NPD Objectives

1
NPD Objectives

• Explain and apply Supply-Chain Management
  Practices as they relate to NPD answer the
  question, why pay attention to NPD?
• List 5 new product classifications
• Describe the components of the product life cycle
• Explain the 7 step NPD Process
• Use a market segmentation matrix
• Show how to use 6-8 NPD tools (watch for
  subscripts)
• What are some Best Management Practices in NPD
• Explain the role of Parallel Processing,
  Cross-Functional Teams, Buyer Involvement,
  Supplier Involvement Outsourcing in NPD
• Describe the role of time to market ( -s of
  speed)

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Why pay attention to new product introduction?

• The future basis of competition
• Role of the sales professional
• In the development process
• In the value communication and delivery process
• New products more broadly defined
• Service component, custom products, numerous
  attributes having value

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Why pay attention to new product introduction?

• When a company selects and develops a product,
  it is determining its
• ___________________________________,
  __________________________________________________
  ____________________.
• that will form the perimeter of its opportunity
  set ---Booz Allen Hamilton

4
New Food Product Introductions

• Peaked at over 16,000
• ECR impact
• Even with turnover, its a busy world of food
  product choices

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Trends in the North American Confectionery
Manufacturing Industry
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(No Transcript)
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Classifying New Products

• ____________________________ Innovative
  products. Create a new market. Monsantos blue
  cotton
• ____________________________ Allows the company
  to enter an established market for the first
  time. Gerber life insurance, private label
• Additions to Existing Product ____________________
  __. Vanilla Pepsi, Vanilla Diet Pepsi, Ocean
  Sprays grapefruit juice products
• __________________________________ Quality,
  feature, service enhancements toward greater
  value. Soft drink refrigerator packs
• ___________________ Existing products targeted
  to a new market. Gerber graduates, Hilton and
  professional businesswomen

8
List Classifying New Products

• _________________________________ Innovative
  products. Create a new market. Monsantos blue
  cotton
• _________________________________ Allows the
  company to enter an established market for the
  first time. Gerber life insurance, private label
  
• Additions to Existing Product ____________________
  _______________. Vanilla Pepsi, Vanilla Diet
  Pepsi, Ocean Sprays grapefruit juice products
• ______________________________________ Quality,
  feature, service enhancements toward greater
  value. Soft drink refrigerator packs
• ______________________________________ Existing
  products targeted to a new market. Gerber
  graduates, Hilton and professional businesswomen

• List new products
• ______________
• _______________
• ______________
• _______________
• ______________

9
Classifying New Products-a new try

• _________________________________ Innovative
  products. Create a new market. Monsantos blue
  cotton (text examples- Polaroid, 1st car, rayon,
  laser printer, in-line skates) Swiffer a sweeper
  system and disposable cloths with electrostatic
  action to capture dirt, dust and hair. tooth
  brush'ems
• ___________________________ Allows the company
  to enter an established market for the first
  time. Something new to the company. Gerber life
  insurance, private label (text examples- PGs
  1st shampoo, Hallmark gift items, ATTs
  Universal Card) McDonalds Chicken Selects,
  Yoplait joins the surge for drinkable yogurt
  5-13-04 Detroit Free Press,
• Additions to Existing Product ____________________
  ________. This is a new item in the line they
  already carry. Vanilla Pepsi, Vanilla Diet
  Pepsi, Ocean Sprays grapefruit juice products
  (text examples- Tide liquid detergent, Bud light,
  Apples MacIIsi)7-Elevens diet pepsi , crystal
  Light Strawberry Kiwi and other slurpee flavors,
  Glad Cutting Mat
• __________________________________________________
  _______________________________ Quality,
  feature, service enhancements toward greater
  value. Soft drink refrigerator packs, PGs
  Tide with a touch of Downey, C2 Cola has half
  the sugar, calories and carbs, no stick Aluminum
  Foil. cell phone with tazer
• ______________________________________ Existing
  products targeted to a new market. Gerber
  graduates, Hilton and professional businesswomen
  (text examples- Arm Hammer baking soda for
  drain deodorant, refrigerator deodorant)

10
The Confectionary Survey

• New-to-the-World or _____________ 7.0
• New Lines or ______________. 16.0
• Line Extensions _________________ 34.5
• Product Improvements or ____________ 21.0
• Repositioned or __________________ 16.0
• No response 5.5

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Product Life Cycle
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New Product Development Process
_______________
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TIMES UP!