NEW PRODUCT PLANNING

New Product Planning



New Product Planning

New products are a dynamic part of a company's competitive growth tactic. Frontrunners of effective companies know that it is not a sensible idea to develop new products on erratic basis. Many new products fail, and the ones that succeed, their sales grow far more rapidly than sales of current products, potentially providing a surprisingly large boost to a company's growth rate. Product planning is essential when producing a new product. One of the first steps in this process is to lobby input from multiple sources. Ideas for new products can come from the sales staff, which has direct contact with the consumer. Customers also usually voice their needs and wants through surveys. Management as well as engineers may also offer valuable product ideas. Through conversations with buyers a company's support group may also provide ideas. Analyzing competitors' products should also add value in the development and planning of a product. Once the idea of new product is voiced, the staff will now determine if the production of the new product is practical.

Product planning is a complex, multi-level iterative process, which is attended by managers, planning services, analytical, research and business units are developing. It includes the provision of information, analytical research, market development, feasibility studies and cost estimates and to assess their own potential and inform management decisions.

The first stage - the formation of product offerings - has the task of preparing the greatest possible number of promising innovative ideas on the composition of product innovation, changes in market structure or technological development of enterprises. The main sources of innovative proposals at this stage are the results of marketing research, science and technology forecasting and product development of enterprise policy perspective. Marketing research in the product planning focused on the formation of the company's product portfolio. Product portfolio is called the set of possible product-market, scientific and technical areas of activity for the long term, having the greatest ability to ensure the company's profit potential (O'Donnelly & Peter, 2011). The main component of the product portfolio performs product-market direction as the combination of the proposed product innovation and a certain segment of the market. As the presentation of the product portfolio in the planning of innovation in the world using the so-called portfolio matrices.

The first concept describes the behavior of companies with respect to the developed products, sold in existing markets. ...