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FACTORS AFFECTING NEW PRODUCT SUCCESS

A project submitted to KIIT SCHOOL OF MANAGEMENT, KIIT UNIVERSITY, BBSR in partial fulfillment of the award of degree of

MASTER OF BUSINESS ADMINSTRATION

By Group-7 Sec-c
CHANDRA SEKHAR DAS -152 PRATIK DASGUPTA-153 TONOY BANERJEE-156 MADHUSUDAN PALO-177

Under the supervision of

Dr. Rabi.N.Subuddhi Dr. Sashmita Mishra

KIIT SCHOOL OF MANAGEMENT KIIT UNIVERSITY

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STUDENT DECLARATION

This project report entitled The factors affecting new product success has been done by us and has not been submitted for the award of any degree anywhere.

Signature

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Guide certificate
This is to certify that these above mentioned students has successfully completed this project work entitled Factors affecting new product success under my guidance & supervision. This work has been originally done by them based on the data collection undertaken by them and has been analyzed by them for the purpose of this study. The work presented herein has not been submitted in part or full to this or any other universities for any degree or diploma to the best of my knowledge.

Guide signature

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ACKNOWLEDGEMENT
We express indebtedness to our guide and supervisor Dr. Rabi. N. Subuddhi and Dr. Sashmita Mishra, Kiit school of management, Kiit University for the valuable guidance provided to us for undertaking the study, on the topic entitled Factors affecting new product success. We extremely grateful for his painstaking interest in our work in spite of busy academic activities. It is a pleasure to thank our friends for constant inspiration for this study.

Bhubaneswar Date: 26 april 2011

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CONTENT
SL. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 TOPIC
COVER PAGE STUDENT DECLARATION GUIDE CERTIFICATE ACKNOWLEDGEMENT CONTENT LIST OF TABLE LIST OF FIGURE EXECUTIVE SUMMARY INTRODUCTION REVIEW OF LITERATURE OBJECTIVE HYPOTHESIS SCOPE METHODOLOGY FREQUENCY RESULT DEMOGRAPHIC INFORMATION MAIN FINDINGS CONCLUSION SUGGESTION LIMITATION BIBLIOGRAPHY APPENDIX

PAGE NO 1 2 3 4
5 6 7 8-9 10-12 13-16 17 18 19 20 21-22 23-33 34-35 36-37 38-39 40 41 42 43-46

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LIST OF TABLES
SL NO. 1 2 3 TABLE FREQUENCY TABLE RESULT HYPOTHESIS(1-9) PAGE NO 21-22 23 25-33

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LIST OF FIGURES
SL NO. 1 2 FIGURES GENDER TABLE AGE TABLE PAGE NO. 34 35

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EXECUTIVE SUMMARY
our group has taken up the research to find factors affecting success of a new product , in the project we tried to find what are the important factors that influences success of a new product and causes of fail if any. Few of important factors that affects success of any product are brand equity i.e. that what is the image of the brand by which the new product is lunched if its from a reliable and famous brand then people always tend to try out similarly few other factors which affects the success are reliability , comparability , price , etc . We tried to analyze what are such factors from our respondent. We had taken a sample size of fifty(50) mostly inside KIIT campus hence most of them are fall in student category but there are also many other respondent like faculty members , as the sample unit within are known vicinity its falls in random convenient sampling. In our analysis we tried to find the swot and pest for new product and there successes as there always possibilities of many when a product id lunched . As from above its clear our research work is based on questioner method so it is based on primary data collection but to have better understanding of the subject and gain knowledge we have done a literature review where we have gone through ten different articles n journals which are mention in our report in concerned part. Scope of this however remain to some limitations as this research work confined is confined to the KIIT campus and mainly to the student community only hence the view expressed may not be same and applicable to out world perfectly. Methodology as its has been discussed above our work is confined to this campus so we segregated the data into age group , income , occupation etc then we have analyzed our data with the help of SPSS and we anaylsed through techniques like central tendency , correlation ,descriptive statistics, cross tab ect. We have also taken concerned and related hypothesis which are proven either true or false according to the result and out of our analysis .

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DATA AND OUTPUT ANALYSIS:

From our concerned sample unit about 94% fall in the age group of 15 to 25 that indicates most of our respondent are young. When it comes to annual income 88% fall in not applicable category still they have say when there family buy any product. 94% of our respondent show their tendency to try out a new product also we found in our research work 78 % of respondent know about a new product from advertisements and promotions followed by friends and magazines. Most of the respondent want their new product to be highly compatible whereas about 20% of respondent are bothered about price and 34% of respondent think about durability as an important factor. So from above data we can conclude younger generation collect most of their information from advertisement and promotion , hence any new product targeted to younger generation must be good in communicating to the consumer for their grand success. Also 98% of our respondent strongly feel advertisement for any product is necessary. Also our research shows 67% of respondent from age group of 25 to 40 know about new products from advertisements whereas only 37% from age group of 15 to 25. Hence that shows people in the age group of 25 to 40 go through advertisement more. 14% of people buy a product when someone ask them to. 8% buy to gift and 42% for their personal use.

