Presented To: Mam Amara

Presented By: Muhammad Faisal Rao

BS(IT)4th Roll No.07-49

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What are the objectives of the new product development process?

What are the different stages in new product development?

What are some ways to increase the efficiency of the NPD process?

How might NPD differ over the different stages of the industry life-cycle?

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Maximize fit with customer requirementsValue proposition should be clear

Better features or lower costs

Minimize development cycle timeFirst mover advantagesReduced costs

Controlling development costsHigher margins

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Employees

Customers (users)

Suppliers

Competitors/Complementors

Ideas often evolve due to interaction among the above groups

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3. Business Analysis3. Business Analysis

1. Idea1. IdeaGenerationGeneration

2. Idea2. IdeaScreeningScreening

4. Development4. Development5. Test marketing5. Test marketing

6. Commercialization6. Commercialization

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3. Business Analysis3. Business Analysis

1. Idea1. IdeaGenerationGeneration

2. Idea2. IdeaScreeningScreening

4. Development4. Development5. Test marketing5. Test marketing

6. Commercialization6. Commercialization

Employees, customers, suppliers, competitors

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3. Business Analysis3. Business Analysis

1. Idea1. IdeaGenerationGeneration

2. Idea2. IdeaScreeningScreening

4. Development4. Development5. Test marketing5. Test marketing

6. Commercialization6. Commercialization

Many -- employees, customers, suppliers, distributors, competitors

Reduce # quickly

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3. Business Analysis3. Business Analysis

1. Idea1. IdeaGenerationGeneration

2. Idea2. IdeaScreeningScreening

4. Development4. Development5. Test marketing5. Test marketing

6. Commercialization6. Commercialization

Many -- employees, customers, suppliers, distributors, competitors

Reduce # quickly

S/F/C criteria; decision making under uncertainty

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3. Business Analysis3. Business Analysis

1. Idea1. IdeaGenerationGeneration

2. Idea2. IdeaScreeningScreening

4. Development4. Development5. Test marketing5. Test marketing

6. Commercialization6. Commercialization

Many -- employees, customers, suppliers, distributors, competitors

Reduce # quickly

S/F/C criteria; decision making under uncertainty

Processes for reducing costs

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3. Business Analysis3. Business Analysis

1. Idea1. IdeaGenerationGeneration

2. Idea2. IdeaScreeningScreening

4. Development4. Development5. Test marketing5. Test marketing

6. Commercialization6. Commercialization

Many -- employees, customers, suppliers, distributors, competitors

Reduce # quickly

S/F/C criteria; decision making under uncertainty

Processes for reducing costs

Experiment with small numbers

Launch new product!!

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Test Marketing

StandardTest Market

Introduction in a small market supported by a full-fledged marketing campaign

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Do

llar

s

Introduction Growth Maturity DeclineIntroduction Growth Maturity Decline

IndustryIndustry SalesSales

IndustryIndustry ProfitsProfits

0

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New product development is risky, but can provide high returnsNot engaging in NPD will surely result in

failureManaging the various stages of the NPD

process is critical

Starts with Positioning Target Benefit(s) Frame of Reference Support

Sales Plan – Who will sell it, where will it be sold? Advertising Media Plan – How will we advertise it? Promotion Plan – Consumer promotion (coupons), Trade

promotion (on-sale) Production Plan – How will we make it?

Plants Lines

Financial Plan – How do we make the profit necessary to satisfy our share holders? Fixed Costs - Capital investment, overhead Variable Costs – Cost to produce – ingredients, packaging, distribution Breakeven/Targeted Return on Investment