Thursday, March 4, 2010

The New Product Development Process


IdeaPaint , a paint that turns any surface into a dry-erase board, is a good example showing how students take advantage of the environment and have it invented. It is now found in 10,000 locations around the world, including MIT, MTV Networks and The Limited Brands. I would like to use this to illustrate the new product development process.

It first starts from Idea Generation which came by brainstorming by a student, Jeff Avallon and his friends in a study room with walls covered in Post-it notes. They thought walls could act as collaboration tools. They came out many ideas to have the concept of being able to write over an entire wall. After Idea Screening, they decided to devise an erasable paint to satisfy their want. To testify the feasibility of the idea, they seek help from two professors, a college-board member and a parent to see if they believed in the idea and put investment. This is called Concept Development and Testing. After that, they started to find the target market, not only for school, but also for work and home. During Marketing Strategy Development, they need to plan the potential price, distribution, and marketing budget. Profits goal and marketing mix strategy were planned in the business plan and would be evaluated in Business Analysis. Now, they were going out of concept but take actions by producing a prototype, Product Development. As they said, when IdeaPaint finally had a prototype, “they had a conversation with everybody at school, Babson, who could be a potential customer or user.” When the final product was ready, they let the school be the first customer. This was the way they tested the Market. Finally, Commercialization means to introduce IdeaPaint into the market.

http://www.entrepreneur.com/magazine/entrepreneur/2010/march/205056.html


Selina Chan

Section G

16 comments:

  1. This is really interesting. I am trying to learn more about this whole process because it keeps coming up more and more in my business dealings. Articles like this are endlessly helpful.

    Jane | http://www.eigerlab.org/center-for-product-development/

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  2. I adorably like and love this example NPD. The idea was interesting and very creative! And it is really helpful especially for Marketing students like me. Nice. :) :D

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  3. Great blog.....Thanks for your suggestion on this blog.System of defined steps and tasks such as strategy, organization, concept generation, marketing plan creation, evaluation,Product Development Process and commercialization of a new product. It is a cycle by means of which an innovative firm routinely converts ideas into commercially viable goods or services.To know more info visit our blog.

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  12. New Product Development is a broad topic which contain a package of strategy, ideas and responsibility. It is not a easy task but after initiating proper process and steps, success is sure... We at our organization works with first time right methodology in order to have a successful entry in Market.

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