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INTRODUCTION
Whenever we go to a market we find some products which are new to us but are attractive but still we are in a dilemma whether to purchase it or not. Some people purchase it and some not. There is some kind of fear which catch hold of us while purchasing a new product in a market. New product success always had been depended upon many factors such as advertisement, better promotion, considering 4Ps of marketing and proper STP. SWOT and PEST analysis are also done while bringing a new product in the market. Things generally considered by market analysts while introducing a new product in the market are as follows:1. 4 Ps of marketing(marketing mix) a. Price- The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. It is
generally a main concern for new product so price is one of the main factors which are generally being considered while bringing in the market.

b. Promotion- represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations. c. Place- Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. d. Product- It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also

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needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. 2. STP(SEGMENTATION, TARGETING AND POSITIONING) a. Segmentation Before launching a new product it is generally made to identify the position where the new product is generally going to sell. Segmentations are generally made into geographic and demographic. Now when a new product is launched the main thing which is need to be taken consideration is which is the place where its demand will be high and who will be its main customers. Which age group people will it suite, whether they can afford are the main questions which are generally need to be asked by the organization. It is done for the existence of a product. b. Targeting -?This is the real goal/objective in market that marketer want to reach while introducing a new product in the market. As a simple questions are : What percent of the population uses the product at all? What percent uses your brand? How does that compare to competing brands? What is the demographic profile of the product category? Which media reach the users of this category? c. Positioning - Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace. It is important to understand the levels of competition because positioning applies at all levels of competition. For example: Product Level (e.g., Pepsi vs. Coke) Category Level (e.g., Cola vs. Root beer) Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company) Industry Level (e.g., Beverage Industry vs. Snack food Industry) .

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3. SWOT ANALYSIS SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.
y y y y

Strengths: Characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: Are characteristics that place the firm at a disadvantage relative to others. Opportunities: External chances to make greater sales or profits in the environment. Threats: External elements in the environment that could cause trouble for the business.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. 4. PEST ANALYSIS
y

Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas and political stability. Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. Technological factors include technological aspects such as activity, automation, technology incentives and the rate of technological change. They can determine to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. So these are the factors which are generally being considered for success of a new product. Now in this research we will see how far this factors are applicable for success of a new product.

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REVIEW OF LITERATURE
Before our actual research we have taken into consideration of some previous research on this or related topic. These research articles by eminent scholars will help us to carry out of our project successfully by carrying out their results and findings. The methods they adopted and procedures taken will help us to compare about their findings with us. The articles which are taken into consideration are as follows:

1) Controllable Factors of New Product Success: A Cross-National Comparison. 2) An Examination of Organizational Factors Influencing New Product Success in
Internal and Alliance-Based Processes.

3) Determination of Critical Success Factors for your organization. 4) An exploration of organizational factors in new product development success. 5) Effectively creating a product is not childs play.

While the new product literature suggests that managerially controllable factors most strongly affect new product success, few studies have examined how these factors differ across countries. The objectives of this article are: 1. to develop a model of managerially controllable factors associated with new product success, 2. to directly compare the factors that managers perceive to be associated with new product success in the United States and China, and 3. to demonstrate the application of various statistical analyses for increasing the confidence. To accomplish our objectives, we develop a model of managerially controllable factors related to new product success. The model is tested using data collected on 142 new products launched in the United States and 470 new products launched in China. Our findings provide important managerial guidelines- First, firms are advised to build appropriate new product development resources and expertise. Second, a higher proficiency in marketing and technical activities leads to a higher level of new product success in both countries. Third, it is important to collect and assess market and competitive information in order to understand customers' needs, wants, and specifications for the product. An exploration of organizational factors in new product development success-This study surveys a broad spectrum of new product development (NPD) projects with the purpose of

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exploring the role of the organizational activity factors in the NPD success. Drawing on the resource-based view of the firm, the authors present a set of hypotheses concerning the relationship between the people resources, development resources, testing resources, and launch resources committed to NPD projects and their financial success. In addition, the effect of the firm's international market involvement on the NPD project success is considered the. The findings of this study show that: the involvement of a strong champion, use of a multidisciplinary team, and focus of a dedicated team are key factors for NPD project success among the people resources This study provides several guidelines like, It offers critical insights into the identification of firm resources that influence the NPD project success, Understanding the role of market diversification in the NPD project etc. Steps In Launching Your Product- Effectively creating a product is not childs play. It is a difficult task for you to understand your competitors success and strategy. Optimizing the survey results is important for a good start to your project. Make use of the right product mix and position them well. Launching a new product is a daunting task as consumers are apprehensive about a new product in the market. It is important to drive home the positive aspects of the product and Make the customers realize that it provides a competitive advantage over the others in the market so that consumers welcome it with open arms. A look at competitors marketing collaterals will give you ideas about how to market your product. To study your competition is also necessary before you launch your product. Attractive and appropriate product packaging is also important to attract targeted customers The competition marketing strategies should be considered before you launching your product. You should have a clear understanding of what you must offer to differentiate your product from the others. The bottom line is that your product or service should be unique and meet the needs and desires of your best prospects. Assessing New Product Development Success Factors In The Thai Food IndustryThe aim of this paper is to measure new product development (NPD) success factors in the Thai food industry The quantitative research was designed based upon qualitative analysis,i.e. A total of 114 questionnaires sent to medium and large food companies were returned (17.5 percent of companies). Manager perceptions of what factors are important do not match actual practice very closely, but they do report what is actually done in the NPD process consistently NPD is contextspecific. The food industry is strongly market-driven, so rapid adaptation to customers is critical. Strategy and planning is less important than an ability to remain flexible and move quickly in response changing consumer tastes. This paper demonstrates that what managers involved in the NPD process believe to be the important success factors cannot always predict NP success rates. Determination of Critical Success Factors for new product.The principle of identifying critical success factors as a basis for determining the information needs of managers. Five key sources of Critical Success Factors are The industry, Competitive strategy and industry position, Environmental factors,Temporal factors, and Managerial position (if considered from an individual's point of view).

