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New Product Development Process of FMCG Product

The document outlines the new product development process for fast-moving consumer goods. It involves several stages: idea generation from various sources, idea screening to evaluate feasibility and profitability, concept development and testing through prototypes and customer feedback, business analysis of costs and potential sales, beta testing physical prototypes in target markets, technical implementation of engineering requirements, and commercialization through production and promotion launches. The overall goal is to bring new product concepts to market in a methodical way that considers customer and financial viability at key stages.

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6K views9 pages

New Product Development Process of FMCG Product

The document outlines the new product development process for fast-moving consumer goods. It involves several stages: idea generation from various sources, idea screening to evaluate feasibility and profitability, concept development and testing through prototypes and customer feedback, business analysis of costs and potential sales, beta testing physical prototypes in target markets, technical implementation of engineering requirements, and commercialization through production and promotion launches. The overall goal is to bring new product concepts to market in a methodical way that considers customer and financial viability at key stages.

Uploaded by

ChanduChandran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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NEW PRODUCT

DEVELOPMENT
PROCESS OF FMCG
PRODUCT
Presented by:-
RAJESH RADHAKRISHNAN
There are several general categories of new
products. Some are new to the market (ex. DVD
players into the home movie market),
some are new to the company (ex. Game
consoles for Sony),
some are completely novel and create totally new
markets (ex. the airline industry).
When viewed against a different criteria, some
new product concepts are merely minor
modifications of existing products while some are
completely innovative to the company.
These different characterizations
are displayed in the following
diagram.
There are several stages in the
new product development process

Idea Generation
Ideas for new products can be obtained from
customers (employing user innovation),
designers, the company's R&D department,
competitors, focus groups, employees,
salespeople, corporate spies, trade shows, or
through a policy of Open Innovation.
Formal idea generation techniques can be used,
such as attribute listing, forced relationships,
brainstorming, morphological analysis and
problem analysis


Idea Screening
The object is to eliminate unsound concepts
prior to devoting resources to them.
The screeners must ask at least three
questions:
Will the customer in the target market benefit
from the product?
Is it technically feasible to manufacture the
product?
Will the product be profitable when
manufactured and delivered to the customer
at the target price?

Concept Development and Testing
Develop the marketing and engineering details
Who is the target market and who is the decision
maker in the purchasing process?
What product features must the product incorporate?
What benefits will the product provide?
How will consumers react to the product?
How will the product be produced most cost
effectively?
Prove feasibility through virtual computer aided
rendering, and rapid prototyping
What will it cost to produce it?
test the concept by asking a sample of prospective
customers what they think of the idea


Business Analysis
Estimate likely selling price based upon competition
and customer feedback
Estimate sales volume based upon size of market
Estimate profitability and breakeven point

Beta Testing and Market Testing
Produce a physical prototype or mock-up
Test the product (and its packaging) in typical usage
situations
Conduct focus group customer interviews or introduce
at trade show
Make adjustments where necessary
Produce an initial run of the product and sell it in a test
market area to determine customer acceptance



Technical Implementation
New program initiation
Resource estimation
Requirement publication
Engineering operations planning
Department scheduling
Supplier collaboration
Logistics plan
Resource plan publication
Program review and monitoring
Contingencies - what-if planning

Commercialization (often considered post-NPD)
Launch the product
Produce and place advertisements and other
promotions
Fill the distribution pipeline with product
Critical path analysis is most useful at this stage

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