New Product Development Process UNIVERSITY OF MUMBAI (SEMESTER II) MCOM I
SUBJECT MARKETING STRATEGIES & PLANS
A PROJECT ON: New Produ! "e#e$o%e'! Proe
ACA"EMIC YEAR: *+,-*+.
SUBMITE" BY: S/0/r S1dd2/'! S/'3/4 ROLL NO: ,*
PROJECT GUI"E: PROF5 "INES6 C6OTRANI
"ATE OF SUBMISSION:
MALINI KIS6OR SANG6VI COLLEGE OF COMMERCE AN" ECONOMICS JU6U SC6EME7 MUMBAI 8 9***9
By - Siddhant Sagar
Page 1
New Product Development Process M/$1'1 K12or S/'02#1 Co$$e0e o; Coere & Eo'o1
Nirmaladevi Arunkumar Ahuja Ahuja Marg, J.V. P. D., Juhu, Vile Vile – Parle (W), Mumbai - 44!
"ECLARATION BY T6E STU"ENT ", #iddhan$ #anja% #agar &$uden$ #agar &$uden$ ' M.'m " (#eme&$er (#eme&$er "") *'ll *'ll Number Number + hereb% delare delare $ha$ $he r'je$ 'r $he Paer MA*/"N0 MA*/"N0 #/*A/ #/*A/0"# 1 P2AN# P2AN# &ubmi$$ed &ubmi$$ed b% me 'r #eme&$e #eme&$err ", during $he aademi aademi %ear 3+-5, 3+-5, i& ba&ed 'n a$ual a$ual 6'rk arried 'u$ b% me under $he guidane and &uervi&i'n ' Pr'. Dine&h 7h'$rani Pr'je$ 8 A&&ignmen$ Name - Ne6 Pr'du$ Devel'men$ Pr'e&& " ur$her &$a$e $ha$ $hi& 6'rk i& 'riginal and n'$ &ubmi$$ed an%6here el&e 'r an% e9amina$i'n.
N/e /'d S10'/!ure o; !ude'!
By - Siddhant Sagar
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New Product Development Process EVALUATION CERTIFICATE /hi& i& $' er$i% $ha$ $he under&igned have a&&e&&ed and evalua$ed $he r'je$ 'n: Ne6 Pr'du$ Devel'men$ Pr'e&& &ubmi$$ed b% #iddhan$ #anja% #agar #$uden$ ' M.'m " (#eme&$er ""). /hi& r'je$ i& 'riginal $' $he be&$ ' 'ur kn'6ledge and ha& been ae$ed 'r "n$ernal and 9$ernal A&&e&&men$.
#urname ' $he
Name ' $he
;a$her<&
M'$her<&
*'ll N'.
#$uden$ #A0A*
#$uden$ #"DD=AN/
Name #ANJA>
Name #=;A2"
+
"n$ernal
9$ernal
A&&e&&men$
9aminer
D'umen$a$i'n ('u$ ' mark& 9 3) Pre&en$a$i'n and VivaViva- V'e ('u$ ' mark& 9 3) /'$al mark& 'u$ ' 4??????????????..@@@@@@@@@
N/e /'d S10'/!ure o; !2e I'!er'/$ E
N/e & S10'/!ure o; !2e E
ACKNO=LE"GEMENT
By - Siddhant Sagar
Page 3
Pr1'1%/$
New Product Development Process " 6'uld like $' $hank Malini i&h'r #anghvi 7'llege ' 7'mmere 1 'n'mi& and $he aul$% member& ' M.'m 'r giving me an ''r$uni$% $' reare a r'je$ 'n Ne6 Pr'du$ Devel'men$ Pr'e&&B. "$ ha& $rul% been an invaluable learning e9eriene.
7'mle$ing a $a&k i& never 'ne man<& e'r$. "$ i& '$en $he re&ul$ ' invaluable 'n$ribu$i'n& ' individual& in a dire$ 'r indire$ 6a% in &haing &ue&& and ahieving i$.
" 6'uld like $' $hank 'ur Prinial ' $he 'llege Dr. (Mr&.) ru&hna 0andhi and 7'-'rdina$'r Pr'. *aje&h Dhara6a$ 'r gran$ing ermi&&i'n 'r $hi& r'je$. " 6'uld like $' e9$end m% &inere gra$i$ude and areia$i'n $' Pr'. Dine&h 7h'$rani 6h' guided me in $he &$ud% ' $hi& r'je$. "$ ha& indeed been grea$ learning, learning , e9eriening and 6'rking 6'rk ing under hi& guidane guidan e during $he 'ur&e ' $he r'je$.
" am al&' $hankul $' Pr'. C..Nair ' NM 7'llege ' 7'mmere 'r hi& l'gi&$ial &u'r$ and 'r r'viding nee&&ar% guidane 'nerning r'je$& imlemen$a$i'n. " 6'uld like $' e9re&& m% &inere $hank& $'6ard& v'lun$eer re&earher& 6h' dev'$ed $heir $ime and kn'6ledge in $he imlemen$a$i'n ' $hi& r'je$.
By - Siddhant Sagar
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New Product Development Process Never$hele&&, " e9re&& e9re& & 'ur gra$i$ude $'6ard& m% amil% and 'lleague& 'r $heir kind ''era$i'n and en'uragemen$ 6hih heled me in $he 'mle$i'n ' $hi& r'je$.IN"E>
Sr No.
Details
Page No.
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"n$r'du$i'n
5
3.
Ne6 Pr'du$ Devel'men$: A Di&er&ed 1 "n$egra$ed Pr'e&&
!
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Pr'du$ devel'men$ and launh Pr'e&&
3
4.
#$age& in Ne6 Pr'du$ Devel'men$
4
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7a&e #$ud% – =indu&$an Enilever
3
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=E2<& Pr'du$ Devel'men$ Pr'e&&.
33
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34
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Pr'du$ Devel'men$
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7'nlu&i'n
4
.
Cibli'grah%
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By - Siddhant Sagar
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New Product Development Process INTRODUCTION
#ue&&ul ne6 r'du$ devel'men$ (NPD) i& a ri$ial 'rner&$'ne ' irm &ue&&. #igniian$ inen$ive& e9i&$ 'r irm& $' 'n$inu'u&l% in$r'due viable ne6 r'du$& $' $he marke$& $he% &erve. /he inanial a%' r'm &ue&&ul ne6 r'du$ in$r'du$i'n& an hel man% irm& 'ver'me $he &l'6ing gr'6$h and r'i r'i$ab $abili ili$% $% ' e9i&$ e9i&$ing ing r'd r'du$ u$&& and &ervi &ervie& e& $ha$ $ha$ are ar'a ar'ahi hing ng $he ma$uri$% &$age& ' $heir lie %le&. A !! &$ud% &'n&'red b% $he Marke$ing #iene "n&$i$u$e 'und $ha$ 3+H ' &ue&&ul irm&< urren$ urren$ &ale& 6ere derived, 'n average, r'm ne6 r'du$& in$r'dued in $he la&$ $hree %ear&. Ne6 r'du$ devel'men$ an al&' be a '$en$ial &'ure ' &igniian$ e'n'mie& ' &ale 'r $he irm. Ne6 r'du$& ma% be able $' u&e man% ' $he &ame ra6 ma$erial inu$& a& $he irm<& e9i&$ing r'du$&, and ma% be able $' be &'ld b% $he irm<& e9i&$ing &ale& 're – re&ul$ing in &ub&$an$iall% l'6er uni$ '&$& (and in $urn higher margin&) 'r $he irm. ;ur$herm're, ne6 r'du$ devel'men$ an be an im'r$an$ &'ure ' leverage 'r $he irm $' u&e in i$& rela$i'n&hi& 6i$h i$& di&$ribu$i'n hannel ar$ner&. ;irm& $ha$ have mul$ile &ue&&ul r'du$& in $heir 'r$'li'& 'r$'li'& an 'mmand grea$er a$$en$i'n and ri'ri$% $rea$men$, &uh a& reerred &hel &ae and and a%m a%men en$$ $erm $erm&, &, r'm r'm 6h'l 6h'le& e&al aler er&& and and re$a re$ail iler er&. &. /h /hi& i& i& a ar$ ar$i iul ular arl% l% im'r$an$ 'n&idera$i'n given $he a$ $ha$ large re$ailer&, &uh a& Wal-Mar$ and /arge$, have ev'lved in$' '&i$i'n& ' &igniian$ hannel '6er and inluene. ;ur$herm're, $he image and reu$a$i'n ' $he irm and i$& brand& i& heavil% inluened b% $he number and aliber ' &ue&&ul r'du$& in i$& 'r$'li'. Nike ha& enhaned i$& 'verall brand reu$a$i'n, 6ell be%'nd $he realm ' a$hle$i ''$6 ''$6ear ear,, a& a re&ul$ re&ul$ ' i$& &ue &ue&& &&ul ul in$r' in$r'du du$i $i'n 'n ' g'l g'l eIuim eIuimen$ en$ and &u &u li lie& e&,, &6 &6im im6e 6ear ar,, &' &'e err eIui eIuim men en$$ and and aa aare rel, l, a& 6ell 6ell a& nu nume mer' r'u& u& &ue&&ul r'du$& $ha$ aeal $' $enni&, ba&ke$ball, and ba&eball en$hu&ia&$&.
