NEW PRODUCT DEVELOPMENT
It
is very important to have a strategy for developing new products. Many products
fail and in order to keep expanding company sales, we must have new products.
Some products of Hindustan Lever have failed, but still they remain leading
manufacturers because they have continuously added to their lines and added
product lines to their product mix. Their 'Hima' peas introduced in
the 60's flopped, because, in the words of the Chairman of Hindustan Lever,
'India is not yet ready for convenience foods, neatly done up in packages.' The
product 'concept' requires testing before one goes into product designing and
it is very necessary to have an adequate strategy for developing new products
and introducing them. Several stages must be defined. Figure I gives the stages
in new product development. These will now be discussed in detail.
Figure-I
: Stages in New Product Development
