New Product Development (NPD) Process Theory

immature harvest using (NPD) Process Theory tally to the one-dimensional view, new overlap ontogenesis (NPD) extremity nonpluss with predilections, proceed with idea screening, concept evolution and testing, market placeplaceing dodging growth, stemma abbreviation, proceeds development and test merchandising, ends when the crossing existently commercialisation and creates wealth (Kotler and Armstrong, 2011). To bridge the speculation into practice, we worked as a group to develop a new, patsyed crossing, and joint the marketing strategy to find and act as the niche market sine qua non in the UK. As an important consumer sector of FMCGs, in the flesh(predicate) cargon intersection points fix a large part of the British market, but meanwhile the emulation in this field is fierce, firms have to keep supplying new products to set up the rapidly changing admits of their customers (Trott, 2008). This report described both the NPD process surmise and our pr actice of the theory from idea generation through to assemble and roll out, and then analyzed the benefits and disadvantage of the process.New Product victimisation ProcessIdea Generation and ScreeningThe purpose of the idea generation process and idea screening process argon systematic enquiry new ideas and then reduce the good turn of ideas to spot the good ones (Kotler and Armstrong, 2011). Ideas may come from many different sources, it contains internal sources such(prenominal) as conventional research and development division and employees, and external sources such as distributors and suppliers, competitors, and customers themselves (Ritter and Gemunden, 2003). consequently a large number of ideas were created via different sources, managers need to try these ideas and check closely at the prospects in the marketplace. Although the difference of decision criteria may displace the screening of new ideas greatly (Carbomell et al., 2004 Hart et al., 2003), scholars p ropose a incorporated R-W-W framework to effectively identify capableness problems and control risks. The R-W-W framework asks threesome fundamental questions about new ideas Is the market and product real?, raise the product and our company win?, and Is the product worth doing? (Day, 2007), and the company should be able to answer all of them in the first place further development the idea. found on the idea generation and screening theory, at first our team analysis the feasibility of our new ideas and decide to choose the idea of Freshies deodorant wipe within subsisting company Unilever. Firstly, regular users of deodorant are a huge potential consumer group all over the world, and the deodorant market in the UK has a good momentum of growth. Secondly, existing deodorant wipes brands do non have a good balance amongst the scathe and quality of their production, and the main competitors of Unilever do non give to a greater extent attention to this field, which means the competition of deodorant products are less than mainstream personal plow products. Finally, Unilever is an established and reliable brand in personal care market and has great experience about relative products, thus Unilever would not face the challenge of convincing consumers that they are better than a traditionalistic deodorant, which means the cost and risk of entering the market is lower.Concept development and TestingAfter screening ideas, marketers need to embody the detail of ideas to reconcile in meaningful consumer terms, develop the idea into alternative product concepts and localise the roughly pull inive concept to customers (Kotler and Armstrong, 2011). The postulateed concept also needs to be tested with some tar scotch consumers before further development. This may let in some preliminary market research to find the market need, niche, and attractive force (Page, 1993). Through the preliminary market research, it would also reveal the most undimmed fea tures of the new products and assess the purchase intent of customers (Trott, 2005).Because the brand identifies of Unilever was developed nearthe concept of adding vitality to life, we have created a concept shortlist for edifice a brand which is cost effective, relevant for all markets, convenient or healthy. At first we share the concept with our paired group to get primary advices of our product, by this we determined that our concept is to build a new, biodegradable, man-portable deodorant wipe. Then we conducted a survey of some in-store deodorant brands and evaluate their sale status. Finally, we did a market research for deodorant gross revenue at online plat manakin such as Amazon and eBay. The result of our investigation shows that although deodorant belonging to an industry that is highly saturated, wipes tin substructure open up a whole new market that has not been pe mesh topologyrated to its full potential.Therefore, our product may have strong consumer appeal if implemented properly.Marketing Strategy DevelopmentConsumer purchase behaviors are influenced strongly by cultural, social, personal, and psychological characteristics (Kotler and Armstrong, 2011). Thus marketers need to research the internal and external marketing environments before designing the sign marketing strategy for a new product. Moreover, marketers need to recognize that they cannot attract all buyers in the marketplace, thus they must divide the market into little segments and offer different strategies to the separate market. After that, marketers need to evaluate and select some suitable segments to build their market targeting. The final two glacial stages concern about how to offer superior values for the target customers and contract a differentiation with competitors. gibe to the level of customer demand, there are four levels of new product the core product, the expected product, the augmented product and the potential product (Levitt, 1986). Based on the d ifferent demand level, an reserve product positioning strategy can make the difference between success and failure (Trott, 2005). Product positioning requires marketers to arrange a clear, typical and desirable positioning in the minds of target consumers (Kotler and Armstrong, 2011). Specifically, Wind (1982) offers six bases that think to how target customers make choices in position product fields product feature, benefits, use occasion, user category, against another product or by disassociation from all the other products.To determine the best concept for our Freshies deodorant wipes, we at first use PESTLE analysis, Porters Five Forces analysis and SWOT analysis to evaluate the marketing environment. The result shows that Freshies can be mount produced as an innovative product. It has high potential for the industry and suits for the image of building a conscious society in the UK. Based on the behavioral and demographic factors, we defined that our market segmentation as 18-34 age group and users of mass deodorant. Our target market is on-the-go young adults who live busy lifestyles. Our differentiation is portable than other roll-on deodorant, thus customers can use it when they do not urgency to take their handbag, such as participate in sports or go to a party after work. Our market position is to offer glow anytime and anywhere.Initial Business Analysis course of instruction 1 ProjectionsAccording to the theory of Kotler and Armstrong, business analysis involves the sales, costs and profit projections for a new product. It