Example and analysis of a new product planning and diffusion for a consumer product

-Gautam Saha

Consumer ProductA consumer product is generally any tangible personal

property for sale and that is used for personal, family, or household for non-business purposes.

As an example, The United States Consumer Product Safety Act

has an extensive definition of consumer product, which begins:

CONSUMER PRODUCT.--The term ‘‘consumer product’’ means any article, or component part thereof, produced or distributed

(i) for sale to a consumer for use in or around a permanent or temporary household or residence, a school, in recreation,

(ii) for the personal use, consumption or enjoyment of a consumer in or around a permanent or temporary household or residence, a school, in recreation, or otherwise; but such term does not include—

(A) any article which is not customarily produced or distributed for sale to, or use or consumption by, or enjoyment of, a consumer,

Pictorial View

Product Planning Cycle

New Product Development Process

Product diffusion curve

Relation with social class

Lower Lower

Upper upper

Lower upper

Middle

Upper lower

Early adopter

Early Majority

Late Majority

Innovator

Laggards

Bass’s Theory of diffusion

Explanation

m-the total no. of people who will eventually use the product

P(Coeff. Of innovation)-The likelihood that somebody who is not yet using the product will start using it because of mass media coverage or other external factors

Q(coeff.of imitation)-The likelihood that someday who is not yet using the product will start using it because of‘WORD-OF-MOUTH’ or other influence from those already using the product

N-no.of person

IDEA GENARATION

“I saw families riding around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution”. “RATAN TATA”

SCREENING

CHOOSING BEST IDEA FOR FURTHER DEVELOPMENT Company capabilities to produce & market the product Nature & wants of Buyer

Seeking potential buyers’ responses to a product ideaLow cost determination 100000(excluding tax)

Electric ModelGasoline Model

CONCEPT TESTING

NANO

BUSINESS ANALYSIS

Parking problem

BASIC NEEDSTraffic problem

Demand & potentiality

Estimation of sales

Time sale

Replacement sale

Repeat sale

Estimation of cost &profit

Break even analysis

Contnd…

PRODUCT DEVELOPMENTThe car was designed at Italy's Institute of Development in

Automotive Engineering

The Nano will be available in three trim levels:

Standard-without A.C. Deluxe-The Deluxe and

Luxury variants will get AC and body colored bumpers

Luxury-Luxury variant will also have alloy wheels, fog lamps and ICE

Two types of variant cars are available:

Gasoline variant(G-Variant) Electric Variant(E-Variant)

Test MarketingAlpha TestBeta TestGama Test

evolution of TATA nano

COMMERCIALISATION

Crossing all Barriers (Political,Techinical) Tata promise to launched NANO in Feb,26,2009.

What an IDEA ji

“Life is a multidimensional plane of n-number of psychological variables…”