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There is also different methods for CSFs. There are four basic types of CSFs according to Rockart. They are: (1)Industry CSFs resulting from specific industry characteristics; (2)Strategy CSFs resulting from the chosen competitive strategy of the business, (3)Environmental CSFs resulting from economic or technological changes, (4)Temporal CSFs resulting from internal organizational needs and changes . While the new product literature suggests that managerially controllable factors most strongly affect new product success, few studies have examined how these factors differ across countries. The objectives of this article are: (1) to develop a model of managerially controllable factors associated with new product success, (2) to directly compare the factors that managers perceive to be associated with new product success in the United States and China, and (3) to demonstrate the application of various statistical analyses for increasing the confidence that may be placed in empirical findings and outline methods for assessing whether significant estimation biases exist in cross-sectional data. Our paper should be of interest to new product researchers and international comparative marketing researchers. The implications of our results should also be of considerable value and interest to executives faced with the complex task of selecting and managing new product development projects as well as to those firms experiencing international competition. To accomplish our objectives, we develop a model of managerially controllable factors related to new product success, which includes variables related to the organization, the new product development process, and the product itself. The model is tested using data collected on 142 new products launched in the United States and 470 new products launched in China. We conduct case studies to examine the appropriateness of the data collection methods, to establish the content validity of the concepts, and to assess the usefulness of the measures and constructs in a Chinese context. The model was tested using EQS with covariance matrices as input. We tested the measurement model before assessing the structural relationships. Once the measurement issues were satisfactorily resolved, the structural model was tested for each country individually. Since the results of the individual models for the United States and China were satisfactory, we performed a two-group simultaneous path analysis in order to test for similarities and differences in the

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factors of new product success between the United States and China. We tested whether or not the path coefficients were invariant across the two countries using a Lagrangian Multiplier test. The challenge for all cross-sectional studies is to reject the hypothesis that many of the parameters associated with the dependent variable are biased by "omitted" firm level effects and other specification errors. We examine these possible biases within the structural equations framework by examining the robustness of the parameters with and without the measurement error interactions fixed and an examination of nominological validity for each country. In addition, since we collected two observations per firm in our Chinese sample, we also examine whether bias exists due to omitted firm effects by comparing within and between estimates. The stability of the within and between estimates also suggests that our findings are robust to omitted firm effects. Our findings provide important managerial guidelines concerning appropriate managerial actions to take in the new product development process for new product managers. First, firms are advised to build appropriate new product development resources and expertise. In both countries, our findings suggest that adequate marketing research, sales force, distribution, advertising, and promotional resources and skills are required for proficiently conducting market assessment studies, testing products, and introducing products. Furthermore, technical resources and skills are positively linked with proficiency in conducting technical activities. Sufficient R&D and engineering resources and skills are related to proficiency in performing technical assessments, designing products, and manufacturing products. Second, our results reveal that a higher proficiency in marketing and technical activities leads to a higher level of new product success in both countries. The level of proficiency of technical activities appears to relate more to the level of new product success than do marketing activities. Third, it is important to collect and assess market and competitive information in order to understand customers' needs, wants, and specifications for the product; to know customers' price sensitivity; to understand customers' purchase decisions; and to learn about competitors' strategies, strengths, and weaknesses. In China, product quality is the second most highly correlated factor of new product success. Therefore, firms competing in China should direct their marketing and technical efforts toward developing quality products.

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OBJECTIVE
The objective of our research is to find whether the factors which are generally been adopted by industries while introducing new products in the market is reliable. The factors which are generally been considered by business while introduction of new product in the market are: 1) 2) 3) 4) 5) Segmentation, targeting and positioning. 4 ps SWOT analysis of industry. PEST analysis, and Porters five forces model.

In this research we will find out whether these approaches are reliable and are major factors for success of a new product. The findings will be based on literature review of five articles by eminent research scholars . This research uses the research design in which the event under research is described and then hypotheses are produced to explain it. The objective of the research is based on positivism is within the scope of the research sampling frame to look for correlations describing relationships between properties. The goal is primarily to show causal or at least correlative relationships. Sampling frame is collected from a wide population and it will be dealt with statistical methods. The results are statistical averages and other statistical measures and thus an individual company might be totally different from the average.

Our research will have the following objective:1. To indentify influencing factors which customers considered while purchasing the new product. 2. To find out perception of a customer toward a new product. 3. To indentify the influence on choice of a customer on different variable like age, sex, income.