By - Siddhant Sagar
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New Product Development Process ;r'm ;r'm a br'a br'ade derr mark marke$ e$in ing g er& er&e e$ $iv ive, e, irm irm&& $ha$ $ha$ deve devel' l' $he $he nee& nee&&a &ar% r% 'rgania$i'nal &$ru$ure& and r'e&&e& $' 'n$inu'u&l% and eiien$l% genera$e ne6 r'du$& are m're likel% $' be in $une 6i$h $heir u&$'mer&< need& and 6an$&. Dire$ 'mmunia$i'n 6i$h u&$'mer&, an e&&en$ial 'unda$i'n ' ne6 r'du$ devel'men$, devel'men$, all'6& irm& $' learn $heir need& and $ail'r r'du$& and &ervi &ervie& e& $' $heir $heir un uniI iIue ue reIui reIuirem remen$ en$&. &. /h /hi& i& dire$ dire$ u&$'m u&$'mer er 'mmu 'mmuni nia$i a$i'n 'n ermi$& irm& $' gain a 6eal$h ' u&eul u&$'mer in&igh$& $ha$ &h'uld inluene ever% area ' $he marke$ing mi9 – inluding riing, di&$ribu$i'n hannel, and r'm'$i'n r'm'$i'n mi9 dei&i'n&. dei&i'n&. En'r En'r$un $una$e a$el% l%,, ne6 r'd r'du$ u$ devel' devel'm men$ en$ i& an e9$rem e9$remel el% % halle halleng nging ing and 'm 'mle le9 9 r' r'e& e&&. &. "nn' "nn'va va$i $i'n 'n i& inhe inhere ren$ n$l% l% ri&k ri&k% %, and and irm irm&& ma% ma% inve inve&$ &$ 'n&iderable $ime and m'ne% in ne6 r'du$ idea& 6i$h n' guaran$ee $ha$ $he% 6ill ever be'me 'mmeriall% viable. Man% ne6 r'du$& ail, and $he ne6 r'du$ devel'men$ devel'men$ land&ae i& li$$ered 6i$h e9en&ive e9amle&. Al$h'ugh Al$h'ugh =enr% ;'rd led $he 6a% in devel'ing $he au$'m'bile marke$, $he ;'rd M'$'r 7'man% in $he !+& in$r'dued $he d&el and l'&$ m're $han K milli'n. DuP'n$<& 7'ram &ub&$i$u$e 'r lea$her re&ul$ed in hundred& ' milli'n& ' d'llar& in l'&&e&. 0eneral Mill& l'&$ milli'n& ' d'llar& 'n $he in$r'du$i'n ' a line ' &nak& alled Cugle&, Dai&ie&, and Cu$$erlie&. 0ille$$e l'&$ milli'n& 'n a aial lean&ing ream alled =a% ;ae. Ler'9 inven$ed $he er&'nal 'mu$er in !F ! F ($h ($hree ree %ear %ear&& be' be're re J' J'b& b& and and W'nia niak k g' g'$$ &$ar &$ar$e $ed) d),, bu bu$$ ail ailed ed $' 'mmerialie $he Al$'B in &i$e ' i$ being a brillian$ $ehnial &ue&&. 99'n l'&$ hundred& ' milli'n& 'n i$& ill-a$ed 'ra%& in$' 'ie in'rma$i'n &%&$em& and high-$eh ele$ri m'$'r&. Ne6 r'du$ ailure ra$e& are &ub&$an$ial &ub&$an$ial $he '&$ ' ailure an be en'rm'u&. en'rm'u&. Vari'u& &$udie& r'u$inel% re'r$ $ha$ – +H ' r'du$& in$r'dued $' $he marke$ end u ailing, even 6hen $he r'du$ i& &iml% a line e9$en&i'n ' an e9i&$ing brand, 'r a ne6 brand in$r'dued in a a$eg'r% 6here $he irm alread% By - Siddhant Sagar
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New Product Development Process ha& a &ue&&ul r'du$. /he ailure ra$e 'r ne6 r'du$& in$r'dued b% irm& in$' al$'ge$her ne6 r'du$ a$eg'rie& ar'ahe& +H. Wi$h'u$ a g''d ne6 r'du$ devel'men$ (NPD) r'e&&, irm& an l'&e $he &igniian$ &igniian$ inve&$men$& inve&$men$& in re&earh and devel'men$, engineering, marke$ing re&earh, and $e&$ing $ha$ are made 'n r'du$&8idea& $ha$ never re$urn revenue. "n $hi& r'je$ 6e di&u&& a di&er&ed and in$egra$ed ne6 r'du$ devel'men$ r'e&& $ha$ ha& r'ven $' enhane &ue&& and mi$iga$e ailure in r'du$ devel'men$. /he r'je$ 6'uld de&ribe eah &$age ' $hi& r'e&& and r'vide e9amle& ' h'6 $' imlemen$ eah &$age. /hr'ugh'u$ $hi& r'e&& 6e 'u& 'n $he u&$'mer and h'6 $' re&'nd $' u&$'mer need&.
By - Siddhant Sagar
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New Product Development Process NEW PRODUCT PRODUCT DEVELOPMENT: DEVELOPMENT: A DISPERSED AND INTEGRATED INTEGRATED PROCESS PROCESS
Wi$h'u$ a g''d NPD r'e&& irm& ann'$ eiien$l% manage $he inheren$ ri&k ' ne6 r'du$ devel'men$. ='6ever, even a g''d NPD r'e&& i& inheren$l% 'mle9 $' manage. A &igniian$ mea&ure ' 'mle9i$% re&ul$& r'm $he a$ $ha$ 'mmunia$i'n& and in'rma$i'n managemen$ $ehn'l'gie& n'6 all'6, and even en'urage, $he r'e&& $' be righ$ull% righ$ull% di&er&ed – b'$h 'rgania$i'nall% 'rgania$i'nall% a& 6ell a& ge'grahiall%. /he benei$& ' managing NPD a& a di&er&ed r'e&& are man%. rgania$i'nall%, $he NPD r'e&& 'era$e& be&$ 6hen i$ i& able $' ai$alie 'n ke% inu$& r'm mul$ile un$i'nal area& 6i$hin $he irm, inluding marke$ing, engineering, r'du$i'n, inane, e$. "n general, n' &ingle 'rgania$i'nal uni$ '$imall% rere&en$& a$ $he &ame $ime $he v'ie ' $he u&$'mer, a& 6ell a& all ' $he $he $eh $ehni nia al, l, ' 'er era$ a$i' i'na nal, l, and and ina inan nia iall 'm 'me$ e$en ene e&& ' $he $he irm irm.. /he in$era$i'n& be$6een mul$ile 'rgania$i'nal uni$& are in&$rumen$al in inluening $he eia% ' $he NPD r'e&& and, in $urn, $he likelih''d ' in$r'duing 'mmeriall% viable r'du$&. /he r'e&& learl% benei$& r'm inu$& ga$hered r'm &'ure& 'u$&ide ' $he 'rgania$i'n – r'm ke% u&$'mer&, r'm im'r$an$ 'me$i$'r&, and r'm &$ra$egi ar$ner& &uh a& $he irm<& rinial &ulier&. "$ i& generall% ae$ed $ha$ limi$ing $he ne6 r'du$ devel'men$ r'e&& $' $he in&igh$& ' 'nl% a e6 e'le in 'ne er$ain un$i'nal area in&ide $he irm 6ill generall% re&$ri$ i$& l'ng $erm ee$ivene&&, and have a nega$ive inluene 'n $he irm<& r'du$ 'r$'li'. /he NPD r'e&& i& al&' be'ming inrea&ingl% ge'grahiall% di&er&ed. ven 6i$hin a given 'rgania$i'n, i$ i& en$irel% '&&ible $ha$ eml'%ee& rere&en$ing $he im'r$an$ un$i'nal area& ' $he irm ma% be &i$ua$ed in dieren$ l'a$i'n& ar'und $he 'un$r% and ar'&& $he 6'rld. e% marke$ing er&'nnel ma% be l'a$ed in 7ali'rnia, $he inane dear$men$ ma% be headIuar$ered in Ne6 >'rk, 6hile $he relevan$ engineering and r'du$i'n er&'nnel 'r a ne6 r'du$ By - Siddhant Sagar
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New Product Development Process r'je$ ma% be 'und in &everal l'a$i'n& ar'&& 6e&$ern ur'e. A& 6e m've in$' $he 3 &$ en$ur%, ne6 hallenge& and ''r$uni$ie& are ari&ing, driven b% gl'bal marke$&, gl'bal 'me$i$i'n, and $he gl'bal di&er&i'n ' engineering $alen$. /he urren$ and u$ure vi&i'n ' r'du$ devel'men$ i& $ha$ ' a highl% di&er di&er&ed &ed r'e r'e&& && $ha$ $ha$ ai$a ai$ali lie& e& 'n $he $he &kill &kill&& and in&igh in&igh$& $& ' e'le e'le and 'rgania$i'n& &read $hr'ugh'u$ $he en$ire 6'rld. ='6 ='6ever ever,, $he $he bene eneii$& ' di&er& er&i'n 'm 'me a$ a '& '&$. /he grea$e ea$err $he 'rgania$i'nal 'rgania$i'nal and ge'grahi ge'grahi di&er&i'n, $he m're 'mle9 and diiul$ diiul$ i$ ma% be $' manage $he r'e&&. A& A& a re&ul$, i$ i& ri$ial $ha$ ne6 r'du$ devel'men$ mu&$ be managed a& an in$egra$ed r'e&& $ha$ akn'6ledge& $rade'& be$6een ke% mea&ure& ' ne6 r'du$ devel'men$ &ue&& &uh a& u&$'mer &a$i&a$i'n, $ime-$'-marke$, and '&$ eiien%, a& dei$ed in igure bel'6.
