New Product Strategy

(Learning Outcomes)
10MBI0039

In the first session I understood the concept of new product and the various aspects of
ideation, creativity, innovation and how to come up with a new product and introduce
the same in the market. How uniqueness can play a vital role in the success of new
product etc was discussed.

Second Session: A small assignment to create a new product out of a matchbox was
assigned to us from which we learned how even with an existing product with new
innovative ideas it can be introduced as a new product.

Third Session: Discussed about focus group and various other idea generation
concepts. Understood the concept of focus groups, Brain storming and product
differentiation and categorizing the products and ideas related to the product.

Fourth Session: A case study on Food World. Learnings from the case, how to derive
information from consumers through surveys for the purpose of strategizing new
product development process in all aspects. Positioning strategy, Distribution and
product strategy. How to target customers according to the product being developed or
introduced and position the same in the market.

Fifth Session: Dell case study, developing a new laptop and deciding the best solution
out of the options available. In this case there was a task of decision making out of
three decision options provided, analysing the pros and cons of each option provided
and considering the potential out comes both financially and operationally and
deciding one best solution given the situation was the learnings out of this Dell case
study.

Sixth session: New product Development, ideation , screening , concept testing,

market strategy development, business analysis, product development, business
analysis, Test marketing , Commercialization was discussed and understood.

Seventh Session: Learnings

Stages in New product development:

Idea Generation
Idea Screening
Concept development and testing
Market strategy development

Business Analysis
Test marketing
Commercialization
Idea generation: is a continuous systematic search for new product
opportunities. It involves delineating sources of new ideas and methods for
generating them.
Ideas for new product can be obtained from basic research using SWOT
analysis (opportunity Analysis), Market and consumer trends, Companys
R&D department, competitors, focus groups, employees, sales people.
Idea Screening: The object is to eliminate unsound concepts prior to devoting
resources to them.

The screeners should ask several questions:

o Will the customer in the target market benefit from the product?
o What is the size and growth forecasts of the market segment / target market?
o What is the current or expected competitive pressure for the product idea?
o What are the industry sales and market trends the product idea is based on?
o Is it technically feasible to manufacture the product?
o Will the product be profitable when manufactured and delivered to the
customer at the target price?
Concept testing: present the consumer with a proposed product and measure
attitudes and intention at this early stage of development.
Concept testing of prototypes can help avoid costly mistakes.
Market Strategy Development
1. Describe markets size, structure and behaviour, the planned product
positioning, and the sales, market share and profit goals for first few years.
2. Outlines the planned price, distribution strategy, and marketing budget for
the first year.
3. Describes the long-run sales and profit goals and marketing-mix strategy
over time.
Business and Financial Analysis
Estimate likely selling price based upon competition and customer feedback.
Estimate sales volume based upon size of market.

Estimate profitability and breakeven point.

Test Marketing
Test marketing involves placing a product for sale in one or more selected areas
and observing its actual performance under the proposed marketing plan.
Commercialization
Commercialization involves implementing a total marketing plan and full
production
Launch the product
Produce and place advertisement
Fill the distribution pipeline with product
Critical path analysis is most useful at this stage.
Eighth Session:
The goals of an overhauled new product process:
Goal 1- Exemplary Quality of Execution- Second to none.
Goal 2- Sharper focus, better project prioritization
Goal 3- A strong market orientation
Goal 4- Better up-front homework and sharp, Early and stable product definition
Goal-5 Fast paced parallel processing
Goal-6 A true cross functional team approach
Goal-7 Products with Ca- Differentiated products, unique benefits, superior value
for custom
Goal-8 A fast paced and flexible process
The Structure of the stage gate process ideation:
Stage 1- Preliminary Investigation
Stage 2- Detailed Investigation (build the business case)
Stage 3- Development

Stage 4- Testing and validation

Stage 5- Full production and market channels.
The gates of the Process:
Gate 1- Initial screen
Gate 2- Second screen
Gate 3- Decision on Business case
Gate 4- Post Development Review
Gate 5- Pre commercialization business analysis, Post implementation review.
Third Generation Stage gate process six fundamental Fs
-

Flexibility
Fuzzy (conditional gates)
Fluidity
Focus (project prioritization and portfolio management)
Facilitation
Forever green and improving

Role of Senior Management:

-

You must embrace long term commitment to product development.

Develop vision, objectives and strategy
Install a systematic high quality new product process
Make all resources
Foster innovation

Drivers of Innovation:
-

Technological advances
Changing customer needs
Shortening product cycles
Increased world competition.

Categories of newness:
-

New to the world products

New product lines
Additions to existing product lines
Improvements and revisions to existing products.
Repositioning
Cost reductions.

Ninth Session:
Discussed T.I cycles case and learned about the 4 Ps i.e. Price, place, product and
promotion and how important it is to identify solutions for various problems.
And learned how to handle a problem of expanding or sustaining a companys
performance in the long run and achieving a proposed target
Tenth Session:
Understood the importance of branding and how the name of a brand plays a vital role
in the consumer purchase behaviour, learned about the various factors to be
considered while naming a brand such as sound symbolism, use of semantics and the
relevancy of the brand name to the concerned product attributes.
Discussed the Mahindra Scorpio Case, How Mahindra positioned its SUV vehicle
Scorpio in the market , their promotional and other marketing activities, how they
were able to tackle global competition in terms of brand image and branding.