New Product Development

New Product Development

New Products  You can make lots of money, generate more profits
Why companies introduce new products ?
To make big profits
To reinvigorate : car industry would need it
Or to diversify cause for some companies, a big % of sales are due to one product (ex apple , ipod)

The failure in a big loss of money , 40% of the new products will fail , 60% in food. You can fail very quickly (movie) ; New coke in 80’s, Ford Edsel….

How to eliminate bad ideas :
Good ideas : Iphone, Ipod, Whole Foods, Wii ….
“Serendipity” : by chance or accident : Microwave, 3M post it …. Dupont & Teflon
Creates a new market
New to the world

New to the firm : New product line ex: Canon Laser Printer …

Product Line extension : ex:Budweiser Light

Improvement: Laundry Detergent (new formulation)

Repositioning : Change the use of an existing product
Ex : Baking Soda was absorbing the fridge odor , Vaseline for hair -> now for lips

/!\ 3 products that changes our lives : PC , Internet, Mobile Phone, Cars ,Microwave, ATM…


Cost Value Time

Quality product need time to make it and obviously cost more

CHAPTER 2 : The New product Process
1- Oportunity Identification
- Ideas
- Suggestion (consumers, store owners (distribution chains)), government
- Complains
- Trends (security related products/green products.swimsuits…) Habitude d’acheter..
- Research
- Under utilized resources
- Unfulfilled need of the market place
2- Concept Generation
Wafels and diges sold in a truck
Starbury shoes 9.95$ -> Cool , NBA Player Stephon Marbury
3- Concept Evaluation
Technical : can we make it
Financial : are we going to make any money
Marketing : will people buy our products
If Yes : You proceed , you start to do the business

4- Development (phase)
A: Prototype (Model) , technological
B: Marketing ; how you gona sell
C: Launch : red carpet events
Companies come up with team of people who drive the product developpement...

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