MKT NPD Final Report - New Product Development Process PDF

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New Product Development Process...

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New Product Development in the Breakfast Cereals Industry Group 37 Jamal Soubjaki, Jacob Jackson, Jake Gulabovski, Aaron Murphy, Kyle Marr FUNDAMENTALS OF MARKETING (LTU-BU) - WEDNESDAY 10-12 WITH ELAINE PLANT Youtube video link: https://youtu.be/_3FpXxjuDPU

Executive Summary This following report outlines the process of developing new products and highlights the importance of each step in order to meet standards placed upon market ready products and ensure value is created and then captured. In the case of the breakfast cereals industry, The timeline from conceptualisation to consumer purchase includes multiple considerations in order to be successful and “sell”. The report includes an outline of what businesses will use to build potential in their product from opinions from focus groups and input from employees in that business. Throughout the new product development process, rigorous testing, review and ideas are collaborated to market the final product.

Table of Contents Executive Summary

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Table of Contents

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New Product Development Process (See Appendix 1 and 2) Idea Generation - Jacob Idea Screening - Jacob Concept Testing and development - Jamal Business Analysis Product Development Test Marketing Commercialisation Review of Market Performance

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Recommendations and Conclusion - Jamal

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References

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Appendices

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New Product Development Process (See Appendix 1 and 2) Idea Generation - Jacob The beginning of the new product development process entails a business gathering as much possible input from either internal, external sources or both in conjunction. Examples of this include intrapreneurial programs that are a relatively inexpensive way to get informed ideas from valued employees who perhaps have a more developed understanding of the business and market they operate within. Externally, companies can employ techniques such as public crowd sourcing in order to save on expenses or if the budget is more flexible they may alternatively consult new-product consultancies. The importance of this stage is highlighted by the existence of new product development consultancy agencies, which enable businesses to outsource these tasks to a specialised entity in order to either save time, cut costs and ensure quality of possibilities.

Idea Screening - Jacob The larger the amount of new product ideas a business considers, the higher their chance of developing the best possible product is. Due to the considerable costs of further developing a product and limited market demand, idea screening allows a business to focus resources on possible products that have a larger likelihood of becoming profitable post development. The proposed products target market, value proposition, competition and estimated returns are considered at this stage and all insufficient possibilities are discarded or potentially noted to be further developed at a later date. The primary considerations in this stage include evaluating whether there is a demand for the product and who is demanding it, whether the product is able to compete in the marketplace and if making a return on initial investment is realistic.

Concept Testing and development - Jamal The concept testing and development stage of New Product Development (NPD) involves using consumers that have been targeted as part of the market for the breakfast cereal industry and asks for feedback regarding the proposed product. This stage is to identify the strengths, weaknesses, opportunities and threats for a new product. This stage of the NPD process adds customer feedback to improve the product being developed. The testing phase of NPD utilises focus groups of which are guided through discussion to gain specific answers and insight of consumer behaviour. An imperative factor of the concept testing and development phase with the consideration of focus group feedback is to determine if the market is “ready” for the new product and has the correct features to be aimed at a market and provide profit for the business. Due to recent health trends and consumer behaviour, more health-conscious items are becoming more popular and prioritised rather than pure convenience items. As companies

adapt to this trend, focus groups can confirm whether they would be compelled towards that product therefore proving if it is suitable to sell.

Business Analysis Business analysis involves a eight step process that focuses on identifying the issues and implementing solutions in order to deliver value to stakeholders. The first step is “Get orientated” The actions involved here are to simply gather all the relevant information that will help grasp a deep understanding of the entire business model and your company's role in that. The second step is “Discover the primary business objectives” after becoming orientated with all background information the business’s goals are identified and made clear in order to ensure a direction is established. The third step is “define scope” ‘scope’ refers to the potential opportunities or threats that are apparent. Once these aspects are known then a solution is implemented in order to look for solutions. The fourth step is “formulate your business plan” This step is simply to create a strategic plan to follow in order to ensure the success of the business. The fifth step is “define the detail requirements” this step is for completing the plan. All details and questions meet here. The sixth step is “support the technical implementation” This step is to arrange all the technical support modern companies need to a more advantageous position. The seventh step is to put in the work to implement the new plan e.g. new interface for computers speeds up processing power and create more efficient navigation of documents but employees must learn to use new technology. The eighth and final step is “assess the value created by the solution” this involves critically analysing the value or lack or value the new implementation has offered your business.

