1.What is a Product?
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers which they receive in exchange for money or some other unit of value.
• NPD is a process which designed to develop, test and consider the viability of products which are new to the market in order to ensure the Growth or survival of the organisation.
1. The stages a firm goes through to identify business opportunities and convert them to a salable good or service.
2.What is a new product?
A product that opens an entirely new market
A product that adapts or replaces an existing product
A product that significantly broadens the market for an existing product An old product introduced in a new market
An old product packaged in a different way An old product marketed in a different way
3.Why develop NPD
To add to product portfolio
To create stars and cash cows for the future To replace declining product
To take advantage of new technology To defeat rivals
To maintain/increase market share To keep up with rivals
To maintain competitive advantage To full gap in the market
4.New product can be used
Increase/defend market share by offering more choice or updating older products Appeal to new segments
Diversify into new markets
Improve relationship with distributors
Maintain the firm‗s reputation a leading edge company Even out peaks and troughs in demand
Make better use of the organization's resources
5.New Product Development Strategy
_ Original products _ Acquisition
_ Product improvements _ Product modifications
_ New brands through the firm‗s own R&D efforts
6.Types of new product
New product the world products – innovative products
New product lines – to allow the firm to enter an existing market
Additon to product line – to supplement the firm‗s existing product line Improvements and revisions of existing product
Repositioned products – existing products targets at new market
Cost reduction new product that provide similar performance at lower cost
7.Examples of new products
New to the world – high definition TV, ipod, flat screen TV New products lines – Mars ice creams
Additon to the products line – weetabix launched fruitibix Product improvement & replacement new car model