Tradeoffs Tradeoffs in New Product Development
By - Siddhant Sagar
Page 1$
New Product Development Process All el&e eIual, a r'du$ 6ill be m're r'i$able i i$ deliver& u&$'mer benei$& be$$er, i& a&$er $' marke$, '&$& le&& $' r'due, and '&$& le&& $' devel'. ='6ever, 6hile delivering u&$'mer benei$& i& $he rinial g'al, i$ an<$ be a'mli&hed a$ $he e9en&e ' ruden$ '&$ managemen$. While $ime $' marke$ ma% be a ri$ial 'nern in in$en&el% 'me$i$ive marke$&, i$ an<$ be ahieved a$ $he e9en&e ' delivering $he ea$ure& and benei$& $ha$ $he irm<& $arge$ marke$ value& value&.. ='6 $he 'rga 'rgani nia$i a$i'n 'n manage manage&& $he&e $he&e $rade' $rade' &, &, and ''rd ''rdina ina$e& $e& and in$egra$e& $he man% dieren$ inu$& $' i$& di&er&ed ne6 r'du$ devel'men$ r'e&&, i& b'$h diiul$ diiul$ and ruial $' i$& &ue&&. Marke$ing, a& $he rimar% (%e$, n'$ e9lu&ive) adv'a$e ' $he u&$'mer $hr'ugh'u$ $he 'rgania$i'n, mu&$ akn'6ledge i$& re&'n&ibili$% $' 'ver&ee $he ne6 r'du$ devel'men$ r'e&& in a 6a% $ha$ $ha$ ai$a ai$ali lie& e& 'n $he $he benei benei$& $& ' 'rga 'rgani nia$i a$i'n 'nal al and ge'gr ge'grah ahi i di&er di&er&i &i'n 'n,, 6hile 6hile a$ $he &ame &ame $ime $ime managi managing ng $he r'e& r'e&&& in an in$egr in$egra$e a$ed, d, a'un$able, '&$-ee$ive manner.
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New Product Development Process Product development nd lunc! Proce""
/' enable 'n&$an$ gr'6$h 'manie& &h'uld ma&$er $he r'e&& ' a r'du$ launh $hr'ugh in$r'duing ne6 'me$i$ive r'du$& in$' $he marke$. Pr'du$ launhe& hel inrea&ing &ale& revenue and e9anding $he u&$'mer ba&e. C% in$r'duing ne6 r'du$& a 'man% an al&' $arge$ ne6 gr'u& ' u&$'mer&. /he launh ' ne6 r'du$& an al&' inluene $he 'man% e9an&i'n and ne6 in$ern in$ernal al inve&$ inve&$men men$& $&.. 7'n$in 7'n$inu' u'u& u& re&ear re&earh h and lann lanning ing are nee&& nee&&ar% ar% i a 'man% 6an$& $' ahieve a &ue&&ul r'du$ launh. During $hi& r'e&& all $he eml'%ee& ' $he 'man% are inv'lved, r'm $he *1D $' $he #ale& and Marke$ing $eam /' be &ue&&ul and a$$ra$ $he u&$'mer a$$en$i'n, $he ne6 r'du$ mu&$ ulil $heir need& and main$ain $he brand r'mi&e. "n $'da%<& marke$ Iuali$% ' $he r'du$ i& n'$ $he 'nl% a&e$ 6hih u&$'mer& are l''king 'r. /he rie, un$i'n and &$a$u& ' $he r'du$ are al&' ver% im'r$an$. An adeIua$e re&earh and &$ra$egi lanning are nee&&ar% be're re&en$ing $he ne6 r'du$& $' $he u&$'m u&$'mer er.. "n a r'du r'du$ $ launh launh &$ra$ &$ra$eg eg% % deine deine&& &evera &everall im' im'r$a r$an$ n$ &$age &$age&& ' r'du$ launh launh r'e&&. #uh #uh im'r$an$ im'r$an$ &$age& are devel'men$, devel'men$, in$ernal in$ernal $e&$ing, e9$ernal $e&$ing, 'bje$ive and g'al &e$$ing, '&i$i'ning, e9i$emen$ building and even$ $iming. /he r'du$ devel'men$ 1 launh r'e&& i& dieren$ r'm 'ne 'man% $' an'$h an'$her er.. ;'r ;'r in&$a in&$ane ne in bu bu&i &ine& ne&&& $' bu bu&in &ine&& e&& (C3C) (C3C) $he $he dei& dei&i'n i'n r'e& r'e&&& i& dieren$ r'm bu&ine&& $' 'n&umer (C37). /he marke$ &ie in C3C i& generall% &maller 'maring $' C37. "n C3C $he &ale& are ba&ed in value and n'$ Iuan$i$% a& 'mm'nl% haen& in C37. /he ma&& marke$ing in C37 an genera$e man% r'&e$&, 6hih 6ill n'$ nee&&aril% $urn in$' &ale& h'6ever in C3C ma&& marke$ing i& n'$ ee$ive. /he #ale& r'e&& and urha&ing r'e&& i& al&'
By - Siddhant Sagar
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New Product Development Process dieren$ in $he&e $6' marke$&. "n C3C $he dei&i'n-making an g' $hr'ugh man% ga$ekeeer&, 6hih i& unlikel% $' haen in C37.
By - Siddhant Sagar
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New Product Development Process St#e" $n Ne% Product Development
By - Siddhant Sagar
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New Product Development Process Step 1: Generating
E$il E$ili iin ing g ba&i ba&i in$e in$ern rnal al and and e9$e e9$ern rnal al #W/ #W/ anal anal%& %&e& e&,, a& 6ell 6ell a& urr urren en$$ mark marke$ e$in ing g $ren $rend& d&,, 'n 'nee an an di&$ di&$an ane e $hem $hem&e &elv lve& e& r'm r'm $he $he 'm 'me$ e$i$ i$i' i'n n b% genera$ing ide'l'gie& 6hih $ake a'rdabili$%, *" and 6ide&read di&$ribu$i'n '&$& in$' a'un$. 2ean, mean and &alable are $he ke% 'in$& $' kee in mind. During $he NPD r'e&&, kee $he &%&$em nimble nimble and u&e le9ible di&re$i'n di&re$i'n 'ver 6hih a$ivi$ie& a$ivi$ie& are e9eu$ed. >'u ma% 6an$ $' devel' mul$ile ver&i'n& ' %'ur r'ad ma &aled $' &ui$ dieren$ $%e& and ri&k level& ' r'je$&. "dea genera$i'n, a$ individual 'r $eam level, emerge& a& an e&&en$ial 'm'nen$ ' rea$ivi$% and 'n&eIuen$l% ' $he inn'va$i'n r'e&&. /he m'&$ inn'va$ive irm& u&uall% e9l'i$ vari'u& &'ure& ' idea& r'm ne6 r'du$& a& 6ell a& vari'u& mean& $' r'e&& $h'&e idea&. /he% al&' need $' &$imula$e eml'%ee&< imagina$i'n $' eed $he ieline $ha$ n'uri&he& $he de&ign and devel'men$ ' ne6 r'du$&. 7rea$ive aabili$ie& ' 'rgania$i'n are e&&en$ial $' $heir abili$% $' inn'va$e and &urvive in $'da%<& 'me$i$ive envir'nmen$.
