New Product Development

Jagannath University  24 April 2012 The Lecturer Saud Ahmed Department of Finance Jagannath University, Dhaka. Subject: Submission of the report on “New Product Development”. Dear Sir, We are very delighted to submit the project on a new product development as the course material of our main incentive is to prepare this project 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 Marketing Plan is a unique production culminated by the amalgamation of our varied skills and had work. Sincerely Yours On behalf of the group no.-05 (Excel) Sheikh Salah Uddin ID: 115290 Finance 5th Batch Jagannath University Acknowledgement We would take this opportunity to thank, Saud Ahmed our teacher for the course of Principles of Marketing of the JnU, for his valuable support and encouragement which he has offered. His words of wisdom will always be remembered, and we are convinced that the knowledge of marketing that he has imparted would go a long way through our professional career. This report is successfully completed by our entire group member’s extreme effort. It was not possible for a single person to make the project successful. Moreover we would like to disclose our deepest esteem and gratefulness for our faculty Saud Ahmed , for his extended helping hand and mentorship. No. Member Name ID Number 1 Farzana Sikder 115225 2 Rizwana Jahan 115227 3 Payel Saha 115250 4 Md. Eakub Ali 115267 5 Sheikh Salah Uddin 115290 6 Md. Ibrahim Khalil 115306 7 Biswa Jit Mitra 105256 8 Md. Mohidul Islam Masum 105285 9 Md. Thouhidul Islam 105304 10 Tanbirul Munir 105328 Table of Contents Letter of transmittal I Acknowledgement Ii Executive summary Iv Introduction Objectives New product Development process Idea Generation Idea Screening Concept Development Concept testing Business Analysis Business Analysis Techniques Beta testing Technical Implementation Product development process Market testing Managing new product development Pricing of “EXCEL Switch Timer” NDP Strategies Challenges Commercialization Market Channels Marketing Environment CRM (Customer Relationship Management) Quick steps for developing a new product Conclusion Reference  Table of Figures Figure 1: The circuit of Long-Duration Timer Relay 12 Figure 2: The sub-relay Circuit 13 Figure 3: The whole Timer System 13 Figure 4: EXEL Switch 14 Figure 5: EXCEL Switch Timer 14 Figure 6: Timer for home use 14 Figure 7: Switching Details for home use 14 Figure 8: EXCEL Switch Timer 15 Figure 9: Timer for Office uses 15 Figure 10: Market test strategy 15 Figure 11: Product Development strategy 17 Figure 12: Cost statement 19 Figure 13: Product strategy 21 Figure 14: Channels for international marketing 23 Figure 15: Microenvironment 24 Figure 16: Macro Environment 25 Figure 17: National to International Market 25 Figure 18: Product-Promotion Matrix 26  Executive Summary The following project is a marketing plan of a new product development. Here we are EXCEL Limited .Our Company has planned to launch a new product and the product is “EXCEL Switch Timer”. This is a new product in Bangladesh. As there is no competitor, it will be easier to enter into the market. We can compete because our switching products offer a distinctive blend of quality, features, benefits, service and value based pricing. We are aiming several segments in the consumer and business market. Our plan is to capture the advantage of the increasing demand for more featured, varied and exclusive hand sanitizer for everyone and also providing service, based on consumer type. This plan includes current market situation of cell phone industry in Bangladesh. To identify the opportunities a SWOT analysis has been made. Financial & marketing objectives for 1st year are given along with the target market. Positioning, product management, pricing, distribution channels are also discussed. The primary marketing objective is to achieve first-year Bangladesh market share of 10 percent with unit sales of 1, 00,000. The primary financial objectives are to achieve first-year sales revenues of Tk. 5, 02,500, keep first year losses to less than Tk. 1, 05,000 and break even in the middle of second year.  Introduction In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief). There are two parallel paths involved in the NPD process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. Idea Generation New product development is stated with idea generation. It is the systematic search for new product ideas. Idea Generation is often called the "fuzzy front end" of the NPD process Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. Lots of ideas are being generated about the new product. Out of these ideas many ideas are being implemented. The ideas use to generate in many forms and their generating places are also various. Many reasons are responsible for generation of an idea. Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your Opportunity Analysis to support your ideas in the Idea Screening Phase (shown in the next development step). For developing new products we used both internal & external sources. These new products are given below- Carrot chips Wood apple juice Mixed Tea Coconut Water Flexible Dress Flexible book Cover Digital ID Card Digital Newspaper Business Encyclopedia SIM With 3G internet connection Home gardener Resizable Cooking Pot IPS Without charging Liquid washing detergent Switch Timer Idea screening Idea screening helps spot good ideas and drop poor ones as soon as possible. The object is to eliminate unsound concepts prior to devoting resources to them. The screeners should ask several questions: Will the customer in the target market benefit from the product? What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price? Then we found these answers: Our first idea was carrot chips. It was a very poor Idea and was only targeting the children. And this product needed so many chemicals. Then we moved on wood apple juice. Some people do not like wood apple and it will not able to compete with the other fruit juice. Mixed Tea exists in Bangladesh and Arong produces this product. Coconut water was a very good idea to us. But already there are about 15 companies exist in the world who produces this product. We can get it from natural coconut in the markets. Flexible dress could reduce our restrictions to wear different size of dress. But it cannot be made in natural or healthy way. Digital ID card could be chosen, but the cost will very high and that ID card would fragile. Digital newspaper will costly and cannot be used for those purposes, which we do with normal newspaper. We can know business information from books or internet. So, Business encyclopedia will not successful. Private companies will have to face many difficulties to get permission from the government. Home gardener could be very important to those people, who do not want to plant or want, but do not have sufficient time to plant & take care of trees. But it will not be profitable. Resizable pot could not be developed because; there will be any kind of lick in that and for that reason, it cannot be cooked food in that pot. IPS, serving DC current can be developed, but it only can be used with those kinds of electronics, which are compatible with DC input. Liquid Washing Detergent already exists and it is more costly than washing powder. At last we got a new idea about “Switch Timer”. It can be succeeded. Because, it can reduce waste of electricity.  Concept Development and Testing Develop the marketing and engineering details Investigate intellectual property issues and search patent data bases Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided rendering, and rapid prototyping What will it cost to produce it? Testing the Concept by asking a sample of prospective customers what they think of the idea. (Usually via Choice Modeling) Business Analysis When we have decided on Excel Switch Timer concept and marketing strategy, we can evaluate the business attractiveness of the proposal. Business analysis involves a review of the sales, costs and profit projections for a new product to find out weather we satisfy company’s objectives.  Business Analysis Techniques We have followed and applied different Business Analysis Techniques which following: Estimate likely selling price based upon competition and customer feedback Estimate sales volume based upon size of market and such tools as the Fourt - Woodlock equation Estimate profitability and break-even point Here are some concept testing steps: PESTLE: Political Economical Sociological Technological Legal Environmental SWOT: Strength Weaknesses Opportunities Threats MOST: Mission Objectives Strategies Tactics CATWOE: Customers Actors Transformation World view Owner Environmental constraints MOSCOW: Must or Should, Could or Would Beta Testing Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance Technical Implementation These steps are used to implement: New program initiation Finalize Quality management system Resource estimation Requirement publication Publish technical communications such as data sheets Engineering operations planning Department scheduling Supplier collaboration Logistics plan Resource plan publication Program review and monitoring Contingencies - what-if planning Product development process Product development means developing the product concept into a physical product in order to ensure that the product idea can be turned into workable market offering. When the switch timer concept passes the business test, it moves into its development. Here, R&D or engineering is to develop the excel switch timer concept into a physical product. The product development step, however, now calls for a large jump in investment. The Product development step, however, now calls for a large jump in investment. It will show whether the product idea can be turned into a workable product. Figure SEQ Figure \* ARABIC 1: The circuit of Long-Duration Timer Relay It will be the sub-relay Circuit: Figure SEQ Figure \* ARABIC 2: The sub-relay Circuit Figure SEQ Figure \* ARABIC 3: The whole Timer System Figure SEQ Figure \* ARABIC 4: EXEL Switch Figure SEQ Figure \* ARABIC 5: EXCEL Switch Timer Figure SEQ Figure \* ARABIC 6: Timer for home use Figure SEQ Figure \* ARABIC 7: Switching Details for home use Figure SEQ Figure \* ARABIC 8: EXCEL Switch Timer Figure SEQ Figure \* ARABIC 9: Timer for Office uses Market Testing There are three ways to test the new product market. These are: Figure SEQ Figure \* ARABIC 10: Market test strategy Standard Test Markets: It is a market which represents the full marketing campaign and uses customer’s surveys. We have been challenged by many obstacles, such as- Cost: The normal cost of the raw-materials is high, but if we can build the product in a systematic way, we will get the positive result. Time: If it is production time, then, it takes time same as the regulator production time. But if it is usage time, then one can use a ‘Switch timer’ whole year. Competitors: There are some of the competitors in the other countries, but there is no competitor in home country. So, from this sight, it will be a very unique product & no competitor will interfere in our workings & no one will get the information about our new product. Controlled test markets: Here are the panels of stores that have agreed to carry new product for a fee. We tested this market for some quick information about our product’s future. We served one sample and the sellers commented that it will be a very important product for the general people. Simulated Test Markets: Simulated Test Markets are events where the firm will create a shopping environment and note how