NEW PRODUCT DEVLOPMENT

Explain the critical factors in the new product development process. Critically analyze the NPD effectiveness in the industry.

NEW PRODUCT DEVELOPMENT

For a new product to be successful, it needs to be launched proactively in the “right” market at the “right” time with the “right” marketing plan. The key is to create strategic competitive advantage that can be sustained over a period of time.

At the first step of process, it is essential to consider three factors for screening the product ideas. These factors are: the reason for the new product, the extent to which it is new, and the opportunity cost and development risk.

Reason for the New Product
Any organization needs to have a clear idea about why it is developing the new product and how it fits with its strategic vision. The internal and external forces are key factors leading towards new product development. The greater the overlap between the two forces, the higher will be chance of success.

Reebok...