Step 2: Screening the Idea
/hi& i& $he ir&$ evalua$i'n ' ne6 r'du$ idea. "$ inv'lve& &reening ne6 r'du$ idea& in 'rder 'rder $' &'$ g''d idea& idea& and dr' ''r ''r 'ne& a& &''n a& '&&ible. '&&ible. "n $hi& &$age, 'nl% r'du$ idea& $ha$ 6ill $urn in$' r'i$able r'du$& are ad'$ed. Wihi$a, '&&e&&ing m're avia$i'n indu&$r% $han m'&$ '$her &$a$e&, i& &eeing man% ne6 inn'va$i'n& &$' 6i$h #$e $6' &reening. D' %'u g'8n' g'O #e$ &eii ri$eria 'r idea& $ha$ &h'uld be 'n$inued 'r dr'ed. #$ik $' $he
By - Siddhant Sagar
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New Product Development Process agreed u'n ri$eria &' ''r r'je$& an be &en$ bak $' $he idea-h'er earl% 'n. Ceau Ceau&e &e r'd r'du u$$ deve devel' l'm men en$$ '&$ '&$&& are are bein being g u$ u$ in area area&& like like Wihi$ hi$a, a, re&reening r'du$ idea&, mean& $aking %'ur $' $hree 'me$i$'r&Q ne6 inn'va$i'n& in$' a'un$, h'6 muh marke$ &hare $he%Qre h'ming u, 6ha$ benei$& end 'n&umer& 'uld e9e$ e$. An in$ere&$ing in$ere&$ing indu&$r% indu&$r% a$: Avia$i'n via$i'n indu&$riali&$& 6ill '$en 'mare gr'6$h 6i$h me$al& marke$& $here're, 6hen C'eing i& idle, never a&&ume $ha$ all airlane& are gr'unded, er &e.
Step : Testing Testing the !oncept
7'ne$ $e&$ing i& d'ne a$er idea &reening. And i$ i& im'r$an$ $' n'$e, i$ i& dieren$ r'm $e&$ marke$ing. "n 'ne$ $e&$ing, ne6 r'du$ 'ne$& i& been $e&$ed 6i$h a gr'u ' $arge$ 'n&umer& $' ind 'u$ i $he 'ne$& have &$r'ng 'n&umer aeal. A&ide r'm a$en$ re&earh, de&ign due diligene, and '$her legali$ie& inv'lved 6i$h ne6 r'du$ devel'men$, kn'6ing 6here $he marke$ing me&&age& 6ill 6'rk be&$ i& '$en $he bigge&$ ar$ ' $e&$ing $he 'ne$. D'e& $he 'n&umer under&$and, need 'r 6an$ $he r'du$ 'r &ervieO
Step ": #usiness $nal%tics
During $he Ne6 Pr'du$ Devel'men$ r'e&&, build a &%&$em ' me$ri& $' m'ni$'r r'gre&&. "nlude inu$ me$ri&, &uh a& average $ime in eah &$age, a& 6ell a& 'u$u$ me$ri& $ha$ mea&ure $he value ' launhed r'du$&, eren$age ' ne6 r'du$ &ale& and '$her igure& $ha$ r'vide valuable eedbak. "$ i& im'r$an$ 'r an 'rgania$i'n $' be in agreemen$ 'r $he&e ri$eria and me$ri&. By - Siddhant Sagar
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New Product Development Process ven i an idea d'e&nQ$ $urn in$' r'du$, kee i$ in $he h'er beau&e i$ an r've $' be a valuable a&&e$ 'r u$ure r'du$& and a ba&i& 'r learning and gr'6$h. A dei&i'n i& made $' a&er$ain $he $ehnial ea&ibili$% ' $he r'du$, $he r'du$& marke$ '$en$ial and ul$ima$el%, ul$ima$el%, $he r'du$& inanial 'n$ribu$i'n 'n$ribu$i'n $' $he 'man% Step &: #eta'(ar)eta*ilit% Tests
Arranging riva$e $e&$& gr'u&, launhing be$a ver&i'n&, and $hen 'rming $e&$ anel& a$er $he r'du$ 'r r'du$& have been $e&$ed 6ill r'vide %'u 6i$h valuable in'rma$i'n all'6ing la&$ minu$e imr'vemen$& and $6eak&. N'$ $' men$i'n heling $' genera$e a &mall am'un$ ' bu. W'rdre&& i& be'ming &%n'n%m'u& 6i$h be$a $e&$ing, and i$Q& ee$ive. /h'u&and& ' r'grammer& 'n$ribu$e 'de, milli'n& $e&$ i$, and inall% even m're d'6nl'ad $he 'mle$ed end-r'du$.
Step +: Technicalities Technicalities and Product Development
Pr'vided $he $ehnial a&e$& an be ere$ed 6i$h'u$ al$era$i'n& $' '&$-be$a r'du$&, heading $'6ard& $'6ard& a &m''$h &m''$h #$e &even i& imminen$. imminen$. /he marke$ing dear$men$ 6ill make lan& $' di&$ribu$e $he r'du$. /he inane dear$men$ 6ill r'vide $he inane 'r in$r'duing $he ne6 r'du$. A& an e9amle, in manua$uring, $he r'e&& be're &ending $ehnial &e& $' mahiner% inv'lve& rin$ing M#D# &hee$&, a reIuiremen$ 'r re$aining an "# ! ! er$i er$iia ia$i' $i'n n ($he ($he 'rga 'rgani nia$i a$i'n 'nal al &$ru &$ru$ur $ure, e, r'ed r'edure ure&, &, r'e r'e&& &&e& e& and re&'ure& needed $' imlemen$ Iuali$% managemen$).
By - Siddhant Sagar
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New Product Development Process "n in$erne$ in$erne$ jarg'n jarg'n,, h'n h'ning ing $he $ehnial $ehniali$ie& i$ie& a$er be$a $e&$ing inv'lve& inv'lve& inal inal da$aba&e reara$i'n&, e&$ima$i'n ' &erver re&'ure&, and lanning au$'ma$ed l'gi&$i&. Ce &ure $' have %'ur $ehniali$ie& in line 6hen m'ving 'r6ard.
Step ,: !ommerciali-e !ommerciali-e
A$ $hi& &$age, %'ur ne6 r'du$ devel'men$& have g'ne main&$ream, 'n&umer& are u urh rha&i a&ing ng %' %'ur ur g'' g''d d 'r &ervi &ervie, e, and $ehn $ehnia iall &u &u'r$ 'r$ i& 'n&i& 'n&i&$en $en$l $l% % m'ni$'ring r'gre&&. eeing %'ur di&$ribu$i'n ieline& l'aded 6i$h r'du$& i& an in$egral ar$ ' $hi& r'e&& $'', a& 'ne reer& n'$ $' give h%&ial ('r ere$ual) &hel &ae $' 'me$i$i'n. 'me$i$i'n. *ere&hing adver$i&emen$& during $hi& &$age 6ill kee %'ur r'du$Q& name irml% &ulan$ed in$' $he mind& ' $h'&e in $he 'n$emla$i'n &$age& ' urha&e.
Step : Post /aunch 0eview and Perfect Pricing
*evie6 $he NPD r'e&& eiien% and l''k 'r 'n$inue& imr'vemen$&. M'&$ ne6 r'du$& are in$r'dued 6i$h in$r'du$'r% riing, in 6hih inal rie& are nailed d'6n a$er 'n&umer& have g'$$en in. "n $hi& inal &$age, %'uQll gauge 'verall value relevan$ $' 70# ('&$ ' g''d& &'ld), making &ure in$ernal '&$& arenQ$ arenQ$ 'v 'ver& er&had had'6 '6ing ing ne6 r'du r'du$ $ r' r'i$& i$&.. >'u 'n$in 'n$inu' u'u& u&l% l% di diere eren$i n$ia$e a$e 'n&umer need& a& %'ur r'du$& age, 'rea&$ r'i$& and imr've deliver% r'e&& 6he$her 6he$her h%&ial, h%&ial, 'r digi$al, digi$al, r'du$& r'du$& are being being ere$ua$ed. ere$ua$ed.
