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New Product Development Strategy

This document discusses the eight stages of new product development for hand sanitizer: 1) Idea generation where internal and external sources generated the idea for hand sanitizer due to high demand during COVID-19. 2) Idea screening where management identified good ideas and dropped poor ones such as using aloe vera and alcohol. 3) Concept development and testing where product concepts were developed and tested on staff. 4) Marketing strategy development where the initial strategy was to introduce a new hand sanitizer formula. 5) Business analysis to review sales projections and determine if production is worthwhile. 6) Product development to create and test physical versions. 7) Test marketing in realistic settings, though hand sanitizer did not require this. 8) Commercialization

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216 views

New Product Development Strategy

This document discusses the eight stages of new product development for hand sanitizer: 1) Idea generation where internal and external sources generated the idea for hand sanitizer due to high demand during COVID-19. 2) Idea screening where management identified good ideas and dropped poor ones such as using aloe vera and alcohol. 3) Concept development and testing where product concepts were developed and tested on staff. 4) Marketing strategy development where the initial strategy was to introduce a new hand sanitizer formula. 5) Business analysis to review sales projections and determine if production is worthwhile. 6) Product development to create and test physical versions. 7) Test marketing in realistic settings, though hand sanitizer did not require this. 8) Commercialization

Uploaded by

shafirahmamat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bachelor of Business Administration (Hons) Finance (BA242)

Principles and practice of Marketing (MKT420)

D1BA2421A

New Product Development Strategy


New-Product Development of Hand Sanitizer

New product development refers to original products, product improvements,


product modifications, and new brands developed from the firm’s own research and
development. In this case, hand sanitizer is a custom products that manufactured by
certain company such as Dettol, Lifebuoy and Aiken. However, there are a lot of
founder produce their own hand sanitizer due to covid-19 outbreak. This is because
hand sanitizer have high demand nowadays. There are eight stages in new-product
development which are idea generation, idea screening, concept development and
testing, marketing strategy development, business analysis, product development,
test marketing and commercializing.

Firstly, idea generation stage. At this stage, there are two sources that are
involved to generate an idea for hand sanitizer which are internal sources and
external sources. For example, hand sanitizer is a high demand product nowadays
because everybody need it for protection from covid-19. This external source leads
the internal source which is involved top management and R&D department helds a
meeting to develop hand sanitizer that fulfill the criteria needed.

The second stage is idea screening. At this stage, the top management and R&D
department will identify goods idea and drop poor ideas. For example, the base of
hand sanitizer is made from aloevera and alcohol. Aloevera is use for moisture the
skin while alcohol to eliminate the virus. So they will make a screening framework to
choose the best ingredient in their product whether it is worth or not.

The third stage is concept development and testing. Concept development


divided into three which are product idea, product concept and product image. This
three concept is very crucial for new product development which is hand sanitizer.
While concept testing refers to testing new-product concepts with groups of target
consumers. For example, certain company allow their staff to test the product to
know whether it is effective or not.
The fourth stage is marketing strategy development. At this stage marketer will
introducing new formula hand sanitizer to the market as the initial marketing strategy.
Marketing strategy statement involved three element which are description of the
target market for hand sanitizer, value proposition and sales and profit goals that
they want to achieve.

The fifth stage is business analysis. Business analysis involves a review of the
sales, costs and profits projections to find out whether they satisfy the company’s
objectives. Business analysis is very important to ensure whether the production of
hand sanitizer is worth or not to the company.

Next stage is product development. Product development involves the creation


and testing of one or more physical versions by the R&D or engineering
departments. Whereas at this stage, they will create and test to improve the product
quality. Product development is also important to know how the needed investment
for hand sanitizer.

Last but not least, test marketing stage. Test marketing is the stage at which the
product and marketing program are introduced into more realistic marketing settings.
There are three types of test markets which includes standard test markets,
controlled test markets and simulated test markets. However, hand sanitizer product
did not need test market. This is because hand sanitizer is a copy of competitor
product.

Lastly, commercialization stage. Commercialization is the introduction of new


product hand sanitizer. Marketer needs to identify when and where they will launch
the product. For example, due to covid-19 outbreak marketer have been launch their
product before the movement control command. They launch their new product
through social media like Facebook and Instagram. They also shows on how to use
the hand sanitizer.

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