...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product development...
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...increasing for the past seven years. In the past five years the restaurant industry has out-performed the national GNP by 40%. The reasons given by the Folkney Report (November 1994) are 1) lifestyle changes, 2) economic climate, and 3) increase of product variety. Food production and assembly will take place in the kitchen of the restaurant 10.4 (2010) (286-300. Business Source Premier). Fresh vegetables, meat and dairy products will be used to crate most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. Product Development Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions may choose to often follow set procedures for bringing products to market. New product development relies on bringing together different disciplines to make sure the new product has the required functionality and appeals to a target market. As a result, companies have to implement specific organizational structures that promote effective new product development and strategies. There are several components of successful restaurant marketing Branding is one of the key components. There has been lots of hype over...
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...maximize compatibility, interoperability,safety, repeatability, or quality. It can also facilitate commoditization of formerly custom processes. Global data synchronization is another important part of standardizing data and removing friction from business transactions. There are huge benefits for both manufacturers and retailers if they are sharing the same product data. Companies in the retail and consumer products goods industries continue to work towards synchronizing data through net and other industry bodies. THE IMPORTANCE OF STANDARDIZATION In consulting to various clients I've been watching some shortcomings, which are not related to software or hardware, but the lack of and standardization: Processes, Service Instructions, and Trainings. The consequences of this are usually the loss of efficiency, higher operating costs, and the difficulty in developing a corporate image more homogeneous, which could be observed by their customers as a factor that differentiates the company from their competitors. It is recommended that all people of all levels of the organization are trained to meet the organization's commitment to provide products according to the quality required by a changing market, where requirements and customer expectations are increasing continuously. However it will be effective only if your company already has their Processes, Service Instructions, and Trainings, standardized, documented and easily accessible to everyone. This, therefore, will be the beginning of...
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...Task Two – Target 1200 words QN: Identify the skills needed for successful New Product Development and where they will be found within or outside the organisation, with consideration to the roles of the team members. Answer Developing a successful drive for new products and product development of TSS’ product range is a very complex process with the main difficulties, from a marketer’s perspective, being the integration of a team of various people or departments involved in the product development. Belbin (2004) concluded that there were only a few ways that people could contribute to teamwork with the essential contributions comprising of the following; Co-ordinating the efforts of the team, Creating ideas, Motivating and driving the team forward, Exploring resources, Evaluating options, Organising the work, Following up on detail, Supporting others and Providing expertise NPD like any other process involves numerous stages for it to be complete and in order for us to identify a team with the appropriate skills and capabilities needed for successful new product development in TSS, the analysis of the stages involved in this NPD process below combined with Belbin (2004)’s suggestions for teamwork would provide a job analysis benchmark for the team that will be sourced to carry out these developments. Idea Generation According to Jobber and Chadwick (2013), the sources of new product ideas can be internal to the company through marketers, salespeople, consumers especially...
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...New product development in modern business strategy and its importance. The survival of a business in a world faced with pressures of globalization or global competition depends on the adaptation of strategies to anticipate response and to adapt to market change both locally and internationally. It is vital that firms remain responsive to the local market while ensuring the integration and coordination of operations across world market to allow for the transfer of knowledge. To ensure growth company’s need to plan and adapt a growth strategy. The growth strategy a company adopts is highly dependent on its current success and position within the market place. Using Ansoff’s Matrix below the four growth strategies can be understood. | Existing Product | New Product | Existing Market | Market Penetration | Product Development | New Market | Market Development | Diversification | Product development growth strategy captures a framework focus on company product or service as well as product development process. This strategy examines the company’s capabilities as it relates to its strengths, weaknesses and core competencies, the competitors capabilities as it relates to their strength, weakness, core competency and strategy and the market needs and opportunities, goals as well as financial resources. The need for new product development are many inclusive of the following: 1) Companies need to adapt to the changing needs of the consumer example the need for...
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...LP 1 New Product Development Idea Generation: This is the stage where the idea is created and designed Development: The CDs will be designed and tested, during this stage manufacturing process will be considered in developing the CD it must play the highest quality and should be durable. Test Marketing: During the testing stage it should be tested in the lab, friend and families before proceeding to the real customers. Business Analysis: Information should be collected by recording label on the market competition, estimated sales, estimated cost, expected rate of return and profitability (this should be easy as the company is been run from the garage of the band leader who is not expecting to receive any pay for the next 3 years. Introduction/Launch: Once the CDs have been tested to make sure it works the way it should, it is made available to customers, most times some companies will launch it at once or launch it to a select group or in phases. The similarities can be seen the ideas stated above and the New-Product development process in the text book such as the Concept Development which can be compared to the idea generation, development stage some of the stages intertwine with another. The Product design which is the stage of designing the actual product which is similar to the development and testing phase of the product to ensure it meets the specifications and durability expected. Pilot Production/ Testing in this stage the products requires testing before they...
