New Product Development For The Rural Market.pptx
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New product development
New product development • New product development is a sequential process of finding ideas for new goods or services and then transforming them into commercially viable products or services that can be launched in the market for serving the needs of customers at a profit.
Objectives behind new product launch • • • • • •
• • •
To satisfy the change in consumer demand. To counter the moves of competitors who have launched a new product. In accordance with the strategic decision of the organisation to expand the product range or product line of the organisation. To remain aligned with the changes in technological environment, which are enabling launch of new products To increase sales and profit of organisation. Single product businesses are likely to be more vulnerable in the globalised environment in comparison to the multi product business, because sudden developments in some part of the globe can have drastic implications for the entire product category. By spreading investments across inter-related product ranges, an organisation can reduce risk to the entire entity As per policy of organisation about planned product obsolescence. To prevent fluctuations in profit levels. To have new products coming up timely in order to keep the organisation going on.
New product development process • • • • • • • •
Exploration stage Screening stage Detailed value offering evaluation Business analysis Product development Development of marketing mix Product testing Commercialisation or launch
Exploration stage • Focus – to generate different or as many as new product ideas as it is possible • Exploring and Forwarding new product ideas. • Compile and assimilate all new product ideas on a single format. • Translate or express ideas in the form of very basic product concepts. • The basic objective is to segregate the process of idea generation and idea evaluation. • Example 1.– TATA motors-entry level commercial vehicle for semiurban and rural market –between a three wheeler and pick-uptruck. • Example 2.- global chip major Intel-computers for rural market. It can withstand adverse weather conditions including heat, dust and humidity.
Screening stage • Filtering of ideas and suggesting of ideas • Screening is executed by specialists form different departments 1. Nature of demand 2. Compatablity 3. Resources 4. competition
Detailed value offering evaluation (product specifications) • the product should be a need satisfying solution • It should be simple and easy to use • Convenient to store • Tough and solid appearance • Product must be affordable. • As per rural product usage environment TATA motors – decisions on product and price for commercial vehicle for rural market. 1. Product –Sturdy four wheeler vehicle-loads upto 1.5 tonnes 2. Price – low price high performance vehicle. Focused on product life cycle costs, which covered the purchase cost, operating cost and resale price.
Business analysis • Financial analysis and competitive marketing strengths of the markets
Product development • Must be executed in a research lab – product prototype.
Development of marketing mix Product • Example HCL personal computer - charged by pedaling a special cycle with the dynamo connected to a car battery. • Sampoorana brand name for televisions by LG is a word from the four leading languages – Hindi, Tamil, Marathi, Bengali. • Tata motors branded their vehicle as ACE. Promotion –by selecting media vehicles, Unique Selling Proposition (USP), punch line etc. Price – retail price, dealer and retailer margins etc. are taken Example – Ace, by being priced by TATA Motors at a slightly higher price than three wheelers. Place -accessible to final consumer. Example – TATA Motors – IS outlets for the distribution of Ace. IS are retail outlets only for Ace sales.
Product testing • Concept testing • Test marketing
Commercialisation or Launch • Promotion strategy – TATA Motors launched ACE(baby Elephant) – conducted road shows • Pricing strategy • Place strategy
New product development • New product development is a sequential process of finding ideas for new goods or services and then transforming them into commercially viable products or services that can be launched in the market for serving the needs of customers at a profit.
Objectives behind new product launch • • • • • •
• • •
To satisfy the change in consumer demand. To counter the moves of competitors who have launched a new product. In accordance with the strategic decision of the organisation to expand the product range or product line of the organisation. To remain aligned with the changes in technological environment, which are enabling launch of new products To increase sales and profit of organisation. Single product businesses are likely to be more vulnerable in the globalised environment in comparison to the multi product business, because sudden developments in some part of the globe can have drastic implications for the entire product category. By spreading investments across inter-related product ranges, an organisation can reduce risk to the entire entity As per policy of organisation about planned product obsolescence. To prevent fluctuations in profit levels. To have new products coming up timely in order to keep the organisation going on.
New product development process • • • • • • • •
Exploration stage Screening stage Detailed value offering evaluation Business analysis Product development Development of marketing mix Product testing Commercialisation or launch
Exploration stage • Focus – to generate different or as many as new product ideas as it is possible • Exploring and Forwarding new product ideas. • Compile and assimilate all new product ideas on a single format. • Translate or express ideas in the form of very basic product concepts. • The basic objective is to segregate the process of idea generation and idea evaluation. • Example 1.– TATA motors-entry level commercial vehicle for semiurban and rural market –between a three wheeler and pick-uptruck. • Example 2.- global chip major Intel-computers for rural market. It can withstand adverse weather conditions including heat, dust and humidity.
Screening stage • Filtering of ideas and suggesting of ideas • Screening is executed by specialists form different departments 1. Nature of demand 2. Compatablity 3. Resources 4. competition
Detailed value offering evaluation (product specifications) • the product should be a need satisfying solution • It should be simple and easy to use • Convenient to store • Tough and solid appearance • Product must be affordable. • As per rural product usage environment TATA motors – decisions on product and price for commercial vehicle for rural market. 1. Product –Sturdy four wheeler vehicle-loads upto 1.5 tonnes 2. Price – low price high performance vehicle. Focused on product life cycle costs, which covered the purchase cost, operating cost and resale price.
Business analysis • Financial analysis and competitive marketing strengths of the markets
Product development • Must be executed in a research lab – product prototype.
Development of marketing mix Product • Example HCL personal computer - charged by pedaling a special cycle with the dynamo connected to a car battery. • Sampoorana brand name for televisions by LG is a word from the four leading languages – Hindi, Tamil, Marathi, Bengali. • Tata motors branded their vehicle as ACE. Promotion –by selecting media vehicles, Unique Selling Proposition (USP), punch line etc. Price – retail price, dealer and retailer margins etc. are taken Example – Ace, by being priced by TATA Motors at a slightly higher price than three wheelers. Place -accessible to final consumer. Example – TATA Motors – IS outlets for the distribution of Ace. IS are retail outlets only for Ace sales.
Product testing • Concept testing • Test marketing
Commercialisation or Launch • Promotion strategy – TATA Motors launched ACE(baby Elephant) – conducted road shows • Pricing strategy • Place strategy
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