The purpose of this project is to study about attributes which are important for choosing and developing a new product for an existing market. Also choosing a product that can give customer satisfaction as well. The product I have chosen is Herbal Household Shampoo.
In any business new product development which is also known as NPD is the total new process of introducing and brining a fresh product to a market. A fresh product introducing in a market is a bundle of advantages offered to switch over and they are concrete or non concrete or intangible.
For the Herbal Household Shampoo I have two similar paths in the NPD procedure:
One is the idea generation that is our Household Shampoo (HERBAL), It is also related to product design and all detailed engineering.
Another step is related to market analysis and research. Product development in the first stage in generating and commercializing my Household Shampoo for that overall strategic development of a product is very important in order to use and maintain or grow in the market share (M. Vikas, Patrick).
STAGES IN NEW PRODUCT DEVELOPMENT ( HERBAL HOUSEHOLD SHAMPOO)
1. GENERATING AN IDEA
Conducting Swot analysis is one of the basic research in obtaining new idea generation of a product. What was my idea behind selecting an Herbal Household Shampoo is that people are always looking for some herbal household products that are environment friendly and are without any chemicals. Than understanding what are the consumer and market trends, towards it, competitors are all companies out there which are manufactured household shampoos, focus groups or sales person, employees, trade shows or finding new patterns and habits that can give a help in deciding new product features and product lines.
2. SCREENING AN IDEA
The second stage in the product development process is to get rid of unstable ideas prior to devoting income. In this process three questions need to be considered: that who will then be the clients of ours Herbal Household Shampoo, whether customers are getting benefits from the producer or not? Than deciding the size of our product and its growth forecasts of the market segment. After that finding the current or future pressure for the idea of a product. (M. Vikas, Patrick )
3. DEVELOPMENT AND TESTING OF A PRODUCT
Developing the marketing mix and engineering details for any new product is vital, there are few considerations that cannot be ignored like Investigating and searching Patent databases, next is to find out the target market of the Household Shampoo and finding the immediate clients that are more important in the decision making purchasing process, then to find out what are the product features that are needed to be incorporated, another important element is to find the benefit that our Household Shampoo can offer and what will be the consumers reactions towards it.
4. BUSINESS ANALYSIS
For introducing new Herbal Household Shampoo in the market we have to estimate selling price based upon feedback taken from the customer. After that estimation of sales volume for a Household Shampoo based upon the dimension of the market. Lastly to make an estimation of profitability and to find out the break-even point for a shampoo is important.
5. TESTING A MARKET
In this stage production of a physical prototype or mock-up of a shampoo is very important, first we have to test the shampoo, its packaging also in usage situations, after that we have to conduct our customer and client interviews or make our introduction of our new product to them, also alter and make changes where necessary, in the end create an initial run of the shampoo and try to sell it in a long run test market domain and according to customer acceptance.
6. TECHNICAL IMPLEMENTATION
This stage includes new and latest program for the Herbal Household Shampoo, after that finalizing quality management system and make an estimation of available resources. One also has to figure out that what are publication requirements of a shampoo are.
This stage will include all the steps related to the launch of Herbal Household Shampoo in the market, formulating procedures and analyzing advertisements, promotions and distribution channels
8. NEW PRODUCT PRICING
This last stage includes an impact of the shampoo product portfolio, its value internal and external analysis, product competition and optional competitive technologies, changing value segments like price, need and value. Lastly shampoos product cost and its forecasting price (E. Koen).