New Product Development Ppt OM Kartik

8/3/2019 New Product Development Ppt OM Kartik

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New Product Development

By Om Prakash Verma

What is Product?

Product:-A good, service, person, place,events or organizations offered to

consumers to satisfy his need or want.


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Why should Develop the New Product ?

New Product are essential for existing firms to keep

the momentum and for new firms they provide the

differentiation.

New Product doesn't mean that absolutely new to

the world. It may be modification, or offered in

the new market, or differentiate from existingproducts.


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New product Development

processStage-1:Idea generation: New Product idea can begenerated either from the internal sources or externalsources. The Internal sources include employee of theorganization and data collected from the market. Theexternal source includes customer, competitors and supplychain member. For example, Ingersoll rand welcomes new

idea from the general public.


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Stage 2:Idea Screening:

Organization may have various idea but it should find out of theseideas can be translated into concepts. In an interview of Times

of India Mr. Ratan Tata, Chairman TATA group discussed how

his idea saw many changes from the basic version. He told thathe wanted to develop car with scooter engine, plastic doors etcBut when he unveiled the car so many change were there in the

product. this shows that initial idea will be changed on the basisof market requirments.


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Stage3: Concept Development:

Concepts used for Tata Nano Car are

Concept 1: Low-end, rural car, probably without doors orwindows and with plastic curtains that rolled down, a

four-wheel version of auto-rickshaw.Concept 2: a car made by engineering plastic and new

materials, and using new technology like aerospaceadhesives instead of welding.

Concept 3: Indigenous, in-house car which meets all theenvironment standards.


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Stage 4:Concept Testing:

At this stage concept was tested with

the group of target customers.


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Stage 5:Marketing strategy

Development:The marketing strategy development involve three parts. The

part focuses on target market, sales, market and profit

goals. TATA,s initial business plan consisted sales of 2Lakh cars per annum. The second part involves product

price distribution and marketing budget strategies.

TATA.s fixes Rs 1 Lakh as the car price, and finding self

employed person who works like agent to distribute thecars. The final part contains marketing mix strategy and

profit goals.


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Stage 6:Business Analysis:

It is the analysis of sales, costs and profit

estimated for a new product to find out

whether these align with company

mission and objectives.


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Stage 7:Product Development:

TATA Nano car development1. Tried to outsource the product from all over world.

2.Development prototype with 20bhp.3.Designing the small engine.

4.Thermodynamic simulations and final engine

5.Development of MPFI with help of Bosch.

6.Cost reduction and negotiating with vendors.


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Stage 8:Test Marketing:

1.The product is introduced into the

realistic market.

2. The 4p,s of marketing are tested.

3.The cost of test marketing varies with

the type of product.


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Stage 9:Commercialization:

In this stage product is

completely placed in themarket and aggressive

communication is carried outto support it.


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THANK YOU

Documents

New Product Development Ppt OM Kartik