New product development is the initial and most important part of any company's journey which can make it or break it. New Product development involves 9 steps from new product strategy to commercialization.

1. NEW
PRODUCT
DEVELOPMENT
Vijyata
Assistant Professor, RanchiWomen’s College, RanchiUniversity

2. NEW PRODUCT
STRATEGY
IDEA GENERATION
MARKETING
STRATEGY
BUSINESS
ANALYSIS
CONCEPT
DEVELOPMENT
IDEA SCREENING
PRODUCT
DEVELOPMENT
COMMERCIALIZATION
TEST MARKETING
NEW PRODUCT DEVELOPMENT STEPS

3. STEP 1. NEW PRODUCT STRATEGY
Market
Penetration
New Market
Development
New Product
Development
Diversification
CURRENT NEW
CURRENTNEW
MARKET
PRODUCT
fig : Ansoff
Matrix of
Growth

4. STEP 2. IDEA GENERATION
• Formal R&D of
company
• Sales Employee
• Suggestion
System
• Complaint system
• Customers
• Distributors
• Suppliers
• Competitors
INTERNAL SOURCE EXTERNAL SOURCE

5. STEP 2. IDEA SCREENING
Company’s Goal
Development cost & time
Rate of return

6. STEP 4. CONCEPT DEVELOPMENT
PRODUCT IDEA PRODUCT CONCEPT PRODUCT IMAGE
A product idea is
an idea for a
possible product
that the company
can see itself
offering to the
market.
A product concept
is a detailed
version of the idea
stated in
meaningful
consumer terms.
A product image is
the way consumers
perceive an actual or
potential product.

7. T
STEP 5.MARKET STRATEGY DEVELOPMENT
TARGET
MARKET
THE PRODUCT POSITIONING
SALES, MARKET SHARE
& PROFIT GOALS

8. STEP 6.BUSINESS ANALYSIS
Business analysis involves a review of the sales,
costs and profit projections for a new product to
find out whether they satisfy the company's
objectives. If they do, the product can move to
the product development stage.

9. STEP 7.PRODUCT DEVELOPMENT
Developing the product concept into a
physical product in order to ensure that the
product idea can be turned into a workable
product.
Design for Manufacturability and Assembly
(DEMA) approach is advisable to make product
pass functional and consumer tests.

10. STEP 8.TEST MARKETING
Company tests the product and its entire marketing
programme - positioning strategy, advertising its
distribution, pricing, branding and packaging, and
budget levels - in real market situations.The company
uses test marketing to learn how consumers and
dealers will react to handling, using and repurchasing
the product

11. TEST MARKETING APPROACHES
StandardTest Markets – Full marketing campaign is conducted in selected
cities and the results are applied on entire market.
ControlledTest Markets - Research firms keep controlled panels of stores
which have agreed to carry new products for a fee. Sales results are tracked
to determine the impact of these factors on demand.
SimulatedTest Markets – Consumers are paid money to buy products in a
simulated shopping environment or laboratory store where the new
product as well competitor brands are kept. Consumer are then
interviewed for their choice of product.

12. STEP 9. COMMERCIALIZATION
•Where ??
•ToWhom??
•How??

13. THANK YOU!!!
For feedback/query mail me at vijyata.rwc@gmail.com or comment in comment box