managing new product development process
TRANSCRIPT
MANAGING THEProduct Development
Process
IdeaGeneration…
Step 1
• IS the Idea worth Considering ?
INTERACTION WITH OTHERS
INTERACTION WITH EMPLOYEES
STUDYING COMPETITORS
IdeaScreening…
Step 2
• IS the Idea compatible with company objectives and goals?
Two Possible ErrorsIn
Screening…
Dismissing a Good Idea…
1.Drop Error..
Not Dismissing a Bad Idea…
2.NOT Dismissing a Poor Idea Early
Enough..
Concept Development and
Testing..
Step 3
• Can we find a concept the customer would try ?
Concept Development
Concept Development
Stage 1. Category Concept
Concept Development
Stage 2. Brand Concept
CONCEPT TESTING
Marketing Strategy And
Development
Step 4
• Can we find a affordable marketing Strategy ?
Three part Strategy….
Part 1 describes :
(a)Market Size
Part 1 describes :
(b)Market Structure
Part 1 describes:
(c)Market Behaviour
Part 1 describes:
(d)Planned Market Postioning
Part 2 describes :
(a)Planned Price..
Part 2describes :
(b)Distribution Strategy
Part 3 describes:
(c)Marketing Budget
Part 3 describes :
(a)Long run sales..
Part 3 describes :
(b)Profit Goals
Part 3 describes:
(c)Marketing Mix Strategy
Business Analysis
Step 5
• Will the product meet our profit goal ?
Estimating Total Sales..
Estimating Costs and
Profits…
Product Development
Step 6
• Have we got a technically and commercially sound product ?
Quality Functional DeploymentQFD
Quality Functional DeploymentQFD
(a)Customer Attributes(CA)
Quality Functional DeploymentQFD
(b)Engineering Attributes (EA)
Physical Prototypes
Customer Tests
Alpha Testing: Within Company
Customer Tests
Beta Testing: Outside Company
Market Testing
Step 7
• Has the product met sales expectations ?
Consumer Goods Market Testing
1.Sales Wave Research
Consumer Goods Market Testing
2.Simulated Test Marketing
Consumer Goods Market Testing
3.Test MarketsHow many cities? Which ones ?
Duration ?
Consumer Goods Market Testing
Business GoodsMarket Testing
Commercialization
Step 8
• Are products meeting Sales expectations ?
WHEN?Timing!
WHEN?Timing!
1.First EntryMaybe good. My backfire.
WHEN?Timing!
2.Parallel EntryMarket Pays more attention.
WHEN?Timing!
3.Late EntryMay address faults and hence
succeed.
WHERE??
Place!
To WHOM??
Target Market Prospects!
HOW ?
Introductory Market Startegy.
RECAP
Thank You !
Chandra Has Dondapati