2. Index
Sl. No. Description Slide No.
1. Product Development 3
2. Product Research 4
3. Tools of Product Development 5
4. Stages of Product Development 9
5. Product Line Extension 18
6. References 19
3. 1. Product Development
“creating, innovating or developing entirely a new product or presenting an existing
product with enhanced utility, improved features, more appealing design, better quality
& reliability to satisfy requirements of its end-users.”
Product – good/service/object offered to serve a need.
Development – act of developing the product.
Mainly conducted by Research & Development team.
Creating new products / modifying existing ones.
Ideas from customers / competitors etc.
Creation + Innovation + Enhancement+ Iteration
Product
Development
4. 2. Product Research
• Pure Research – discovering new facts & learning more about known facts.
• Applied Research – methodology for solving specific, practical problem of a group/
individual.
• Product Development - is carried out after Applied
Research
5. 3.Tools of Product Development to enhance efficiency
Simplification
Specialization.
Standardization
6. 3.1 Simplification
A process of product analysis by which
unnecessary varieties and designs are eliminated.
Limited number of grades, types & sizes of a
product are retained.
7. 3.2 Standardization
Selecting varieties / grades of product to be retained.
Manufacturing details are standardized.
Reduces component costs by mass production methods.
Ensures optimum performance.
Guarantees fail-free operation.
8. 3.3 Specialization
Natural outcome of Standardization &
Simplification.
Concentrating field of action towards specific
attempt.
Ex. - A worker is said to be specialized in a work
when he acquires skill and proficiency in it by
concentrating solely on it.
9. 4. Stages of Product Development
1
• Generation of new product ideas
2
• Screening of Ideas/ evaluation
3
• Concept Development
4
• Business analysis / market analysis
5
• Product introduction
• Product Life Cycle Analysis6
10. 4.1 Generation of New Product Ideas
• Sources of product ideas ->
• Customers needs and wants seem to be the most
logical place to start looking for a new product.
• Ideas are generated to address the gaps or
loopholes in competitor's product.
• Methods – Delphi method, Focus group etc.
Internal Resources -> R&D, sales, managers etc.
External Resources -> customers, dealers, competitors etc.
11. 4.2 Screening of ideas / evaluation.
• Interactive brainstorming sessions – contribute to marketing objectives & aids in
selection of preferred idea.
• Selecting the best idea among ideas.
• Promising ideas selected for next stage.
12. 4.3 Concept development.
Product Idea -> Product Concept.
Identification of physical features, benefits, price of the product are done.
Selected concept is introduced to focus group of customers for reaction.
Example- Auto Expo concept display
13. 4.4 BUSINESS ANALYSIS / MARKET ANALYSIS.
o Business Analysis -> Economic prospect of the new product is proven.
o Market Analysis -> Projection of future demand, financial commitment and return.
o The demand potential of the product and the cost of production and marketing are
determined.
o Ensured that product concept is compatible with resources of the organization.
o Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is also performed.
14. 4.5 Product introduction.
o Make prototype -> first fully operational production of the complete design solution.
o Testing the prototype under all expected and unusual operating conditions.
o Product is sold small scale (test market).
o Advertisement and sales promotion.
o Gathering feedback.
15. 5. Product Line Extension
o Creating a new product in same product line as that of existing brand with
unique features that the original product does not have.
o Commonly initiated in maturity stage.
Example – Apple iPod
Apple realize that it needed new models and new
markets to keep the profits growing, which
resulted in the introduction of iPod shuffle, iPod
nano, iPod touch, and iPod classic
16. 5. Product Line Extension
o The key distinction between a product improvement and product extension is that
when a line extension is introduced the original product can still be acquired by the
consumer where as a product improvement serves as a replacement for the original
product
Product Extension Product Improvement
