Product development
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This document provides an overview of product development, including new product development processes and strategies. It discusses key aspects of product development like the product life cycle, marketing, and product management. It also shares tips for customer experience, ways to make customers loyal, Warren Buffett's business advice, habits of exceptional leaders, and questions to ask before starting a project. The document contains information to help understand product development from ideation through commercialization and product management.
Product development
- 2. AGENDA • Product Development (PD) • New Product Development (NPD) • NPD – Categories • PD – Process • Product Life Cycle • Marketing • Product Management • 7 Steps for Customer Experience • Misc. – Information
- 3. WHAT IS PD • A new product development is a complete process of bringing a new product to the market till its consumption and feedback from the end user of the business chain through the systematic procedure and parameter. • It is a complete process of bringing a new product or service to market. • It may be done to develop an item to compete with a particular product or may be done to improve an already established product. • It is also development of new Brand through the firm’s own R&D efforts.
- 4. PRODUCT DEVELOPMENT • It must be alert to quickly develop opportunities • It focuses on Markets or Product categories consistent with organization’s • Objectives • Resources • Capabilities • Strength • Securing a competitive advantage
- 5. WHY NEW PRODUCT • It is essential to any business that keep up with Market trends and Changes • 1/3 of the Revenue a business generates come from the products which not sold in last 3 to 5 years (Research & Books) • Changing environment creates new demands and needs It is necessary because • A way of getting new and keeping old customers • Effective way of obtaining a competitive advantage • Source of growth and excitement
- 6. NPD - CATEGORIES • New to world Products • New Product line • Product line extension • Improvements and revisions to existing Products • Repositioning • Cost Reductions
- 7. WHY NEW PRODUCTS FAIL? • Overestimated Market • Poor Design • Incorrect Positioning • Error in Pricing • Poor Marketing Communication • Product Orientation • Cost Overrun • Competition
- 8. WHY NEW PRODUCTS SUCCESS ? • Unique • Superior Product • Well Defined Product Concept from Startup • Specific Criteria • Specific Strategic Role • Systematic New-Product Process
- 9. PD - PROCESS
- 11. PD – PROCESS CONT… • Idea Generation • Internal • R & D • External • Customers • Competitors • Distributors • Suppliers
- 12. PD – PROCESS CONT… • Idea Screening • Product Development costs increase dramatically in later stages • Ideas are evaluated against criteria; most are eliminated • Concept Development and Testing • Product Concepts provide detailed versions of new Products ideas • Consumers evaluate ideas in concept test
- 13. PD – PROCESS CONT… • Marketing Strategy Development • Target Market + Product Positioning + Sales + Share + Profit goals for the first year • Product Price + Distribution + Marketing Budget for first year • Long-run Sales + Profit goals + Marketing Mix Strategy
- 14. PD – PROCESS CONT… • Business Analysis • Sales + Cost + Profit Projection • Product Development • Prototype Development and Testing
- 15. PD – PROCESS CONT… • Test Marketing • Standard Test Markets • Controlled Test Markets • Simulated Test Markets
- 16. PD – PROCESS CONT… • Commercialization • High Initial advertising and promotion expenses • Introducing Timing Critical • Launch Location
- 17. SALES & PROFIT
- 18. PRODUCT LIFE CYCLE • The Typical Product Life Cycle has five (5) stages • Product Development • Introduction • Growth • Maturity • Decline
- 19. PLC - STRATEGIES
- 20. PLC - STRATEGIES
- 21. PLC - STRATEGIES • Additional Marketing Investment can move a Product back into growth stage
- 22. MARKETING • It is very important for Product development success • It is used to find a need and fill it • Mutually beneficial exchange relationship • Key to successful Marketing • Imaginative • Effective • Creative Communication
- 23. MARKETING STRATEGIES • Increase number of customers • Increase average transaction • Increase the frequency (long lasting)
- 24. MARKETING CONCEPTS • Consumer Orientation • Customer Service Orientation • Profit Orientation • Society Benefits
- 26. 7 STEPS TO DELIVER BETTER CUSTOMER EXPERIENCES • The Brand Platform • Customer Experience Strategy • Business Segmentation • Customer Segmentation • Prioritization • Experience Design • Assessment and Integration • Developing a customer experience architecture isn’t rocket science, but it requires accepting a broader, fuller definition of customer experience and committing to a robust planning tool and process • Companies that develop their own architecture will find it breaks down organizational silos, addresses the diversity of customers and their needs, and produces unique and compelling experiences.
