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

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 its 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 businesss products.

Why do Products fail?

Doesnt 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

Product quality Sellers services

Physical characteristics of goods

Sellers reputation

Price

Colour

Brand

Product warranty Design

Packaging

Why crawl when you can run? Staying still resembles a rock

Improving and updating product lines is crucial for the success for any organisation. Failure for an organisation to change could result in a 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

NPD Strategy
Original products Acquisition Product improvements Product modifications New brands through the firms own R&D efforts. New Product Development

Growth
New Products New Packages

Productivity
Reduce Cost Formulas Packages Manufacturing

Quality Improvement
Quality of Design

Brand Maintenance
Conformance Special Situations Regulatory Environmental Specifications

New Product Development Process

Idea Generation and Screening

Concept Development and Testing

Marketing Strategy Business Analysis

Product Development

Test Marketing

Commercialization

Idea Generation (Opportunity Identification) Internal sources Company employees at all levels External sources Customers Competitors Distributors Suppliers Outsourcing Concept Development and Testing Done by Marketing and/or Advertising Agency Conducting Focus Groups Objectives Judge whether the concept fits the opportunity area, and constraints Refine and / or describe the product concept What it is : What benefit(s) will it deliver to the user Key information size, varieties, package, price

Idea Screening This process involves shifting through the ideas generated above and selecting ones which are feasible and workable to develop. Pursing non feasible ideas can clearly be costly for the company.

Market Research Options (Strategy) Qualitative Depth Interviews Focus Groups Expert Judgment Post-Prototype Product Use Test Lab Test Market Test Market

Quantitative Pre-Prototype Surveys Conceptual Tests Perceptual Maps Conjoint Analysis

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

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

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

MAJOR PRODUCTS