New product development process with example

Explain the new product development process with the example intro to marketing assignment. This includes the example of Aloo Ticki

1. Name: Muhammad Fahad Bashir
Class: BS SE 2A (morning)
Arid#: 20-Arid-790




8th Assignment Marketing BSSE UIIT SP21

Question No. Select any product of your own choice and discuss it according
to the whole “New product development process” step by step.
You need to describe your development process in the class.

Submission Date: 7 June 2021

2. New product development is a complete process in which there are many steps from idea
generation to bring product into market. So, my product is Aloo Tikki Burger which is product of
Macdonald especially for Indians.

We will explain this product with development process.
Step # 1: Idea generation –
The new product development process starts with idea generation. Idea generation refers to the
systematic search for new-product. Two sources of new ideas can be identified: It can be external
and internal.
 External sources which consist of a. Customers b. Competitors c. Distributors d. Suppliers

3.  Internal Sources –Brain storming – a. Scientists b. Engineers c. Marketing people d. ideas
from within organization.
So, our product Aloo Tikki burger. Idea was founded when Macdonald was unable to capture the
large market. It expanded itself to Indian market but there was missing of something that company
was unaware of. So, there was need to identify the reason and idea was generated that Macdonald
should launch something that would appeal to Indian market. They were not attracting to the beef
or mutton that was signature burger because in India many people are vegetarian and they do not
like meat at all.
India being a very ancient country with a strong culture and customs McDonald’s had to consider
the cultural, economic and socio-political factors in India. The country has six major religions
namely Hinduism, Buddhism, Sikhism, Islam, Jainism and Christianity with diverse beliefs and
value systems. Religious beliefs, customs and value system plays a significant role in the
customer’s preference for food and dining. The company’s menu customization for India was very
clear that products offered in India will not contain beef and pork. It was in India for the first time
in the world McDonald’s decided to abstain from serving beef and pork products . The company’s
introductory products were burgers, fries, vegetable nuggets, beverages and nuggets. It was in
2001 the company came out with a unique product for India which has the highest sales
among all McDonald’s products the Aloo Tikki burger

Step # 1: Idea Screening -
The next step in the new product development process is idea screening. Idea screening means
nothing else than filtering the ide generated are screened to spot good ones and drop poor ones as
soon as possible. The reason is that product development costs rise greatly in later stages.
Therefore, product ideas that will turn into profitable products. Dropping the poor ideas as soon as
possible is, consequently, of failure. In this there are several questions which we try to solve like
 Is it real?
 Can we win?
 It worth doing?
There were different options but main thing was it must introduce the product so that it should not
only capture the customer values but also must have an impact in market. so, there were ideas
whether it should be made with vegetables or something else. Then they found that potatoes are
very popular in India. They are using mainly in all dishes and it is favorite among all type of people
. So such ideas was picked from many that it must include mashed potatoes.

4. Step # 3: Concept Devolping and Testing
Product concept: it is the detailed version of new product idea stated in meaningful consumer
terms. There are few terms
 Product idea – idea for possible product that a company can see itself offering to market.
 Product image is the way consumers perceive an actual or potential product.
 Concept development is development of product concept
Concept Testing: Testing new product concepts with a group of target consumers to find out if the
concepts have strong consumer appeal. Concept can be presented symbolically or physically. Some
people use pictures, words, virtual reality etc. for concept testing
A product can not come to market without concept development or product idea and image. like
for our product company have a detailed version of burger. The company describes the product as
a combination of a potato and peas patty with special Indian spices coated with breadcrumbs,
served with sweet tomato mayo, fresh onions, tomatoes in a regular bun. This McAloo Tikki
outsells every other McDonald’s product in India. The company introduced the concept of Family
Dining restaurant especially for India. McDonald’s survival in India is only due to the complete
understanding of the Indian economy.