By - Siddhant Sagar
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New Product Development Process
New Product Development unnel
M'&$ marke$er& n'6 vie6 ne6 r'du$ devel'men$ devel'men$ a& an in$egra$ed, end-$'-end end-$'-end r'e&& $ha$ inv'lve& mul$ile (i$era$ive) &$age& a& &h'6n in $he igure. /hi& r'e&& i& rere&en$ed b% a unnel $' rere&en$ $he n'$i'n $ha$ man% dieren$ dieren$ idea& are 6inn'6ed and devel'ed in$' a e6 high-'$en$ial r'du$& $ha$ are ul$ima$el% ul$ima$el% launhed launhed.. /he ke% managemen managemen$$ i&&ue& i&&ue& are () $ha$ i$ i& muh le&& e9en&ive $' &reen and elimina$e r'du$& in $he earl% &$age& $han in $he la$er &$age&, and (3) $ha$ eah &$age an imr've $he r'du$ and i$& '&i$i'ning &' $ha$ $he likelih''d ' even$ual &ue&& inrea&e&. #uh a &$aged r'e&&, &ummaried b% a &$age-ga$e r'e&& i& likel% $' redue 'verall ne6 r'du$ devel'men$ devel'men$ '&$& &ignii &igniian$l an$l%. %. A &$age-ga &$age-ga$e $e r'e&& r'e&& aili$a aili$a$e& $e& manageri managerial al judgmen judgmen$$ and di&iline $hr'ugh $he u&e ' a &erie& ' ga$e&B in 6hih member& ' $he NPD $eam are a&ked $' ju&$i% $he dei&i'n $' m've $' $he ne9$ &$age – 6here la$er &$age& drama$iall% inrea&e $he und& and e'r$ nee&&ar% 'r ge$$ing a r'du$ $' marke$ &ue&&ull%.
By - Siddhant Sagar
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New Product Development Process C"e Stud& ' ($ndu"tn Un$lever L$m$ted =indu&$an Enilever 2imi$ed (=E2) i& "ndiaQ& large&$ ;a&$ M'ving 7'n&umer 0''d& 7'man% 6i$h a heri$age ' 'ver G %ear& in "ndia and $'uhe& $he live& ' $6' 'u$ ' $hree "ndian&.
=E2 6'rk& $' rea$e a be$$er u$ure ever% da% and hel& e'le eel g''d, l''k g''d and ge$ m're 'u$ ' lie 6i$h brand& and &ervie& $ha$ are g''d 'r $hem and g''d 'r '$her&. Wi$h 'ver + brand& &anning 3 di&$in$ a$eg'rie& &uh a& &'a&, de$ergen$&, &ham''&, &kin are, $''$ha&$e&, de'd'ran$&, '&me$i&, $ea, 'ee, akaged ''d&, ie ream, and 6a$er uriier&, $he 7'man% i& a ar$ ' $he ever%da% lie ' milli'n& ' 'n&umer& ar'&& "ndia. "$& 'r$'li' inlude& leading h'u&eh'ld brand& &uh &uh a& 2u9, 2iebu'% 2iebu'%,, #ur #ur 9el, *in, *in, Wheel, Wheel, ;air 1 2'vel%, 2'vel%, P'nd<&, P'nd<&, Va&eline, 2akmR, D've, 7lini Plu&, #un&ilk, Pe&'den$, 7l'&eu, A9e, Cr''ke C'nd, Cru, n'rr, i&&an, 6ali$% Wall<& and Purei$. /he 7'man% ha& 'ver 5, eml'%ee& and ha& an annual $urn'ver ' "N* ,F r're& (inanial %ear 34 – +). =E2 i& a &ub&idiar% ' Enilever, 'ne ' By - Siddhant Sagar
Page 2$
New Product Development Process $he 6'rld<& leading &ulier& ' a&$ m'ving 'n&umer g''d& 6i$h &$r'ng l'al r''$& in m're $han 'un$rie& ar'&& $he gl'be 6i$h annual &ale& ' S4G.4 billi'n in 34. Enilever Enilever ha& 5F.3+H 5F.3+H &hareh'lding &hareh'lding in =E2.
By - Siddhant Sagar
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New Product Development Process (UL)" (UL)" Product Development Development Proce""*
We are g'ing $' $alk ab'u$ $he Pr'du$ Devel'men$ Pr'e&& ' 'ne ' $he r'du$& in $he umbrella umbrella ' =E2 kn'6n a& Pure"$. Pure"$.
Genesis of the Idea
A$ $he $urn ' $he en$ur%, a& ar$ ' a maj'r ne6 ven$ure& $hru&$, =E2 under$''k a hal-a-d'en ne6 ''r$uni$ie& 'u$&ide i$& $radi$i'nal r'du$& and marke$&. ;'r e9amle, in 3, =E2 began Pr'je$ #hak$i, a mir'redi$-ba&ed en$rereneurial ne$6'rk 'r underrivileged rural 6'men 6hih enabled =E2 $' e9$end i$& rural marke$ing reah be%'nd i$& $radi$i'nal re$ail di&$ribu$i'n ne$6'rk 6hile al&' em'6ering rural 6'men 6i$h a &'ure ' in'me. /h'ugh $he r'je$ had n'$ %e$ &aled &aled u &igniian$l% &igniian$l%,, $he $he &$ra$eg% 6a& ' &igniiane &igniiane given $ha$ T"ndia lived in i$& village&.< Alm'&$ F3H ' "ndia<& 'ne billi'n lu& 'ula$i'n 'ula$i'n 6a& rural and hal ' ' $hem had a er-ai$a er-ai$a m'n$hl% in'me ' By - Siddhant Sagar
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New Product Development Process K4.3 An'$her ' =E2<& ven$ure& 6a& $' rea$e a 6a$er uriia$i'n and &$'rage &%&$em mean$ 'r 'n&umer u&e a$ $he 'in$ ' 6a$er u&age. #everal '$i'n& 6ere anal%ed be're $he% 'nluded:'nluded:C'iling 6a$er $' make i$ &ae r'm germ& 6a& 'n&idered b% 'n&umer& $' be umber&'me, $ime 'n&uming, and e9en&iveUand 6ha$<& m're, i$ al$ered and &'il$ $he $a&$e ' 6a$er. 9i&$ing 6a$er uriier& available in $he marke$ 6ere n'$ 'nl% e9en&ive, bu$ al&' needed ele$rii$% and re&&uried $a 6a$er $' un$i'n – and $he&e $hree 'n&$rain$& mean$ $ha$, 'r m'&$ urban and rural 'n&umer&, $hi& 6a& n'$ a viable mean& 'r ge$$ing &ae 6a$er. /he '$her al$erna$ive ' b'$$led 6a$er 6a& ar $'' e9en&ive 'r mee$ing $he large dail% 6a$er 'n&um$i'n need& ' 'n&umer&. /hi& high '&$ ' b'$$led 6a$er 6a& largel% due $' $he $6' big '&$& ' $he la&$i b'$$le and $he '&$ ' $ran&'r$ing 6a$erUnei$her ' 6hih reall% rela$ed $' 6a$er 'r $' i$& uri$%. 0iven $hi& 'n&umer 'n$e9$, a aradigm &hi$ in $he abili$% $' r'vide &ae 6a$er 6'uld 'nl% be '&&ible i 'ne 'uld a'rdabl% r'vide $he g'ld &$andard ' 6a$er &ae$%, 6i$h'u$ $ehn'l'giall% deending 'n $he availabili$% ' ele$rii$% 'r re&&uried $a 6a$er. =E2<& m've in$' 6a$er uriier& 6a& $hu& $he beginning ' man% ir&$& 'r $he 'rgania$i'n - ven$uring in$' $he 'n&umer durable& marke$ 6'rking bak6ard& b% iden$i%ing iden$i%ing $he 'n&umer 'n&umer ''r$uni ''r$uni$% $% ra$her $han $han $he $'-d'6n $'-d'6n leveraging leveraging ' brand ''r$uni$ ''r$uni$% % devel'ing devel'ing ne6 *1D and manua$uring manua$uring aabili$ie& aabili$ie& in $he $he 'n&umer durable& area building a dire$-$'-h'me &ale& aabili$%, and building 'n&umer durable& re$ail hannel aabili$%. =E2 'uld n'$ dire$l% leverage man% ' i$& e9i&$ing 'r'ra$e 'me$enie& and &%nergie&.
