New Product Development(npd) - 2
Updated: May 14, 2020
Re-cap of our previous blog:
So, this is a continuation to our previous blog in which we discussed about the meaning of New Product Development (NPD), followed by NPD strategy and also we discussed about important steps you will need to INCORPORATE into your NPD strategy.
In this blog, we will see the actual New Product Development (NPD) process.
There are as many as 8 steps in the New Product Development (NPD) process and we look into each step one by one.
Developing concept and testing
Development of Marketing Strategy
Development of Product
Commercialization - Product Launching
Generating and screening ideas for new products
The successful new product development (NPD) process starts with identifying a good product, ideas and using reliable criteria to decide which ideas should be considered. You should take the following steps before you allocate funds to new product development.
Idea generation: Make a list of customer needs based on the information that you gather from the available sources you get. You should also try to identify any weaknesses in your products that are existing, along with the gaps in your product range and areas for product improvement.
Idea Screening: The "idea screening" is the next important step in the NPD process. Screening new product ideas is crucial in order to spot good ideas and drop out the poor ones as soon as possible in the initial stages.
Developing concept and Testing: Developing an effective concept and also proper test needs to be done with a group of experts before actually proceeding further. This process is further divided into 2 different steps, they are: Product Concept: Before you move forward with anything, the concept should be prepared keeping in mind the target market, type of audience and what the market is expecting. This is again divided into 2 main categories. They are: i. Product idea is the idea for a possible product that the company can see itself offering to the market. ii. Product image is the way consumers recognize the actual or potential product. Concept Testing: Testing a new product's concept with a group of target consumers in mind to find out if the concepts prepared have a strong consumer appeal is also necessary. The concept can be presented symbolically or physically.
Development of Marketing Strategies: Designing an initial marketing strategy for a new product based on the product concept is very important. The marketing strategy statement should consist of three parts: a. The first part should always describe the target market, and also the estimated market share and profit goals for the first few years. b. Next, the second part of the marketing strategy, should state the outline of the product’s planned price, distribution, and marketing budget for the first few years. c. Then, at the end, the third part of the marketing strategy statement, should describe the planned long run sales, profit goals and marketing mix strategy.
Business Analysis: A proper review of sales, costs and profit projections for a new product should be made to find out whether these factors will satisfy the companies objectives:- i. It is a process of evaluation of business attractiveness of the proposal. ii. The company will use the sales and costs figures to actually analyse the new products financial attractiveness.
Development of Product: Developing the concept into a physical product in order to assure that the idea can be turned into a workable product. i. This stage involves large investments. ii. The R&D department team will be in the work to develop and test one or more physical versions of the product concept (Prototype). iii. The prototype should have the required functional features and also convey the intended psychological characteristics that are related to the concept/idea.
Test Marketing: This process involves two things: i. This is a very important stage of new product development in which the product and marketing program are tested in more realistic marketing settings. ii. Test marketing gives the marketer experience with marketing the product before going to the great expense of full introduction of the product.
Commercialization - Product Launching: Now that all the processes are properly analysed and all the key steps are properly taken into consideration, it's time for the Product Launching. This involves the following process. i. This implies that their should be a proper commitment of high investments in the manufacturing facilities, sales promotion and other marketing efforts. ii. The company that is launching a new product should first decide on an introduction timing of the product. iii. Next the company must decide where and how to launch, i.e. whether in a single location or a region or national market or international market. iv. They may also have to develop a planned market roll-out time for the introduction of the product into the market.
These are the New Product Development process and steps to be followed at the time of developing a new product.
Who should attend this training?
SBU/Dept Heads, Business Managers, Product/Project Managers, Engineers working for NPD, R&D, Design, Production and Quality, Marketing Managers, Quality and R&D professionals who desire to enable their organization's journey towards successful NPD and robust product realization practices in order to ensure a competitive edge enabling their business growth.
Benefits of attending this Training
Understanding challenges of industries and systematic approach towards NPD process.
Knowledge helps better in better handling of NPD process
Appreciate how complex product development could be
Get best practices of NPD in manufacturing industries
Why infimind for NPD?
We at Infimind Institute have the highly experienced faculty, who will be conducting this workshop. The course will provide participants a platform to discuss specific problems with the expert faculty. He has completed his M.Tech from IIT Chennai in Mechanical Engineering (Gold medalist). He has got 32+ Years of industry experience starting from Testing, Design and Development, Product Development, New Product Development, Technical Co-ordination, Project Management, Procurement, Logistics and Global sourcing at various corporates.