PRODUCT,

SERVICES AND
BRANDING
Presented by Group 3
 Members
Bon, Per Paulo
Fernandez, Marielle
Lozano, Jinelle Ann
Navarrete, Krizzea
Rala, Rainna Diana Mae
Refugio, John Cedrick
New Product Development (NPD)
NPD involves the complete process of launching
new products, focusing on design and business. It
converts market opportunities into physical or
service products, guided by customer needs and
competition. Key factors include cost, time, and
quality. Successful companies develop strategies
to meet demands and enhance market share,
relying on effective communication and best
practices.
 Process Structure
The product development process involves activities to
deliver new products, managed through a structured
approach. It overlaps with engineering design, especially for
complex products. Each product goes through stages like
ideation, design, manufacturing, and market introduction.
Complex products (e.g., aircraft, automotive) need detailed
management and can take over 10 years, unlike consumer
goods. The process is divided into various phases and
stages.
• Fuzzy front-end (FFE) involves activities before formal requirements,
defining what the product should achieve to meet market needs.

• Product design translates requirements into specific solutions,

overlapping with engineering and aesthetic design, concluding with
pre-commercialization analysis.

• Product implementation includes detailed engineering, prototype

refinement, and testing to ensure specifications are met.

• Fuzzy back-end or commercialization involves steps for production

and market launch.
 NEW PRODUCT DEVELOPMENT
PROCESS
New product development process
•New product strategy
•Idea generation
•Concept testing
•Business analysis
•Product development
•Market development
•Market testing
•Commercialization
Concepcial models
• The concept adopted by IDEO a design and consulting firm
is one of the most researched processes regard to new
product development and is a five step procedure.

•BAH model
•Stage-gate model
•lean start-up approach
•Exploratory product development model
 Idea and Technology Development
• The first element is the opportunity identification. In this element, large or incremental
business and technological chances are identified in a more or less structured way.
Using the guidelines established here, resources will eventually be allocated to new
projects, which then lead to a structured NPPD (New Product & Process Development)
strategy.

• The second element is the opportunity analysis. It is done to translate the

identified opportunities into implications for the business and technology
specific context of the company. Here extensive efforts may be made to
align ideas to target customer groups and do market studies and/or
technical trials and research.
• The third element is the idea genesis, which is described as evolutionary and iterative
process progressing from birth to maturation of the opportunity into a tangible idea.
The process of the idea genesis can be made internally or come from outside inputs,
e.g. a supplier offering a new material/technology or from a customer with an unusual
request.

• The fourth element is the idea selection. Its purpose is to choose whether
to pursue an idea by analyzing its potential business value.

• The fifth element is the idea and technology development. During this part of the
front-end, the business case is developed based on estimates of the total available
market, customer needs, investment requirements, competition analysis and
project uncertainty. Some organizations consider this to be the first stage of the
NPPD process.
 The Phase Zero of the Stage-Gate Model of New Product Development
The Stage-Gate model of NPD predevelopment activities are summarized in Phase zero
and one, in respect to earlier definition of predevelopment activities
1. Preliminary - coming before a more important action or event, especially
introducing or preparing for it.
2. Technical assessment - is a combination of application-based techniques and
knowledge-based questions employed to measure an employee's understanding
of concepts, tools and frameworks on a required technical skill or technology.
3. Source-of- supply assessment: suppliers and partners or alliances -
Supplier assessment is carried out to evaluate a supplier, based on the specific
requirements of the buyer organization.
3. Source-of- supply assessment: suppliers and partners or alliances -
Partnership sourcing represents a collaborative approach in which a buying
organization and a small number of its suppliers work closely together, sharing
the risks and rewards of a cooperative relationship that focuses on continuous
improvement (Ellram and Edis 1996).
Alliances refers to the collaborative partnership formed among enterprises within
a supply chain to integrate resources, enhance resilience, and achieve competitive
advantage. These alliances aim to address challenges such as ambiguity,
uncertainty, and disruptions in the business environment by promoting knowledge
transfer, complementary R&D, and resource sharing.
4. Market research: market size and segmentation analysis, VoC (voice of the
customer) research - the process of capturing, understanding, and analyzing the
opinions, preferences, needs, and expectations of customers regarding a product,
service, or brand.
5. Product Idea testing - the evaluation of an existing product or a new prototype
to assess key areas like performance, quality and functionality.
6. Customer value assessment - is a set of criteria across four categories that
capture a customer's wants, needs or expectations. Using these criteria,
organizations gain insight into the customer's perception of their organization.
The four CVA categories include Solutions, Responsiveness, Economics, and
Relationship.
7. Product definition - A product is the item offered for sale. It clpan be physical or
in virtual or cyber form.
8. Business and Financial Analysis - Financial analysts and business analysts
examine the data of internal or external clients and use their findings to make
recommendations about business decisions. They may also work as a specialist
who tracks the company's income or revenue.
 Early Phase of the Innovation Process
A conceptual model of Front-End Process was proposed which includes early phases of the innovation process. This
model is structured in three phases and three gates:

