New Product Development01-07

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This is a handout of New Product Development for Lecturers to use to teach the students.

Transcript of New Product Development01-07

Human Resources University yNew P d t Development N Product D l tYear4, Semester 2Lectured by: Mr. Eng Leaphea,MBA Tel: 012 722076 Email: [email protected] Skype ID: rikreaymagazine28/03/2012 1

Self-Introduction S lf I t d tiCourse: New Product Development Lecturer: Mr.Eng Leaphea, MBA Tel: 012 722076 Email: [email protected] rikreaymagazine (skype) Facebook.com/eng.leaphea

Instructors Profile I t t P filName: Date of Birth: Sex: Nationality: Contact: C t t Email: Educational Background Eng Leaphea (Mr.) February 05, 1979 Male Cambodian H/P: H/P 012 722076 [email protected]

Working Experiences02-04-2010 to 02-12-2010 10-12-2010 to Present

Working Experiences g p 2005 Present Lecturer Human Resources University Course: Basic Marketing; B M k Marketing Management; Public Relation; Strategic Marketing; New Product Development. Human Resource Management

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Course Learning Objectives: Students will learn as follows: Chapter01: New Product in Global Marketing Chapter02: New Product Development Process Chatper03: Overview in New Product Development Chapter04: Design Chapter05: Special Issues in Development Chapter06: Product Use Testing Ch t 07 St t i Launch Planning Chapter07: Strategic L h Pl i28/03/2012 6

Grading Your course grade will be determined as follows: 20% on your attendance; 15% on

the quality of your individual assignment solutions 15% on the midterm test; and 50% on the final exam.28/03/2012 7

Course OutlineWeek 1 Description Course Introduction Chapter01: New Product in Global Marketing New Products Why New Product Succeed? Risks of New Product Development k f d l NEW PRODUCT LAUNCHES Chapter01: New Product in Global Marketing CHALLENGES IN NEW PODUCT DEVELOPMENT y products f fail? Why do new p Several factors tend to hinder new-product development IDENTIFYING NEW PRODUCT IDEAS The following questions are relevant to this task: Hours 3 hours

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3 hours

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Course OutlineWeek 3 Description Chapter02: New Product Development Process ORGANIZATIONAL ARRANGEMENT Organizing new-product development MANAGING THE DEVELOPMENT PROCESS: IDEAS Ten Ways to Create New-Product Ideas Idea Screening screening ideas, the company must avoid two types of errors MANAGING THE DEVELOPMENT PROCESS Concept Development and Testing Chapter02: New Product Development Process Concept Testing Marketing Strategy Business Analysis Hours 3 hours

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3 hours

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Course OutlineWeek 5 Description Chapter03: Overview in New Product Development Creating New Products CORPORATE RESPONSE MARKETING RESPONSE VARIABLES AFFECTING NEW PRODUCT DEVELOP Change and Complexity Invisibility Expense Control Hours 3 hours

Need for Speed Can Do PATHS TO SUCCESS28/03/2012 10

Course OutlineWeek 6 Description Hours 3 hours

Chapter04:Design

What is Design? The Role of Design in the New Products Process Contributions of Design to the New Products Process Product Architecture 3 hours

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Chapter04:Design ( continue) g g g Managing the Interfaces in the Design Process Participants in the Design Process Improving the Interfaces in the Design Process Computer-Aided Design and Design for Manufacturability

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Course OutlineWeek 8 Description Hours 3 hours

Speed to Market 1- Techniques for Speeding Time to Market 2- Overall Principles and Guidelines The Role of Top Management during Development 9 Chapter05: Special Issues in Development Functional Interface Management 1- Managing the Interfaces g g 2- Overall Principles and Guidelines Strategies for Global Product Innovation 3 hours

Chapter05: Special Issues in Development

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Course OutlineWeek 10 Description Hours 3 hours

Chapter06: Product Use Testing What Is Product Use Testing Is Product Use Testing Really Necessary? g g p 1- Regarding Competitors Reactions 2- Customer Needs Are Complex Sets 3- Can We Deliver A Total Quality Product? P d t?

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Course OutlineWeek 11 Description Hours 3 hours

Chapter06: Product Use Testing Knowledge Gained from Product Use Testing Beta tests Gamma Testing g Diagnostic Information Decisions in Product Use Testing How Sh ld W R h the User H Should We Reach th U Group?

