ECHNOLOGICAL INSTITUTE OF THE PHILIPPINE

P. Casal, Manila
Product Management
Title:
A report in New Product Development

Subject code: Product management

Section: MM32FB1
Schedule: Wed 5:30 8:30
Submittted to :
Mrs. Mariel C. Jaguirin
Submitted by:
Members:
De Guia, Milton
Soaomon ,Jonathan
Ocena, Dave
Nathanielle, Lorenzo
Paulo, Sean
Aquino, Carolyne
Bonilla, Arianne
Gabriel, Mary Angel

EXECUTIVE
SUMMARY

The sole objectives is to familiarize the students with

practical
manipulation of the business organization. This report
has been
written to know about the causes that lead to the
launching of a
product.
In the first phase of the report here is the general
introduction about the new product development.
In the next part, we took into account the objectives
that are behind this. We illustrate the objective one by
one according to their priority. To understand and specify
the objectives is necessary to understand the variable,
which affect this issue. We define only the key variable.
After we collect the data from different sources and
analyze it, interpret it, and show the diagrammatical
representation for easy understanding. Moreover, this
we make some conclusion and offer our suggestions for
improvements with some limitations that we face.
Third phase, is the introduction of our plan.
Prototype of our New Product. We would just like to
emphasize that this what we made is only a sample of a
product that can be available in the market, once every
techniques has been done using NPD , a product can
make or break in the market depending on how the
demand would generate in the market.

Table of Contents

ion

ges in New Product Development

neration .
eening.
t Development and Testing ..
Product Idea .
Product Concept.
Product Image .
g Strategy Development
s Analysis
rketing
cialization

ess factors in New Product Development

g Philosophy
ational Structure
erience Effect
ment Style

uct Life Cycle

Development
ction

New Product Failures

1. Faulty Product Idea
2. Distribution related Problems
3. Poor timing of launch
4. Improper positioning
5. Others
Pricing Objectives
1. Profit oriented
goal.
2. Sale Oriented
goal
3. Maintain & increase market
share..
4. Status quo
goal
..

INTRODUCTION
What is a New Product
* A product that opens an entirely new market
* A product that adopts or replace an existing
product
* A product that significantly broadens the market
for an
existing product.
* An old product introduced in a new market
* An old product packaged in a different way
* An old product marketed in a different way
Types of New Product
* Innovative Products
* New Product lines to allow the firm to enter an
existing
market
* Addition to product lines
* Improvements and revisions of existing product
* Repositioned products- existing products targets at
a new
market
* Cost reduction new product that provides similar
performance at lower cost
New Product can be used to
* increased/ defend market share by offering more
choice.
* Appeal t new segments
* Diversify into new markets
* Make better use of the organizations resources.

Why Develop new product?

1.
2.
3.
4.
5.
6.

To
To
To
To
To
To

create stars and cash cows for the future

replace declining product
take advantage of new Technology
defeat Rivals
maintain/increase market share
Maintain competitive advantages

Major Stage in NPD

There are 7 stages of new Product development

7. IDEA GENERATION
The Fuzzy front end of the New Product
Development Process
Idea Generation is the systematic Search for new
Product Ideas obtained internally from employees and
also from

Ideas for new products can be obtained from basic

research using a SWOT analysis, Market and Consumer
trends, Companys R&D department, Focus group,
employees, sales people, corporate spies.

2.IDEA SCREENING
Process to spot good ideas and drop poor ones
Many companies have systems for rating and screening
ideas which
estimate:
3. Market size
4. Product price
5. Development time and cost
6. Manufacturing cost
7. Rate of return
The screener must ask these questions;
. Will the customer in the target market benefit from
the product.
. What is the size and growth forecast of the market
segment
. What is the current or expected competitive pressure
for the
product idea.
Then, the idea is evaluated against a set of general
company criteria.

3. CONCEPT DEVELOPMENT
AND TESTING Develop the marketing
and engineering details
> Product Idea: idea for a possible product that the
company can see itself offering
> Product Concept: detailed version of the idea stated
in meaningful consumer terms
> Product Image : the way consumers perceive an
actual or potential product

Procedure of the concept test

Prepare concept statement
Clarify specific purposes
Decide Format
Select commercialization
Determine price
Select response type
Select response situation
Define the interview
Conduct trial interviews
Interview, tabulate, analyze

4. MARKETING STRATEGY
DEVELOPMENT
Essentially a pattern or plan that integrates your
organizations major goals
Includes development of three part strategy plan,
Describe Overall
Describe the markets size, structure, and behaviour,
the planned product positioning, and the sales, market
share, and profit goals for first few years.
Describes Short-term
Outlines the planned price, distribution strategy, and
marketing budget for the first year.
Describe-Terms Long
Describes the long run sales and profit goals and
marketing mix strategy over time.

5. BUSINESS ANALYSIS
Estimate likely selling price based upon competition
and customer feedback
Business analysis is the discipline of identifying business
needs determining solutions to business problems.
Solutions often include a systems development
component, but may also consist of process improvement
or organizational change or strategic planning and policy
development.
There are number of techniques that a business
analyst will use when facilitating business change and
NPD there are two important techniques used names
MOST & SWOT
The Four Attributes of MOST
Mission ( where the business intends to go)
Objectives ( the key goals which will help achieve the
mission)
Strategies ( options for moving forward)
Tactics ( how strategies are put into action)
SWOT
This is used to help focus activities into areas of strength
and where the greatest opportunities. This is used to
identify the dangers that take the form of weaknesses
and both internal and external threats.
Strengths What are the advantages? What is
currently well done ?
Weaknesses What could be improved? What is done
badly?
Opportunities What good opportunities face the

TEST MARKETING

olves placing a product for sale in one or more selected areas

marketing is the stage where the product and marketing prog
troduced into more realistic market settings.

COMMERCIALIZATION

Considered Post new product development

Our product
A customized Lamp Shade w/
a study lamp functionality

Introduction

Home decor with lampshades is a trendy way to

create a new look. The other important
consideration regarding the ready-made
lampshades, is their cost. The ready made
lampshades may look beautiful, but you have to pay
a very high price for them. There is one simple
solution to all this and that is to make a lampshade!
When gas lamps were first introduced, they emitted
a light quite different from lights made by gas
lanterns or candles. The light was harsh and bright
white, and there was also concern about potential
exposure to dangerous chemicals from gas and to
explosions from lighting gas. The purpose of lamp
shades was to protect against potential health
issues and also to help filter the light. Early
y we
come up towith
an idea.
experiments
gaslights in public areas had a
tendency to create problems and people often
complained of headaches when exposed to them.
Lampshades are available in various fabrics and
materials. Glass lampshades add an additional charm
to the interior decoration.
A customized lampshade, a lampshade with your
personal touch of style and decoration.

dea Generation

dea Screening
There are various types of lampshades weve
been discussing to make, there are in various
shapes like
Conical
Our group decided to drop
Circular
Cylindrical

some ideas and focus on

making customized
Lamp Shade

Customised
which can be placed on the floor, tabletops . The
many attractive designs of lampshades will really
sometimes confuse the customers as to which
lampshade they should go for. So we need to drop
ideas and spot really good ones to make our
product more attractive and somewhat innovative.

oncept Development
& Testing

uct Idea: Lamp Shade with a Study light functionality

uct Concept : A customized Lamp shade that is made of PV

cast pipes with a touch of industrial, collectors look .

Product Image:

Form Study Prototype (Model)

This type of prototype will allow designers to
explore the basic size, look and feel of a product
without simulating the actual function or exact visual
appearance of the product.

En
d