Phase 1: Phase 2: Phase 3:

Environmental screening Preliminary definition of an Detailed product, project
or opportunity idea or concept. or service definition, and
identification stage in Business planning.
PRELIMINARY
which external changes will
be analyzed and
translated into potential
business opportunities

The gates are:

Opportunity Idea GO/No - Go for

screening evaluation development
ACTIVITY VIEW ON FUZZY-FRONT END

Predevelopment is the initial stage in NPD and consists of numerous activities,

such as:

*Product strategy formulation and communication

*Opportunity identification and assessment
*Idea generation
*Product definition
*Project planning
*Executive reviews

Economical analysis, benchmarking of competitive products and modeling and

prototyping are also important activities during the front-end activities.neration
THE OUTCOMES OF FFE ARE THE:

*MISSION STATEMENT

*CUSTOMER NEEDS

*DETAILS OF THE SELECTED IDEA

*PRODUCT DEFINITION AND SPECIFICATIONS

*ECONOMIC ANALYSIS OF THE PRODUCT

*THE DEVELOPMENT SCHEDULES

*PROJECT STAFFING AND THE BUDGET

*A BUSINESS PLAN ALIGNED WITH CORPORATE STRATEGY

INCREMENTAL, PLATFORM AND BREAKTHROUGH PRODUCTS INCLUDE:

• Incremental products are considered to be cost reductions, improvements to existing product

lines, additions to existing platforms and repositioning of existing products introduced in
markets.

• Breakthrough products are new to the company or new to the world and offer a 5-10 times or
greater improvement in performance combined with a 30-50% or greater reduction in costs.

Platform products establish a basic architecture for a next generation product or process and
are substantially larger in scope and resources than incremental projects.

Pricing-Understanding & Capturing Customer Value.... The amount of money charged for a
product or service; the sum of the values that customers exchange for the benefits of having or
using the product
service.
 Major Pricing Strategies
Customer Value Based Pricing

Customer Other Internal and

External Product Cost
Perception Value
Considerations

Price Ceiling Competitor's strategies and Prices Price Floor

- No demand above the price Marketing strategy, objectives, and - No Profit below the price
mix nature of the market and
demand.
 What is the Importance of Pricing?
Historically, price has been a major factor affecting buyer choice. now price
still remains one of the most important elements that determines a firms
market share and profitability, although in a recent decades non-price
factors have gained increasing importance.

Price is the only element in the Marketing mix that produces

revenue and the most flexible marketing mix elements.
 Three (3) Major Pricing Strategies
1.) Customer Value - Based Pricing
• Setting price based on buyers perceptions of value rather than on the seller's cost.
Customer perceptions of the product's value set the ceiling for prices.
2.) Cost - Based Pricing
• Settings prices based on the cost for producing, distributing and selling the product plus a
fair rate of return for effort and risk. company and product cost are an important
consideration in setting prices because this costs set the floor of pricing while customer
value perceptions set the price Ceiling.
3.) Competition - Based Pricing
• Setting prices based on competitor's strategies, Prices, Costs, and market offerings.
Customers or consumer base their judgements of a product's value on the prices that
competitors charge for similar products.
 The Internal and External Considerations that affect
Pricing decisions
Internal Factors
• Affecting pricing include the company's overall marketing strategy,
Objectives, and Marketing mix, as well as organizational considerations.

External Pricing
• Refers to how outside factors influence the prices of products or
services. It's all about the environment in which a business operates.
Including Market demand, Consumer Trends, Regulatory factors, and
Economic Conditions.
Price Strategies
Cost-plus
Pricing
Competition- Marginal
oriented Cost Pricing
pricing

Pricing
Psycological Strategies Target ROI
Pricing Pricing

Demand- Experience
Based Pricing Curve Pricing
 5 Product Mix Pricing Strategies
Product Line Pricing
Product line pricing is a pricing strategy where a company offers a range of products
or services at different price points, with each product having a distinct set of
features and benefits.

Optional Product Pricing

Optional product pricing is a strategy where businesses offer an essential product at a set
price while presenting customers with optional or accessory products at additional costs.
This approach cleverly taps into customer choice, enabling buyers to customize their
purchase to fit their needs and budget.
 5 Product Mix Pricing Strategies
Captive Product Pricing
involves products that must be used along with the main product.

By-Product Pricing
a pricing method used in situations where a saleable by-product results in the
manufacturing process.

Product Bundle Pricing

A strategy in which products are bundled together in order to make the total cost of
purchase less than if each item was purchased separately.
Question
Time
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