NEW PRODUCT OFFERINGS

1. INTRODUCING NEW MARKET OFFERINGS
PRESENTED BY :
NAVEEN K V
PEMMAIAH K L
BIKRAM DEBNATH
VARGHESE PAUL
SUBHASISH SIKDAR
SILLA RUPESH
SYED NABEEL ALI

2. Existing products
New products

3. Managing existing products
• Line extension
• Product modifications
functional modifications
quality modifications
aesthetic modifications

4. New product
Idea generation screening Concept testing
Business analysis
Product
development
Test marketing
commercialization

5. Categories of New Products
 New-to-the-world
Ex : Apple I-pod , Flat screen TV
 New product lines
Ex : Game console for SONY

6. Cont…
 Additions to product lines
Ex : Nokia add features in
their Handset.
 Improvements to products
Ex : Intel Processor

7. Cont…
 Repositionings
Ex : Gillette
 Cost reductions
Ex : Tata sky set up box

11. Criteria for Staffing Venture Teams
 Desired team leadership style and level of
expertise
 The more complex the new-product concept, the greater the
desired expertise.
Team member skills and expertise.
 New-venture teams for Aventis, part of pharmaceutical
company.
 Level of interest in concept.
 Is there interest or, even better, a high level of ownership and
commitment (a "concept champion")?

12. Cont…
 Potential for personal reward.
 What motivates individuals to want to participate in this
effort?
 Diversity of team members.
 This includes race, gender, nationality, breadth of experience,
depth of experience, and personality. The greater the
diversity, the greater the range of viewpoints and decision-
making potential.

13. NEW PRODUCT DEVELOPMENT PROCESS

14. Idea Generation: Creativity Techniques
Idea Generation: Creativity Techniques
• Attribute listing
• Forced
relationships
• Morphological
analysis
• Reverse
assumption
analysis
• New contexts
• Mind mapping
IDEA GENERATION:CREATIVITY
TECHNIQUES

15. VARIATIONS OF FAILURE
 ABSOLUTE PRODUCT FAILURE
 PARTIAL PRODUCT FAILURE
 RELATIVE PRODUCT FAILURE.

16. • Gas stations +
food
• Cafeteria +
Internet
• Cereal +
snacking
• Candy + toy
• Audio +
portable
LATERAL MAPPING

17. CONCEPTS IN CONCEPT DEVELOPMENT
• Product idea
• Product concept
• Category concept
• Brand concept.
• Concept testing.

18. • Communicability and
believability
• Need level
• Gap level
• Perceived value
• Purchase intention
• User targets, purchase
occasions, purchasing
frequency
CONCEPT TESTING

19. Marketing Strategy
Marketing strategy is the
goal of increasing sales
and achieving a
sustainable competitive
advantage.

20. preliminary steps:
1. Target market’s size
Structure
Behaviour
2. Planned price
Distribution
Promotion for 1
year
3. Long run sales
Profit goals
Marketing mix
strategy over
time

21. Product Development
 Quality Function Development
 Customer attributes
 Engineering attributes
QFD –Translating target customer
requirements into a working prototype is
helped by a set of methods

22. CA- The methodology takes the list of desired
customer attributes
EA-will do market research and turns them
into a list of engineering attributes
A Major contribution of the QFD is
improved communication between
markets, engineers and manufacturing

23. Prototype Testing
Developing a prototype of your
product allows you to bring your
product to life for the first time and
test it in its market.
Prototype-An early
sample built to test a
concept or process

24. Three types of prototype testing
1. Alpha testing- within the firm
2. Beta testing- with the customers
3.Market testing- give information about
buyers, dealers and
market potential

25. Consumer Goods Market testing
Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Market

26. 20-26
Timing of Market Entry
First entry
The first firm entering a market
usually enjoy the “first mover advantage”

27. Parallel entry
The firm might time its entry to coincide
with the competitor’s entry.
ex : smart phones, Computers

28. Late entry
The firm might delay its launch until after
the competitor had borne the cost of educating
the market .

30. 1.Market Potential
Market potential is the entire size of the
market for a product at a specific time . Market
potential is usually measured either by sales
value or sales volume.
Criteria for Choosing Rollout Markets

31. 2.Company’s local reputation

32. 3.Cost of filling pipeline

33. 4.cost of communication media

34. Consumer-Adoption
Process
“Adoption is an individual’s decision
to become a regular user
of a product”

35. Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption

36. Awareness
Consumer become aware of the new
product, but lacks information about
it.
Interest
Consumer seek information about
new product.

37. Evaluation
Consumer consider whether trying
new product make sense.
Trial
Consumer tries new product on a
small scale to improve his or her
estimate of its new value.

38. Adoption
• Consumer decides to make full and regular
use of the new product.

39. Adopter Categorization
 Innovators
 Early adopters
 Early majority
 Late majority
 Laggards

40. Innovators
Venturesome people and risk takers
who are the very first users.
Early adopters
prestige oriented opinion leaders.

41. Early majority
The leading segment of the mass market. Who
adopt the new technology when its benefits
are proven and a lot of adoption has already
taken place.
Late majority
Skeptical conservatives who are risk averse,
technology shy, and price sensitive.

42. Laggards
Conservative, tradition bound and resist the
innovation until the status is no longer
defensible

44. Characteristics of an Innovation
• Relative advantage
• Compatibility
• Complexity
• Trial ability
• Observability

45. Relative advantage
The perception that the innovation is
more satisfactory than items that
already exist in the same class of
product.
Compatibility
Is an estimate of harmony between
the innovation and the values and
norms of potential adopters.

46. Complexity
Is a gauge of the difficulty faced by a customer
in understanding and using the innovation.
Trial ability
The relative ease of testing out the innovation
before making a decision.
Observability
The degree of visibility affords by innovation

47. New Products
Failure and Success

48. Reasons for Failure
• Unable to reach the market.
• Some new products are not capable enough
to survive due to the competition.
• Lack of proper market research.
• Faulty product idea
• Distribution related problems

49. Succeeds because of:-
• Proper knowledge about the competitor’s
upcoming products or services.
• A unique and superior idea.
• Proper market research.
• A product only succeeds only when there is
net benefit to the user.
• When the demand is fulfilled.