Step#4: Marketing Strategy Development -
Designing an initial marketing strategy for a new product based on the product concept. The
marketing strategy statement consists of parts –
 target market,
 the planned product positioning and the sales,
 market share
 profit goals for the first few years.
The second part of the marketing strategy statement outlines the product’s planned price,
distribution, and marketing budget for the first years.
The third part of the marketing strategy statement describes the planned long run sales, profit goals
and marketing mix strategy.
For successful product Macdonald found a different strategy. It found that the current
generation of Indian customers are different from the previous generation of Indian customers. For

5. the previous generation value for a product was related only with the price, but for the current
generation value for a product requires a combination of price and quality. The Indian customers
are most. Even Companies selling luxury goods have to formulate unique pricing strategies for
satisfying an Indian customer.
McDonald’s was perceived as an expensive brand. The company had to go in for price reduction
strategies for each of its products. a major portion of the Indian Consumers belong to the lower-
and middle-income groups and McDonald’s had to formulate a suitable pricing strategy that can
facilitate a high volume of consumers.
In India McDonalds classified products based on two pricing strategies
 Branded Affordability (BA)
 Branded Core Value products (BCV).
The BCV products consists of the high-priced products like the McVeggie and McChicken
burgers that cost Rs 50 to 60 .
BA products include McAloo tikki and Chicken McGrill burgers which cost Rs20 to 30. These
strategies were followed to satisfy consumers which different price perceptions

Step # 5: Business Analysis: -
A review of sales, costs and profit projections for a new product to find out whether these factors
satisfy the companies objectives –
 It is evaluation of business attractiveness of the propose
 The company uses the sales and costs figures to analyses the new products financial
attractiveness
It means that which kind of method they would that was preferrable suit for Macdonald. Before
launching into market, they conducted four years of research to explore supply chain to develop
its cold chain infrastructure for all its restaurants. As the company considers quality as its prime
importance,

Step # 6: Product Development: -
Developing the product concept into a physical product in order to assure that the product idea
can be turned into a workable product.

6. i. This stage involves large investments.
ii. The R&D department will develop and test one or more physical versions of the product
concept (prototype).
iii. The prototype must have the required functional features and also convey the intended
psychological characteristics
So our product was developed by using different ingredients like chopped curry leaves
chopped potato, turmeric, salt, chopped green chili (optional,) amchur powder, garam masala,
peas ,potato starch . It was also decided how it was served and packed.



Step # 7:Test marketing:
The last stage before commercialization in the new product development process is test
marketing. In this stage of the new prod marketing programmed are tested in realistic market
settings. Therefore, test marketing gives the marketer experience with market introduction. In
fact, it allows the company to test the product and its entire marketing programmed, including
targeting and position before the full investment is made. The amount of test marketing necessary
varies with each new product. Especially when introducing a new product requiring a lar not sure
of the product or its marketing programmed, a lot of test marketing may be carried out.

7. For this Macdonald launched it in areas where there was office workers and college students so
that company can be aware of its product.

.Step#8 Commercialization:
. Commercialization means nothing else than introducing a new product into the market. At this
point. Large amounts may be spent on advertising, sales promotion and other marketing efforts in
the first Some factors should be considered before the product is commercialize.
In all of these steps of the new product development process, the most important focus is on
creating superior customer value. Only very few products actually get the chance to become a
success. The risks and costs are simply too high to allow every prod process. Introduction timing.
For instance, if the economy is down, it might be wise to wait until the following year to launch
the prod products, the company should push to introduce the new product sooner. Introduction
place. Where to launch the new product? Should it be launched in a single location, a region, the
national mark has the confidence, capital and capacity to launch new products into full national or
international distribution from the start time.

And Finally, the new product- Aloo Tikki Burger was commercialized and it hit the local people
and form 9 out of 10 people like this. Its price was less but its value was great. The families and
middle-class people liked this very much. Company started camping for this and they also
introduced packages for families.
This way a product was launched into market from start to end.