New Product Strategy

1
New Product Strategy

• Why do new products fail?
• Inability of the company to match up its
  offerings to the needs of the customers
• Common Misconceptions about NPD Process
  (Marketing Highlight 7-1, p. 106)

2
Categories of New Product

• 1. New-to-the-world product
• Product that are inventions products that
  change consumption behavior
• 2. New category entries
• Products that take a firm into a category new to
  it. Products are not new to the world

3
Categories of New Product

• 3. Additions to product lines (product line
  extension)
• Products that are line extensions to firms
  current markets
• 4. Product improvements
• Improved performance greater perceived value

4
Categories of New Product

• 5. Repositionings
• Products retargeted for a new use or application

5
Applications Ensuring Success

• Factors associated with new product success (p.
  107)
• 1. Product superiority/quality
• 2. Overall company/project fit
• 3. etc.

6
Applications Ensuring Success

• Product superiority/quality The competitive
  advantage the product has by virtue of features,
  benefits, quality, uniqueness, and so on
• Make the use easier ask customers why they
  dont use the product as much
• Packages that can be placed directly in a
  microwave

7
Applications Ensuring Success

• Overall company/project fit the products
  synergy with the company-marketing, managerial,
  business fit
• New category entries find commonality in
  distribution, marketing, or brand name
  recognition.
• Family branding

8
Challenge in Developing New Products

• Need to shorten products time to market
• Reduce time between idea generation and product
  availability
• Reduce market risk and internal risk
• A short time to market can create a competitive
  advantage

9
Challenge in Developing New Products

• Research need for timely and accurate
  information tracking competitors and customers
  tracking marketing environment
• Is new product development consistent with
  organizational mission and objectives?

10
Challenge in Developing New Products

• Will customers benefit?
• Are there manufacturing, marketing, or
  distribution cost efficiencies with the new
  product?

11
Challenge in Developing New Products

• Does the firm have the needed competencies and
  resources in RD, manufacturing, and marketing to
  successfully develop product?
• Adding wood stains to a line of paints includes
  totally new manufacturing effort, raw materials
  technology, or marketing effort.