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HYPOTHESIS
1)H0 : There is no relationship between occupation and reason for purchase of a new product in the market. 2)H0: There is a no relation between annual income and want from a new product. 3) H0: There is a no relation between gender and necessity for advertisement for a new product. 4)H0: There is a no relation between annual income and most important factors of new product as a price. 5)H0: There is a no relation between annual income and most important factors of new product as a quality. 6)H0: There is a no relation between annual income and most important factors of new product as a brand. 7)H0: There is a no relation between occupation and most important factors of new product as a price. 8)H0: There is a no relation between occupation and most important factors of new product as a place 9)H0: There is a no relation between occupation and most important factors of new product as a promotion

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SCOPE
Our project confined to Kiit School of management campus only. We have collected primary data from MBA student and faculty in the campus. As we all know that students and faculties of MBA are aware of marketing concept for the success of a new product. Therefore it was easily collect the primary data through questionnaire. So there is minimum error occurred while collecting the data. We are expected to get a rational decision from this research. There are also some limitations of this research we have been confined to just student and faculties. We didnt get other section of people who may have different views.

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METHODOLOGY Our research is based on primary data that is collected in Kiit School of management. So our sample includes students and faculties of the MBA College. This sample is divided into various segments 1) According to gender e.i male or female 2) According to income group 3) According to profession We have collection 50 respondents feedbacks through questionnaire. 50 respondents include 38 students of MBA 1st year which is further segmented into male and female. Rest 12 respondent are the faculties of MBA which is also segregated into different income group. Among faculties there is also a segmentation of male and female. As we had collected the data through questionnaire, it contains two kinds of question. We have open ended questions and close end questions in questionnaire. Data analysis method We have use the standard software SPSS to compute various statistical techniques. We have calculated the central tendency (mean median and mode), measures of dispersion and other descriptive statistics.

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FREQUENCY We have taken a respondent of 50 persons in KIIT School Of Management in which 40 are students and 10 are teachers. Out of which 10 are female respondents. We have selected few frequency distributions which are as follows:1. age Cumulative Percent 94.0 100.0

Valid

15 to 25 25 to 40 Total

Frequency 47 3 50

Percent 94.0 6.0 100.0

Valid Percent 94.0 6.0 100.0

From the above table we see that from 50 respondents 94% of them are from a age group 15-25 and rest 6% are from a age group of 25 to 40. So the respondents selected by us are in age of 15 to 40. From this age group we will see how many people are generally prefers to buy a new product.
2. annual income Cumulative Percent 2.0 4.0 14.0 16.0 100.0

Frequency Valid below 100000 100000 to 250000 250000 to 500000 500000 or more not applicable Total 1 1 5 1 42 50

Percent 2.0 2.0 10.0 2.0 84.0 100.0

Valid Percent 2.0 2.0 10.0 2.0 84.0 100.0

From the above annual income table we see that from 50 respondent only 2% of candidates have an annual income of below 100000. 2% lies between annual income of 100000 to 250000. 10% lies between 250000 to 500000. 2% lies between 500000 and more and rest 84% are in not applicable region which means that 84 % of our respondent are students who study in KSOM. Now from different income groups we will find out how different they behave on new products in the market. 3.
do you feel to buy a new product?

Frequency

Percent

Valid Percent

Cumulative Percent

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Valid yes no Total

47 3 50

94.0 6.0 100.0

94.0 6.0 100.0

94.0 100.0

From the above 50 respondent we see that 94% of the people feels to buy a new product in the market which means that maximum respondents feels to take the risk in the market when the new products are launched.
4. how you discover about a new product? Cumulative Percent 78.0 88.0 96.0 100.0

Frequency Valid advertisement(t v,newspaper) friends magazine others Total 39 5 4 2 50

Percent 78.0 10.0 8.0 4.0 100.0

Valid Percent 78.0 10.0 8.0 4.0 100.0

Again the question was asked to know how people generally know about or discover about a new product in the market. From the above table we see that 78 % of our respondents generally discover about a new product through advertisements and there are few who gets information from friends, magazines and others. So we can say that advertisement plays a better role to reach to customers when an organization comes up with a new product in the market. Promotion of products are generally done through newspapers and advertisements and then they make people aware about their new entry in the market.
5. what do you want from a new product? Cumulative Percent 40.0 60.0 94.0 100.0

Valid

compatibility price durability others Total

Frequency 20 10 17 3 50

Percent 40.0 20.0 34.0 6.0 100.0

Valid Percent 40.0 20.0 34.0 6.0 100.0

Again the question asked whether they prefer compatibility, price , durability or others while buying a new product in the market. From the above table what we find is the mix response from the respondents but still we see that 40% of our respondents generally prefer compatibility on a new product. Price which is an important factor was seen important only with 20% people. So what we can see is that people today are more quality conscious than price. They prefer compatibility and durability of a product more than a price.

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RESULTS Demographic information In our primary data collection we have taken faculties and student of MBA as sample. We have segmented into following manner:According to age 15-25 25-40 40-60 60-A According to gender Male Female According to income group Below 100000 100000-250000 250000-500000 500000 or more Not applicable According to occupation Student Faculty

We have calculated the mean median and mode above mention segments and we found out that average income of respondents is more than Rs 500000. Maximum number respondent falls in the category of not applicable group means they are not earning anything. The average age of respondent is 15-25 years. This show most of respondent belongs to student group. While calculating the frequency table for the question whether people thinks before buying before the new product we found that 94% of respondents think before buying a new product. We also discovered that 88% of respondents believe that innovation is necessary for a new product and 4% respondents feel it is not necessary. Rests of respondents are unable to decide. Again we have found that most of respondent get to know about new product through advertisement in TV and newspaper (78%), 10% get to know from their friends and 8% from different magazines 40% respondent believes compatibility is most important factor for new product success, 20% think it is price and 34% thinks it is durability.

