01-01-2013, 12:00 PM
New product development (NPD)
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NPD is a process which designed to develop, test and consider the viability of products which are new to the market in order to ensure the Growth or survival of the organisation.
What is a new product ?
A product that opens an entirely new market
A product that adapts or replaces an existing product
A product that significantly broadens the market for an existing product
An old product packaged in a different way
An old product marketed in a different way
Why develop NPD
To add to product portfolio
To replace declining product
To take advantage of new technology
To defeat rivals
To maintain/increase market share
To keep up with rivals
To maintain competitive advantage
To full gap in the market
New product can be used
Increase/defend market share by offering more choice or updating older products
Appeal to new segments
Diversify into new markets
Improve relationship with distributors
Maintain the firm’s reputation a leading edge company
Make better use of the organization's resources
New product planning
This is the strategic stage
The firm assesses
It current product portfolio
Opportunities and threats
The firm then determines the type of product which would best fit in with the corporate strategy
Stages in NPD
Idea Generation
Idea Screening
Concept development and testing
Market strategy development
Business development
Test marketing
Commercialization