Product Development Product is a strategy for promoting company growth by offering modified or new products to current market segments; developing the product concept into a physical product to ensure that the product idea can be turned into a workable product. Kellogg’s Coco Pops modifies there product by providing different variations of Coco Pops such as Coco Pop Check or even a completely new product such as Coco Pops snack bars which can be consumed on the go making it a product that is preferred for people who don’t have to the time to sit down for breakfast. Product development for Coco Pops will involve the following steps producing a physical prototype, testing the product, conducting focus group customers and making judgements

Test Marketing Test marketing is the stage of new-product development in which the product and the associated marketing program are introduced into more realistic market settings. Now that the product is ready to be branded with the branded name Coco Pops, has a distinct and recognisable logo which is simplistic and memorable, has introduced packaging that brings

attention to itself and makes the brand and purpose clear its is than ready to go into preliminary market testing Two ways test marketing procedures are done is through standard test markets which is where Coco pops would sell their product through regular distribution channels and the other way is through Controlled Test Markets which is a program conducted by an outside research company. The research company will guarantee that the distribution of the product in supermarkets and other stores is representative of their percentage in the cereal market. Methods of market research that Coco Pops could deploy is Sales wave research, Simulated test marketing, controlled testing marketing and test markets.

Commercialisation The commercialisation process in product development involves advertising and achieving an established market for said product. Many schemes are utilised in order to achieve this, for example high quantity of advertisements, celebrity endorsement, public challenges or competitions that give incentive to be involved. By creating a fake conversation on your products, it will allow people to be intrigued to know more. The commercialisation process is best tackled with a deep understanding of pop culture, people's psychology and global consideration. The success of the product therefore the company relies on the ability to reach consumers and better yet loyal customers to become a relevant and highly purchased brand.

Review of Market Performance After the product has been released onto the market feedback is essential in order to grow more successful. The review of market performance exists to allow the company to look closely and have their feedback. Commonly market reviews examine the following factors; website traffic, customer acquisition, thought leadership, engagement, customer retention/loyalty, sales, brand awareness and repeat clients or website clicks. Through these factors and others, a company is able to get a clear enough analysis to inform them on their weaknesses as well as their strengths. Through this the company will adapt to become successful conscientious of their environment.

Recommendations and Conclusion - Jamal Therefore, it is advised that a business considers key variables at each stage throughout the product development process in order to ensure the value they wish to create is relevant to the individual product. As part of the new development process, the business must also consider its product to meet the needs of its consumers within the target market and give thought to macroenvironmental factors that may influence buyer behaviour and the overall success of the product. It is crucial for a business to analyse the environment they are entering order to give the product the best chance of market success and the business the best chance of making a

return on their investment.

References -

My Assignment Help (2016) New Product Development And Project Management [Online]. Available from: https://myassignmenthelp.com/free-samples/new-productdevelopment-and-project-management [Accessed 08 June 2020]

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Brandenburg, L. (2014). The Business Analysis Process: 8 Steps to Being an Effective Business Analyst. [online] Bridging-the-gap.com. Available at: https://www.bridging-thegap.com/business-analysis-process/.

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QualityInspection.org. (2015). Testing the Concept (New Product Development) (Developing a New Product Series Part 4). [online] Available at: https://qualityinspection.org/concept-testing-4/ [Accessed 8 Jun. 2020].

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Schmidt, S. (2019). 5 Breakfast Cereal Industry Trends. [online] Marketresearch.com. Available at: https://blog.marketresearch.com/5-breakfast-cereal-industry-trends.

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Wikipedia. (2020). Cocoa Krispies. [online] Available at: https://en.wikipedia.org/wiki/Cocoa_Krispies [Accessed 8 Jun. 2020].

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Claessens, M. (2018). The Macro Environment - Six Forces (DESTEP). [online] Marketing-Insider. Available at: https://marketing-insider.eu/macro-environment/.

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Kellogg Company CR Report. (2018). Corporate Responsibility. [online] Available at: http://crreport.kelloggcompany.com/.

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Fern Fort University. (2019). Kellogg Company PESTEL / PEST & Environment Analysis[Strategy]. [online] Available at: http://fernfortuniversity.com/termpapers/pestel/nyse4/702-kellogg-company.php.

Appendices

Appendix 1 Appendix 2...