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...Article Review Managing the New Product Development process: Strategic Imperatives Aditi Rana Ankita Khaniya Ashish Silwal Sujal Dhungana Managing Operations and Technology, MBA Term II Arjun Shrestha February 24, 2013 Background: Published by “Academy of Management”, Melissa A. Schilling and Charles W. L. Hill have co-authored the article is “Managing the New Product Development process: Strategic Imperatives”. This article has been extracted from “The Academy of Management Executive (1993-2005), Vol. 12, No. 3 (Aug., 1998), pp. 67-81”. “Managing the new product development process: Strategic imperatives” explores into the new product development (NPD) process and the strategies involved with it. Unprecedented importance goes into the study and implementation of the NPD process by various departments of businesses, and it has become a key driver of competition between firms in majority of industries. Researchers have tried to conclude on strategies that could be key to enhance the NPD process. Two major factors have been found to go into consideration for the creation of those strategies: maximizing the fit of products/services with customer needs, and, minimizing the lead-time to the market. Although it may appear that these two factors might create conflicting mandates in a business; researchers have increasingly found indications that businesses may employ...
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...Did You Join ReWards? David Haire DeVry University DeVry University Table of Contents * Executive Summary * Product Description * Benefits of Product * Competitive Analysis * Market Research * Safety and Health within innovation * Development Strategy * Launch Strategy * Reference Page Executive Summary This report was commissioned to recognize the problem at hand of time and money lost by consumers and retailers in the process of enrolling in and paying for retail rewards programs. Member products have recognized this problem. Did you join? The answer right now may be no, however give it time and you will understand why the answer will soon be yes! “ReWards” is an incremental innovative product that is due to release early next year. With ReWards, you will now have the ability to purchase a single, recycled hard plastic key fob which allows you to have one device that acts as your rewards membership card for all retail locations that offers a rewards program. ReWards is a company that originated in Algonquin, Illinois by a retired Army veteran who took note of the excessive amounts of rewards programs there were on the market and the hassle that seemed to go hand in hand with the enrollment and management of each program. ReWards is a fast growing company that has completely eliminated the hassle behind rewards programs! But what is the true problem at hand? Let us think back on our current shopping experiences. When was...
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...Dynamo Laptop Charger Ideation: Our entire generation is dependent on technology and we all use laptops and smartphones daily. So in this growing electronic world, there is a constant need for charging outlets for our devices. Catering to this need, we have developed a laptop charging device which is a completely new device in the market and can be used by anybody to charge their laptops even in the absence of a power outlet. Need assessment: There has been lot of issues on charging laptops while travelling or when in need of laptops for long hours like during presentations. It is not possible to carry on work and most people feel they run out of battery charge very quickly. Our product Dynamo Laptop Charger is an absolute solution to this problem. It is a hassle free case which will enable the user to charge his/her laptop when there is no means to charge it through the traditional way. The product would be most preferable for corporate class who travel a lot and for students who need their laptops 24/7. The device is made of light weight metal which does not heat up easily and is compatible for all top brand laptops. The mechanism of the device lies in the concept of a power bank which will store charge and can be used later on when in need. To provide the customers with ample variety the device has been designed to be powered by either battery, plug-ins or through solar plates. To address the people with greater needs we are also providing a combination of all the...
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...steps in the new product development process. • Step 1: Idea Generation – Begin from many sources: suggestions from customers, the sales force, R&D specialist, competing products, suppliers, retailers, and independent inventors. • Step 2: Screening – Separate ideas with commercial potential from those that cannot meet company objectives. – Some organizations maintain checklists of development standards in determining whether a project should be abandoned or considered further. – These checklists typically include factors such as product uniqueness, availability of raw materials, and the proposed product’s compatibility with current product offerings, existing facilities, and present capabilities. • Step 3: Business Analysis – A product idea that survives the initial screening must then pass a thorough business analysis. – This stage consists of accessing the new product’s potential market, growth rate, and likely competitive strengths. • Step 4: Development – Financial outlays increase substantially as a firm converts an idea into a visible product. – The conversion process is the joint responsibility of firm's development engineers, who turn the original concept into a product, – and its marketers, who provide feedbacks on consumer reactions to the product design, package, color, and other physical features. • Step 5: Test Marketing – Many firms test market their new-product offerings to gauge consumer reaction. – The purpose is to verify that the product will perform...
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...model for NPD: "The New Product Development Cycle" The NPD cycle is a circular arrangement of product development stages that result in the commercialization of new products. The stages for NPD consist of planning, design and prototype, production and pilot production, distribution, sales and marketing, and after sales servicing stages. Although there is a logical progression through the stages, after a product is developed, the cycle is continuous in order to promote improvement. Different phases of the projects rotate through the NPD cycle at the discretion of senior management. Planning Planning stages of NPD project are usually geared toward international business when feasible in order to increase geographical markets and market potential. With an increased market potential, the NPD investment decisions become more salable (Terpstra & Sarathy, 1991). Concept development occurs during the planning stages and includes new product and process ideas from many sources. Inputs from all areas of the organization, customers, noncustomers, suppliers and external research organizations are taken into consideration for new product concepts. The organization constantly expands its knowledge base and access to information to increase the number of new product and process ideas considered for development. Instituting procedures and incentives that encourage innovation and input from all parts of the organization continually increase the number of product concepts considered...
