Processes and Activities to Reduce New Product Failure

New product development is an imperative for a company’s survival. Depending on the definition of failure 80-95 % of all new products fail. Extensive research has been carried out in purpose of reducing new product failure rates, but in general the failure rates have not decreased.This thesis is focusing on the new product development process, and which activities companies should undertake to reduce their new product failure rates.We intend to compare product development methods and theories with the practice at companies, and investigate whether formal product development processes and failure rates are connected.We have chosen to carry out case studies at Findus and C Technologies. The empirical data was gathered through interviews with key staff.From our empirical data we cannot find a direct connection between usage of formal new product development processes and reduced failure rates.


1. Introduction
2. Purpose
3. Methodology
3.1. Background
3.2. Choice of Methodology
3.2.1. Selecting Criteria’s and Arranging Interviews
3.2.2. Preparing and Carrying Through Interviews
3.2.3. Analysis & Conclusions
3.3. Validity, Reliability, and Generalization
4. Theoretical Background
4.1. Why Reduced Failure Rates is an Imperative
4.2. Introduction to New Product Development
4.2.1. New Products and Innovation
4.2.2. Innovation from a Market Perspective
4.2.3. Consumer Analysis
4.3. Activities during the NPD Process
4.3.1. Idea Generation
4.3.2. Screening
4.3.3. Marketing Research
4.3.4. Positioning
4.3.5. Segmentation
4.3.6. Creating a Product Development Strategy
4.3.7. Project Execution
4.4. The Stage-Gate Process
5. Empirical Analysis
5.1. The Findus Group
5.1.1. Company Background
5.1.2. The NPD Process
5.1.3. Key Success Factors
5.2. C Technologies
5.2.1. Company Background
5.2.2. C Pen
5.2.3. The NPD Process
5.2.4. Key Success Factors
6. Conclusions
6.1. Further research
7. References
7.1. Literature & Articles
7.2. Internet Sources
7.3. Other Sources
7.4. Figures
8. Appendix
8.1. E-mail from Berggren, Eric

Author: Marcus Behrens, Jakob Waldemarsson

Source: Blekinge Institute of Technology

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