many consumers buy the new product and competing products. Provides measure of trial and the effectiveness of promotion. We tested the market by this method because, it reduced our expenses and it is the least expensive than the other methods. This kind of test restricts access by competitors Its one disadvantage is it is not considered as reliable and accurate due to the controlled setting Managing new product development The new product development process highlights the important activities needed to find, develop and introduce new product. However, new product development involves more tan just going through a set of steps. Companies must take a holistic approach to managing this process. A successful new product requires- Figure SEQ Figure \* ARABIC 11: Product Development strategy Customer-centered new-product development: It focuses on finding new ways to solve customer problems and create more customer satisfying experiences. Our product is a new way to solve customer problems. It helps to solve electricity and time-switcher. Team-based new product development: An approach to develop new products in which various company department work closely together, overlapping the steps in the product development process to save time and effectiveness. Instead of passing the new product from department the company assembles a team of people from various departments. In the team-based approach, if one area snags, it works to resolve them while the team moves on. Systematic new product development: The Company can appoint a respected senior person to be the company’s innovation manager. It can set up web-based idea management software and encourage all company stockholders. To manage our new product development we use the systematic new product development. Finally the new product development process should be holistic and systematic rather than compartmentalized and haphazard. Otherwise, few ideas will surface and many good ideas will sputter and die. Pricing for “Excel Switch Timer”: A new product pricing process is important to reduce risk and increase confidence in the pricing and marketing decisions to be made. Bernstein and Macias describe an integrated process that breaks down the complex task of new product pricing into manageable elements. Pricing strategy includes: Impact of new product on the entire product portfolio Value Analysis (internal & external) Competition and alternative competitive technologies Differing value segments (price, value, and need) Product Costs (fixed & variable) Forecast of unit volumes, revenue, and profit Here is our pricing strategy: Cost:  Timer Type Fixed cost Variable cost Office based switch timer Tk. 1000 Tk. 300 Home based switch timer Tk. 500 Tk. 100 Figure SEQ Figure \* ARABIC 12: Cost statement Profit: Office based switch timer-tk.100 Home based switch timer-tk.50 Revenue: Office based switch timer-tk.1400 Home based switch timer-tk.650. The expected costs and profits for the product including marketing, R&D, operations, accounting and finance costs can help us to analyze the new product’s financial attractiveness. NPD strategies Considerable factors of new product development: Design for six sigma Flexible product development Quality function deployment Stage-Gate model User-centered design Customer Consideration Marketing Consideration Competitor Consideration Company Consideration Environment Consideration Customer Consideration: Types Of Customer Customer Financial Ability Customer Purchasing Power Customer Taste Marketing Channel Marketing Consideration: Marketing promotion Cost of marketing promotion Way of marketing channel used Market size of proposed product Price & quality of product International market Competitor Consideration: Whether it is produced by other company Whether the product is imported or exported Competitor marketing strategies Price, quality of the competitor Which channel competitor used Competitor's equipment and technology Market position of competitor in market Problem faced by the competitor Environment Consideration: Social environment Economical environment Political environment Technological environment Legal environment Natural environment Company Consideration: Company's investment for producing and distributing Equipment and technology Time need for marketing Company's previous experience Company's goodwill in the market Design for the portfolio six sigma: Figure SEQ Figure \* ARABIC 13: Product strategy Challenges Every new product has to face challenges when it is being launched in the new competitive market. So as a new product "EXCEL Switch Timer" also have to face some challenges. As it is an electric based product, so it may have some risk but we have to work hard to gain public attraction and faith over it, at first we should plan to produce office based "Switch Timer" which is to be used only in the office. If we gain success then we will move forward for the home-based timer. People respond to new products in different ways. The adoption of a new technology can be analyzed using a variety of diffusion theories such as the Diffusion of innovations theory. As a new product, the advertisement of this product should be related to its core concept and we should try to do so. Then we should focus on the topics of packaging and labeling is not good and well attractive then we will fail to attract towards our product. There is another important feature which is called price. The price of this new product should be moderate as people can purchase it. After overcoming all these challenges most probably we will be able to grab a very good space in the market of Bangladesh. Commercialization For commercialization, we have to follow these steps: Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with product Critical path analysis is most useful at this stage Introducing