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The last observation in this table is 98% of respondents believe advertisement is necessary for the success of new product. We are trying to analyses the age group with how to discover a new product available in the market . For that we have taken the help of cross tab in SPSS. In this age group includes only15-25 and 25-40. From this we get a number of observations which are as follows:1. Total 78% respondents get to know that about new product from advertisement in tv and newspapers.. 2. 10% respondents get to know from their friends. This also includes same age group. 3. Rest 8% and 4% get to know from their magazine and others sources respectively. 4. Age group of 15-25 gets information different ways. y From advertisement- 37% y From friends -10.6% y From magazine -6.4% y From other sources-4.3% 5. And in age group 25-40 includes y From advertisement- 66.67 y From friends -0% y From magazine -33.33% y From other sources-0% Again we have created a cross tab with annual group and reasons for purchasing a new product. Same above cross tab we again certain observation which are as follows:1. 14% respondents buys new product when someone ask them to purchase. This 14% includes various income group like 40% from income group 250000-500000, 26.62% from income group 500000 or more and rest belong to those who have no income. 2. 8% respondents purchase new product for presenting a gift to someone. Among them 20% belongs to 250000-500000 income group and 16.7% belongs to no income group. 3. 42% respondents purchase a new product just because they had seen it in a store. Out this 42%, 40.5 belong to of no income group, 100% from both below 100000 and 100000250000 . 4. Last observation in this cross was in relation of price of a new product is only 14%.in this case only 16% respondents of no income group have this opinion.

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Hypothesis 1 H0 : There is no relationship between occupation and reason for purchase of a new product in the market. H1 : There is a relationship between occupation and reasons for purchase of a new product in the market. Now according to Chi-square
occupation * what is the one reason you purchase a new product in a market? Crosstabulation what is the one reason you purchase a new product in a market? some one asks for it 3 21.4% 11 78.6% 14 100.0% make a great gift 1 12.5% 7 87.5% 8 100.0% saw it in store 3 14.3% 18 85.7% 21 100.0% price 0 .0% 7 100.0% 7 100.0% Total 7 14.0% 43 86.0% 50 100.0%

occupation

faculty

Count % within what is the one reason you purchase a new product in a market? Count % within what is the one reason you purchase a new product in a market? Count % within what is the one reason you purchase a new product in a market? Chi-Square Tests

student

Total

Asymp. Sig. Value df (2-sided) Pearson Chi-Square 1.798(a) 3 .615 Likelihood Ratio 2.695 3 .441 N of Valid Cases 50 a 4 cells (50.0%) have expected count less than 5. The minimum expected count is .98.

so from the above table we see that from Pearson Chi-Square we see that significance level is .615 where accepted significance level is .50 . so there is a chance of 39% that there will be a relation between occupation and reason for purchase of a new product. As the Pearson ChiSquare is above the significance level the above null hypothesis is rejected. So there exists a relation between occupation and reason for purchase of a new product in the market.

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Hypothesis 2 H0: There is a no relation between annual income and want from a new product. H1: There is a relation between annual income and want from a new product Now from the Pearson Chi-Square
Chi-Square Tests Asymp. Sig. (2-sided) 12 12 1 .170 .176 .642

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 16.480(a) 16.337 .217 50

df

a 17 cells (85.0%) have expected count less than 5. The minimum expected count is .06.

now from the above Chi-Square table we see that the pearson chi square came as .17 which is less than .5 which means that that there is a 83 % chance that there exist no relation between annual income and want from a new product. The null hypothesis is accepted which means that there exist no relation between annual income and want from a new product. It generally happened as 80% of our total respondent are students who dont come into the category of income. So according to the questionnaire we see that students generally want compatibility, durability and price while purchasing a new product from the market.

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Hypothesis 3 H0: There is a no relation between gender and necessity for advertisement for a new product. H1: There is a relation between gender and necessity for advertisement for a new product. Now according to Pearson Chi-Square
gender * do you think before buying a new product? Crosstabulation do you think before buying a new product? yes gender male Count % within do you think before buying a new product? female Count % within do you think before buying a new product? Count % within do you think before buying a new product? 37 78.7% 10 21.3% 47 100.0% no 2 66.7% 1 33.3% 3 100.0% Total 39 78.0% 11 22.0% 50 100.0%

Total

Chi-Square Tests Asymp. Sig. (2-sided) .625 1.000 .641 .534 .234 50 1 .628 .534 Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

Value .239(b) .000 .217

df 1 1 1

a Computed only for a 2x2 table b 2 cells (50.0%) have expected count less than 5. The minimum expected count is .66.

From the Pearson Chi-Square we see that there is a 46.6% chance that there will be a relation between age and necessity for advertisement of a new product. As .534 is greater than the significance level of .5 . The null hypothesis is rejected. So there exists a relation between age and necessity for advertisement of a new product.

