In this module, we will look at how do you manage the new product development process.

The whole process starts with building what is called the mission statement for a product.

Here on the screen you will see a mission statement for a kid's calculator.

It gives several aspects about the kids calculator that the company wants to develop.

First is the product description which is that it will be a small handheld electronic calculator meant for children.

Mentioned are product will be introduced in the fourth quarter of 2017.

It will give a 50% gross margin and a 10% share of the kids calculator market by 2019.

So it is covering both the profitability side as well as the market share aspirations for this product.

Then it lists down what is the primary market for this product.

The primary market that has been decided by the company is kids in the 6 to 8 age group.

They also have a secondary market which would be kids who are younger or older.

So the secondary market is kids in the 4 to 5 age group as well as kids in the 9 to 10 age group.

The company of course will design the product for the 6 to 8 age group, but it is possible that the product designed for 6 to 8 age group will also be used by younger children or older children.

Apart from this, you also have to list down what you will take for granted.

For example, the assumptions which are listed here are that you will use only solar power operated calculator.

The calculator will be sealed and waterproof.

Both these are important considerations because you want the product to be suitable for children.

You don't want products which would have small parts which may easily break out and may hurt the children.

So who are the stakeholders for this product?

First of course are the users which are children in the target group, but then there are other stakeholders who are the buyers, they are parents as well as teachers.

Then you have the retailers and the sales force which will have to retail this product.

Then you have another stakeholder being the production and quality control.

Then you have to look at packaging and the environmental standards required for packaging such a product.

In this case you may not be able to easily service the product because it's a sealed product but you can replace it and what are the norms for replacing the product and finally what are the legal standards which are required to be met for kids related products.

So, all these have to be looked at when you are developing this type of a product.


Speaker 0: In this module, we will look at how do you manage the new product development process.

Speaker 1: The whole process starts with building what is called the mission statement for a product. Here on the screen you will see a mission statement for a kid's calculator. It gives several aspects about the kids calculator that the company wants to develop. First is the product description which is that it will be a small handheld electronic calculator meant for children. What are the key business goals here?

Mentioned are product will be introduced in the fourth quarter of 2017. It will give a 50% gross margin and a 10% share of the kids calculator market by 2019. So it is covering both the profitability side as well as the market share aspirations for this product. Then it lists down what is the primary market for this product. The primary market that has been decided by the company is kids in the 6 to 8 age group.

They also have a secondary market which would be kids who are younger or older. So the secondary market is kids in the 4 to 5 age group as well as kids in the 9 to 10 age group. The company of course will design the product for the 6 to 8 age group, but it is possible that the product designed for 6 to 8 age group will also be used by younger children or older children. Apart from this, you also have to list down what you will take for granted. For example, the assumptions which are listed here are that you will use only solar power operated calculator.

The calculator will be sealed and waterproof. Both these are important considerations because you want the product to be suitable for children. You don't want products which would have small parts which may easily break out and may hurt the children. So who are the stakeholders for this product? First of course are the users which are children in the target group, but then there are other stakeholders who are the buyers, they are parents as well as teachers.

Then you have the retailers and the sales force which will have to retail this product. Then you have another stakeholder being the production and quality control. Then you have to look at packaging and the environmental standards required for packaging such a product. Then there's a question of servicing. In this case you may not be able to easily service the product because it's a sealed product but you can replace it and what are the norms for replacing the product and finally what are the legal standards which are required to be met for kids related products.

So, all these have to be looked at when you are developing this type of a product.

See all EP103x_New Product Developement transcripts on Youtube

Week 1- Developing Mission Statement