Giving answer to the mentioned question requires pointing to a few related questions with the aim of shedding some light on the main question. What is a New Product? What a brand management? What is the main sales and marketing strategies? Firstly, we discuss product, The meaning of this relative term is influenced by the perceptions of marketers and consumers. In general, it refers to a product new to a company or any recently introduced product that offers some benefit that other products do not.
Categories of new products:
•New product lines
•Additions to existing product lines
•Improvements and revisions of existing products
New-Product Development Principles
•Work with potential customers
•Let employees choose projects
•Give employees ‘dabble’ time
•Know when to let go
Let’s look at…..
Launching new products as brand extensions into related product categories is one means of broadening the brand meaning. For instance Nike started as running-shoe manufacturer but now competes in the sports market with all types of athletic shoes, clothing, and equipment.
In an economy of rapid change, continuous innovation is necessary. Most companies rarely innovate, some innovate occasionally, and a few innovate continuously.
In the last category, Sony, Dell, Oracle have been stock-price gain leaders. These companies have created a positive attitude toward innovation and risk taking; they have routinized the innovation process; they practice teamwork; and they allow their people to experiment and even fail.
Factors tend to hinder new- product development
•Shortage of important ideas in certain areas
•Cost of development
•Faster required development time
•Shorter product life cycle
NPD requires senior management to define business domains, product categories, and specific criteria. General Motors has a hefty four million dollars benchmark it must
apply to new car models-this is what it costs to get a new vehicle into production.
One company established the following acceptance criteria:
Product can be introduced within five years.
The product has a market potential of at least fifty million dollars and a fifteen percent growth rate.
The product would provide at least 30 percent return on sales and 40 percent on investment.
The product would achieve technical or market leadership