New Product Development Model: Steps and Strategies

PROJECT MANAGEMENT 1
PROJECT MANAGEMENT
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PROJECT MANAGEMENT 2
Abstract
The purpose of this report is analyze a new product-development model which is a model with
fame globally regarding the development as well as the introduction of any new product to the
target segment of the global market. As a model, new product-development is characterized by
simplicity as it provides easy-to-understand steps. With creativity being the adopted buzzword,
all the organization have adopted it in its various day-to-day operations including in devising
ways of sourcing new information concerning product development . The process of coming up
with a new product invoves various steps with each of them playing a critical role which if
abandoned, the proccess is rendered incomplete and not functional. Each of these steps or
methodologies has tools for doing its role in an effective manner. Whatever the methodology
employed by any step,it should maintain the main goals of the organization in coming up with a
product that receive high consumer acceptability.

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Table of Contents
Abstract......................................................................................................................................................2
Introduction...............................................................................................................................................5
PESTLE Analysis......................................................................................................................................6
Work Breakdown Structure.....................................................................................................................8
Step1: Idea generation.............................................................................................................................10
a. Demand –first –innovation and growth.....................................................................................10
b. Interactions..................................................................................................................................11
c. Attribute-listing technique..........................................................................................................11
d. Forced relationships....................................................................................................................11
e. Morphological analysis................................................................................................................11
f. Brainstorming..............................................................................................................................12
Step 2: idea screening..............................................................................................................................12
Step 3: Concept development and testing.............................................................................................14
3.1 Concept development....................................................................................................................14
Risk analysis.............................................................................................................................................15
3.2 Concept testing...............................................................................................................................15
3.3 Conjoint analysis............................................................................................................................16
Step 4: Marketing strategy development...............................................................................................16
Step 5: Business Analysis.......................................................................................................................16
Step 6: Product development..................................................................................................................18
i. Physical prototypes......................................................................................................................18
ii. Customer tests..............................................................................................................................18
Step 7: Market Testing...........................................................................................................................19
i. Consumer goods -market -testing...............................................................................................20
ii. Business-product market testing................................................................................................20
Step 8: Commercialization....................................................................................................................20
a. When (timing)..............................................................................................................................20
1. First entry.................................................................................................................................21
2. Parallel entry............................................................................................................................21
3. Late entry.................................................................................................................................21
b. Where (geographic strategy).......................................................................................................21
c. To whom.......................................................................................................................................21

PROJECT MANAGEMENT 4
d. How...............................................................................................................................................22
Gant chart................................................................................................................................................22
Gant chart for the project.......................................................................................................................22
Risk management strategy......................................................................................................................22
RACI Matrix............................................................................................................................................23
Stakeholder Management Strategy........................................................................................................23
Conclusion................................................................................................................................................24
References................................................................................................................................................25
Appendixes...............................................................................................................................................29

PROJECT MANAGEMENT 5
Introduction
Project management is an essential part of life of any organization, be it a food or non-
food related. It is a crucial process that covers all the required step-by-step processes of
developing a given product starting from the environmental screening which covers both the
internal as well as the environment in which an organization do not have control over it and all
other intermediate steps until the product is produced and launched in the market (Bouncken,
Fredrich, Ritala & Kraus, 2018). Therefore, for the best product, a product that attract many
consumers and remain relevant in the market with a high edge of competitiveness, to be
produced, its development process has to be very detailed and should be accompanied by a good
environment which favors all of the involved processes.
New product-development model is a model with fame globally regarding the
development as well as the introduction of any new product to the target segment of the global
market. As a model, new product-development is characterized by simplicity as it provides easy-
to-understand steps (Calantone, Di Benedetto & Rubera, 2018.). With creativity being the
adopted buzzword, all the organization have adopted it in its various day-to-day operations
including in devising ways of sourcing new information concerning product development .

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A product is the major pillar of an organization the company should optimize it at all the
conditions it finds itself in. Therefore, this report has been presented to handle the process of
developing a new product in the food industry which is supposed to be launched during the next
winter (Chuang, Morgan &Robson, 2015.). The development process has been allocated a
budget of £2.5 million to ensure that the product is produced to meet the desired quality as well
as ensuring that the product is produced within the time constraint.
New product-development
PESTLE Analysis
The process of coming up with a new product invoves various steps with each of them
playing a critical role which if abandoned, the proccess is rendered incomplete and not
functional. These are the factors which relate to the business environment and are summarized
as shown in the diagram below:

PROJECT MANAGEMENT 7
Each of these steps or factors plays a very critical role. Political aspect involves the
political stability of the area in which the organization is based. Ecomic factors include the rate
of inflation which controls pricing whereas the technological aspects realtes to inclusion of
technology in the production process.Whatever the methodology employed by any step,it should
maintain the main goals of the organization in coming up with a product that receive high
consumer acceptability. An organization cannot just wake up in a day with an idea and take it to
the marketplace,it has to go through some steps (Cooper, 2016).
The figures below gives a pictorial representation of the steps involvedi n the new
product-development:

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In the figure above, this model has presented 5 steps only because an organization can
decide to put idea scooping, screening as well as its evaluation in a single basket (Cooper, 2019).
Despite this skeleton, much more details are engulfed in each step presented in the figure.
In the figure below, 6 steps are ,instead, used and it exhibits description of all of its steps
in a very simplified way.
Work Breakdown Structure
In general, according to Kotler and Keller the new product development is composed of
the steps as depicted by the following figure: