Types of and Reasons for New Product Development and its 7-KIM

Abstract

What are the various types of new products that companies produce from time to time? Why do companies need to develop and market new products? The answer is not so simple as the question. Of course, one reason is obviously to survive in the competition. However, there are companies that developed and launch many so-called new products for the satisfaction of the management. Such as bar soaps. But there are many other justified reasons for which a company needs to develop new products. This paper explains types of new products, reasons for developing new products by companies, and things to keep in mind (7-KIM) during developing new products. To better understand the concept of new product development, readers must have a clear idea about the definition and types of new products. In a survey consisting of 54 companies in Bangladesh that add products to their product line quite frequently, it has been found that 51 out of these 54 companies do not develop and market any new products. They just make products based on the Contestable Market Effect. Bar soaps, edible oil, toilet paper, and other first-moving consumer goods are common products. But these companies do focus only on (cost)─one of the basic guidelines known as the 7-KIM of new product development. Thus, given these scenarios, this paper introduces all types of new products and explains when companies need to have true reasons for development these new products.