the new product into the market: It prefers to two factors: Advertising And Sales Promotion Determining Marketing Channel. Tools of Marketing Promotion: Advertising Personal Selling Sales Promotion Publicity Marketing Channels Whole-Channel View: Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network. For conducting an international company we must take a Whole-Channel View of the problem of distributing products to final consumers. Global value delivery network: In international Market, our product will face special challenges. At first we must figure out what we are going to market in which country. Then it has to be decided how much to standardize or adapt their same products for world markets. So, we have to reach our decision by bearing those in our mind for marketing the product internationally. Figure SEQ Figure \* ARABIC 14: Channels for international marketing Marketing Environment The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. It is made up of a microenvironment and a microenvironment. Factors in the Microenvironment: Figure SEQ Figure \* ARABIC 15: Microenvironment Major Forces in the Company's macro environment: Figure SEQ Figure \* ARABIC 16: Macro Environment The National and International Marketing Research Process: Figure SEQ Figure \* ARABIC 17: National to International Market Marketing research indicates us that where there is no electricity there will be little use of Switch Timer. The international trade system: Major international marketing decisions are- Looking at the global marketing environment Deciding whether to go global Deciding which market to enter Deciding how to enter the market Deciding on the global marketing program Deciding on the global marketing organization Five Global Product and Communications Strategies are- Product Promotion Don’t Change Adapt Develop new Don’t Change Straight extension Product adaptation New product with new promotion Adapt Communication adaptation Dual adaptation Figure SEQ Figure \* ARABIC 18: Product-Promotion Matrix International Product services: In international Market, our product will face special challenges. At first we must figure out what we are going to market in which country. Then it has to be decided how much to standardize or adapt their same products for world markets. So, we have to reach our decision by bearing those in our mind for marketing the product internationally. CRM (Customer Relationship Management) Managing detailed information about individual customers and carefully managing customer 'touch points' in order to maximize customer loyalty. By using CRM to understand customers better, we can provide higher levels of customer service and develop deeper customer relationships. We can use CRM to pinpoint high-value customers, target them more effectively, cross-sell our products, create offers tailored to specific customer requirements. An adjuvant enhances the immune response when formulated with a vaccine antigen. We continue to make good progress with our ISCOMATRIX® adjuvant and have several commercial partners with vaccine candidates at various stages of clinical development. The management focus for this developing technology has moved to our King of Prussia office in the US to ensure close coordination with regulatory agencies and partners. To facilitate the supply of ISCOMATRIX® for clinical trials, commercial scale production is now being carried out at our Kankakee site in the US. Additional product services: We will consider our new product with two additional considerations. With those two considerations, we can get the best output that we desire on our product. The two considerations are- Social Responsibility in Product Decisions International Product & Service Marketing As a new product, “EXCEL Switch Timer” has to attract much public attention. For that, our markets should carefully consider public policy and regulations involving acquiring or dropping this product, patent, product quality, safety and warranties. Under social responsibility, some steps have to be taken according to public demand. By maintaining social responsibility, a new product can reach its goal.  Quick Steps for Product Development The following steps briefly summarize the major dimensions of new product development. 1. Clarify the Organization's Goals and the Strategic Role of New Product Development for Competitive Advantage New product development can play a variety of roles in defining corporate strategy to gain competitive advantage. This variability makes the process of new product development subject to the emerging organizational issues of the day. In general, a long-run, focused, and ongoing strategic commitment to attractive market opportunities should define the role of new product development. New product development should be integrated into an organizations strategy and significantly contribute to its perpetual renewal. Achieving this integration requires the dedication of intellectual resources at all organizational levels. This intellectual process begins with responsiveness to the business environment. 