- 28. 10 WAYS TO MAKE CUSTOMERS FALL IN LOVE WITH YOUR BUSINESS 1. Treat your Customers Right – Genuinely Interact 2. Don’t Come on Too Strong – Respect Your Customers 3. Always Listen – Hear What Your Customers are Saying 4. Continue to Satisfy – Offer Ongoing Support and Specials 5. Treat a Customer Like a Valued Partner – Communication is Two Way 6. Build Trust – Alert Customers to Large Scale Changes, Good or Bad 7. Be Transparent – Honesty is Crucial When it comes to Mistakes 8. Follow Through on Your Word – Follow Up on Promises 9. Recognize Responsibility – The Customer is Always Right 10. Always Say “Thank You” – Kindness and Gratitude will Take You Far
- 29. 7 TIPS YOUR BUSINESS SHOULD LIVE AND DIE WITH FROM WARREN BUFFETT • On Earning: "Never depend on a single income. Make investment to create a second source" • On Spending: "If you buy things you do not need, soon you will have to sell things you need" • On Savings: "Do not save what is left after spending, but spend what is left after saving" • On Taking Risk: "Never test the depth of the river with both feet" • On Investment: "Do not put all eggs in one basket" • On Expectations: " Honesty is a very expensive gift. Do not expect if from cheap people." • On People: When looking into someone, look for 3 things: Intelligence, Energy & Integrity. If they don't have the last one, don't bother with the first two.
- 30. WHAT SHOULD KNOW? • Exactly where you should invest your money, • Exactly where to test the market, • Exactly how much to save, • Exactly where you should invest ALL your eggs, and • Exactly the ONE source of income you should have • Why is Buffets advice so uncertain? • The answer is, and here is my Tip #8.
- 31. 12 HABITS OF EXCEPTIONAL LEADERS 1. Courage 2. Effective Communication 3. Generosity 4. Humility 5. Self-Awareness 6. Adherence to the Golden Rule +1 7. Passion 8. Infectiousness 9. Authenticity 10. Approachability 11. Accountability 12. Sense of Purpose
- 32. 5 QUESTIONS BEFORE STARTING A PROJECT 1. Would I enjoy doing the Project? 2. How much do I already know about the project? 3. What are the learning opportunities in this project? 4. What is my role in this project? 5. How much time should I spend?
Editor's Notes
- #4: Product development starts with customer’s need. Product Development = Existing Market + New Product It may be a consumable product or service.
- #5: It is 3D: Discover Develop Deliver
- #8: By Philips Kotler
- #10: Idea Generation: The Basic idea is created and described Idea Screening: The costs, Profits and potential sales of the offering are calculated at different price levels. Also check the competitive strategy Features Specification: Its features and pricing are established. Detailed specifications of the Product are developed Development: The actual offering is designed Testing: The offering is tested, first in the lab and then with real customers Commercialization (Launch): The offering is made available to the customers Evaluation: The offer is evaluated as to whether it is delivering the appropriate value to consumers, as well as meeting the firm’s business goals
- #12: Systematic Process: Idea Manager + Multidisciplinary committee + Toll-free number + Staff Encouragement + Formal Recognition Yields (Profit/Revenue/Income): Innovation culture + More ideas
- #13: Identify the good ideas and drops the poor one fast Maintain creativity and stream of ideas Standard Format + Criteria and Rating Expanding the new-product idea into various alternative forms Target consumers exposed to new-product concept Word or Picture description Physical representation of the concept Question reactions
- #15: Compare Projected Results with the Objective Estimate the maximum and minimum sales (Company history and Market opinion) Estimate Product costs and profits Prototype = Sample/Model/Trial
- #19: It is not necessary that every product follow this Life Cycle. (e.g. Style, Fashion) Product Development: Sales are zero + Investment costs are high + Profits are negative It is started when the company develops a new product idea Introduction: Low sales + Negative Profit + Little Competition + Innovators are targeted + High cost per customer acquired Marketing Strategies: Product + Price + Place + Advertising + Sales Promotion Growth: Rapidly Rising Sales + Rising Profit + Average cost per customer + Early adopters are targeted + Growing competition Maturity: Sales peak + Low cost per customer + High Profits + Middle Majority are targeted + competition begins to decline Marketing Strategies: Product + Price + Distribution + Advertising + Sales Promotion Decline: Decline Sales + Low cost per customer + declining profits + Laggards are targeted + declining competition Marketing Strategies: Product + Price + Distribution + Advertising + Sales Promotion
- #22: PLC concept can be applied to a: Product Class (Soft Drink) Product Form (Diet Cola) Brand (Pepsi)
- #23: Marketing is nothing but to build a profitable customer relationship. Marketing is the methodology of communicating the value of a product or service to customers, for the purpose of selling that product or service.
