{"id":4324,"date":"2016-01-23T03:12:37","date_gmt":"2016-01-23T03:12:37","guid":{"rendered":"https:\/\/courses.candelalearning.com\/marketingxwaymakerxspring2016\/?post_type=chapter&p=4324"},"modified":"2016-02-18T18:16:22","modified_gmt":"2016-02-18T18:16:22","slug":"outcome-new-product-development-process","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-marketing\/chapter\/outcome-new-product-development-process\/","title":{"raw":"Outcome: New Product Development Process","rendered":"Outcome: New Product Development Process"},"content":{"raw":"

What you'll learn to do: describe the new-product development process<\/h2>\r\nWe have considered\u00a0the role of new products throughout this module. It is important to introduce new products in order to have a balanced portfolio containing products at the various stages of the product life cycle. We have not yet focused on ways of creating\u00a0successful new products.\r\n\r\nIn this module we will discuss a standard, somewhat fixed new-product development process. The logic behind this rather rigid process is that it requires a great deal of discipline to create new products. It's expensive to launch a successful new product\u2014but it's far more expensive to launch an unsuccessful products. For these reasons, organizations invest a lot in the creation and refinement of their new-product development processes. It helps them raise the odds that they'll be successful.\r\n\r\nConsider the following\u00a0dramatic product failures that, in hindsight, should have been screened out much earlier in the product development process.\r\n\r\nIn 1998 Frito-Lay introduced WOW! chips. These snack chips contained\u00a0significantly less fat and fewer calories than other snack foods thanks to the fat substitute Olestra. Initially, the product performed well, generating $347 million in 1998 and making WOW! the best-selling potato chip brand that year. The success was short lived, though. Olestra had an unpleasant side-effect: soon customers complained of\u00a0cramping, incontinence, and diarrhea\u2014in some cases requiring hospitalization\u2014after eating the chips. Frito-Lay's parent company, PepsiCo, spent $35 million on an advertising campaign to turn things around, but sales plummeted nonetheless.[footnote]http:\/\/www.marketwatch.com\/story\/12-worst-american-product-flops-2015-04-10[\/footnote]\r\n\r\nIn 2011 Hewlett Packard launched a product designed to go head-to-head with Apple's iPad. The product boasted\u00a0a higher number of performance features than the iPad, but it had none of the \"cool factor\" that drew customers to Apple. MarketWatch reported, \"Despite large-scale press events and promotions, the HP TouchPad was a colossal failure and was discontinued almost immediately. As a result of the TouchPad\u2019s failure, the company wrote off $885 million in assets and incurred an additional $755 million in costs to wind down its webOS operations, ending all work on the TouchPad\u2019s failed operating system.\"\r\n\r\nTo repeat: developing\u00a0new products creates opportunity and risk.\r\n\r\nThe specific things you'll learn in this section include:<\/span>\r\n