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New Product Development

Customer Focus and Innovation
by

Dayle Bayliss

on 8 February 2014

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Transcript of New Product Development

New Product Development
Introduction
Definitions of B2B and FMCG
What is New Product Development and Why
Steps to New Product Development
Define the steps and compare these for B2B and FMCG
Summary and Conclusion
Definitions
FMCG - Low priced items, used rapidly and limited number of consumptions (Francis, M)

B2B (Industrial) - Involves a value chain of items, combined to make the end product
Strategy to NPD
3 Options:
Buy in new product
Develop existing offerings
Develop new offerings
How might the product development stage differ for a FMCG and a B2B product?
Customer Focus and Innovation
NBS-AMB02 PT

Student Numbers:
100070252
100067933
100089571
100095847
100071305
Cost and Risk part of process
New Product Development
Steps to NPD
Idea Generation
Screening
Product Development
Business Plans &
Market Analysis
Commercialisation
Adapted from Bains et al, pp 210
Idea Generation
Screening
Business Plans and Market Analysis
Product Development and Selection
Test Marketing
Managing the NPD Process
FMCG
B2B
Commercialisation
Summary and Conclusions
Any Questions?
Adapted from Trott, P, pp 572
Analysis of
Consumers

Legal Protection,
Regulation Framework

How and when the product will be
developed
FMCG
B2B
Increased buying units
Consumers
Customers

A greater number to
make the decisions

Customers not always
consumers
Fewer purchasers

Based on collaboration
and relationships part of discussion

Supply chain influences

Mutual long term
interest
Time
Risk
Cost £
Degree of
cost/risk
Defined Brief

Synergy with existing products/lines and marketing strategy

Market Potential
Feasibility
Production
Processes
Technical and Commercial

FMCG
B2B
Engaging in Dialogue

Collaboration

Employee views

Key Customer
influences

Engagement with chain

Mutual advantage
Market surveys in the street

Focus Groups

Electronic surveys

Stands in supermarkets / shops

Market Reception

Customer suggestions
Products developed are in line with company strategy

Based on customer needs

FMCG
B2B
Higher volume

More Quantity
biased

Information on packaging
Needs may be more defined
Lower volume
Slower turnover
More Quality biased
Takes longer to
bring to the market
Collaborative PLM
Packaging not as important

Controlled
testing

Prototypes
produced

Expensive stage

FMCG
B2B
Feedback more reliable
Packaging and
branding pose
a risk to reputation

Lower innovation
products may skip
this stage

Get the product to the customer

Ensure the customer is aware of the product support

FMCG
Not so time critical
Simpler distribution logistics
Less marketing communication

B2B
Faster

Timing Critical

Fanfare!

Test Marketing
Summary
Core Process
Limited Life Cycle
Vital for Survival & Growth
Competition and Market Share
Profit / Value creation





Core Value versus Augmented Value
Life Cycle : Industrial (B2B) > FMCG
Changing needs and Demands FMCG > Industrial (B2B)


Commonalities
Differences
Collaborative

Need Focused

Core Value Based

Formal Idea Generation Techniques
e.g. Problem Analysis


Market Research

Focus Group

Consultants

Competition

Employees

Innovation Team (Skunkworks)

Suggestion Box

End User
Feedback

Research and
Development
Adapted from Kotler, P
Analysis of existing and proposed:
Market Development
Diversification
Market Penetration
Product Development
Full transcript