By - Siddhant Sagar
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New Product Development Process Indu"tr&
/he in-h'me 'in$-'-u&e (PE) 6a$er uriier marke$ in "ndia 6a& e&$ima$ed $' be 6'r$h K4+ K4+ milli'n milli'n in 3!, 3!, r'je$ed r'je$ed $' gr'6 gr'6 a$ a 7A0* ' 3H r'm 3! $' 34, $' reah K. billi'n in 34.. 7urren$ 6a$er uriier u&age 6a& ju&$ GH $he va&$ maj'ri$% in "ndia b'iled 'r u&ed erami il$er&, i'dine, l'$h il$er&, 'r did n'$hing. ='6ever, b% 33+, 4H ' "ndia<& .4 billi'n-&$r'ng 'ula$i'n 6a& e9e$ed $' be middle la&&. *i&ing li$era% had led $' higher a6arene&& ' heal$h i&&ue&. #l'6l%, 'n&umer& 6ere ad'$ing PE $ehn'l'gie& $' relae $radi$i'nal 6a$er uri%ing uri%ing me$h'd&. me$h'd&. ='6ever, ='6ever, de&i$e de&i$e high a6arene&& a6arene&& in urban urban area&, ene$ra$i'n ene$ra$i'n remained l'6 beau&e $he va&$ maj'ri$% ' h'u&eh'ld& didn<$ have ae&& $' ull$ime ele$rii$% and re&&uried 6a$er, 6hih $he EV (ul$ra-vi'le$) and * (rever&e '&m'&i&) $ehn'l'g%-ba&ed uriier& needed. /he gr'6$h ' $he * $ehn'l'g% r'du$& 6a& en$ered in &eii ge'grahie& $ha$ had e9e&&ivel% hard 6a$er – beau&e under $he&e 'ndi$i'n& * 6'uld imr've $he $a&$e ' 6a$er (hard 6a$er b% i$&el i& n'$ a heal$h r'blem). 0r'6$h ' b'$h EV and * $ehn'l'g% r'du$& 6a& al&' limi$ed b% $heir high rie&. 7'un$er$' 6a$er uriier&, unlike EV and * uriier&, did n'$ reIuire ele$rii$% $' 6'rk, and $heir l'6er '&$UE#D 4 $' 5, ver&u& E#D $' Uhad u$ $hem 6i$hin reah ' "ndiaQ& "ndiaQ& burge'ning burge'ning middle la&&.5 la&&.5 Cu$ $he $he 'un$er$' uriier marke$ had n'$ devel'ed ri'r $' =E2<& en$r% beau&e $he revailing 'un$er$' r'du$& r'du$& in $he marke$ marke$ 'ered 'ered inadeIua$e inadeIua$e &ae$% r'm r'm $he $hree $%e& ' germ& – viru&e&, ba$eria, and ara&i$e&. C'iling, $he m'&$ 'ular 'n&umer me$h'd, 6a& ee$ive in killing germ&, bu$ 6a& umber&'me, $ime-'n&uming and e9en&ive r'e&&. C'iling al&' al$ered $he $a&$e ' 6a$erUand $here're man% m'$her& 'und i$ diiul$ $' ge$ hildren $' drink b'iled 6a$er. By - Siddhant Sagar
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New Product Development Process
e% 'me$i$'r& in $he 6a$er uriia$i'n uriia$i'n &ae, &uh a& ureka ;'rbe& 2imi$ed (;2), "'n 9hange, Phili& and Whirl''l, 6ere 'u&ed a$ $he $' end ' $he marke$ 6i$h EV and * ba&ed uriier& (9hibi$ + 'n$ain& r'du$ and rie 'in$ de$ail&). de$ail&). ;2, a 'n&umer durable& durable& 'man% 'man% &e$ u in !G3, ir&$ ir&$ in$r'dued EV-ba&ed PE& in "ndia under $he brand name TAIuaguard.< =i&$'riall%, ;2 al&' had a 'un$er$' gravi$%-ed uriier under $he name T;'rbe&.< A$er Purei$ &$ar$ed i$& $e&$ launh, ureka ;'rbe& imr'ved $he germkill abili$% ' $heir 'un$er$' uriier and hanged $he brand name r'm T;'rbe&< $' TAIua&ure.< 2a$er, ; al&' added $he m're e9en&ive EV and * $ehn'l'g%-ba&ed r'du$& under $he AIua&ure name. "n general $he rie& ' $he vari'u& m'del& in $he AIua&ure range 6ere l'6er $han $he 'ne& in AIuaguard. *een$l% $he AIua&ure brand 6a& 'u&ed in$' $he re$ail hannel, and $he AIuaguard brand 6a& 'u&ed in$' $he D/= hannel.
By - Siddhant Sagar
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New Product Development Process
/he ureka ;'rbe& divi&i'n ' ;2, 6hih made a range ' 'n&umer durable& &uh a& vauum leaner&, h'me &euri$% &%&$em& and $he range ' 6a$er uriier& de&ribed in $he a&e, 6a& n'6 a K5 milli'n, mul$i-r'du$ and mul$i-hannel bu&ine&&, b'a&$ing A&ia<& A&ia<& large&$ large&$ dire$ dire$ &elling ne$6'rk ne$6'rk 6i$h 6i$h F, &ale& er&'nnel $ha$ $ha$ reahed .+ .+ milli'n h'me& in m're m're $han i$ie& and !G $'6n& $'6n& ar'&& $he 'un$r%. "$ had , dealer& and 'ver +G di&$ribu$'r&, and 6a& graduall% aelera$ing i$& rural ene$ra$i'n $hr'ugh N'n-0'vernmen$al rgania$i'n& (N0&). "$ re'r$ed an average gr'&& r'i$ ' +H and a ne$ r'i$ ' H 'ver $he la&$ &everal %ear&. "$ 6a& al&' 'n&idered 'ne ' "ndia<& Ce&$ ml'%er&. ureka ;'rbe& i& r'babl% $he 'nl% 'man% in $he 6'rld 6hih e9lu&ivel% &ell& 6a$er uri%ing &%&$em&, d''r-$'-d''r, b% 'ld alling. * uriier& 6ere 6ere in$r'dued in$r'dued in $he $he !!& b% b% "'n 9hange, 9hange, a 6a$er and and envir'nmen$ managemen$ 'man%. /he&e reIuired running 6a$er and ele$rii$%, and 6ere ried higher $han $he EV r'du$&. Enlike EV r'du$&, * r'du$& 'uld imr've $he $a&$e ' 6a$er i $he 6a$er haened $' be e9e&&ivel% hard. $her ke% la%er& in 6a$er uriier& inluded maj'r 'n&umer durable 'manie& &uh a& en$, Phili& and Whirl''l, all 'u&ed 'n re$ail &elling.
By - Siddhant Sagar
Page 2
New Product Development Process ='6ever, m'&$ i$ie& and $'6n& aed inra&$ru$ural 'n&$rain$& &uh a& &h'r$age ' ele$rii$% and 6a$er, 6hih mean$ $ha$ a'rdable gravi$%-ed 'un$er$' uriier& 6'uld 6'uld be able able $' gain &igniian$ 'n&umer ene$ra$i'n ene$ra$i'n 6here $he EV and * uriier& had ailed $' d' &'. "n $hi& 'n$e9$ $he $ehn'l'gial hallenge 'r =E2 6a& $' ind a 6a% $' deliver viru& kill and ba$eria kill a& er $he &$ringen$ in$erna$i'nal &$andard& ' $he Eni$ed #$a$e&< nvir'nmen$al Pr'$e$i'n Agen% (E# PA) – 6hih 6a& &'me$hing $ha$ all $he e9en&ive EV and * r'du$& $arge$ed $' $' d' – bu$ bu$ n'6 =E2 6an$ed $' ahieve ahieve $hi& a$ an a'rdable a'rdable 'n&umer rie $ha$ 6a& 'ne-$hird $' 'ne-&even$h $ha$ ' $he e9en&ive EV and * r'du$&. /he relevane ' mee$ing $he ver% be&$ in$erna$i'nal germ-kill &$andard& 'r l'6er in'me 'n&umer& 6a& highligh$ed b% $he a$ $ha$ $he drinking 6a$er ae&&ible $' $he ''r 6'uld generall% be ' a muh ''rer Iuali$% $han 6a$er available $' $he uer in'me 'n&umer&. =E2 ahieved $hi& 'bje$ive $hr'ugh a &erie& ' $ehn'l'gial break$hr'ugh& $ha$ u&ed a n'vel bi'ide-um-il$er bi'ide-um-il$er ba&ed ar'ah $' rea$e a uriier uriier in 34 34 $ha$ ahieved ahieved $he E# PA germkill reIuiremen$&. "n 34 =E2 $e&$ launhed $he r'du$ in "ndia. /' raidl% e&$abli&h leader&hi '&i$i'n& in $heir $arge$ed 'n&umer &egmen$&, =E2 'll'6ed a &$ra$eg% ' riing $he r'du$ a$ 6ha$ $he $arge$ 'n&umer 'uld a'rd, ra$her $han 'll'6ing a '&$-ba&ed riing ar'ah.