2. Build Flexibility to Cope with and Mediate Environmental Turbulence Turbulent global business environments are the source of new product opportunities and problems for an organization. Consequently, the critical factors defining the organization s market environment for new products must be scanned on a regular basis. In particular, the effects of technology that reduce the life cycles of a firm's products and services must be carefully monitored. For example, the effects of changing information technology will continue to alter the way organizations innovate, design, manufacture, and market new products, as well as the way consumers and other stakeholders respond to those products. They may even redefine markets from traditional channel-dependent institutions to direct, interactive exchanges between buyers and sellers. Consumers may dial up a manufacturer’s electronic catalog, send in specifications, and receive a customized product (from flexible manufacturing processes) through an express delivery service in days. 3. Anticipate Market Acceptance of New Products The crux of new product development is identifying the unmet needs of potential buyers and other key market stakeholders as the basis for defining market opportunities and translating them into core new product concepts. Potential buyers who are affected by turbulent global environments respond largely to their own needs and problems. Identifying the needs of potential buyers and segmenting markets according to those needs is a challenging prospect but one of that enhances new product acceptance. It requires a variety of research approaches that should bring the innovating organization as close to potential buyers as possible. In fact, for many situations, new product development should be viewed as an interactive relationship between the innovating organization and potential buyers (and other key stakeholders) to jointly define and develop the new product. The best way to anticipate market response for a new product is to jointly create it with potential buyers, then estimate when and how many consumers might enter the market to buy. 4. Prepare the Organization for the Change Needed to Develop New Products on a Regular Basis The new product development paradox suggests that organizations respond to the demands of a new product in ways that often create organizational resistance and slow development time. To overcome this resistance, strong leadership, good management, cross-functional teams, and new product champions are crucial. Although the prescription for success may be clear, implementation can be difficult. How does the interruption of organizational processes by new products affect individual career patterns? What are the incentive systems that will motivate highly qualified individuals to join high-risk new product development teams? Where in the organization should the new product development team be located—internally or externally? Resolving organizational issues related to new product development requires an understanding of critical organizational processes such as strategic choice, influence, communication, decision making, resource allocation, and implementation. Studying and profiling these processes in terms of an organization's propensity to innovate will help (i) identify areas needing change, and (ii) if processes cannot be changed in a reasonable time, estimate response time to innovate. The outcome of this process will be realistic estimates of development cycle time. The process will also help focus educational efforts among employees to bring about an enlightened view of new product development and its role in the future of the organization and their own careers. 5. Operationalize an Ongoing Process of New Product Development How the organization decides to respond to environmental forces, organizational resistance, and market stakeholder needs defines its new product development process. This process has been observed to be sequential, overlapping, holistic, or chaotic. However, because business situations vary, each organization should craft a process that enables it to (1) maintain a strategic focus, (2) remain flexible to cope with varying degrees of environmental turbulence, (3) interact with the market to anticipate and/or overcome friction in formulating the new product, (4) integrate organizational efforts and resource commitments to motivate the process through cross-functional new product development teams, and (5) commit to new product development as an ongoing process of organizational renewal. The process should encompass different levels of product concept refinement (ideas, concepts, prototypes, products, and launch programs) and critical management activities (diagnosis, search, design, evaluation, decision making, implementation, and monitoring). 6. Build a New Product Decision Support System Viewing new product development as an ongoing organizational process re-' quires a decision support system to provide timely information. Key elements are identifying new product decision problems, modeling those problems, establishing a data base of the important variables and relations in the model, collecting and analyzing the data through marketing research methods, and using optimization procedures to find the best decision. The design and implementation of new product decision support systems should be linked to an organization wide system to build a useful historical data base, yet provide a capability for off-line analysis to support rapid retrieval and manipulation of data. Further, the role of decision-maker judgment in data collection and modeling activities should be integrated into the new product decision support system, albeit with care and scrutiny in order to continually learn from its use. 7. Estimate the New Product Market Opportunity The objective of market opportunity forecasting is to clarify the nature of a market opportunity and to estimate its market potential and market penetration. To accomplish this objective, a model of critical factors that drive the new product opportunity should be formulated, data should be collected to operationalize the model, and the resulting forecasts should be updated throughout development. Estimates of year-to-year growth, possibly obtained from a data base of analogical diffusion models, are critical for rapidly deciding the value of a new product idea. Unfortunately, the procedures for quickly screening new product ideas with such information rely heavily on judgment. Future research on expert systems and industry-based product analogy data bases may help to improve the speed and reliability of market opportunity forecasting. In addition, the use of enhanced scenarios employing advanced multimedia technology to further define a core concept in the context of rapidly shifting environments is a promising way to better understand the possible evolution of and response to new products. 