• Establish mix of communication components
• Advertising strategy
• Sales promotion strategy
• Sales force strategy

12. Product market analysis
• Market size (cost-volume relationship)
• What target market strategy is to be used?
• Price elasticity
• Importance of non-price factors
• Sales forecasts
Pricing objectives
• Pricing for results (performance)
• Market penetration
• Promotional
• Avoid government intervention