1. Topic: Planning new product
Prepared by: Mahrukh sheikh

2. outline
 New product planning as a
customer driven process
 Steps in new product
 Idea generation
 Screening , evaluating , and
business analysis
 Product and process
development
 marketing strategy and
testing
 Commercialization
 Variation in the generic new
product planning

3. Importance of a new product
• Innovation is essential to all the organizations’
continuing growth and performance in the
global market place.
• Innovation takes many forms, including goods
and services, organizational process, and
business designs.

4. New product planning as a
customer driven process
• New product classifications:
1. Newness to market
2. Extent of customer value
created
• New product types:
– Transformational
innovations
– Substantial innovation
– Incremental
improvements

5. Customer value analysis
Objective is to identify needs
for:
1. New products
2. Improvements to existing
products
3. Improvements in
production processes
4. Improvements in supporting
services
Finding Customer Value
Opportunities

6. Finding Customer
Value Opportunities
Matching Capabilities to Customer
Value Opportunities
– Fit between capabilities and
product offering
Transformational Innovations
– “new-to-the-world” ideas
– Customers not always the best
guides

7. Characteristics of Successful
Innovations
Creating an
Innovative
Culture
Selecting the
Right Innovation
Strategy
Developing and
Implementing
Effective New
Product Processes
Making
Resource
Commitments
Leveraging
Capabilities
STRATEGIC
INITIATIVES

8. Developing an Innovation Culture
 Innovation Workshop for top executives to develop
an innovation plan.
 Innovation Statement highlighting objectives and senior
management’s role and responsibilities.
 Training programs for employees and managers.
 Communicate the priority of innovation.
 Speakers to expose employees to innovation
authorities.

9. New product planning
Customer
Needs
Analysis
Idea
Generation
Screening
and
Evaluation
Business
Analysis
Marketing
Strategy
Development
Product
Development
Testing
Commercialization

10. Idea generation
• Idea search: targeted or open-ended?
• How extensive and aggressive?
• What specific sources are best for
generating a regular flow of new
product ideas?
• How can new ideas be obtained from
customers?
• Where will responsibility for the new
product ideas search be placed?
• What are potential threats from
alternative (or disruptive) technologies?

11. Idea generation
Methods of
generating idea
Direct
Search
Linking
Marketing
and Technology
Facilitating
Lead User
Analysis
Creative
Methods
National
Policy
Exploratory
Customer
Studies
Alliances/
Acquisition/
Licensing
Technological
Innovation

12. Screening , evaluating and
business analysis
Idea generation
Screening
(fit/feasibility)
Concept evaluation
Business analysis

13. Business Analysis
• Revenue Forecasts
• Preliminary Marketing Plan
• Cost Estimation
• Profit Projections
• Other Considerations

14. Product and process development
New product
concept
Market strategy
development
Product
development
and use testing
Market
testing
Launch

15. Product and process development
• Development of the new product includes:
– Product design
– Packaging design
– Decisions to make or purchase product components
• Product Development Process:
– Product Specifications
– Industrial Design
– Prototype
– Use Tests
– Process Development
• Collaborative Development

16. Marketing strategy and testing
• Marketing Strategy Decisions
– Market Targeting
– Positioning Strategy
• Market Testing Options
– Simulated Test Marketing
– Scanner – Based Test Marketing
– Conventional Test Marketing
– Testing Industrial Products
– Selecting Test Sites
– Length of the Test
– External Influences

17. Commercialization
The Marketing Plan
– Complete marketing strategy
– Responsibilities for execution
– Cross – functional approach
Monitoring and Control
– Real – time tracking
– Role of the Internet
– Include product performance metrics with performance
targets

18. Variation in generic
product planning
• Technology Push Processes
• Platform Products
• Process – Intensive Products
• Customized Products