The market is everyday introduced to some new products. Innovation and research takes place continuously to introduce some new products which add more value to the lives of the customers.New Product Development is a process of bringing of new products into the market till its consumption by the consumers and their feedback.
The new product must focus on markets where opportunity for growth and success for company exists and help company gain competitive advantage.The process includes of the following steps:
IDEA GENERATION: Utilizing basic internal and external SWOT analysis, current market trends and information recognizing the needs of customers ideas are generated for which the type of product company wants to develop.
SCREENING: It deals with decision about which idea to go ahead with and rejecting enviable ideas.
CONCEPT TESTING: Whether consumer wants and understands the product?
BUSINESS ANALYSIS: It deals whether the product will prove profitable for the company?
PRODUCT DEVELOPMENT: The approved product is converted into a prototype.
TEST MARKETING: The product is introduced to a segment of market to obtain feedback.
COMMERCIALIZATION:Preparation to launch the product on a commercial scale. Pricing and marketing plans are finalized
LAUNCH The product is then launched for all the consumers.
A new product is developed to create stars and cash cows for future and replace the declining products.: .
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