New Product Development

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1.Executive Summary ....................................................................................................03 2.Introduction .................................................................................................................04 3.Product Development Overview .................................................................................05 3.1 Need for continual Product Development.......................................................05 3.2 NPD Process…………………………………………………………………06 3.3 Types of New Products ....................................................................................12 3.4 Product Development Strategies......................................................................13 3.5 Integrated Product Development……………………………………………..19 3.6 Latest Trends in NPD........................................................................................26

4.Cadbury Case Study & Analysis..................................................................................27 5. Bibliography ................................................................................................................30

EXECUTIVE SUMMARY
If the world was stable and all supplies could just adequately satisfy all demand levels, corporations would have no need to compete with each other in the marketplace. Firms also would have no need to monitor and understand what has changed in the marketplace and what works well in business strategies in order to respond to such changes. But in reality, the profit seeking organizations function in dynamic environments not stable ones, in order to gain profit satisfy stakeholders and even survive in extremely competitive business environment. Both internal and competitive environments in which the firms operate evolve over time. In response, management strategies must also change over time so that the firms can remain effective and competitive through the changing market situations.Competition is at the core of the success or failure of firms. It determines the appropriateness of a firm’s activities that can contribute to its performance such as innovations, a cohesive culture or a good implementation of its strategies. Globally companies are now finding ways to be more customer centric and facing increasing challenges in introducing innovative product offerings often to meet fast changing and diverse customer needs. New Product Development has evolved into strategically developed function from what was earlier just a part of operations. Though being a most important process for most of the companies product development is one of the least understood or perhaps least executed process just beacause many companies appoint specially SME’s employ single individual to be responsible for the whole process. Important because as can be seen it is responsible for the revenues and margins that a company can achieve and the ultimate value of that company. But many a times NPD is driven through a series of functional “silos” , causing delays to build up and often, the original market requirements get lost.

INTRODUCTION
New product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process:
one involves the Idea generation, Product design, and Detail engineering; the other involves Market research and Marketing analysis.
Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share.

In this era of "faster, cheaper and better", companies are focusing on improving the product development process. New business strategies, new organizational approaches, new business processes and new enabling technology are being used by many forward-thinking companies to...
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