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Here we see that maximum age group of below 25 get information from advertisement of a new product in the market. HYPOTHESIS 4 H0: There is a no relation between annual income and most important factors of new product as a price. H1: There is a relation between annual income and most important factors of new product as a price. Now from the Pearson Chi-Square:
annual income * most important factor for new product.. Crosstabulation most important factor for new product.. price annual income below 100000 Count % within most important factor for new product.. Count % within most important factor for new product.. Count % within most important factor for new product.. 500000 or more Count % within most important factor for new product.. Count % within most important factor for new product.. Count % within most important factor for new product.. Chi-Square Tests Asymp. Sig. (2-sided) .934 .895 .478 1 4.8% 1 4.8% 2 9.5% 0 .0% 17 81.0% 21 100.0% 2 0 .0% 0 .0% 1 6.7% 1 6.7% 13 86.7% 15 100.0% 3 0 .0% 0 .0% 1 12.5% 0 .0% 7 87.5% 8 100.0% 4 0 .0% 0 .0% 1 16.7% 0 .0% 5 83.3% 6 100.0% 1 2.0% 1 2.0% 5 10.0% 1 2.0% 42 84.0% 50 100.0 % Total

100000 to 250000

250000 to 500000

not applicable

Total

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 5.631(a) 6.388 .504 50

df 12 12 1

a 16 cells (80.0%) have expected count less than 5. The minimum expected count is .12.

As the Chi-Square value came as .934 which is much more than the significance level of .5. So the null hypothesis is rejected.

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So there is a relationship between annual income and most important factors of new product as a price. Hypothesis 5 H0: There is a no relation between annual income and most important factors of new product as a quality. H1: There is a relation between annual income and most important factors of new product as a quality Now according to Pearson Chi-Square
Chi-Square Tests Asymp. Sig. (2-sided) .521 .557 .503

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 7.143(a) 6.815 .449 50

df 8 8 1

a 13 cells (86.7%) have expected count less than 5. The minimum expected count is .06.

now according to chi square we see that the result of annual income to quality is .521 which is more than the significance level of .5. so there is 48% chance that there will be no relation between annual income and important factors of new product as a quality. Hence the null hypothesis is rejected. So alternative hypothesis is accepted. So there exists a relationship between annual income and important factors of new product as a quality.

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Hypothesis 6 H0: There is a no relation between annual income and most important factors of new product as a brand. H1: There is a relation between annual income and most important factors of new product as a brand. Now according to Pearsons Chi-Square.
Chi-Square Tests Asymp. Sig. (2-sided) .446 .573 .987

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 11.996(a) 10.495 .000 50

df 12 12 1

a 17 cells (85.0%) have expected count less than 5. The minimum expected count is .08.

so according to the chi square we see that there is a 54 % chance that there will be no relation between annual income and most important factors of new product as a brand. Hence the null hypothesis is accepted. So there exists a relationship between annual income and important factors of new product as a quality. So what we see is that people now a days do not prefer brand with their annual income. There may be other factors they look for while purchasing a new product in the market.

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HYPOTHESIS 7 H0: There is a no relation between occupation and most important factors of new product as a price. H1: There is a relation between occupation and most important factors of new product as a price. Now according to Pearsons Chi-Square.
occupation * most important factor for new product.. Crosstabulation most important factor for new product.. price occupation faculty Count % within most important factor for new product.. Count % within most important factor for new product.. Count % within most important factor for new product.. Chi-Square Tests Asymp. Sig. Value df (2-sided) Pearson Chi-Square .057(a) 3 .996 Likelihood Ratio .056 3 .997 N of Valid Cases 50 a 4 cells (50.0%) have expected count less than 5. The minimum expected count is .84. 3 14.3% 18 85.7% 21 100.0% 2 2 13.3% 13 86.7% 15 100.0% 3 1 12.5% 7 87.5% 8 100.0% 4 1 16.7% 5 83.3% 6 100.0% Total 7 14.0% 43 86.0% 50 100.0%

student

Total

So according to Pearson Chi-Square we see that there is a 99.6% chance of significance between occupation and a price of a new product. Hence as it is more than the significance level of .5 The null hypothesis is rehected Hence the alternative hypothesis is accepted. So there exists a relationship between occupation and important factor of a new product as a price.

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HYPOTHESIS 8 H0: There is a no relation between occupation and most important factors of new product as a place. H1: There is a relation between occupation and most important factors of new product as a place.
occupation * most important factor for new product.. Crosstabulation most important factor for new product.. 1 occupation faculty Count % within most important factor for new product.. student Count % within most important factor for new product.. Count % within most important factor for new product.. Chi-Square Tests Asymp. Sig. Value df (2-sided) Pearson Chi-Square 3.765(a) 3 .288 Likelihood Ratio 4.462 3 .216 N of Valid Cases 50 a 4 cells (50.0%) have expected count less than 5. The minimum expected count is 1.12. 2 16.7% 10 83.3% 12 100.0% place 3 30.0% 7 70.0% 10 100.0% 3 2 10.0% 18 90.0% 20 100.0% 4 0 .0% 8 100.0% 8 100.0% Total 7 14.0% 43 86.0% 50 100.0%

Total

now according to Pearson Chi-Square we see that there is 28.8% relationship between most important factors of new product as a place. Hence the null hypothesis is accepted. Hence there exists no relationship between occupation and most important factors of new product as a place.