By - Siddhant Sagar
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New Product Development Process
/he /a$a 0r'u, an eminen$, 6ell-re&e$ed, "ndian mul$ina$i'nal 'ngl'mera$e 6a& a reen$ en$ran$ a$ $he b'$$'m-end b'$$'m-end ' $he marke$ 6i$h T#6ah<, a devie $ha$ 'mbined l'6-'&$ and e'riendl% ingredien$& like rie hu&k a&h, 6i$h nan'&ilver leah $ehn'l'g%. 2aunhed in &ele$ &$a$e& in $he 'un$r%, i$ aimed $' g' na$i'nal &''n and $' &ell 'ne milli'n uni$& in 3, &aling $' $hree milli'n uni$& annuall% 6i$hin $hree %ear&. A &eni'r =E2 manager 'ered $hi& er&e$ive: /he /a$a #6ah &$ra$eg% $' hallenge Purei$<& leader&hi 6a& ba&ed 'n launhing #6ah a$ a ver% l'6 rie ' K33, bu$ d'ing &' b% &igniian$l% reduing $he germ-kill &$andard ' $heir r'du$ – 'r e9amle, i$& de&ign did n'$ mee$ $he E# PA reIuiremen$ 'r killing viru&e& in drinking 6a$er. /hi& dilu$i'n r'm in$erna$i'nal er'rmane &$andard& mean$ $ha$ /a$a #6ah had a &igniian$ advan$age 'ver =E2<& Purei$ in $erm& ' r'du$ '&$.B Ce&ide& $hi& '&$ advan$age, /a$a had 'n&iderable e9eriene in &elling 'n&umer durable& &uh a& 6a$he&, rerigera$'r&, and air 'ndi$i'ner& and had $heir '6n 'n&umer durable re$ail &$'re hain al'ng 6i$h a 6ell-en$renhed rural ne$6'rk. Al$h'ugh $he% did n'$ have a dire$-$'-h'me hannel 'r &elling durable&, $he% had been $e&$ marke$ing #6ah $hr'ugh a &$r'ng N0 ne$6'rk.
By - Siddhant Sagar
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New Product Development Process
#$r'ng d'me&$i 'n$ender& r'm '$her &e$'r& al&' en$ered $he ra%, &uh a& 0'drej 6h' en$ered a$ $he uer end ' $he marke$ 6i$h $heir m'del Tr%&$al<, and A&ian Pain$& 6h' en$ered a$ $he l'6er end ' $he marke$ 6i$h $heir 5+ ml er&'nal 6a$er b'$$le uriier uriier.. A& $he $he un'rganied un'rganied &e$'r mu&hr''med mu&hr''med,, $he marke$ beame highl% ragmen$ed 6i$h m're $han + na$i'nal, regi'nal, and l'al la%er&.
By - Siddhant Sagar
Page 2#
New Product Development Process Product Development
=E2 'll'6ed a radiall% dieren$ r'e&& in devel'ing Purei$. An in$erun$i'nal "nn'va$i'n $eam 6a& 'n&$i$u$ed 6hih &'ugh$ 'en-&'ure $ehn'l'gie& and 'rged man% e9$ernal ar$ner&hi&, inluding 'ne 6i$h $he 2'nd'n #h''l ' =%giene and /r'ial Mediine, $' under&$and 6ha$ i$ 6'uld $ake $' mee$ $he in$erna$i'nal germ-kill ri$eria 'r uriier& &e$ b% E# PA. "n addi$i'n $' devel'ing a r'du$ $ha$ 6'uld mee$ in$erna$i'nal &$andard& 'r 6a$er Iuali$%, =E2 had $' 'e 6i$h a range ' l'al 'n&$rain$&, &uh a& $he reIuiremen$ 'r $he eIuimen$ $' un$i'n 6i$h'u$ ele$rii$% and running 6a$er. A& e9lained earlier, a maj'ri$% ' $he h'u&eh'ld& did n'$ have ied 6a$er &ul% $' $heir h'me&. #'me ga$hered 6a$er r'm a 'mm'n muniial ie 6i$hin 6alking di&$ane ' $heir h'me&, and man% '$her& $aed in$' gr'und 6a$er. ven 6here h'me& did have running 6a$er, &ine $he &ul% 6a& limi$ed $' a e6 h'ur& 'nl%, $he 6a$er 6a& '$en 'lle$ed in 'verhead $ank& 'r di&$ribu$i'n la$er 'n. /hu&, =E2 had $he hallenge ' making Purei$ 6'rk 6i$h'u$ deending ei$her 'n $he availabili$% ' re&&uried $a 6a$er 'r 'n $he re&ene ' ele$rii$% ele$rii$%.. "n addi$i'n, =E2 6an$ed $he devie devie $' be ail-&ae ail-&ae r'm a 'n&umer er&e$ive – and &' $he% 6an$ed $' have an india$'r $' &ignal $he ar'ahing end-'-lie ' $he 'n&umable reill 'm'nen$ (6hih 6a& &ub&eIuen$l% named T0erm-ill i$<), and al&' $' have an au$'-&hu$ ' mehani&m $ha$ 6'uld &hu$ $he l'6 ' 6a$er 6hen $he germ-kill '6er ' $he 'n&umable reill 'm'nen$ 6a& 'ver. N'$abl%, a$ $he $ime, even remium EV and * uriier& $ha$ 6ere ried a$ E#D did n'$ have an end-'-li india$'r, 'r a &ae$% au$'-&hu$ ' mehani&m. n $he 'ne hand having a 'n&umable 'm'nen$ mean$ being able $' ge$ a &$ead% revenue &$ream r'm 'n&umer& 'ver $ime, bu$ 'n $he '$her hand $he hallenge 6a& $' 'n&$ru$ a &ervie deliver% hannel $' ulill $ha$ need. /he r'du$ de&ign 6a& ur$her 'mlia$ed b% $he a$ $ha$ a &'und under&$anding ' $he $arge$ 'n&umer had By - Siddhant Sagar
Page 3$
New Product Development Process $ran&la$ed in$' a 6h'le range ' erg'n'mi, ae&$he$i, and a&ira$i'n-rela$ed de&ign reIuiremen$& 'r $he r'du$. /here 6ere &everal $ehnial hallenge& in devel'ing &uh a r'du$ and an e9$en&ive gl'bal &an b% Enilever &h'6ed $ha$ n' &uh r'du$ e9i&$ed an%6here in $he 6'rld. /he variane in 6a$er Iuali$% r'm area $' area mean$ $ha$ $he devie had $' r'$e$ again&$ $he $hree dieren$ $%e& ' harmul germ& - $he ea&%-$'-kill ba$eria, $he harder-$'-kill viru&e&, and $he ara&i$e& $ha$ 6'uld have $' be h%&iall% rem'ved r'm 6a$er beau&e $he% 6ere diiul$ $' kill. ;ur$her, $he 'u$u$ 6a$er 6'uld n'$ 'nl% have $' be &ae $' drink, bu$ 6'uld al&' have $' l''k lear, be 'd'rle&&, 'd'rle&&, and have a g''d $a&$e &ine re&earh revealed $ha$ i$ 6a& diiul$ 'r 'n&umer& $' believe $ha$ 6a$er 'uld be &ae $' drink unle&& $he ae&$he$i& ' $he 6a$er al&' &ugge&$ed &'. "n devel'ing Purei$, =E2 6a& e&&en$iall% rerea$ing a minia$ure 6a$er $rea$men$ lan$. Wha$ Wha$ $'6n& and and muniiali$ie& muniiali$ie& did u&ing a ba$h ba$h r'e&& in in huge v'lume& v'lume& 6a& n'6 being a$$em$ed a& a 'n$inu'u& r'e&& 6i$hin eah iee ' eIuimen$ mean$ 'r u&e in&ide a &mall h'me. #imul$ane'u&l%, $he $eam 6a& learning h'6 $' u&e ne6 ma$erial&, h'6 $' &'ure r'm ne6 vend'r& ar'und $he 6'rld, and h'6 $' devel' ne6 manua$uring 'me$enie&. =E2 e&$ima$ed $ha$ $he $eam li$erall% aed a ne6 $ehnial hurdle ever% 6eek – and i$ $''k r'ughl% 3 de&ign hange& &anning 'ur %ear& $' re&'lve $hem all. A$ 'ne 'in$ in $hi& inn'va$i'n j'urne% $he% had a r'du$ 6hih me$ all $he $arge$ de&ign &eiia$i'n& e9e$ 'ne – $he 0erm-ill i$ 6a& 'ur $ime& $he de&ired '&$ $arge$. /he $eam 6a& under huge re&&ure $' deliver &ine $he% had alread% 'ver&h'$ $he 'ne %ear deliver% deadline b% m're $han b% $6' %ear&. "n &i$e ' $ha$ re&&ure, $he% re&i&$ed $he $em$a$i'n ' launhing a uriier b% dilu$ing i$& germ-kill er'rmane &$andard&. "n&$ead $he% 6en$ bak $' $he dra6ing b'ard $' ind inn'va$ive 6a%& $' drama$iall% redue '&$ 6i$h'u$ 'mr'mi&ing 'n
By - Siddhant Sagar
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New Product Development Process Iuali$%. ;inall%, Purei$ 6a& &'$ launhed in 34, $e&$ marke$ed r'm 3+-3F, and $aken na$i'nal in 3G.
