1. New Product Development (NPD) Process

2. Introduction
New products are the lifeblood of a company – more revenue, more growth, more profits.
It is increasing difficult to identify blockbuster products that will transform the market, but continuous innovation can give an edge to the company in the marketplace.
Companies typically must create a strong R&D to pull off innovation success.
High tech firms such as computer, consumer electronics, and software firms seek radical innovation.
In other words, you can improve an existing product to perform better in the marketplace than your competitors.

5. NPD process – Idea Generation
Idea Generation is the Systematic Search for New Product Ideas Obtained Internally From Employees and externally from consumers, suppliers, scientists, engineers, channel members, and even competitors.

6. NPD process – Idea Screening
Idea Screening is a process to spot good ideas and drop poor ones as soon as possible.
Three questions to ask yourself during screening process:
Is there a real need for the product and will customers buy it? – Desirability
Does the company have the resources to make the product a success? - Deliverability
Will it make money for the company? – Revenues and Profits

7. NPD process – Concept Development
A detailed version of the new product idea stated in meaningful consumer terms.
Three questions to ask for concept development( Idea is a nutritious drink in Bangladesh):
Who will use the product? Infants, children, teenagers, young or middle-aged adults, or older adults.
What primary benefit should this product offer? Taste, nutrition, refreshment, energy.
When will people consume this product? Breakfast, midmorning, lunch, mid-afternoon, dinner, late evening?

8. NPD process – Concept Development
Develop several concepts:
Concept 1: An instant breakfast drink for adults who want a quick nutritious drink without preparation (Tropicana Juice).
Concept 2: A tasty drink for children to drink as a midday refreshment.
Concept 3: A health supplement for older adults to drink in the late evening before they go to bed.

9. NPD Process - Concept Testing
Testing new-product concepts with a group of target consumers through consumer research to find out if the concepts have strong consumer appeal/demand.

10. NPD Process - Marketing Strategy Development
Comprises of a detailed report of the following parameters:
Thorough market analysis to understand the whole market and also the consumer.
Feasibility report reflecting your market analysis, financial implications (investment), unit cost, 5 year sales target in units, revenues, and profits, payback period to reach breakeven, marketing investment.
Proposed Market share achievements for the next 5 year.
What strategy the marketer wants to implement to achieve superior performance in the marketplace – cost leadership, differentiation, or focus.
The target market and the positioning for the product.
Product’s planned price, distribution, and promotional budget

11. NPD Process - Business Analysis

12. NPD Process - Product Development and Test Marketing
Product Development: Converting the product concept into a product/service that can be marketed.
Test Marketing: Product and marketing program are tested in realistic market setting.

13. NPD Process - Commercialization
Commercialization is the introduction of the New Product into the Marketplace. Cost hikes in this phase.
When to launch the new product? (Iphone 6)
Where to launch the new product?

14. The Consumer Adoption Process for new products
Adoption is an individual’s decision to become a regular user of a new product.
The Adoption process comprises of five phases:
Awareness phase: the consumer becomes aware of the innovation but lacks information about it.
Interest phase: the consumer is stimulated to seek information about the new product.
Evaluation: the consumer considers whether to buy the product.
Trial: the consumer tries the new product by purchasing it for the first time.
Adoption: the consumer decides to make full and regular use of the innovation because they were satisfied during the trial phase.
Explain in terms of 3G.

15. That’s all for the semester
Take care and all the best for your final exam and your marketing plan report & presentation.