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HYPOTHESIS 9 H0: There is a no relation between occupation and most important factors of new product as a promotion. H1: There is a relation between occupation and most important factors of new product as a promotion.
occupation * most important factor for new product.. Crosstabulation most important factor for new product.. 1 occupation faculty Count % within most important factor for new product.. Count % within most important factor for new product.. Count % within most important factor for new product.. Chi-Square Tests Asymp. Sig. Value df (2-sided) Pearson Chi-Square 5.816(a) 3 .121 Likelihood Ratio 4.799 3 .187 N of Valid Cases 50 a 5 cells (62.5%) have expected count less than 5. The minimum expected count is .56. 2 13.3% 13 86.7% 15 100.0% 2 1 5.0% 19 95.0% 20 100.0% promotion 2 18.2% 9 81.8% 11 100.0% 4 2 50.0% 2 50.0% 4 100.0% Total 7 14.0% 43 86.0% 50 100.0%

student

Total

so according to Chi-Square we see that there exists 12.1% chance of significance beween occupation and promotion of a new product. As .121 is less than .5 so the null hypothesis is accepted. Hence there exists no relationship between occupation and promotion of a new product.

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DEMOGRAPHIC INFORMATION

gen er

80

60

Percent

40

20

MALE

male

gen er

FEMALE

female

.So according to the above table we see that in all total of 80% respondent are male and 20% are female.these data have been taken from students and teachers of Kiit School Of Management in Bhubaneswar.

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age

100

80

Percent

60

40

20

0 15 to 25

15-25

age

25-40

25 to 40

From the above bar graph we see that total of 90% of the total respondent are from a age group of 15 to 25 and rest 10% are from the age group of 25 and above. Which means total of 90% of population are students and the rest are teachers.

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MAIN FINDINGS
From the above tables and graph and hypothesis we find different results. Our main research is on of factors affecting new product success. We have taken into account on different frequency tables , hypothesis to know what are the factors which are generally responsible for the success of a new product. From the frequency table the following results were derived which are as follows as under:94% of the people feels to buy a new product in the market which means that maximum respondents feels to take the risk in the market when the new products are launched. y 78 % of our respondents generally discover about a new product through advertisements and there are few who gets information from friends, magazines and others. y There is a mix response from the respondents that 40% of our respondents generally prefer compatibility on a new product. Price which is an important factor was seen important only with 20% people.So what we can see is that people today are more quality conscious than price. They prefer compatibility and durability of a product more than a price. Again we have created a cross tab with annual group and reasons for purchasing a new product. Same above cross tab we again certain observation which are as follows:y 1. 14% respondents buys new product when someone ask them to purchase. This 14% includes various income group like 40% from income group 250000-500000, 26.62% from income group 500000 or more and rest belong to those who have no income. 2. 8% respondents purchase new product for presenting a gift to someone. Among them 20% belongs to 250000-500000 income group and 16.7% belongs to no income group. 3. 42% respondents purchase a new product just because they had seen it in a store. Out this 42%, 40.5 belong to of no income group, 100% from both below 100000 and 100000250000 . Last observation in this cross was in relation of price of a new product is only 14%.in this case only 16% respondents of no income group have this opinion. We have also derived several findings through use of hypothesis. Pearson Chi-Square helps us to get findings from the 9 hypothesis we have conducted. The different results from the hypothesis are as follows: y There exists a relation between occupation and reason for purchase of a new product in the market. y There exist no relation between annual income and want from a new product.

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y y y y y y y

There exists a relation between age and necessity for advertisement of a new product. There is a relationship between annual income and most important factors of new product as a price. There exists a relationship between annual income and important factors of new product as a quality. There exists a relationship between annual income and important factors of new product as a quality. There exists a relationship between occupation and important factor of a new product as a price. There exists no relationship between occupation and most important factors of new product as a place. There exists no relationship between occupation and promotion of a new product.

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CONCLUSION
our group has taken up the research to find factors affecting success of a new product , in the project we tried to find what are the important factors that influences success of a new product and causes of fail if any. Few of important factors that affects success of any product are brand equity i.e. that what is the image of the brand by which the new product is lunched if its from a reliable and famous brand then people always tend to try out similarly few other factors which affects the success are reliability , comparability , price , etc . We tried to analyze what are such factors from our respondent. We had taken a sample size of fifty(50) mostly inside KIIT campus hence most of them are fall in student category but there are also many other respondent like faculty members , as the sample unit within are known vicinity its falls in random convenient sampling. In our analysis we tried to find the swot and pest for new product and there successes as there always possibilities of many when a product id lunched . As from above its clear our research work is based on questioner method so it is based on primary data collection but to have better understanding of the subject and gain knowledge we have done a literature review where we have gone through ten different articles n journals which are mention in our report in concerned part. Scope of this however remain to some limitations as this research work confined is confined to the KIIT campus and mainly to the student community only hence the view expressed may not be same and applicable to out world perfectly. Methodology as its has been discussed above our work is confined to this campus so we segregated the data into age group , income , occupation etc then we have analyzed our data with the help of SPSS and we anaylsed through techniques like central tendency , correlation ,descriptive statistics, cross tab ect. We have also taken concerned and related hypothesis which are proven either true or false according to the result and out of our analysis .

From our concerned sample unit about 94% fall in the age group of 15 to 25 that indicates most of our respondent are young.

