New Product Development - Essay Example

(Chopra et al, 2007) New product development is that series of events that starts with the conception of the product and its ideation, and ends with reaching the product to the end user through strategic brand positioning through the meeting of competitive advantage. New product development is an important part of any and every business today in order to show a portfolio that thrives on enrichment through innovation and new experiences in the market place. It is a concept that will hold the prospective consumer's attention for long enough in order to turn him or her into an actual end user. In a nutshell, through new product development, one renders a quality of improvising and strategic branding to the business and helps reach out to more and more people and turn them into consumers. Therefore, it is an important part of meeting competition and venturing into new markets to increase profitability and brand visibility as well. (Savage, 2007)
According to the above diagram, the importance of new product development lies in the fact that there is a need in today's world of competition to keep redefining the business and its...
Small piece of
large pie
Less prestige
Can become very
competitive
IBM personal computer
Colgate baking soda
toothpaste
Healthy Choice frozen
Dinners
Line extensions
Presold audience
Keeps brand
fresh and new
Inferior product
can dilute core
brand
Healthy Choice soups
Compaq laptop computer
Haagen Daz frozen yogurt
Sony walkman variations
New use
No new manu-
facturing costs
Incremental sales
opportunity

Arm & Hammer baking
soda as refrigerator
deodorizer
Planters nuts for baking
New for you
Existing market
Tendency to
jump in without
proper research
Thrive hair vitamins
Conair telephones
Citrus Hill OJ w/calcium
Next generation
Existing market
Keeps you ahead
of competition
Makes competitive
products seem
old
Helps fend off
price competition
Sell-in to retailers
key
Consumers may
resist frills
Computers (any brand)
Citrus Hill orange juice
with calcium

(Source: Savage, 2006)

According to the above diagram, the importance of new product development lies in the fact that there is a need in today's world of competition to keep redefining the business and its offerings. Most of the companies listed in the table have done just that by adhering to the latest technologies and making sure that their research and development department is on top of things every step of the way. This has also given rise to a particular kind of brand positioning and a pattern that these companies have constantly improved upon. (Ellram et al, 2007)

Supply Chain Configuration: Offshoring and Outsourcing



Fig 1: Options for a More Effective Supply Chain Management Model for Texan (Anderson et al, 2003)

This model has been presented in the form of a flow chart with the aim of collaborating and organising the knowledge and information within ...Show more