New Product Development: Threat Opportunities
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 3290 words||✅ Published: 4th May 2017|
New Product Development resources by basic idea of customer demand from market design to develop test, analysing & commercialising product to better benefit of an organization. In this global challenging market new product faces a massive competition with existing product but perfect customer demand new product easily taking place from any challenging environment. NPD process refers to the stages that a product undergoes from conceptualization. It is as follows; Idea generation and screening, concept development and testing, business analysis, product development, test marketing and commercialization. New product development now is the big issue for survival of a company. As market demand changes repeatedly, Company should conscious about current demand and adapt their new product consequently. Otherwise it will be very tough for a company to sustain in the challenging market. Also Swot Analysis is helpful for new product development Company. This is an overall evaluation of corporation potency, failing, prospect and hamper. Potency and weakness are internal and can be controlled by the organisation whilst Opportunities and Threats are external.
In this situation marketing plan is also most important for new product development. Because, it is a road map for achieving objectives and implementing strategy, a frame work for monitor and control, ensure customer focus and competitor awareness and assists efficiency and effectiveness.
a. Research significance
New product development is very important for survive in global challenging market. Customer demand changing regularly & company need to continue customer choice so that they easily attract the customer. We here shows a example in APPLE ( iphone) where they launch a new product by using in progress customer demand, I.e. (flexible internet use, face book & YouTube etc) grab market very easily in this massive competitive market. This is generally estimated of a company’s Strengths, Weakness, Opportunities and Threats that means swot analysis. New product development is a process of developing a new product or service for the market. It is a primary step in product or service development. Before the product entering the product it have some basic steps to developed that one. Normally we define product development as the transformation of a market opportunity and a set of assumption about product technology in to a product available for sale. In this global challenging market new product faces huge competition with existing product but perfect customer demand new product easily taking place from any challenging environment. This section consists of archive of British library and various others published journal articles that are highly recognised as a contribution to the existing studies. Customer demand changing frequently and company need to maintain customer choice, so that they easily attract the customer. In this global competitive market new product development faces huge difficulties so that there is more market research need to identify the perfect demandable new product to launch in the market.
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. New product development is a company’s life blood. Development and earnings suffer without violent product development introducing new products and services in to the market. It is must to know what their customer wants order to convene any gaps in the market. The key to successful market research for new product development comes from an understanding of what customer value and not simply from asking them to submit their own solutions. Product, packaging, advertising and pricing formula are also most important for new product development.
. Presently new product development and innovation are vital issue for today’s global challenging business. Most of the company always look for new platform and formula to get new ideas to market. Example, GE, Nestle and Nike are just three of the many company. They used their innovation strategies in the 2008 summer Olympics. They already got good response and taken more advantage from the market. Many small firm’s capacity and resources are limited. They need to have more efficient and effective new product development practices in place to maximise their limited resources available to take a new product from the idea stage to market.
b. Problem statement
New product development is a process of developing a new products or service for the market. It is a primary step in product or service development. It involves a number of steps that must be completed before the product can be introduced to the market. In this global competitive market new product development faces huge difficulties so that there is more market research need to identify the perfect demandable new product to launch in the market. We find out company’s weakness and threats that mean aspects in the business environment that create a challenge or can hamper the organisation from achieving its objectives. That means competitors, changing pace of technology and Government legislation.
c. Research questions
What is the major factor to need new product development & how it stands in challenging market?
The major factors of new product development company are as following:
Cost: The material cost and labour need to manufacture the product. The price of the product is near to the manufacturing product then customers like to buy the product.
Materials: the final result of the product will be depends on the availability of the materials used in the manufacturing.
Customer requirements: The major influence of the customer is mainly on the developing of the product. Customer requirements are most important for every new product development company. We can show a example: When designing a APPLE (iPhone 4) mobile phone a design team show vital customers various models and then they can do the alteration according to what they like and what they dislike.
Organizational structure: It is most important for new product development. New product development success defends on better organizational structure.
Leadership: Leadership is also most important for a new product development. A new product development company get benefit from the new market by skilled leadership.
