New Product Development

In: Business and Management

Submitted By wright2512
Words 1031
Pages 5
The restaurant industry is very competitive; the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. The food service business is the third largest industry in the country. It accounts for over $240 billion annually in sales. The independent restaurant accounts for 15% of that total. The average American spends 15% of his/her income on meals away from home. This number has been increasing for the past seven years. In the past five years the restaurant industry has out-performed the national GNP by 40%. The reasons given by the Folkney Report (November 1994) are 1) lifestyle changes, 2) economic climate, and 3) increase of product variety. Food production and assembly will take place in the kitchen of the restaurant 10.4 (2010) (286-300. Business Source Premier). Fresh vegetables, meat and dairy products will be used to crate most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff.

Product Development
Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions may choose to often follow set procedures for bringing products to market. New product development relies on bringing together different disciplines to make sure the new product has the required functionality and appeals to a target market. As a result, companies have to implement specific organizational structures that promote effective new product development and strategies.

There are several components of successful restaurant marketing Branding is one of the key components. There has been lots of hype over…...

Similar Documents

New Product Development

...NEW PRODUCT DEVELOPMENT This means the development of original products, product improvements, product modification and new brands through the firm’s own research and development efforts. Give the rapid changes in consumer tastes, technology and competition; companies development a steady stream of new products and services. A company can obtain new products in two ways: Acquisition – to buy a whole company, a patent or a license to produce someone else’s products New product development – through the company’s research and development department. Why new products can fail: ▪ The market size may be overwhelmed even if the idea is good. ▪ The actual product was not designed as well as it should have been. ▪ It is incorrectly positioned in the market, priced too high or advertised poorly. ▪ A high level executive might push a favourite idea despite poor marketing research findings. ▪ Costs of development are higher than expected. ▪ The competitors might at times fight back harder than expected. The new product development process involves these major steps: 1) Idea Generation Idea generation means the systematic search of new product ideas. A well known management consultant said, ‘for every 1000 ideas, only 100 ideas will have enough commercial promise to merit a small-scale experiment, only 10 of these will warrant substantial financial commitment and of these only a couple will turn out to be qualified success.’ Major......

Words: 1548 - Pages: 7

New Product Development and Ethics

...iour” (2008) Melissa S. Baucus et al explains how “Employees are told to relax standards as they seek to innovate and, to enhance creativity”. The authors described the four prescriptions that are stimulated among in-dividuals in order to make them more crea-tive which are: New Product Development and Ethics From New Product Development (NDP) to Sustain-able New Product development (SNPD) The present review aims at being a summary of the main academic articles about project in-novation and the ethical considerations behind them. In 2007 Melissa S Baucus expressed her concern for the fact that creativity researchers rarely discuss ethics. Although the num-ber of companies with ethical considerations is increasing and many are considering words such as sustainability and respect to human rights to their values and mission statements, still they are rarely consider in day to day of business planning and Innovation, Creativity, Stage Gate Controls are words which remain with a weak connection to ethics. The lack of ethical considerations has led to the creation of scenarios such as Colombia where multinational companies are developing new systems in order to extract the gold and other minerals hidden under the Colombian soil. Engineering Mining techniques are achieving the immediate goal, extract the material but they are doing it ignoring the more basic ethical considerations and to the cost of destroying both communities and environment. My hypothesis is that we need to......

Words: 4549 - Pages: 19

New Product Development

...        Article Review Managing the New Product Development process: Strategic Imperatives Aditi Rana Ankita Khaniya Ashish Silwal Sujal Dhungana                                   Managing Operations and Technology, MBA Term II Arjun Shrestha February 24, 2013 Background: Published by “Academy of Management”, Melissa A. Schilling and Charles W. L. Hill have co-authored the article is “Managing the New Product Development process: Strategic Imperatives”. This article has been extracted from “The Academy of Management Executive (1993-2005), Vol. 12, No. 3 (Aug., 1998), pp. 67-81”. “Managing the new product development process: Strategic imperatives” explores into the new product development (NPD) process and the strategies involved with it. Unprecedented importance goes into the study and implementation of the NPD process by various departments of businesses, and it has become a key driver of competition between firms in majority of industries. Researchers have tried to conclude on strategies that could be key to enhance the NPD process. Two major factors have been found to go into consideration for the creation of those strategies: maximizing the fit of products/services with customer needs, and, minimizing the lead-time to the market. Although it may appear that these two factors might create conflicting mandates in a business; researchers have increasingly found indications...

