New Product Development Process Hindustan Unilever

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New Product Development Process

UNIVERSITY OF MUMBAI

(SEMESTER II)

MCOM I

SUBJECT

MARKETING STRATEGIES & PLANS

A PROJECT ON:

New Produ! "e#e$o%e'! Proe

ACA"EMIC YEAR:

*+,-*+.

SUBMITE" BY:

S/0/r S1dd2/'! S/'3/4

ROLL NO: ,*

PROJECT GUI"E:

PROF5 "INES6 C6OTRANI

"ATE OF SUBMISSION:

MALINI KIS6OR SANG6VI COLLEGE OF

COMMERCE AN" ECONOMICS

JU6U SC6EME7 MUMBAI 8 9***9

By - Siddhant Sagar Page 1


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M/$1'1 K12or S/'02#1 Co$$e0e o; Coere & Eo'o1

Nirmaladevi Arunkumar Ahuja Marg, J.V. P. D., Juhu, Vile Parle (W),

Mumbai - 44!

"ECLARATION BY T6E STU"ENT

", #iddhan$ #anja% #agar&$uden$' M.'m " (#eme&$er "") *'ll Number + hereb% delare

$ha$ $he r'je$ 'r $he Paer MA*/"N0 #/*A/0"# 1 P2AN# &ubmi$$ed b% me 'r

#eme&$er ", during $he aademi %ear 3+-5, i& ba&ed 'n a$ual 6'rk arried 'u$ b% me

under $he guidane and &uervi&i'n ' Pr'. Dine&h 7h'$rani

Pr'je$ 8 A&&ignmen$ Name - Ne6 Pr'du$ Devel'men$ Pr'e&&" ur$her &$a$e $ha$ $hi& 6'rk i& 'riginal and n'$ &ubmi$$ed an%6here el&e 'r an% e9amina$i'n.

N/e /'d S10'/!ure o; !ude'!



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EVALUATION CERTIFICATE

/hi& i& $' er$i% $ha$ $he under&igned have a&&e&&ed and evalua$ed $he r'je$ 'n: Ne6

Pr'du$ Devel'men$ Pr'e&& &ubmi$$ed b% #iddhan$ #anja% #agar #$uden$ '

M.'m " (#eme&$er ""). /hi& r'je$ i& 'riginal $' $he be&$ ' 'ur kn'6ledge and ha& been

ae$ed 'r "n$ernal and 9$ernal A&&e&&men$.

#urname ' $he

#$uden$

Name ' $he

#$uden$

;a$her


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" 6'uld like $' $hank Malini i&h'r #anghvi 7'llege ' 7'mmere 1 'n'mi& and $he

aul$% member& ' M.'m 'r giving me an ''r$uni$% $' reare a r'je$ 'n Ne6 Pr'du$

Devel'men$ Pr'e&&B. "$ ha& $rul% been an invaluable learning e9eriene.

7'mle$ing a $a&k i& never 'ne man


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Never$hele&&, " e9re&& 'ur gra$i$ude $'6ard& m% amil% and 'lleague& 'r $heir kind '-

'era$i'n and en'uragemen$ 6hih heled me in $he 'mle$i'n ' $hi& r'je$.IN"E>

Sr No. Details Page No.

. "n$r'du$i'n 5

3. Ne6 Pr'du$ Devel'men$: A Di&er&ed 1 "n$egra$ed Pr'e&& !

. Pr'du$ devel'men$ and launh Pr'e&& 3

4. #$age& in Ne6 Pr'du$ Devel'men$ 4

+. 7a&e #$ud% =indu&$an Enilever 3

5. =E2


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INTRODUCTION

#ue&&ul ne6 r'du$ devel'men$ (NPD) i& a ri$ial 'rner&$'ne ' irm

&ue&&. #igniian$ inen$ive& e9i&$ 'r irm& $' 'n$inu'u&l% in$r'due viable

ne6 r'du$& $' $he marke$& $he% &erve. /he inanial a%' r'm &ue&&ul

ne6 r'du$ in$r'du$i'n& an hel man% irm& 'ver'me $he &l'6ing gr'6$h

and r'i$abili$% ' e9i&$ing r'du$& and &ervie& $ha$ are ar'ahing $he

ma$uri$% &$age& ' $heir lie %le&. A !! &$ud% &'n&'red b% $he Marke$ing

#iene "n&$i$u$e 'und $ha$ 3+H ' &ue&&ul irm&< urren$ &ale& 6ere derived,

'n average, r'm ne6 r'du$& in$r'dued in $he la&$ $hree %ear&. Ne6 r'du$

devel'men$ an al&' be a '$en$ial &'ure ' &igniian$ e'n'mie& ' &ale 'r

$he irm.

