Discuss the stages in New Product Development process giving suitable examples?

Answer 1

NEW PRODUCT DEVELOPMENT
THE NEW PRODUCT DEVELOPMENT GOES THROUGH
VARIOUS STAGES AND AT EACH STAGE A RANGE
OF QUESTIONS ARE RAISED AND THE DIFFERENCES
ARE SETTLED.

THIS IS THE PROCESS AS SHOWN BELOW.
1.EXPLORATION STAGE.

*Statement of company objective.
*Statement of product idea.
*Judgment evaluation of merit.
*Profile of products known on the market.

[CEO / MARKETING DIRECTOR / MANUFACTURING [R&D] MAKE THE FINAL DECISION]
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*Survey of product ingredients, design standards,
general technology of the field.
*Analysis of competitive product claims.

[MARKETING / MANUFACTURING [R&D ]DECIDE THE FINAL DECISION]

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*Analysis of competitive advertising expenditures.
*Areas of brand share/volume history.

[MARKETING / PRODUCT MANAGERS DECIDE THE FINAL DECISION]

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*Survey of traditional channels of distribution and
other distribution opportunities.
*Survey of general selling practices, promotional
allowance buying standards.
*Survey of specific federal and state legal problems
in reference to ingredients, sales practices, controls.

[MARKETING / SALES / DISTRIBUTION DECIDE THE FINAL DECISION]

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*Survey to determine marketing opportunity area.
*Cyclical, seasonal, and long term marketing considerations.
*Product class profile study.
*Survey of potential customer interest in new product.

[MARKETING / PRODUCT MANAGEMENT DECIDE THE FINAL DECISION ]

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*Definition of the selected market.
*Preliminary opportunity estimate.

[MARKETING / SALES DECIDE THE FINAL DECISION.


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2. SCREENING STAGE

*Estimation of period of product exclusivity.
*Research of customer satisfaction and use habits
of current products.

[MARKETING / PRODUCT MANAGEMENT DECIDE THE FINAL DECISION]
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*Product concept screening.
*Analysis of sizes, types required.
*Investigation of additional sales outlets government, export, institutional, premiums.
*Report of finding and indicated opportunities.

[MARKETING / SALES DECIDE THE FINAL DECISION.
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3. PROPOSAL STAGE

*Request for Planned Development Programme, with estimated investment and timetable.
*Approval of research and development budget.

[CEO / MARKETING / MANUFACTURING [ R&D] MAKE THE FINAL DECISION.

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*Initial design/formulation of product.

[ MARKETING / MANUFACTURING [ R&D] MAKE THE FINAL DECISION.

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*Copyrights or patents. Preparation of product platform. *Securement of required government clearances.

[MARKETING / LEGAL DEPARTMENTS MAKE THE FINAL DECISION]

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*Initial costing based on optimum manufacturing levels. *Determination of local tax, licensing, and other financial considerations.
*Performance and efficiency tests.
*Independent laboratory/engineering analysis of prototypes.

[MANUFACTURING [ R&D] / PRODUCT MANAGEMENT MAKE THE FINAL DECISION]

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*Preparation of copy platform.
*Panel evaluation of prototype product.
*Forecast of volume potential.
*Customer testing/opinion

[MARKETING / SALES / MANUFACTURING MAKE THE FINAL DECISION ]

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*Determination of plant capacity and facilities availability.

[CEO/FINANCE/MARKETING/MANUFACTURING MAKE THE FINAL DECISION]

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4. DEVELOPMENT STAGE

*Research of prototype product.

[MARKETING/ MANUFACTURING MAKE THE FINAL DECISION]

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*Plant location and transportation considerations.
*Basis of appropriation.

[MANUFACTURING / FINANCE MAKE THE FINAL DECISION.

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*Development of media plan.
*Decision on manufacturer association‑identification on/with product.
*Creation of brand name possibilities.
*Legal search of brand name possibilities.
*Registration of trademark, copyright brand name.
*Development of basic customer selling theme.
*Approval of package design (and inserts).
*Preparation of instructions/directions to conform.
*Adoption of media philosophy, based on selling theme, budgetary consideration, coverage of prospects, and availability.

[MARKETING / SALES MAKE THE FINAL DECISION.

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*Determination of labour availability.
*Study of labour or union regulations.
*Determination of raw material commitments and availability.
*Determination of special tooling and equipment.

[MANUFACTURING/ FINANCE MAKE THE FINAL DECISION]

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5. SALES TESTING STAGE

*Prediction of competitive reaction to new product.
*Setting of test area sales goals ‑ share,
penetration, unit and dollar volume.
*Determination of introductory test area timing.
*Determination of service and repair problems and facilities.
*Sales representative recruitment. Sales training.

[MARKETING / SALES MAKE THE FINAL DECISION ]

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*Manufacturing pilot run. Approval of test area production.
*Shipping, storage, and packing tests.
*Plan to meet competitive reaction.
*Finalisation of test areas.

[MARKETING/ SALES / MANUFACTURING MAKE THE FINAL DECISION]

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*Forecast of P/L limits of successful venture and of unsuccessful write‑off.
*Test area simulation of national campaign concept.
*Determination of test area total appropriation.

[MARKETING / FINANCE MAKE THE FINAL DECISION]

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*Preparation of media merchandising. Preparation of trade selling sheets.
*Determination of educational plan and appropriation. *Preparation of customer educational materials.
*Determination of publicity plan and appropriation.
*Preparation of introductory publicity materials.
*Determination of sales promotion plan and appropriation. *Approval of test area commercial plan and insertion schedule. *Setting of sales quotas.
*Establishment of sales force incentives, bonuses, premiums. *Establishment of trade incentives ‑ buying allowances, contests.
*Commission of product printed material.
*Trade sales kick‑off.
*Advertising kick‑off.
*Survey of trade performance in test area.
*Research on test area users.
*Analysis of factory sales data from test area.
*Programme performance reports in test area ‑ adjust to meet standards.
*Test area evaluation.
*Definition of special line management attention or policy changes required in large scale marketing.
*Recommendation for major expansion.

[MARKETING / SALES MAKE THE FINAL DECISION]
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6. FINAL MARKETING STAGE
/ Turn over to appropriate product manager.