PRODUCT DEVELOPMENT &

DESIGN
Lecture 1

BBA 2K12
Rabeel

Wednesday, September 9th, 2015

Wednesdays 1pm-4pm

About the course

So why is coming up with new products
important to a firm?

Why must we innovate?

Critical to the future growth

and survival of the business
Holds the answer to the
organizations biggest
problems

Science and Technology

advances
Changing customers
characteristics and needs
Increased global
competition
Requirements for increased
productivity and quality
Shortening product life
cycles
factor

years

of 4 reduction in last 50

About the course

So how important is R&D to INNOVATION?

Innovation
Innovation is essential

INNOVATION

? R&D

Top 10 Global R&D Spenders: 2014

Top 10 Most Innovative Companies:

2014

The Verdict?

About the course

So what percentage of new product fail?

What %age of new product

fail?

85% of new ideas never reach a market

60% of R&D projects are market failures
40% of consumer products & services fail

PDMA: 59% of new products launched are

successful

20% of business products & services fail

In a review of 122 industrial product firms, the

average success rate of fully developed products is
67%- Robert Cooper Winning at New Products

Summary: 1 in 3 launched products fail, on

average

NPD Success Factors

Superior, differentiated
product
Resource commitments
Organizational structure,
culture, climate
Leverage core
competencies
Market attractiveness

Market need, growth, size

competitive situation

International outlook
Speed is everything

More About the course

Grade Breakup
Evaluation
Case Discussions &
Exercises
Class Participation &
Attendance
Quizzes
Product Design Project
Mid Term
End Term
Total

%
20%
5%
10%
15%
20%
30%
100%

Course Requirements
READ THE COURSE OUTLINE!

Course Slides
/ Notes
(Posted on
LMS)

Cases

Textbook
Material

Various WebBased
Readings/Arti
cles

Daily
Monitoring of
your NBS
email

Text Book
New Products Management (2008)
9th Edition
Authors: Merle Crawford & Anthony
DiBenedetto
Irwin/McGrawHill
ISBN: 0071332650, 9780071332651

Quizzes

10% of your grade

4 (2 announced)

Exams

Mid-term- 20%
Final Exam-30%
Format will be announced in advance!

Groups

For case discussion and final project

You will be informed in the next week

Case Discussion & Exercises

20% of your grade

Activities: 7

Project

15% of your grade

You will be asked to design a product
You will be asked to go in the field and
gather data from actual users
3 Stages to project delivery
At the end of the semester you will present
a Marketing Plan for your new product
Due dates will be incorporated in the
course schedule

Success or
Failure?

Touch Pad

A touchpad in response to
Apples iPad

Company: HP

Year: 2011

Newton Message Pad

A touchpad

Company: Apple

Year released: 1993

Arch Deluxe

Company: McDonalds

Year:1996

A premium-priced quarterpounder burger targeted towards

adults

Zune

Portable Media Player in

response to Apples iPod

Company: Microsoft

Year: 2006

New Coke

Company: Coca Cola

Year: 1985

Reformulation of the original

Coke

Wow! Chips

Fat free Potato Chips

Company: Frito Lay

Year: 1998

Facebook Home

Company: Facebook

Year:2013

An Android App that adds a

facebook wrapper to your phones
homescreen

Google Glass

High-tech Glasses

Company: Google

Year:2014

Whats the verdict?

So what do
you know
about
products?

Products as Attributes
Enough
power?

Traction
okay?

Too
pricy?

The product is a
bundle of
attributes or
characteristics

Product Attributes
How does it cut
tall, thick grass?

How close can

I get to
shrubs?

Will it pull
that
trailer I saw
at the store?

Will the
neighbors
be impressed
with
my lawn?
Will it still be
fun later this
summer?

Will I have
more time for
shopping?

Functional
Functional
Psychological
Psychological

3 Levels Of Products

Consumer Products
34

Convenience
Products

Shopping
Products

Consumer
Products
Specialty
Products

Unsought
products

Product/Market Expansion Grid

Existing Products

New Products

Existing
Markets

Market
Penetratio
n

Product
Developm
ent

New Markets

Market
Developm
ent

Diversificat
ion