product development strategies and implementation

8/3/2019 Product Development Strategies and Implementation

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Product development strategies

and implementation


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Contents

Introduction

Product development strategies &Implementation process

Practical study

Swot analysis

Conclusion & recommendation


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Introduction

Product development strategies:

The creation ofproducts with new or different characteristics

that offer new or additional benefits to thecustomer.

Product development may involve modification

of an existing product or its presentation, orformulation of an entirely new product thatsatisfies a newly defined customer need or want.


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Product development strategy &

implementation process

Idea Generation

Idea Screening

Concept Development and Testing

Business Analysis

Market Testing

Technical Implementation

Commercialization

Product Pricing


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Practical studyNESTLE Pakistan


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NESTLE Pakistan

Nestle is the largest food company inthe world.

It is present in all five continents, hasan annual turnover of 74.7 billionSwiss Frances.

There are 509 factories are running in83 countries, having 231,000employees


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MISSION &VISSION

MISSION

Dedicated to providing the best food to the people,throughout their day, throughout their lives, throughoutthe world

VISSIONThe Nestl global vision is to be the leading Health,

wellness and Nutrition Company in the World.

NESTLE CORE VALUES The Nestl global vision is to be the leading health,

wellness, and Nutrition Company in the world. NestlPakistan subscribes fully to this vision.


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Product development strategy &implementation process in nestleResearch and development (R&D) The new product was developed with the assistance of Nestl's

research and development teams. Developed to be nutritionally better, with less salt, healthier oils and no artificial

coloring or flavoring, its labeling contains clear nutrition

information that chefs can pass on to customers. Two widely used products are multi-use tomato sauce and bouillons

(stock). The sauce can be used instead of chopping tomatoes, being more convenient and needing less cooking time.

Caterers use it mainly for pizza topping or as a pasta sauce. The bouillons have authentic taste, are quicker than

preparing stock from scratch, and easier to use with less waste. Nutritional values for both products are high.


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Product development strategy &implementation process at nestle

Product developmentEach Nestl R&D centreinternationally specializes indeveloping a particular producttype. The bouillons, for example,were developed in Austria. The

process involves:* A research and development brief

- the proposition that needs to befulfilled.

* Creation of samples and tasting.* Feedback, observations and

improvements.* Sign off, when everyone is happy.

Product launchChefs are busy people, so it isdifficult to reach them. Nestl usedselected trade media such asCatering Update over 6-8 weeksbefore the launch. Chefs also

received direct mail drops andsampling opportunities at specialevents. Nestl also usedcompetitions, particularly foryoung chefs. It sponsors the'School Chef of the Year Award'.This is important since schools

provide an estimated 30% ofchildren's daily nutrition.


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Swot analysis

Strengths:

Innovative and constantlygrowing product line.

Sales force is the majorresource strength interms of physicalresources of the

Periodic research carriedout to judge markettrends.

Growing Sales andprofits.

Major shareholder in thefood industry of Pakistan.

Weakness:

Selective investment dueto uncertain economicand political conditions.

Feasibility of newproducts needs to beanalyzed, e.g. Nesteawas launched someyears back but it failedbecause no customer

demand for it existed.


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Swot analysis

Opportunities

The company has theoption to expand its

product folio byintroducing morebrands which itsparents are famed for

like breakfast cereals,Smarties Chocolates,Carnation, etc

Threats

Price fluctuations dueto rupee devaluation

as raw material areimported.

The uncertainty ofeconomic conditionsposes a great threat


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Conclusion & Recommendation

ConclusionNestl created NestlNutrition as anautonomous global

business unit within theorganization. Nestle isusing its brand name topromote its products & itsvery popular ascompared to its

competitors.

Recommendation They should increase

preservation ability intheir products specially in

Nectar juices. They should lower theirproduct prices for lowincome class.

Can offer more products

which Nestle is offering inother countries. Feasibility should be

analyzed.

product development strategies and implementation

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