The document discusses key aspects of product development and management. It defines what a product is, explains why products fail, and outlines the new product development process. This includes idea generation, concept development and testing, determining marketing strategy, business analysis, product development, test marketing, and commercialization. Developing and updating product lines is important for organizational success, while failure to change could lead to declining sales amid competition. The new product development process aims to bring superior products to market through rigorous planning and testing.

1. Soma Giri
Disclaimer: - Some of the images and content have been taken from different online sources and this presentation
is intended only for knowledge sharing but not for any profitable reasons

2. What is Product?
• A product is anything that can be offered to a market that
might satisfy a want or need
• It is more than physical products; includes services, places,
persons, and ideas
• To create successful new products, the company must:
– understand it’s customers, markets and competitors
– develop products that deliver superior value to customers.
• Products go through life cycles
• Product planning-involves making decisions about the
production and sale of a business’s products.

3. Why do Products fail?
• Doesn’t match current company objectives
• Make room for other products
• Overestimating market size
• Poor marketing research
• Obsolete
• Lost its appeal
• No longer profitable
• Conflicts with other products in the same product line
• Design problems
• Excessive development costs
• Incorrectly positioned, priced, or advertised
• Competitive reaction

4. Product
quality Physical
Seller’s characteristics
services of goods
Seller’s Price
reputation
Colour Brand
Product Packaging
warranty
Design

5. Why crawl when you can  Improving and updating product lines is crucial for the
run?
success for any organisation.
Staying still resembles a  Failure for an organisation to change could result in a
rock
decline in sales and with competitors racing ahead.
 The process of NPD is crucial within an organisation.
 Products go through the stages of their lifecycle and
will eventually have to be replaced

6. NPD Strategy
• Original products
• Acquisition
• Product improvements
• Product modifications
• New brands through the firm’s own R&D efforts.
New Product
Development
Quality Brand
Growth Productivity
Improvement Maintenance
• New Products Reduce Cost Quality of Design • Conformance
• New Packages • Formulas • Special Situations
• Packages • Regulatory
•Manufacturing • Environmental
• Specifications

7. New Product Development Process
Idea Generation and Screening
Concept Development and Testing
Marketing Strategy
Business Analysis
Product Development
Test Marketing
Commercialization

8. Idea Generation (Opportunity Identification) Idea Screening
Internal sources This process involves shifting through the
Company employees at all levels ideas generated above and selecting ones
which are feasible and workable to
External sources develop.
Customers
Competitors Pursing non feasible ideas can clearly be
Distributors costly for the company.
Suppliers
Outsourcing
Concept Development and Testing Market Research Options (Strategy)
 Done by Marketing and/or Advertising
Qualitative Depth Interviews
Agency
 Conducting “Focus Groups” Focus Groups
Objectives Expert Judgment
• Judge whether the concept fits the Quantitative
opportunity area, and constraints Pre-Prototype Post-Prototype
•Refine and / or describe the product concept
What it is : Surveys Product Use Test
What benefit(s) will it deliver to the user Conceptual Tests Lab Test Market
Key information – size, varieties, package, Perceptual Maps Test Market
price Conjoint Analysis

9. Business Analysis
Evaluate the marketing plan will special
emphasis on sales , cost, profit estimates.
Must pass the business test criteria for
further development
Product Development
• Initial stages with broad design parameters
• Produce early prototypes
• Show and obtain feedback from end users
• Refine design
• Fine tune & finalise design
• Vary formulations on key ingredients
• Conduct product testing amongst end users
• Experimental designs offer most powerful
learning
• Optimise final design and packaging

10. Test Marketing
• Simulated Test Market
• Live Test Market
Simulated Test Market (STM)
 Similar to Concept Test but with product
 Provide samples to consumers who are
 Interested in the concept
 Measure both trial potential and reaction to product
 Reaction to product is used to forecast repeat rate
 Volume is forecasted on basis of both the trial forecast and the repeat forecast
Live Test Market (LTM)
• To measure actual sales volume
• Controlled – Behaviour Scan
• Conventional –normal channels
• Track sales rate, trial, repeat
• Compare to goals and identify gaps
• Investigate and close gaps

11. Commercialisation
• National expansion of product
• Develop market rollout plan
• Can involve significant capital investment
•Brick & Mortar : Equipment
• Can involve distribution costs
•Slotting fees : Sales incentives
• Build product into a “Platform”
•Maintain growth and sustain competitive advantage

12. MAJOR PRODUCTS