Presented To: Mam Amara Presented By:

2. Presented To: Mam Amara • Presented By: Muhammad Faisal Rao BS(IT)4th Roll No.07-49

3. Contents • 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?

4. The objectives of NPD • Maximize fit with customer requirements • Value proposition should be clear • Better features or lower costs • Minimize development cycle time • First mover advantages • Reduced costs • Controlling development costs • Higher margins

5. Where do ideas come from?

6. Where do ideas come from? • Employees • Customers (users) • Suppliers • Competitors/Complementors • Ideas often evolve due to interaction among the above groups

7. The NPD Process 4. Development 5. Test marketing 6. Commercialization 3. Business Analysis 2. Idea Screening 1. Idea Generation

8. NPD Process 4. Development 5. Test marketing 6. Commercialization 3. Business Analysis 2. Idea Screening 1. Idea Generation Employees, customers, suppliers, competitors

9. NPD Process 4. Development 5. Test marketing 6. Commercialization 3. Business Analysis 2. Idea Screening Reduce # quickly 1. Idea Generation Many -- employees, customers, suppliers, distributors, competitors

10. NPD Process 4. Development 5. Test marketing 6. Commercialization 3. Business Analysis S/F/C criteria; decision making under uncertainty 2. Idea Screening Reduce # quickly 1. Idea Generation Many -- employees, customers, suppliers, distributors, competitors

11. NPD Process 4. Development 5. Test marketing Processes for reducing costs 6. Commercialization 3. Business Analysis S/F/C criteria; decision making under uncertainty 2. Idea Screening Reduce # quickly 1. Idea Generation Many -- employees, customers, suppliers, distributors, competitors

12. NPD Process Experiment with small numbers 4. Development 5. Test marketing Processes for reducing costs 6. Commercialization 3. Business Analysis Launch new product!! S/F/C criteria; decision making under uncertainty 2. Idea Screening Reduce # quickly 1. Idea Generation Many -- employees, customers, suppliers, distributors, competitors

13. Test Marketing Standard Test Market Introduction in a small market supported by a full-fledged marketing campaign

14. Introduction Growth Maturity Decline Industry Sales Industry Profits Dollars 0 Time Product Life Cycles

15. Key Points • New product development is risky, but can provide high returns • Not engaging in NPD will surely result in failure • Managing the various stages of the NPD process is critical

16. Marketing Plan • 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

17. Thanks

18. Questions…….????