5.16:
New Product Development- Application
The NPD is a seven-stage process. To illustrate the process, let's consider creating a new snack, a flavored pretzel bite.
The process begins with Idea Generation. New flavors are brainstormed and conceptualized through research and development, consumer insights, and market trends.
It is followed by Idea Screening, where potential flavors are selected based on their viability, technical feasibility, and market potential.
Next is Concept Development and Testing, where specific details on product design and packaging are developed and tested for feasibility.
Then, in Marketing Strategy Development, a marketing plan is developed, providing details about the target market and marketing mix strategies.
In the Business Analysis stage, prototypes are created after assessing the profitability and economic viability of the variants. It helps visualize the product.
After this, in Test Marketing, the snack is shared with target market customers to gather initial feedback.
And finally, in Commercialization, the final flavors are approved after incorporating all the feedback. The snack is ready for full-scale production and launch.
5.16 New Product Development- Application
The New Product Development (NPD) process drives innovation, competitiveness, and company growth across all sectors. The application of this process is multi-faceted.
Firstly, NPD plays a critical role in creating unique and innovative products.
Secondly, the NPD process facilitates the successful adoption of new product development methods, enabling companies to stay competitive and adapt to market changes.
Furthermore, advanced technologies such as Artificial Intelligence and Expert Systems increasingly support the NPD process. These technologies help reduce product development time, improve quality, and cut costs.
Each stage of the New Product Development (NPD) process holds a unique significance in ensuring the successful introduction of a product to the market.
Idea Generation is crucial as it directs the entire NPD process.
Idea Screening ensures that only the most promising ideas move forward.
Concept Development and testing validate the product concept's appeal and feasibility.
Marketing Strategy Development is vital as it outlines the product's positioning, pricing, distribution, and promotional strategies.
Business Analysis is essential in determining whether the product can generate satisfactory profits.
Product development and test marketing are crucial as they provide insights into the product's performance in market conditions.
Commercialization is significant as it determines the product's success or failure.