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When it comes to annual income 88% fall in not applicable category still they have say when there family buy any product. 94% of our respondent show their tendency to try out a new product also we found in our research work 78 % of respondent know about a new product from advertisements and promotions followed by friends and magazines. Most of the respondent want their new product to be highly compatible whereas about 20% of respondent are bothered about price and 34% of respondent think about durability as an important factor. So from above data we can conclude younger generation collect most of their information from advertisement and promotion , hence any new product targeted to younger generation must be good in communicating to the consumer for their grand success. Also 98% of our respondent strongly feel advertisement for any product is necessary. Also our research shows 67% of respondent from age group of 25 to 40 know about new products from advertisements whereas only 37% from age group of 15 to 25. Hence that shows people in the age group of 25 to 40 go through advertisement more. 14% of people buy a product when someone ask them to. 8% buy to gift and 42% for their personal use.

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SUGGESTIONS From our research we can suggest different points which will help the success of a new product:y Companies should be more concern with reliability and durability of new product rather than depending on to just price of the product. As in our research we found that price is important factor but is much more important. Brand image of companies should be good because it put positive impact in promotion of the product and its success. It is essential for a company to create a good image. People get to know from advertisement in television. So it is suggested that a new product should introduce by television.

y y

Last point the companies can target the mass of age group in 15-25. Young people are more tentative toward new products

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LIMITATIONS The research project made by us are from the data which we have collected from KIIT School Of Management. We have not collected any data from outside the campus so the results or findings are restricted to this campus only. Whatever the results or findings we got are of this college only. Other reasons of not collecting data from others is because of unavailability of funds.

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BIBLIOGRAPHY y Michigan state university journal.( Controllable Factors of New Product Success: A Cross-National Comparison by Roger J. Calantone, Jeffrey B. Schmidt,

X. Michael Song .
y
Process, Management, Vol. 11 Iss: 1, pp.14 42(Determination of Critical Success

Factors for new product,by pollaphat nitithamyoung

y y

(School of the Built and Natural Environment, Glasgow Caledonian University, Glasgow, UK). Research paper by Property Management, Vol. 29 Iss: 2, pp.195 212 written by sadi assaf. Book by Philip Kotler of marketing management.

Internet sites 1. www.emerald.com 2. www.businessanalyst.com

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APPENDIX

Group 7 sec-c NEW PRODUCT SUCCESS

1. QUESTIONNAIRE
(Tick the following options given below) 1. GENDER A) Male 2. AGE A) 15 To 25 B) 25 To 60 C) 40 To 60 D) 60 above

B)Female

3. OCCUPATION ---------------------------------------------------

4. What is your annual income? A) Below Rs 100000 B) Rs 100000 to 250000 C) 250000 to 500000 D) 500000 or more E) Not applicable 5. How important are the following characteristic when purchasing a new product? ( Give tick the following) Very important Important Not at all important Extremely important Quality Price

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6. Do you feel to buy a new product? A) Yes B) NO

7. How you discover about a new product in a market? A) Advertising (TV, Newspaper ) B) Friends C) Magazine D) Billboard E) Others _________________________ (please specify)

8. What is the one reason you purchase a new product in a new market? A) Someone asks for it B) Make a great gift C) Saw it in store D) Price

9. What do you want from new product? A) Compatibility B) Price C) Durability D) Others_______________________(please specify)

10. Do you think innovation is must for a new product? A) Yes B) No C) Can t say 11. What is the most important factor for new product? A) Price B) Place C) Promotion D) People

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12. Do you think a good advertisement is necessary for success of a new product? A) Yes B) No

13. Do you think after sale services is an important factor for success of a new product? A) Yes B) No 14. Do you look for new products to buy whenever they are first launched in market? A) Yes B) No 15. Do you think before buying a new product? A) Yes B) no

2. KEY WORDS AND ITS MEANING

1)New product research- Successful new products are essential to a company's growth
and survival. We believe "new products" to be one of the most important applications of marketing research, but one of the most difficult to execute in practice. New products can be concept-driven or product-driven. The implicit model that underlies the following paragraphs is concept-driven (i.e., concept followed by product), but keep in mind that we can also start with a product and work "backward" to build a concept and positioning. 2)International marketing- refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.[1] It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." In contrast to the definition of marketing only the word multinational has been added. In simple words international marketing is the application of marketing principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. 3)Ommited variable estimation- The parameter estimates based on an econometric equation are biased and can also be inconsistent when relevant regressors are omitted from the equation or when included regressors are measured with error. This problem gets complicated when the `true' functional form of the equation is unknown. Here, we demonstrate how auxiliary variables, called concomitants, can be used to remove omitted-variable and measurement-error biases from the coefficients of an equation with the unknown `true' functional form. The method is specifically designed for panel data.

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Numerical algorithms for enacting this procedure are presented and an illustration is given using a practical example of forecasting small-area employment from nonlinear autoregressive models. 4) Critical success factors-is the term for an element that is necessary for an organization or project to achieve its mission. It is a critical factor or activity required for ensuring the success of a company or an organization. The term was initially used in the world of data analysis, and business analysis. For example, a CSF for a successful Information Technology (IT) project is user involvement.[1] "Critical success factors are those few things that must go well to ensure success for a manager or an organization, and, therefore, they represent those managerial or enterprise area, that must be given special and continual attention to bring about high performance. CSFs include issues vital to an organization's current operating activities and to its future success. 5)linear probability model-In statistics, a linear probability model is a special case of a binomial regression model. Here the observed variable for each observation takes values which are either 0 or 1. The probability of observing a 0 or 1 in any one case is treared as depending on one or more explanatory variables. For the "linear probability model", this relationship is a particularly simple one, and allows the model to be fitted by simple linear regression.