Words: 753 - Pages: 4

New Product Development

...Food Marketing APEC 4451 Fall Semester 2010 New Product Development Process Targeting and Segmentation Dennis J. Degeneffe The Food Industry Center University of Minnesota Why Introduce New Products? • The Case For Introducing New Products – – – “Organic Growth” - Shareholder value Competitive Position Capacity Utilization • The Case Against Introducing New Products – – Risk – the odds against success • High Odds of Failure* • High Cost of Failure “Cannibalization” of existing business. • Therefore introducing new products is a risky business! New Product Development Process • A systematized approach for the development of new products to manage risk. • A general approach that is followed by most major consumer goods companies. – Includes the infusion of creativity… – … and the rigor of evaluative decision points – or “Stage Gates” New Product Development Process Overall Process is made up of 8 stages. Opportunity Identification Idea Generation Concept Development Concept Concept Testing Product Development Positioning Development STM Confirmation Advertising Testing Test Test Marketing Commercialization New Product Development Process … Some are “developmental” sages, and some are “evaluative” stages. Opportunity Identification Idea Generation Concept Development Concept Testing* Product Development Positioning Development STM Confirmation Advertising Testing Test Marketing* Commercialization *”Stage......

Words: 1349 - Pages: 6

New Product Development

...New-Product Development and Product Life-Cycle Strategies Based on: Philip Kotler et al., Principles of Marketing International Marketing Prof. Dr. Thomas Laukamm Objectives - Understand how companies find and develop newproduct ideas. - Learn the steps in the new-product development process. - Know the stages of the product life cycle. - Understand how marketing strategies change during the product’s life cycle. Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 1 Definition - New Product Development + Development of original products, product improvements, product modifications, and new brands through the firm’s own R & D efforts. Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 2 New Product Development Strategy - New products can be obtained via acquisition or development. - New products suffer from high failure rates. - Several reasons account for failure. Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 3 New Product Development Strategy - New Product Development Process: + Stage 1: Idea Generation • Internal idea sources: R&D • External idea sources: Customers, competitors, distributors, suppliers Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 4 New Product Development Strategy - New Product Development Process: + Stage 2: Idea Screening • Product development costs increase substantially in......

Words: 842 - Pages: 4

New-Product-Development-Process

...steps in the new product development process. • Step 1: Idea Generation – Begin from many sources: suggestions from customers, the sales force, R&D specialist, competing products, suppliers, retailers, and independent inventors. • Step 2: Screening – Separate ideas with commercial potential from those that cannot meet company objectives. – Some organizations maintain checklists of development standards in determining whether a project should be abandoned or considered further. – These checklists typically include factors such as product uniqueness, availability of raw materials, and the proposed product’s compatibility with current product offerings, existing facilities, and present capabilities. • Step 3: Business Analysis – A product idea that survives the initial screening must then pass a thorough business analysis. – This stage consists of accessing the new product’s potential market, growth rate, and likely competitive strengths. • Step 4: Development – Financial outlays increase substantially as a firm converts an idea into a visible product. – The conversion process is the joint responsibility of firm's development engineers, who turn the original concept into a product, – and its marketers, who provide feedbacks on consumer reactions to the product design, package, color, and other physical features. • Step 5: Test Marketing – Many firms test market their new-product offerings to gauge consumer reaction. – The purpose is to verify that the product will......

Words: 261 - Pages: 2

New Product Development

...NEW PRODUCT DEVELOPMENT New product development is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization. Some of the important features of new product development are:- * Development of original products. * Product improvement. * Product modification. * Inventing new product through R&D efforts. Therefore a new product development process deals with the design, creation, and marketing of new products. * Stages in new product development :- * Idea generation. * Idea screening. * Concept development and testing. * Market strategy development. * Business Analysis. * Product development. * Market testing. * Commercialization. The stages in managing the development process are defined below:- 1. Idea generation: The new product development process starts with the search of ideas. Some marketing experts believe the greatest opportunities and highest leverage with new products are found by uncovering the best possible set of unmet customer needs or technological innovation. It is a continuous, systematic search for new product opportunities. Ideas for new products can be obtained from SWOT analysis. Not only SWOT analysis, companies R&D department, competitors, employees, salespeople helps the organization to obtain ideas for new product development. 2. Idea screening: After the process......

