INTRODUCING NEW MARKET OFFERINGS

PRESENTED BY :NAVEEN K V

PEMMAIAH K LBIKRAM DEBNATH

VARGHESE PAULSUBHASISH SIKDAR

SILLA RUPESHSYED NABEEL ALI

Existing products

New products

Managing existing products

• Line extension

• Product modifications

functional modifications

quality modifications

aesthetic modifications

New product

Idea generation screening Concept testing

Business analysisProduct

developmentTest marketing

commercialization

Categories of New Products

New-to-the-world

Ex : Apple I-pod , Flat screen TV

New product lines

Ex : Game console for SONY

Cont… Additions to product lines

Ex : Nokia add features in

their Handset.

Improvements to products

Ex : Intel Processor

Cont… Repositionings

Ex : Gillette

Cost reductions

Ex : Tata sky set up box

Criteria for Staffing Venture Teams

Desired team leadership style and level of expertise

The more complex the new-product concept, the greater the desired expertise.

Team member skills and expertise.

New-venture teams for Aventis, part of pharmaceutical company.

Level of interest in concept.

Is there interest or, even better, a high level of ownership and commitment (a "concept champion")?

Cont…

Potential for personal reward.

What motivates individuals to want to participate in this effort?

Diversity of team members.

This includes race, gender, nationality, breadth of experience, depth of experience, and personality. The greater the diversity, the greater the range of viewpoints and decision-making potential.

NEW PRODUCT DEVELOPMENT PROCESS

Idea Generation: Creativity Techniques

Idea Generation: Creativity Techniques

• Attribute listing

• Forced relationships

• Morphological analysis

• Reverse assumption analysis

• New contexts

• Mind mapping

IDEA GENERATION:CREATIVITY TECHNIQUES

VARIATIONS OF FAILURE

ABSOLUTE PRODUCT FAILURE PARTIAL PRODUCT FAILURE RELATIVE PRODUCT FAILURE.

• Gas stations +

food

• Cafeteria +

Internet

• Cereal +

snacking

• Candy + toy

• Audio +

portable

LATERAL MAPPING

CONCEPTS IN CONCEPT DEVELOPMENT

• Product idea

• Product concept

• Category concept

• Brand concept.

• Concept testing.

• Communicability and

believability

• Need level

• Gap level

• Perceived value

• Purchase intention

• User targets, purchase

occasions, purchasing

frequency

CONCEPT TESTING

Marketing Strategy

Marketing strategy is the

goal of increasing sales

and achieving a

sustainable competitive

advantage.

preliminary steps:

1. Target market’s sizeStructureBehaviour

2. Planned priceDistribution Promotion for 1

year

3. Long run salesProfit goalsMarketing mix

strategy overtime

Product Development

Quality Function Development

Customer attributes

Engineering attributes

QFD –Translating target customer requirements into a working prototype is helped by a set of methods

CA- The methodology takes the list of desired customer attributes

EA-will do market research and turns them into a list of engineering attributes

A Major contribution of the QFD is improved communication between markets, engineers and manufacturing

Prototype Testing

Developing a prototype of your product allows you to bring your product to life for the first time and test it in its market.

Prototype-An early sample built to test a concept or process

Three types of prototype testing

1. Alpha testing- within the firm

2. Beta testing- with the customers

3.Market testing- give information about buyers, dealers and

market potential

Consumer Goods Market testing

Sales-Wave Research

Simulated Test Marketing

Controlled Test Marketing

Test Market

20-26

Timing of Market Entry

First entry

The first firm entering a market usually enjoy the “first mover advantage”

Parallel entry The firm might time its entry to coincide

with the competitor’s entry.ex : smart phones, Computers

Late entryThe firm might delay its launch until after

the competitor had borne the cost of educating the market .

1.Market Potential

Market potential is the entire size of the market for a product at a specific time . Market potential is usually measured either by sales value or sales volume.

Criteria for Choosing Rollout Markets

2.Company’s local reputation

3.Cost of filling pipeline

4.cost of communication media

Consumer-Adoption Process

“Adoption is an individual’s decision

to become a regular user

of a product”

Stages in the Adoption ProcessAwareness

Interest

Evaluation

Trial

Adoption

AwarenessConsumer become aware of the new product, but lacks information about it.

InterestConsumer seek information about new product.

EvaluationConsumer consider whether trying

new product make sense.

TrialConsumer tries new product on a

small scale to improve his or her estimate of its new value.

Adoption

• Consumer decides to make full and regular use of the new product.

Adopter Categorization

Innovators

Early adopters

Early majority

Late majority

Laggards

Innovators

Venturesome people and risk takers who are the very first users.

Early adopters

prestige oriented opinion leaders.

Early majority

The leading segment of the mass market. Who adopt the new technology when its benefits are proven and a lot of adoption has already taken place.

Late majority

Skeptical conservatives who are risk averse, technology shy, and price sensitive.

Laggards

Conservative, tradition bound and resist the innovation until the status is no longer defensible

Characteristics of an Innovation

• Relative advantage

• Compatibility

• Complexity

• Trial ability

• Observability

Relative advantage

The perception that the innovation is more satisfactory than items that already exist in the same class of product.

Compatibility

Is an estimate of harmony between the innovation and the values and norms of potential adopters.

Complexity

Is a gauge of the difficulty faced by a customerin understanding and using the innovation.

Trial ability

The relative ease of testing out the innovation before making a decision.

ObservabilityThe degree of visibility affords by innovation

New Products Failure and Success

Reasons for Failure

• Unable to reach the market.

• Some new products are not capable enough to survive due to the competition.

• Lack of proper market research.

• Faulty product idea

• Distribution related problems

Succeeds because of:-

• Proper knowledge about the competitor’s upcoming products or services.

• A unique and superior idea.

• Proper market research.

• A product only succeeds only when there is net benefit to the user.

• When the demand is fulfilled.