Because of expenses, the new product development stages for convenience goods sh
ID: 429806 • Letter: B
Question
Because of expenses, the new product development stages for convenience goods should be reduced to idea generation, screening, and then, product development and commercialization (national roll-out). The savings (from streamlining the development process) will be used in an exorbitant, initial pull promotion campaign. After that, coupons will be offered every third week. With the pull strategy and couponing, the consumer will view the brand and product category as synonymous.
Do you agree or disagree with this strategy? Why or why not?
Explanation / Answer
New product development strategy includes the following stages-
All the steps in the process of new product development are equally important for the launch of a new product. However, in this strategy the company leaves certain stages of product development. Business analysis regarding demand, competitors and break-even point is very crucial to find out the profitability of new product.
Furthermore, the prototype and market testing of the product is also important. Without all these steps the product is likely to fail in the market. Therefore one should disagree with the above strategy.