- #27: 1. Brand platform is the excitement and adventure of the outdoors + Customer’s expectation with a servant’s spirit 2. An electronics website might want to create a “place” for customers to discover and be delighted by innovations 3. The objective is to identify the different experiences the organization delivers and to articulate the requirements and objectives of each 4. Different target segments have different needs — some customers may value convenience over price, others may be looking for an entertaining experience — so their desired experiences vary. Describe each segment with a profile and a needs inventory, including key drivers of purchase decisions and brand perceptions. 5. Prioritization criteria include profit potential, fit with long-term strategy, competitive advantage and differentiation, resource requirements, and how the experience affects and/or reinforces brand values and brand position. 6. All the levers of customer experience — product, service, content, channels, touch points, pricing, facilities, sensory engagement, etc. — should be considered and described in the design. 7. Now the architecture is ready to be inspected for integrity and coherence. Is the brand platform expressed throughout every experience? Do the discrete experiences contribute to the overall customer experience strategy? Do experiences complement and enhance each other, or do they conflict or detract from each other?
- #29: https://www.linkedin.com/pulse/10-ways-make-customers-fall-love-your-business-hina-komal?trk=hp-feed-article-title
- #31: Tip#08 There is never an absolute in business no matter what industry you are in and no matter how much money you have made. And that is why Buffett has been so successful. Nothing is ever certain, the market is always changing and there is NEVER one business, one industry, one investment, one strategy or one system that will always work. Keep your eyes open to what works, takes smart risks, keep a balanced approach and know that there are many failures on the path that leads to success!
- #32: 1. “Courage is the first virtue that makes all other virtues possible.” —Aristotle 2. “The more elaborate our means of communication, the less we communicate.” —Joseph Priestley 3. “A good leader is a person who takes a little more than his share of the blame and a little less than his share of the credit.” —John Maxwell 4. “Humility is not thinking less of yourself, it’s thinking of yourself less.” – C.S. Lewis 5. “It is absurd that a man should rule others, who cannot rule himself.” —Latin Proverb 6. “The way you see people is the way you treat them, and the way you treat them is what they become.” – Jon Wolfgang von Goethe 7. “If you just work on stuff that you like and are passionate about, you don’t have to have a master plan with how things will play out.” – Mark Zuckerberg 8. “The very essence of leadership is that you have to have a vision. It’s got to be a vision you articulate clearly and forcefully on every occasion. You can’t blow an uncertain trumpet.” —Reverend Theodore Hesburgh 9. “Just be who you are and speak from your guts and heart – it’s all a man has.” – Hubert Humphrey 10. “Management is like holding a dove in your hand. Squeeze too hard and you kill it, not hard enough and it flies away.” – Tommy Lasorda 11. “The ancient Romans had a tradition: Whenever one of their engineers constructed an arch, as the capstone was hoisted into place, the engineer assumed accountability for his work in the most profound way possible: He stood under the arch.” – Michael Armstrong 12. “You don’t lead by pointing and telling people some place to go. You lead by going to that place and making a case.” – Ken Kesey https://www.linkedin.com/pulse/12-habits-exceptional-leaders-dr-travis-bradberry?trk=hp-feed-article-title
- #33: 2. Area of Knowledgeable domain 3. KEY: Keep Educating Yourself – How much I learn in this Project? 4. Narrow down the Scope. If Team Lead then Team Management and Time Management are the key focused factors. 5. Time is money and making money is not easy. Never bypass any process or organizational policy. Put your best in every project and do every project like you are doing your last project.