This document discusses various stages of new product development including idea generation, screening, concept testing, marketing strategy development, business analysis, product development, and test marketing. It then provides examples of products currently in different stages of the product life cycle such as introduction, growth, maturity, and decline. The document also discusses the BCG matrix and different product strategies based on market growth rate and relative market share including stars, cash cows, problem children/question marks, and dogs. Finally, it discusses Ansoff's product/market matrix and different growth strategies including market penetration, market development, product development, and diversification.

1. New product development
Idea generation: Gathering ideas about product from
several sources
Idea screening: Evaluating the different generated ideas
and selecting product which is feasible
& workable to develop
Concept testing: Idea is tested among the target
customers
Marketing strategy development: How the product will be
launched in the market
Business analysis: Financial feasibility study
Product development: Transforming the idea into a
real product
Test marketing: Launching the product for a test in few
selected areas.
Commercialisation: National launch

2. Product life cycle

3. Examples:
Set out below are some suggested examples of products that are
currently at different stages of the product life-cycle:
INTRODUCTION GROWTH MATURITY DECLINE
Third generation
mobile phones
Portable DVD
Players
Personal
Computers
Typewriters
E-conferencing Email Faxes
Handwritten
letters
All-in-one racing
skin-suits
Breathable
synthetic fabrics
Cotton t-shirts Shell Suits
Iris-based personal
identity cards
Smart cards Credit cards
Cheque
books

4. In BCG Matrix:
Market growth rate
The annual growth rate of the industry in which each
Product line operates(market attractiveness)
Relative market share is shown on the horizontal axis.
Market share relative to the largest competitor
(competitive strength).
Cash flow is dependent on the box in which the product falls.
is on the vertical axis.

5. BCG Matrix

6. Star position
Industry growth rate: high (business is in a market
which is growing rapidly
Market share: high
Have to be focused in building sales or market share
Resources(cash) should be invested to maintain and
increase the leadership position.

7. Problem children/question mark position
Industry growth rate: high
Market share: low
Strategies:
Increase investment and build the market share to turn
to a star.
or
Withdraw support by harvesting (raising prices while
lowering market expenditure)
or
Divesting(dropping or selling)
or
To find a small market segment where dominance
can be achieved.

8. Cash cows
Industry growth rate: low
Market share: high
Strategies:
Expenditure can be controlled-need not spend on
manufacturing facility or reaching out to new customer
segments.
High profits due to high market share
Objective should be to
hold sales
&
market share

9. Dogs
Industry growth rate: low
Market share: low
 No profits
Strategies:
Find out any strengths -appropriate for investment
to be converted to cash cows.
Closure

10. Ansoff Product/ Market matrix
Business attempts to grow-depends on whether it
markets new or existing products
in new of existing markets

11. Market Penetration Strategy
Selling existing products
in existing markets
Objectives:
o Maintain or increase market share of current product
o Secure dominance of growth markets
o Restructure a mature market by driving out competitors
o Increase usage by existing customers

12. Market development strategy
Selling existing products
in new markets
Strategy has different approaches:
o New geographical markets
o New product dimensions
o New distribution channels
o Creating attractive pricing policies.

13. product development strategy
Introducing new products
in existing markets
Require competencies to develop modified product that
can appeal existing market

14. Diversification strategy
Sell new products
in new markets
Risky strategy
Marketer must have a clear idea about the gain and the
market risks involved.