/he inal uriier 'era$ed 'n $he rinile ' gravi$% and del'%ed 'ur &$age& ' uriia$i'n. ;ir&$, 6a$er illed in$' $he $' hamber 6en$ $hr'ugh a Mir' ;iber Me&h (M;M) $ha$ rem'ved &u&ended ar$ile&. /hen $he 6a$er l'6ed Iuikl% $hr'ugh a 6inding a$h in $he 7'ma$ 7arb'n /ra (77/) 6hih h%&iall% rem'ved $he $he ara&i$e& r'm r'm $he 6a$er beau&e $he% 6'uld 6'uld ge$ &$uk &$uk in&ide $he 77/. /he 77/ had $' be de&igned $' $ake are ' $6' 'nli$ing $ehnial reIuiremen$& – h%&ial rem'val ' ara&i$e& 6'uld be ea&ier 6i$h narr'6 6a$er a$h6a%&, 6herea& $he reIuiremen$ ' en&uring g''d l'6 ra$e& (a ke% 'n&umer need) 6'uld be ea&ier 6i$h 6ider 6a$er a$h6a%&. "n $he $hird &$age, $he 6a$er a&&ed $hr'ugh a Pr'e&&'r 6hih 'n$ained a &$ak ' bi'idal By - Siddhant Sagar
Page 32
New Product Development Process $able$& $ha$ 6ere in&$rumen$al in killing all harmul viru&e& and ba$eria. /he la&$ $able$ in $he Pr'e&&'r 6a& made ' red-'l'red la&$i, and 6hen $hi& red $able$ beame vi&ible $hr'ugh a 6ind'6-like 6ind'6-like aer$ure in $he r'n$ r'n$ ' $he devie, i$ india$ed $he ar'ahing end-'-lie ' $he 0erm-ill i$ $hereb% le$$ing $he 'n&umer kn'6 $ha$ i$ 6a& $ime $' relae $he 0erm-ill i$. "n addi$i'n $' $he advane 6arning end-'-lie-india$'r, $he Pr'e&&'r al&' had a uniIue au$'&hu$-' $ehn'l'g% 6hih &$'ed 6a$er r'm reahing $he di&en&ing hamber i $he 0erm-ill i$<& lie 6a& 'ver. "n $he 'ur$h and inal &$age a P'li&her rem'ved $he hl'rine and 'd'r& r'm $he 6a$er, making i$ vi&uall% lear, 'd'rle&&, and 6i$h a g''d $a&$e. /he devie 'uld uri% ab'u$ &i9 li$re& ' 6a$er an h'ur.
By - Siddhant Sagar
Page 33
New Product Development Process Conclu"$on
Purei$ had been a high-ri&k inanial r'je$ 'r =E2. "$ had had a l'ng ge&$a$i'n and had inurred large ur'n$ '&$&. /he h'e 6a& $' genera$e in'me 'ne a &igniian$ in&$alled ba&e ' 'n&umer& had been e&$abli&hed. Mr. Jain had headed $he $eam r'm i$& ine$i'n in 3, and &' ar had run i$ like a ven$ure ai$al. N'6 6i$h /a$a #6ah en$ering $he marke$ a$ a l'6er rie 'in$, 6i$h $he inrea&e in riva$e 6a$er uri%ing lan$&, and 6i$h $he '&&ible launh ' Pr'$'r and 0amble<& uri%ing &ahe$&, Jain 6'ndered h'6 $he% 6'uld &ale u $heir re&ene a$ $he b'$$'m-'-$he %ramid. /here 6ere hundred& ' milli'n& ' e'le $ha$ needed needed $' be r'$e$ed a$ $he $he l'6er end ' $he marke$ marke$ 6here ene$ra$i'n 6a& l'6, l'6, bu$ bu$ =E2 needed $' ind ind 6a%& ' ' ene$ra$ing ene$ra$ing deeer 6i$hin 6i$hin rural "ndia. "n &uh rural marke$&, h'6 6'uld $he% &ell $he devie and $hen $rak urha&e& ' $he 0ermkill 0ermkill ki$&, 6hih 6hih 6ere a ke% 'm'nen$ 'm'nen$ ' $he 'n$inued 'n$inued u&abili$% ' $heir uriierO
By - Siddhant Sagar
Page 34
New Product Development Process
A$ $he '$her end ' $he marke$ $he gr'6$h and higher '$en$ial r'i$abili$% 'n Marvella made 'r a &igniian$ ''r$uni$% 'r =E2, bu$ in$en&e 'me$i$i'n 6a& alread% driving d'6n rie& and margin&. ;'r Marvella =E2<& D/= &%&$em needed ri$ial hange&, inluding ugrading $heir dem'n&$ra$'r r'ile and 'men&a$i'n. /he% 6'ndered h'6 $he% 6'uld &$raddle b'$h $he l'6 and high end& ' $he marke$ and rea$e $6' diver&e &%&$em& ' reahing 'u$ $' $heir 'n&umer&. ='6 6'uld $he% build ne6 'me$enie& a$ $he high end ' $he marke$ in 'rder $' 'me$e head-'n again&$ &$al6ar$& like ;2, en$ and Phili&O /%ial durable 'manie&< had a bu&ine&& m'del 6herein 'n&umer& 6'uld all $hem i $here 6a& a r'blem. ;'r Purei$, =E2 had $ried $' reah 'u$ and dire$l% 'n$a$ 'n&umer&. Cu$ driving gr'6$h and &ervie deliver% $hr'ugh D/= 6a& be'ming m're m're diiul$ diiul$ a& $he $he &ale inrea&ed. 0r'6$h 0r'6$h $hr'ugh $hr'ugh $he $he re$ail $rade
By - Siddhant Sagar
Page 35
New Product Development Process didn<$ have $he hallenge& $ha$ $he D/= hannel had, bu$ $hen $he re$ail hannel 6a& ge$$ing inrea&ingl% r'6ded and 'me$i$ive. Mean6hile, Enilever had irmed u i$& ambi$i'u& in$en$ $' launh Purei$ gl'ball%, in 2a$in Ameria, Aria and #'u$h-a&$ A&ia ("nd'ne&ia and Canglade&h) 6i$h $he 'bje$ive ' r'$e$ing + milli'n live& b% 33. =E2 had $' n'6 gear u $' build $he ar'ria$e gl'bal del'%men$ aabili$%, and build 6a$er bu&ine&&e& bu&ine&&e& in '$her 'un$rie&. "n $he mean$ime, mean$ime, $he imera$ive& imera$ive& ' 'n$inuing $' raidl% gr'6 $he "ndian bu&ine&& remained - al'ng&ide $he &igniian$ addi$i'nal hallenge ' inaniall% $urning ar'und $he bu&ine&& in $he near-$erm.
By - Siddhant Sagar
Page 3
New Product Development Process +$,l$o#rp!&
Marke$ing Managemen$ b% Phili '$ler Marke$ing Managemen$ b% 2evi$$ Marke$ing Managemen$ b% William #$an$'n =indu&$an Enilever #$a ;'rbe& Magaine 'n'mi /ime&
By - Siddhant Sagar
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New Product Development Process
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By - Siddhant Sagar
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