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Course OutlineWeek 12 Description Hours 3 hours

Chapter06: Product Use Testing How Much Explanation Should We Provide? How Much Control over Product Use Should There Be? Special Problem Be Alert to Strange Conditions Strategies f Gl b l P d t St t i for Global Product Innovation

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Course OutlineWeek 13 Description Hours 3h hours I. Setting The Strategic Givens Revisiting th Strategic Goals R i iti the St t i G l

Chapter07: Strategic Launch Planning Ch 07

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Chapter07: Ch t 07 Strategic Launch PlanningStrategic Platform Decisions The Target Market Decision

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Course OutlineWeek 15 Description VI. Product Positioning VII. Creating Unique Value for the Chosen Target g VIII. Branding and Brand Management IX. Packaging Number of weeks Total hours Credits 15 weeks 45 hours 3 Hours 3 hours

Chapter07: Strategic Launch Planning

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ChapterNew Product in Global Marketing28/03/2012 18

-----------------------------What Is a New Product ? New products can be new to the marketplace or new to a company. A new product for a company may or may not be a part of an existing product line. A p product line is a g group of p p products that are closely related because they function in a similar manner, are sold to the same customer groups, are distributed through groups the same dealers, or all within certain price ranges. gBy: Eng Leaphea, MBA28/03/2012 19

NEW PRODUCTS

New products can be classified as: New-to-the-world products: New product lines: Additional to existing product lines: Improvements in or revision to existing products: d t Repositioning: p g Lower cost products:By: Eng Leaphea, MBA28/03/2012 20

These are:

Why New Product Succeed? y

Introducing a unique but superior product product. Having market knowledge and marketing proficiency. proficiency Having technical and production synergy and proficiency proficiency. Being in a large, high-need growth market. Avoiding introducing a high priced high-priced product with no economic advantage.By: Eng Leaphea, MBA28/03/2012 21

Why New Product Succeed? A idi a competitive market with Avoiding titi k t ith satisfied customers. Avoiding p g products new to the firm. Having a strong marketing communications and launch effort. Having a market-derived idea with considerable investment involved.

By: Eng Leaphea, MBA

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Risks of New Product Development p

This is due to a variety of factors:

Costs will continue to rise. Competition will intensify, particularly from foreign producers. The life of products is likely to become shorter as competitors duplicate existing products more quickly. The need for a more rapid pace in new product development may not be met by the development of new technologies. Markets will continue to be fragmented, requiring companies to aim new products as smaller target segments. Investment risks are likely to increase because of high interest rare.By: Eng Leaphea, MBA28/03/2012 23

NEW PRODUCT LAUNCHES --------------------- Evidence of Market Interest A Accurate M k t E l ti t Market Evaluation Good Judgment in Development Reasons for Success Position, Promotion, and Pricing

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CHALLENGES IN NEW PODUCT DEVELOPMENT Companies that fail to develop new products are putting themselves at great risk. Their existing products are vulnerable to changing customer needs and tastes, new technologies, g p y g New technologies are especially threatening. Most established companies focus on incremental innovation, disruptive technologies . N New products continued t f il at a di t bi rate. d t ti d to fail t disturbing t Recent studies put the failure rate of new consumer p products at 95 percent in the United States and 90 p percent in Europe.By: Eng Leaphea, MBA28/03/2012 25

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Why do new products fail? A high-level executive pushes a favorite idea through in spite of negative market research findings. f d The idea is good, but the market size is overestimated The product is not well designed. The product is incorrectly positioned in the market, not advertised effectively, or overpriced. The product fails to gain sufficient distribution coverage or support. Development costs are higher than expected. C Competitors fight back h d th expected. tit fi ht b k harder than t dBy: Eng Leaphea, MBA28/03/2012 26

Several factors tend to hinder new-product development

Shortage of important ideas in certain areas Fragmented markets Social and governmental constraints Cost of d f development l C it l shortages Capital h t Faster required development timeBy: Eng Leaphea, MBA28/03/2012 27

IDENTIFYING NEW PRODUCT IDEAS -------------Major sources of new-product ideas include internal sources customers competitors sources, customers, competitors, distributors and suppliers, and others It can pick the brains of its executives executives, scientists, engineers, manufacturing, and salespeople. salespeople Some companies have developed successful entrepreneurial programs that entrepreneurial encourage employees to think up and p p develop new-product ideas.By: Eng Leaphea, MBA28/03/2012 28

Good new-product