The literature review focuses on customer participation in new product development practices as well as considerate, measuring and analyzing individual emotions. This provides the basis for how business firms can gain a competitive advantage by measuring the emotional quality of new product offerings. New product and service development is an vital activity for business firms that wish to become serious contenders in today’s dynamic business environment, considered by changing markets, high rate of technical obsolescence, shorter product life cycles and increasing global competition. To identify and describe the important of new product development, threat and opportunities in global challenging market various journals, relevant literature and existing practices of new product development where consulted for this research. New product development is very important for survive in global challenging market. Customer demand changing regularly and company need to maintain customer choice and satisfaction. If it is able for the company then they easily attract the customer.
We define product development as the conversion of a market opportunities and a set of statement about product technology in to a product available for sale. Literature review is most important for every research. It’s just being a simple summary of the sources. It is expand our knowledge day by day. A research is not perfect without literature review. When we do research work, then we suffer more and more problem. Literature review tries to solve this problem. It is a practical operation of research. This section consists of extensive literature review of archive of British library and various others published journals that are highly recognised as a contribution to the existing studies. This research and literature was watchfully reviewed to examine what previous researchers have found about new product development, threat and opportunities in global challenging market after on increased implementation of information technology? So literature review investigates our research problem. Our review is consciously broad, about field work of marketing, functioning management and designing of the product. The value of this extent is in assigning the shape of the entire research landscape. The review is anticipated primarily for two audiences. First, we hope to benefit new researchers ingoing the field of product development (e.g., doctoral students). We also hope this review will be valuable to experienced researchers who are interested in learning about the range of research in product development, possibly to identify new research opportunities or to locate issues that meet their current interests. Despite the broad scope, we limit the review in several ways. We mainly highlight on the project progress with in a solo firm. This focus is in contrast to much of the literature on technological innovation, which addresses innovation at the level of an entire industry or an entire firm (e.g., Abernathy and Utterback 1978, Utterback 1994). Our team also dedicates our attention to the development of physical goods, although much of the work we describe applies to products of all kinds. We focus on the academic literature; reviewing the practitioner literature only to the extent it has been powerful in the research community. Finally, we focus on decision making in product development, as discussed in more detail in the next section. The decision-making focus excludes a significant body of research focused on the importance of environmental and background variables, such as market growth rate.
Kim and wile men (2002) describe: it says the basic idea of the product will be decides it’s going to develop the product or not. It is a new construction development route. Koen at (2001) describe, it is a pattern of a virus of an idea includes all actions from the search for new opportunities to the development of a prices idea. It is a proper development of the idea. He also said, it is a practice of opportunities classification and opportunities testing.
Cooper R.G (1988) describe: it is a conduct of beginning market, technical evaluation, source of supply estimation suppliers, product concept testing and business and economic analysis.
Khurana, A; Rosenthal, S.R. (1998), they were described: It is a conduct consists of product plan formulation and communication, product definite, development planning and opportunities, identification and evaluation. Husig s; Kehn s; Poskela j (2005) describe: it is a phase of opening definition of an idea and complete product, project definition and business planning. It is a dispute that in the FFE for developement stage and crucial project etc, three separate strategies and process are normally involved. We support our theory, or logical generalizations of product development practice, on both our explanation of industrial product development and our review of the literature. The existing literature on product development is huge. To sharper our understanding of the literature, it is helpful to organize this literature into a few competing paradigms. Such a clustering is a challenge on our part to explain differences, and may guide in some cases to an amplification of these perspectives. Ronald Helm, Armin School, Laura Manthey and Micheal Steiner described: They described it (customer preference measurement) as a vital issue for new product development. In the primary stages it is most important for new product development. They show two popular methods for measuring preferences with marketing research and practice. One is Conjoint Analysis (CA), another one is Analytic Hierarchy Process (AHP). Their thinking, these two methods are really helpful for product innovation. These methods normally differ with respect to their basic conception. They show here Analytic hierarchy process is a compositional method and Conjoint Analysis is a decomposition manner. They compare the methods as instruments of preference measurement. Their researches show a high degree of analytical and convergent validity of both methods. They inspecting the results in detail expose huge differences which indicate the analytic hierarchy process performs slightly better.
Wynstra and Pierick (2000) introduced a method, the dealer participation range, to offer support for location main concern with regard to the participation of dealer in a NPD project. This range distinguishes four kinds of dealer participation: tactical Development, significant Development, and Arm’ measurement lengthwise Development and schedule Development.
