NPD is a process which is design 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
organization.
 To replace declining products.
 To take advantages of new products.
 To maintain/increase market share.
 To defeat rivals.
 To keep up with rivals.
 To maintain competitive advantage.
 To fill a gap in the market.
 To bring a new customers.
 Major innovations.
 New product lines.
 Product line extension.
 Product improvements.
 Repositioning.
 Cost reductions.
 R & D department
 Production department
 Sales team
 Employees
 Customers
 Competitors
 External sources
 Market research
 Screening of products to spot good ideas and
drop poor ones as soon as possible
 Ideas are check for technical feasibility,
financial viability and marketability
 The business analysis the product to evaluate
its demand, marketability and profit
potential
 Given ideas rating according to marketing,
production and strategic factors
1.
1. Develop
Develop Product
Product Ideas
Ideas into
into
Alternative
Alternative
Product
Product Concepts
Concepts

2. Concept Testing - Test the

Product Concepts with Groups
of Target Customers

3.
3. Choose
Choose the
the Best
Best One
One
 Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget

Part Three - Long-Term:

Sales & Profit Goals
Marketing Mix Strategy
 Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives

If No, Eliminate
Product Concept

If Yes, Move to
Product Development
 Standard
Standard Controlled
Test Controlled
Test Market
Market Test
Test Market
Market
Full
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marketingcampaign
campaign AAfew
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Simulated
Test
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Market
Test
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shopping
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consumers.
 Introducing a new product into the market.
 Timing is critical for success.
 There will be heavy promotional expenditure
at the launch.
 Choice of skim or penetration rising.
 The product has to be well targeted and
positioned.
 Develop innovative products.
 Bring new ideas to market ahead.
 Integrate regulatory compliance into product
lifecycle processes to reduce business risk
and sell products in global markets.
 Effectively manage the global manufacturing
supply chain to ensure on-time, on-cost and
quality product delivery.
 Neglect of market research
 Inaccurate market research
 Poor marketing after launch
 Poor distribution
 Product performance below expectation
 Market not ready for the products
 Inadequate support for the market
 Daewoo was a major South Korean
conglomerate. It was founded in March
22, 1967 as Daewoo Industrial and was
dismantled by the Korean government
in 1999.
 The Daewoo Matiz is a city car produced by
the South Korean automaker G M Daewoo
marketed worldwide since 1998.
 It has won the Best City car in the 1998
World's Most Beautiful Automobile
competition.
 The main problem was the Matiz' positioning.
 It was not much powerful for highways.
 When the car was launched it was overpriced.
 Suddenly brought down in prices created
very bad impression on public.
 It was most difficult to repair.
 Nestlé India is a subsidiary of  Nestle S. A. of
Switzerland, Beginning with its first
investment in Moga in 1961.
 The Company insists on honesty, integrity
and fairness in all aspects of its business and
expects the same in its relationships.
 Julius Maggi founded the company
Maggi.
 Maggi is a Nestlé brand of instant soups,
stocks, bouillons, ketchups, sauces,
seasonings and instant noodles.
 Maggi Noodles.
 Maggi Vegetable Noodles.
 Dal Atta Noodles.
 Maggi Rice Noodles Mania.
 Maggi Sauces.
 Maggi Healthy Soups.
 MAGGI MAGIC Cubes.
 Maggi Pichkoo.
 Maggi Cuppa Mania.
 Initially Nestle tried to position the Noodles
in the platform of convenience targeting the
working women.
 Research.
 'Fast to Cook Good to Eat‘
 Distribution of free samples.
 Gifts on return of empty packets
 NPD is a process which is design 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 organization.