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...C. M E R L E C R A W F O R D STRATEGIES FOR NEW PRODUCT DEVELOPMENT Guidelines for a critical company problem C. Merle Crawford is a faculty m e m b e r at the University o f Michigan. In spite o f much evidence o f its success, many managers hesitate to establish a policy for new product development. Their indecision often arises f r o m two reasons: they fear that a defined strategy may discourage innovation and they are uncertain how to formulate a new product strategy. The author o f this article discredits the f o r m e r notion and, in reply to the latter, proposes the guidelines f o r developing such a statement. As new products are essential to the continued success o f most firms, the strategy must exist and must be operant i f the firm is to avoid wasted time, effort, and money as well as employee confusion and discouragement. For longer than most of us care to remember, Dan Gerber has been proclaiming that babies are his business, his only business. With some nostalgic regret I read recently that he has altered his strategy: he now permits limited diversification b e y o n d products for babies. A leading toiletries manufacturer has an equally tenacious, though unpublicized, commitment to only those new, nonfood, packaged goods that do not compete itemto-item with Procter and Gamble. Richard Rifenburgh, president of Mohawk Data Sciences, manufacturers of peripheral computer equipment, was cited recently in Fortune as a man who, at the present time, would...
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...* Saad _ LipStick Stereo Headset NEW PRODUCT DEVELOPMENT (NPD) The idea of our product has to do with improving and updating product lines. Most of the products go through the stages of their lifecycle and eventually have to be replaced. With our product we try to extend the lifecycle because it’s a combination of product. In particular the idea is covering a specific kind or chronological lifecycle that would be extended. Our Product is a combination of an mp3 high gadget technology and a Lipstick (in 3 colors, which our costumer can choose which one she prefers). And she has the opportunity when the lipstick finishes to replacing it with a new one, of her choice. * STAGES: 1. IDEA GENERATION Saad Ltd. Company, within the ongoing efforts to import and distribute high quality products, addressing the needs and demands of consumers has created something unique. Inspired from competitors of our two different products, within the company, customers, distributors, supplies and others we came with a new product. 2. IDEA SCREENING The product is very attractive not only from the outside but also from the inside. High Fashion Brand Loyalty Brand Awareness Lack of e-commerce (WEB) STRENGTHS WEAKNESSES New entry of products There is no position of the brand Specific average of specific needs Design challenges Existing customer reactions ...
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...It is always necessary for a firm to have a rational approach in new product development. This article by Eric Bonabeau introduces a more rational approach to new product development. Drug companies have had big bets on unproven projects with the hopes that they will help make the company lots of money. Sometimes it works, more often than not it doesn’t. The pharmaceutical business views all projects as belonging to one of two different groups: a truth-seeking group and a success-seeking group. The truth-seeking group of projects is focused on evaluating novel new product possibilities and weeding out the bad bets. The success-seeking group of projects is focused on making those products that have been cleared for development as profitable as possible. In the article the choice of model ‘chorus’ designed by a pharmaceutical company Eli Lilly in 2001 used this two-step approach to manage their new product development. What they’ve discovered is that it has been able to deliver products at twice the speed and for about 1/3 of the cost. However, there are some side effects to using this two-step strategy: It will postpone the start up of successful projects. The purpose of a new drug development project in the truth seeking plan is to minimize the work conducted to support the crucial experiment. Experiment on 4AB found molecules which might have a promise for a certain neurological disorders. The project was abandoned prior to clinical testing because similar molecules were...
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...Managing New Product Development Teams Topic: Managing New Product Development Teams CASE STUDY W/QUESTIONS (MUST ANSWER ALL DISCUSSION QUESTIONS) Skullcandy: Developing Extreme Headphones1 In 2001, Rick Alden was riding up a ski lift and listening to music on an MP3 player when he heard his phone ringing, muffled in the pocket of his ski jacket. He fumbled around with his gloved hands, trying to get to the phone before it stopped ringing, and at that moment he thought “ why not have headphones that connect to both a cell phone and an MP3 player?” 2 In January of 2002 he had his first prototype built by a Chinese manufacturer, and by January of 2003 he launched his company, Skullcandy. 3 Building an Action Sports Brand Alden had an extensive background in the snowboarding industry, having previ-ously founded National Snowboard Incorporated ( one of the first companies to promote snowboarding) and having developed and marketed his own line of snowboard bindings. His father, Paul Alden, had played many roles in the indus-try, including serving as the president of the North American Snowboard Association, which helped open up ski resorts to snowboarders. His brother, David Alden, had been a professional snowboarder for Burton, and a sales repre-sentative for several snowboard lines. Thus when Alden began creating an image and brand for the headphones, it only made sense to create a brand that would have the kind of dynamic edginess that would attract snowboarders and skate-boarders...
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