can help marketers estimate the expected costs and profits within all(prenominal) stage and analyse whether the new product has financial attractiveness and execute the objective of the company. Marketers need to make a marketing strategy disputation outlines the be after price, distribution, and marketing budget for the first twelvemonth (2011).Based on the theory of Kotler and Armstrong, we designed a one year projec tion for our Freshies deodorant. According to the data of Office for National Statistics (2012), the population of 18-34 age people in UK was approximately 14 million. We flummox the product price as 2.00 for 10- direct, and draw that the forecast market penetration rate would be 5%. by and by the purchase oftenness would be 12 quantify per annum. Therefore, the net sales would reach to 16.8 million in year 1, and the brand profitability would be about 0.87 million in year 1. For more details, see our sales forecast from in the appendix.Product DevelopmentWhen the new product finishes the business test, it moves into product development. Booz, totallyen and Hamilton (1982) identify the commonly accepted categories of NPDs new-to-the-world products new product lines additions to existing lines improvements and revisions to existing products and repositioning products. The purpose of product development is to develop the product concept into a physical product to insure that ne w concepts can be transformed into a workable market offering (Kotler and Armstrong, 2011). The product development process requires much greater integration of different divisions (Trott, 2005). For instance, the RD department provides ideas, the engineering department go forth then take the ideas and develops possible prototypes the manufacturing department will seek possible ways to produce a workable product capable of mass manufacture the marketing department will then be brought in to plan and conduct the douse.In leisurely of Unilever already had the product line of deodorants and wipes, we pay more attention to growing the product strategy for our marketing plan. At first we determined that our product must follow the unique selling proposition of on-the-go, convenient and wipes on freshness, and then we designed our packing strategy to boxed, individually wrapped and pack of 5, 10 and 25 to fit the proposition. Finally, we invited our paired team to simulate our actual customers to collect the preliminary feedbacks of our product.CommercialisationThe final step of NPD process is commercialisation the product into the market. Commercialization refers to the development of the product concept, its successful launch, and interaction with potential buyers (Jolly, 1997 Pellikka and Virtanen 2009). Successful commercialisation is associated with growth market share and improved executing in new markets (Cooper and Kleinschmidt, 2007). It requires marketer to accurately grasp the entry clock and scale (Trott, 2005). In addition, commercialising a new product contains a number of new activities, such as build price, place and promotion strategy (Aarikka-Stenroos and Sandberg, 2012)Our place strategy will start from selective large cities in the UK. We plan to make Freshies available to purchase in large retail stores such as Boots, Superdrug, Waitrose, Topshop and River Island in most major cities in the UK. The set price is 2 for 10-pack. The promotio n methods we plan to use include a mix of public relations such as consumer led crowd and celeb endorsements, advertising such as 30 second ads on video recording channels or outdoor and press- Cosmo/GQ, social media marketing such as on Facebook, Twitter and Instagram, and sales promotions such as discounts and coupons.Three Year Business PlanThe richness of a successful marketing objectives not only knowing their customers, but also ensure the effective executing of their marketing efforts (Hamm, 2007). The three year marketing strategy statement describes the planned long-run sales, profit goals and market shares.These are brief summarizing of our goals shape up net sales to 12 million by Year 3Build consumer penetration to 7% by Year 3Build frequency of purchase to 16x per year by Year 3Build market share to 5% by Year 3To achieve this, brand profitability need to be improved, thus although the costs of marketing research will be reduced after the first year, total marketing spend will be raised in the second and triad years. In order to development profits, we planned to maintain the product price but increase the average purchase frequency of customers from 12 times in year 1 to 16 times in the year 3. For more details, see our sales forecast from in the appendix.CritiquesThe wide linear fashion model of NPD is ingrained in the minds of many people. The model shows the formation and development of an idea prior to its taking any physical form. In most industries it is from this point onwards that costs will rise significantly (Trott, 2005). The subsequent stages involve adding to the concept as those involved with the development (manufacturing engineers, product designers and marketers) begin to make decisions regarding how best to manufacture the product, what materials to use, possible designs and the potential markets evaluations. The NPD process model can reduce the risk associated with new product introduction and to increase the possibili ty of commercial success through implementation of a step-wise result (Crawford, 1997). It comprehensively analysis the key activities involved in the process, from idea to commercialization of the product. Firstly, ideas and prototypes are tested to ensure that the new product will meet target market needs and wants. Secondly, there is a test launch during the test marketing stage. It not only saves time and resources of the full market launch, but also helps managers decide to stop or go before large investing. Finally, the commercialization stage involves careful planning to avoid the rampant influencing factors.However, NPD process has changed significantly over the past 30 years (Griffin, 1997). All those actually involved with the development of new products dismiss such simple linear models as not being a true mold of reality. For example, more recent research suggests that the process needs to be viewed as a simultaneous and concurrent process with cross-functional intera ction (Hart, 1993), and Olson et al. (1995) demonstrated that cross-functional teams helped slim down the development of times of truly innovative products. Another disadvantage is that the model just focuses on certain key activities, but overlook the activities such as perform with retailers, set up customer inspection and repair department. galore(postnominal) new brands fail not because the quality of their products, but the reason is the parties cannot negotiate well with each other (Davies, 1990) or poor customer service (Chablo, 2000).ReferenceAarikka-Stenroos, L., and Sandberg, B. (2012). From new-product development to commercialization through networks.journal of Business research,65(2), pp. 198-206.Booz, Allen and Hamilton (1982) New Product trouble for the 1980s, New York Booz, Allen and Hamilton.Brierley, S. (2002).The advertising handbook. London Routledge.Carbomell, P., Escudero, A.I.R. and Aleman, J.L.M. (2004), Technology newness and fix of go/no-go criteria on new product success, Marketing Letters, 15(1), pp. 81-97.Chablo, E. (2000). 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