New Product Development (NPD) Process Theory
Added on 2021-06-16
6 Pages1007 Words51 Views
Business Development
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Running head: REFLECTIONREFLECTIONName of the student:Name of University:Author Note:
1REFLECTIONNew product development theory refersto thecomplete process which the companiesuse to launch a new product in the market. The core process of this type of development is todesign new productswhich is analysedwith other business consideration. Through the productdevelopment process of thebrand namely, Chemist Warehouse, it has been running popularbrands under its name, that are My Chemist, My Beauty and Chemist Warehouse(Chemistwarehouse.com.au 2018). I feel the company has gained great popularity and hugemarket share due to its strategieswhich perfectly apply to the opportunityof the Australianmarket. The theory of new product development mainly points out this issue of marketopportunity. The NPD theory can be described widelywhen the company canutilise andmatch the market opportunity with thescope of launching new productsin the market(Olabode Samuel Adeola 2018). From the NPD theory I have learnt that the products of thecompanies can be tangible as well as intangible. This particular company has launched newproducts with the wide range of their products available in the market already (Ernst et al.2017). However, the discussion with other team members have disclosed the fact that hecompany have only focussed on the product innovation but it needs to have more competencyto improve the service sector.By understanding the NPD theory properly, I have learnt that this theorysuggests thecompanies to improve other businessissues which will be supportive of this innovation andbring more profit by attracting more customersto the new products. The team discussionabout new product development by the company has revealed that NPD enquires the properunderstating the market otherwise the companies can never capture what the marketdemandsand the customers need from the organisations (Wowak et al. 2016). This alsoincludes proper understanding and foresight of competitive advantage as well as the nature ofthe market. The team members have perceived through the NPD theory that the companiesusually judge the chief variables which change the customers’ needs with time. These main
2REFLECTIONmarket variables are quality, cost and time based on which the companiesdevelopvariousstrategies andpractices (Nauyalis 2018). The chief aim of this theory is to make thecompanies to understand and analyse these three variables so that the companies can satisfytheir customers in a better way in one hand and increase their market shares through regulardevelopment of the new products as well as modifying their existing products (George 2015).The team discussion has pointed out the fact that there are many issuesanduncertaintiesthat the companies face through the process of new product development asthere are many risks regarding acceptability of the new products in the market. Afterthelaunching of product, proper implementation of their product in the market is also vital(Queensland government 2018). From effective learning of the theory and consulting withdifferent perspective of the team members I have learnt thatoften the process of visualisationthe customers’effect on the new products can be time consuming. In more intenseunderstanding of NPD theory incudes various models of whichBAH model isimportant.Booz, Allen and Hamilton (BAH) Model follows seven steps which are ideageneration,newproduct strategy, screening and evaluation, business analysis, development,testing and finally commercialization.The Stage-Gate model based on NPD theory on the other hand was developed in the1980s.this particular model was proposed as one of the most important as well as new tool forthe management of the new products development process (Potter, Lawson and Krause2015). The Stage-Gate model was chiefly applied to consumers’ goods industry. Thismodelimproved teamwork, success rates, process of early detection of failure, betterlaunching method and shorter cycle times.I think, the newLean Start upmovement that hasgrown in popularity in last few years can challenge many of the conventions inherent inStage-gate model. By discussing these perspectives Chemist Warehouse can make morecredible products in future.
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