Ne6 r'du$& ma% be able $' u&e man% ' $he &ame ra6 ma$erial inu$& a& $he

irm


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;r'm a br'ader marke$ing er&e$ive, irm& $ha$ devel' $he nee&&ar%

'rgania$i'nal &$ru$ure& and r'e&&e& $' 'n$inu'u&l% and eiien$l% genera$e

ne6 r'du$& are m're likel% $' be in $une 6i$h $heir u&$'mer&< need& and

6an$&. Dire$ 'mmunia$i'n 6i$h u&$'mer&, an e&&en$ial 'unda$i'n ' ne6

r'du$ devel'men$, all'6& irm& $' learn $heir need& and $ail'r r'du$& and

&ervie& $' $heir uniIue reIuiremen$&. /hi& dire$ u&$'mer 'mmunia$i'n

ermi$& irm& $' gain a 6eal$h ' u&eul u&$'mer in&igh$& $ha$ &h'uld inluene

ever% area ' $he marke$ing mi9 inluding riing, di&$ribu$i'n hannel, and

r'm'$i'n mi9 dei&i'n&.

En'r$una$el%, ne6 r'du$ devel'men$ i& an e9$remel% hallenging and

'mle9 r'e&&. "nn'va$i'n i& inheren$l% ri&k%, and irm& ma% inve&$

'n&iderable $ime and m'ne% in ne6 r'du$ idea& 6i$h n' guaran$ee $ha$ $he%

6ill ever be'me 'mmeriall% viable. Man% ne6 r'du$& ail, and $he ne6

r'du$ devel'men$ land&ae i& li$$ered 6i$h e9en&ive e9amle&. Al$h'ugh

=enr% ;'rd led $he 6a% in devel'ing $he au$'m'bile marke$, $he ;'rd M'$'r

7'man% in $he !+& in$r'dued $he d&el and l'&$ m're $han K milli'n.

DuP'n$


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ha& a &ue&&ul r'du$. /he ailure ra$e 'r ne6 r'du$& in$r'dued b% irm&

in$' al$'ge$her ne6 r'du$ a$eg'rie& ar'ahe& +H. Wi$h'u$ a g''d ne6

r'du$ devel'men$ (NPD) r'e&&, irm& an l'&e $he &igniian$ inve&$men$&

in re&earh and devel'men$, engineering, marke$ing re&earh, and $e&$ing $ha$

are made 'n r'du$&8idea& $ha$ never re$urn revenue.

"n $hi& r'je$ 6e di&u&& a di&er&ed and in$egra$ed ne6 r'du$ devel'men$

r'e&& $ha$ ha& r'ven $' enhane &ue&& and mi$iga$e ailure in r'du$

devel'men$. /he r'je$ 6'uld de&ribe eah &$age ' $hi& r'e&& and r'vide

e9amle& ' h'6 $' imlemen$ eah &$age. /hr'ugh'u$ $hi& r'e&& 6e 'u& 'n

$he u&$'mer and h'6 $' re&'nd $' u&$'mer need&.

By - Siddhant Sagar Page "


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NEW PRODUCT DEVELOPMENT: A DISPERSED AND INTEGRATED PROCESS

Wi$h'u$ a g''d NPD r'e&& irm& ann'$ eiien$l% manage $he inheren$ ri&k '

ne6 r'du$ devel'men$. ='6ever, even a g''d NPD r'e&& i& inheren$l%

'mle9 $' manage. A &igniian$ mea&ure ' 'mle9i$% re&ul$& r'm $he a$

$ha$ 'mmunia$i'n& and in'rma$i'n managemen$ $ehn'l'gie& n'6 all'6, and

even en'urage, $he r'e&& $' be righ$ull% di&er&ed b'$h 'rgania$i'nall% a&

6ell a& ge'grahiall%. /he benei$& ' managing NPD a& a di&er&ed r'e&& are

man%.

rgania$i'nall%, $he NPD r'e&& 'era$e& be&$ 6hen i$ i& able $' ai$alie 'nke% inu$& r'm mul$ile un$i'nal area& 6i$hin $he irm, inluding marke$ing,

engineering, r'du$i'n, inane, e$. "n general, n' &ingle 'rgania$i'nal uni$

'$imall% rere&en$& a$ $he &ame $ime $he v'ie ' $he u&$'mer, a& 6ell a& all '

$he $ehnial, 'era$i'nal, and inanial 'me$ene& ' $he irm. /he

in$era$i'n& be$6een mul$ile 'rgania$i'nal uni$& are in&$rumen$al in inluening

$he eia% ' $he NPD r'e&& and, in $urn, $he likelih''d ' in$r'duing

'mmeriall% viable r'du$&. /he r'e&& learl% benei$& r'm inu$& ga$hered

r'm &'ure& 'u$&ide ' $he 'rgania$i'n r'm ke% u&$'mer&, r'm im'r$an$

'me$i$'r&, and r'm &$ra$egi ar$ner& &uh a& $he irm


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r'je$ ma% be 'und in &everal l'a$i'n& ar'&& 6e&$ern ur'e. A& 6e m've

in$' $he 3&$en$ur%, ne6 hallenge& and ''r$uni$ie& are ari&ing, driven b%

gl'bal marke$&, gl'bal 'me$i$i'n, and $he gl'bal di&er&i'n ' engineering

$alen$. /he urren$ and u$ure vi&i'n ' r'du$ devel'men$ i& $ha$ ' a highl%

di&er&ed r'e&& $ha$ ai$alie& 'n $he &kill& and in&igh$& ' e'le and

'rgania$i'n& &read $hr'ugh'u$ $he en$ire 6'rld.

='6ever, $he benei$& ' di&er&i'n 'me a$ a '&$. /he grea$er $he

'rgania$i'nal and ge'grahi di&er&i'n, $he m're 'mle9 and diiul$ i$ ma%

be $' manage $he r'e&&. A& a re&ul$, i$ i& ri$ial $ha$ ne6 r'du$ devel'men$

mu&$ be managed a& an in$egra$ed r'e&& $ha$ akn'6ledge& $rade'& be$6een

ke% mea&ure& ' ne6 r'du$ devel'men$ &ue&& &uh a& u&$'mer &a$i&a$i'n,

$ime-$'-marke$, and '&$ eiien%, a& dei$ed in igure bel'6.

Tradeoffs in New Product Development

By - Siddhant Sagar Page 1$


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All el&e eIual, a r'du$ 6ill be m're r'i$able i i$ deliver& u&$'mer benei$&

be$$er, i& a&$er $' marke$, '&$& le&& $' r'due, and '&$& le&& $' devel'.

='6ever, 6hile delivering u&$'mer benei$& i& $he rinial g'al, i$ an


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Product development nd lunc! Proce""

/' enable 'n&$an$ gr'6$h 'manie& &h'uld ma&$er $he r'e&& ' a r'du$

launh $hr'ugh in$r'duing ne6 'me$i$ive r'du$& in$' $he marke$. Pr'du$

launhe& hel inrea&ing &ale& revenue and e9anding $he u&$'mer ba&e. C%

in$r'duing ne6 r'du$& a 'man% an al&' $arge$ ne6 gr'u& ' u&$'mer&.

/he launh ' ne6 r'du$& an al&' inluene $he 'man% e9an&i'n and ne6

in$ernal inve&$men$&. 7'n$inu'u& re&earh and lanning are nee&&ar% i a

'man% 6an$& $' ahieve a &ue&&ul r'du$ launh. During $hi& r'e&& all

$he eml'%ee& ' $he 'man% are inv'lved, r'm $he *1D $' $he #ale& and

Marke$ing $eam

/' be &ue&&ul and a$$ra$ $he u&$'mer a$$en$i'n, $he ne6 r'du$ mu&$ ulil

$heir need& and main$ain $he brand r'mi&e. "n $'da%


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dieren$ in $he&e $6' marke$&. "n C3C $he dei&i'n-making an g' $hr'ugh man%

ga$ekeeer&, 6hih i& unlikel% $' haen in C37.



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St#e" $n Ne% Product Development



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Step 1: Generating

E$iliing ba&i in$ernal and e9$ernal #W/ anal%&e&, a& 6ell a& urren$

marke$ing $rend&, 'ne an di&$ane $hem&elve& r'm $he 'me$i$i'n b%

genera$ing ide'l'gie& 6hih $ake a'rdabili$%, *" and 6ide&read di&$ribu$i'n

'&$& in$' a'un$.

2ean, mean and &alable are $he ke% 'in$& $' kee in mind. During $he NPD

r'e&&, kee $he &%&$em nimble and u&e le9ible di&re$i'n 'ver 6hih a$ivi$ie&

are e9eu$ed. >'u ma% 6an$ $' devel' mul$ile ver&i'n& ' %'ur r'ad ma

&aled $' &ui$ dieren$ $%e& and ri&k level& ' r'je$&.

"dea genera$i'n, a$ individual 'r $eam level, emerge& a& an e&&en$ial 'm'nen$

' rea$ivi$% and 'n&eIuen$l% ' $he inn'va$i'n r'e&&. /he m'&$ inn'va$ive

irm& u&uall% e9l'i$ vari'u& &'ure& ' idea& r'm ne6 r'du$& a& 6ell a&

vari'u& mean& $' r'e&& $h'&e idea&. /he% al&' need $' &$imula$e eml'%ee&

New Product Development Process Hindustan Unilever

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