Words: 868 - Pages: 4

New Service Product Development

...NEW SERVICE PRODUCT DEVELOPMENT As to define service, it is an act or performance that one party offers to another that is essentially intangible and does not result in the ownership of anything – Philip kotler TYPES OF NEW SERVICES Major or radical innovations- are new services to market as yet undefined eg. First broadcast television services Start up businesses- new service for a market that is already served by existing product eg.online banking for financial services New services for the currently served market- attempts to offer existing customers of the organisation, a service not previously available from the company eg. Barnes and noble offering coffee. Service line extension- augmentation of the existing line. Eg. Restaurants adding new menu items, an air line offering new routes. Service improvement- changes in features of service that are already offered. Eg. Extended hours of service(24*7), added amenities in a hotel room Style changes- the most modest service innovations which have a significant effect on customer perception, emotion and attitude. Eg. Changing the color scheme, revising the logo SERVICE PRODUCT DEVELOPMENT Research suggest that products that are designed and introduced in a structured planning framework have a greater likelihood of ultimate successthan those not developed within a framework. NEW SERVICE DEVELOPMENT PROCESS Front end planning includes business strategy development or review, new service strategy development, idea......

Words: 634 - Pages: 3

New Product Development.

...Lecturer Saud Ahmed Department of Finance Jagannath University, Dhaka. Subject: To submit a report on “New-product development on- Natural Anti-insect.” Dear Sir, We are very delighted to submit the term paper on New-Product Development on Natural Anti-insect product as the course material. Our main incentive is to prepare this term paper according to your guidelines in accordance with your instructions. We have tried our best to produce our work as per your structures and hope we believe we have done an adequate job considering our level of experience and expertise and are able to relate the fundamental things with realistic applications. We are extremely grateful for the opportunities that you gave us to express our innovative ability and we earnestly hope that you will like the work that we have done. Furthermore, we stand by to answer all queries regarding our work and pledge that our New Product Development is a unique production culminated by the amalgamation of our varied skills and had work. Sincerely Yours On behalf of the group Mohammad Sakil Azad 1st year, 1st semester Roll: B110203095 Batch-6th (Finance) Acknowledgement All praise to Allah, our creator and sustainer, for giving us the strength to prepare this assignment. Our heart full thanks to our course teacher “Saud Ahmed” for giving us an important topic about the “New Product Development.” and also for giving suggestion as well as guideline, which helped me in completing this......

Words: 5796 - Pages: 24

Marketing-New Product Development

...in Business assignment 2013 Cleanse PLC New Product Development Assumptions As the information given by Cleanse PLC is not enough, here are some assumptions. 1. Cleanse PLC’s competitors are local companies in Turkey. 2. Assume that the “Wonder Wash powder” was not selling well because the product did not fulfill the target market (Turkey)’s needs and cultural. Introduction and Background Cleanse PLC is a major producer of domestic washing powders and other domestic cleaning products since 1901. It is based in Manchester in the United Kingdom. The company have been produced a lots of products under well-known domestic brand names. The company owns four production plants in the United Kingdom, each of them specializing in particular products and brands, and to satisfy the growing demands for their products across Europe. The company also has a production plant in Genoa, Italy. The European Board members of Cleanse PLC have invested many millions of Euros into the Turkish production plant for construction and operation. Cleanse PLC has recently acquired an additional production plant located in Istanbul, Turkey. The company did this in an attempt to tap into the growing demand for domestic washing products in Turkey and its surrounding countries. Cleanse PLC’s Turkish production facility mostly produces washing powder with other Cleanse PLC products. The branded washing powder ‘Wonder-Wash’ was not selling well in the......

Words: 4028 - Pages: 17

New Product Development

...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product......