Brooke R. Envick & Eileen Wall-Mullen described here, new product development is most important for small firms with their limited resources to adjust efficient and effective new product development practices. They can show a computer based system that called Emorgan. According to their view, it is really helpful for quickly and accurately measures a new products emotional utility. This system provides to improve product design and marketing strategies. Presently new product development and innovation are vital issue for today’s global challenging business. Most of the company always look for new platform and formula to get new ideas to market. Example, GE, Nestle and Nike are just three of the many company. They used their innovation strategies in the 2008 summer Olympics. They already got good response and taken more advantage from the market. Many small firm’s capacity and resources are limited. They need to have more efficient and effective new product development practices in place to maximise their limited resources available to take a new product from the idea stage to market. The author introduced here a computer based software program that called Emorgan system. Most of the firm utilizing this important software tool for their ideas in the market for maximizing the effectiveness of their new product development. The author’s provided the basis for how commercial firm’s can gain a competitive advantage by measuring the emotional quality of new product offering. Their thinking customer involvement is very important for new product development practices. New product development is an great activity for commercial firm’s that wish to become serious contenders in to day’s dynamic business environment, characterized the changing market, shorted product life cycles and increasing global competition. Deeds and Hill, 1996, described; successful new product development creates significant advantage for entrepreneurs including access to early cash flows, external visibility and early market share. Griffin, 1997, made a question, how entrepreneurial firm’s can by pass common mistake made when ideas and timing are wrong, which are the two biggest reason for commercialization failure. Little, 1991, made another question: how firms can measure the appeal of an innovative product idea, which is cited as one of the top three concerns of product development. Booz, Allen and Hamilton (1968), provided six stage processes for product development typically used by firms. These are includes: Exploration, Screening and Business analysis, Development, Testing and Commercialization. Page, 1990, satisfaction of customer needs as a successful criterion for product producing companies. Hughes and Chafin, 1996, shows an example, such as: New product development can be like hitting a moving target from atop a runaway train. Homburg, 2000, explained, customer interaction in the new product development process has a positive impact on new product success. They found that customer support was essential in successfully marketing lot of new products. So customer support requirements should be evaluated during new product development. Darwin, 1872, explained, Understanding, Measuring and Analyzing human emotions are very important for new product development.
A literature review discusses published information in a particular subject area. It maybe valuates the source and advice the reader on the most pertinent or relevant. The focus of a literature review is to summarize the argument and ideas of others. So literature review is most important for every research.
Aims & Objectives
Every research needs some aims or objectives. My objectives are given below:
To know how & when a company can start new product development
For survival of a new product what types of obstacle it’s must overcome
A company can start new product development by new product development process and marketing planning process. Those are most important for a new product development company. SOSTAC Model is the best marketing planning process.
S = Situation Analysis = Where are we now?
O = Objective setting = what do we want to achieve?
S = Strategy development = How do we achieve objectives?
T = Tactical development = How do we achieve strategy?
A = Action = Implementation of the plan!
C = Control = How do we ensure arrival or have we achieved our objectives?
When a company implements their new product development process and marketing planning process accordingly than they can starts new product development project.
Theoretical framework and hypothesis
There are two hypothesis used by me. They are as follows:
Hypothesis One: Major factor which influence new product development
Hypothesis Two: Overcome challenge to established in market
Some major factors influence the development of a product. Most of them are as following: Cost, materials, customer requirements, organizational structure and good leadership.
A new product development company can overcome challenge to establish in market by proper implementation of their product development strategy.
I use different types of methodology to find out solution. I collect my proposal related data from secondary sources as well as primary sources. Also collect related book, journal, newspaper, internet & also responsible personnel interview for the purpose of help to build up my research.
New product development now is the big issue for survival of a company. As demand changes all time of customer. That’s why customer satisfaction is most important for new product development. Customer always looking better product in cheap price. If the company fill up their requirements than they will get a position in challenging market. Company should aware about current demand & prepared their new product accordingly. Otherwise it’s very tough for a company to establish a new product in the challenging market.
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There are different types of limitations for research that types of qualitative research. Research data are not readily available, time to interview of higher personnel is tough, and some of the company don’t want to disclose their policy for security purpose. And also time of research is not enough cause all we know research are on going process which never end.
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