8. Formulate a Sales Forecasting Process that Captures Market Response to New Product Alternatives In developing models for any of the forecasting processes, but especially sales forecasting, several guidelines should be considered: Develop a system of conceptual models that includes relevant variables. Develop a managerial decision model that is simple, intuitive, and logical; if after very careful study it is not understood, revise it or don't use it. To the extent possible, develop rigorous sub models of selected variables in the spreadsheet model to improve estimation and link decisions to market response. Use a variety of data sources (market studies, expert judgment, secondary data) and methods (such as perceptual mapping, positioning, conjoint analysis of preferences and simulations) to operationalize the models and sub models. Submit the model to sensitivity tests with different values and check for robustness (for example, using the "what-if" tool on computer spreadsheets). Check assumptions carefully. Use multiple, different, and independent approaches and reconcile estimates when they are divergent. Formulate alternative scenarios using variation in the values and assumptions of the model—and consider contingencies. 9. Establish a Financial Forecasting Capability that Provides a New Product Control Chart Combining market opportunity and sales forecasts with estimates of new product costs, investments, risks, and development cycle time provides a financial control capability that can be summarized in a control chart. The format of this control chart should be agreed upon by the new product team at the outset of the project and followed thereafter. It should include the key measures of performance that guide the pre-launch development and post-launch tracking of the new product. Continual updating of all major forecasting processes to reflect changes in the shape of the new product and in the organization and market environment is the basis for realizing a capacity for control throughout new product development. 10. Consider Test Marketing as a First Step to Implementation Prior to launching a new product, it is strongly recommended that a market entry strategy and launch marketing program be orchestrated and tested. This process should involve the use of simulated, controlled, and/or conventional test marketing to evaluate, decide, and refine the product and its launch program. Designing and implementing test marketing approaches should consider the nature of the implementation problems, the new product, its importance to the organization, and the amount of uncertainty in the market environment. In some cases, test marketing can be bypassed in favor of immediate market entry. This approach can succeed with careful attention to tracking the new product launch and modifying accordingly. 11. Develop a Market Entry Approach that Capitalizes on the Current Market Situation and Complements the Strategic Role of the New Product Market entry for new products is highly situational—being first does not always pay. The market entry approach should reflect environmental, organizational, and market factors (potential buyers, competitors, trade, stakeholders) that define the situation. A market entry approach should be based on the timing, scale, and resonance of the launch marketing program. Using market opportunity, sales, and financial forecasts can provide input to an approach for modeling market entry decisions. In particular, launch timing is critical when cycle time and/or competitive factors can make a difference in performance. Recognizing time as a key variable, and making it the focus of a special decision model, may be the best way to handle this market entry decision. 12. Launch and Track New Product Programs to Implement Needed Modifications for Success Once a new product is launched, the use of various data collection procedures and forecasting models to track performance, modify, and otherwise control the new product can lead to product and program improvements or to a comfortable decision to terminate the product. One issue related to how much effort an organization is willing to invest in post-launch tracking is problem diagnosis. Quick fixes and program changes that are based on impressions of market problems rather than diagnosis can lead to a products early demise or the extension of mediocre performance. Finding early launch marketing problems may lead not only to quick modifications, but also to the next-generation new product.  Conclusion We have continued to strengthen our capabilities in later stage clinical and commercial development of biopharmaceutical products. This has been achieved through hiring world class scientific and medical leaders for key projects, ensuring access to R&D manufacturing capacity through relationships with contract manufacturers, and judicious investment in our own facilities. R&D investment remains an important avenue to future growth for CSL. We continue to search globally for high quality new product opportunities that match our technical skills in protein-based medicines, as well as our development and commercial capabilities.  Reference Wikipedia (The free encyclopedia) The PDMA Glossary for New Product Development". Product Development & Management Association. 2006. PDMA Handbook of New Product Development, 2nd Ed.: 81–91 Principles of marketing – Philip Cotler & Gary Armstrong “Marketing Research: So What’s the big Idea?” www.studyymarketing.org EXCEL 36