Words: 2518 - Pages: 11

New Product Development

...Subject: To submit a report on “New Product Development” Dear Sir, This is to inform you that I have completed my report on “New Product Development” Here I tried my best to give an overview of Cucumber Juice as a new product. In preparing this report I have followed the instructions of yours. I will be glad to clarify any discrepancy that may arise. Thank you for your cooperation. Sincerely, SPARKER'Z BBA 6th Batch Department of Finance Jagannath University Acknowledgement First of all I would like to thank the Almighty for giving me the strength, and the aptitude to complete this report within due time. I am deeply indebted to my course teacher, Mr. Saud Ahmed for assigning me such an interesting topic named “New Product Development” I also express the depth of my appreciation to my honorable course teacher for his suggestions and guidelines, which helped me in completing this report. Executive Summary This concept is about new product development by XYZ Company. XYZ Company has been very innovative in making new products. This company uses Tetra pack packaging for its products. The new product develop by XYZ company is Cucumber juice named as "Cocabura". Cucumber juice has been used as a diuretic to treat cases of heart problems and kidney problems; has also been used to dissolve uric acid accumulations in cases of kidney stones and bladder stones.       We have made a Marketing mix strategy for our product. We have......

Words: 4096 - Pages: 17

New Product Development (Npd)

...* Saad _ LipStick Stereo Headset NEW PRODUCT DEVELOPMENT (NPD) The idea of our product has to do with improving and updating product lines. Most of the products go through the stages of their lifecycle and eventually have to be replaced. With our product we try to extend the lifecycle because it’s a combination of product. In particular the idea is covering a specific kind or chronological lifecycle that would be extended. Our Product is a combination of an mp3 high gadget technology and a Lipstick (in 3 colors, which our costumer can choose which one she prefers). And she has the opportunity when the lipstick finishes to replacing it with a new one, of her choice. * STAGES: 1. IDEA GENERATION Saad Ltd. Company, within the ongoing efforts to import and distribute high quality products, addressing the needs and demands of consumers has created something unique. Inspired from competitors of our two different products, within the company, customers, distributors, supplies and others we came with a new product. 2. IDEA SCREENING The product is very attractive not only from the outside but also from the inside. High Fashion Brand Loyalty Brand Awareness Lack of e-commerce (WEB) STRENGTHS WEAKNESSES New entry of products There is no position of the brand Specific average of specific needs Design challenges Existing customer reactions ...

Words: 1543 - Pages: 7

New Product Development

...New product development in modern business strategy and its importance. The survival of a business in a world faced with pressures of globalization or global competition depends on the adaptation of strategies to anticipate response and to adapt to market change both locally and internationally. It is vital that firms remain responsive to the local market while ensuring the integration and coordination of operations across world market to allow for the transfer of knowledge. To ensure growth company’s need to plan and adapt a growth strategy. The growth strategy a company adopts is highly dependent on its current success and position within the market place. Using Ansoff’s Matrix below the four growth strategies can be understood. | Existing Product | New Product | Existing Market | Market Penetration | Product Development | New Market | Market Development | Diversification | Product development growth strategy captures a framework focus on company product or service as well as product development process. This strategy examines the company’s capabilities as it relates to its strengths, weaknesses and core competencies, the competitors capabilities as it relates to their strength, weakness, core competency and strategy and the market needs and opportunities, goals as well as financial resources. The need for new product development are many inclusive of the following: 1) Companies need to adapt to the changing needs of the consumer example the need......

Words: 703 - Pages: 3

New Product Development

...chance to preparing a Feasibility Plan of a New Product. It has been a great honor for us to take part in such a prestigious opportunity. I express our gratitude to all the well wishers who supported me all the time with their helping hands. Executive Summary I want to market Green Coconut Water. I have prepared this feasibility plan on that basis. I have assigned a name for the product as “Jaul”. Since the raw materials are very much available in our country, we have decided to give the product an indigenous image. Jaul is a kind of soft drink that provides the consumers with processed green coconut water in bottles. For the marketing purpose of the product we have decided to launch three product lines. The Jaul would be launched in the market at 250 ml. 500 ml. and 1 Litre bottle. I have set a reasonable price for the product so that all kinds of people can afford to buy this soft drink. I have followed the Target Costing pricing approach. I would gain a competitive advantage, as this is a first hit in the market. I have targeted a huge market segment for the product. Bangladesh is a large populated country. Lots of people are looking for such a product. Green Coconuts are not available all the time. For example: a person walking on the street. Suddenly he feels thirsty. Now if he wishes to drink green coconut water he cannot find it easily. It is not always found in the right place at the right time. If we launch our product in the market, a person willing to drink......

Words: 3226 - Pages: 13

Cát Tường, A Ba Đối Với Con Rất Thất Vọng | Robert Clotworthy | The Cookie Crumbles