New Product Development
New Product Development
MODULE - 5
• Given the rising interest of the companies in
the rural market, developing new products
suitable for the rural market has become an
imperative
NPD Process
• Idea Generation
• Concept testing
• Product Development
• Test Marketing
New Products
• 5 kg gas cylinder by HPCL
• Jolly battery operated colour television
• Free Power Radio
• Jugaad the rural public transport
• Kisan Credit Card
Failure of Products
• The product is not fit with the rural lifestyle and
environment
• Therefore, it is important :
• To conceive of a product idea and build a product
concept in the rural environment by gaining a
first hand understanding of consumer lifestyles
and behaviour patterns through consumer
surveys
Rural Product Design
• MAX GAS LPG CYLINDER
• Rural consumers reluctant to switch to LPG for
cooking because they worry the cylinder would
burst automatically and there is no way to check
the quality of the gas
• Max gas, a private player, developed a cylinder
with the following features:
– Auto cut off regulator, which shuts off the gas supply
in case of leakage
– Double sealed cylinder to ensure the correct weight
• Special steel braided hose pipe, which is rat
resistant
• Wider base of cylinder to ensure stability even
on uneven rural kitchen floors
HPCL 5 kg GAS CYLINDER
• New connection – Rs. 1600
• Refilling – 270