Professional Documents
Culture Documents
MAJOR INNOVATIONS:
Products which are new to the organisation &
market. Offer greater potential in terms of
returns, but more risky since they require
a higher level of investment &
many involve moving into areas of
comparative inexperience (kurang pengalaman).
High cost/need bigger capital
Spend a lot of time/hours (R&D)
1
Idea
generation
2
Idea
Screening
3
Business
Analysis
4
Development
& testing
5
Product
Launch
1. IDEA GENERATION:
While many ideas are not derived directly from a
new product strategy, the strategy should be known
to people who are searching for ideas or are likely
to encounter new product opportunities.
Major sources of ideas include:
research & development by organisation,
user suggestions @ complaints,
analysis of competitive products
published information,
contact with customers through the front line
staff &
brainstorming.
2. IDEA SCREENING :
Idea generation would have created a large
number of propositions. As product development
costs rise greatly in later stages, the current
exercise is to reduce these to manageable few
worthy of further consideration.
This can MINIMISE drop errors, whereby a
product with real potential gets dropped from
consideration; &
go errors, whereby the organisation decides to go
with a product that later fails.
2. IDEA SCREENING :
The evaluation of the idea will be against set of
general criteria (with a rating scale & weights
associated with each item) covering:
i) product characteristics,
ii) marketing characteristics &
iii) production characteristics
Weight
Rating
Economic criteria:
Low invest. Level
0.3
0.9
0.3
0.9
0.3
0.5
Low probability of
competitive resp.
0.5
2.0
0.5
2.5
0.5
2.5
Promotable attributes
Good distribution channel
Product criteria:
0.5
0.2
0.2
0.2
0.2
1.2
X
2.5
1.0
1.0
X
0.6
0.4
0.8
16.3
3. BUSINESS ANALYSIS :
Once mgt has decided on its product concept &
mktg strategy, it can evaluate the business
attractiveness of the proposal.
A reviews of the sales, costs & profit
projections for a new product is done in order to
find out if it satisfies company objectives.
1
An industry
analysis can
determine the
products
attractiveness;
2
customer analysis
to assess the size &
growth of the
segments in the
industry as well as
satisfaction &
problems with current
products (if any)
BUSINESS
ANALYSIS
Competitors
analysis that
anticipates the
reactions to a
new product
introduction
4
5. PRODUCT LAUNCH
The product launch is the final stage & the true test
of any newly developed product: & the point at which
the organisation makes a full scale business
commitment to the product.
The major decisions are essentially operational in
nature i.g. decisions regarding timing & geographical
location of the launch & the specific mktg tactics to
be used in support of the launch
Cth: McDonalds mengambil masa dua tahun sebelum
pelancaran Chicken McNuggets keluarannya.
18
CONCLUSION:
The process of NPD in the fin. Services sector has
tended to concentrate on the redesigning of existing
products within an organisations portfolio & the
development of products which are new to the
organisation, though NOT NECESSARILY NEW TO
THE SECTOR!.
The problem faced by the provider of financial service
products is the ease with such products may be copied
& the consequent importance of ensuring rapid market
penetration in the desired segment when new products
are launched.