Miller Brewing Co.: New Product Planning And Development Process

A product that generates maximum profit with minimal risk should be developed and marketed using six stages to new product planning and development process which are idea generation, idea screening, project planning, product development, test marketing, and commercialization. The product development process can be measured through the stages using various different success criteria such as customer acceptance measure, financial performance, product level performance, or other non-financial performance (Peter & Donnelly, 2015).
Customer acceptance measure the firm can use matrix such as customer satisfaction, revenue, market share or unit volume to track the performance. For example, Miller Brewing Co. had decided to gain market share and customer satisfaction by building its premium brand franchises, value added new products and leverage local markets to build its brand franchise. Market penetration can be achieved through the increase in market share from present

Companies can keep the development expensive lower by leverage the research or monies spent on the original product for example Gillette used original Sensor to successfully develop and launch the sensor razor for women and the sensor excel razor. This type of success can increase rate of return on investment made to new product line. Similarly ROI can be lower if the product is not successful in case of the Maxwell House (Altria), Folgers (Proctor & Gamble), and nestle are struggling to develop fresh whole bean coffee to capture market shares back from Starbucks. (Peter & Donnelly, 2015). “A more holistic measurement will be the percent of revenue from new products in any one year that is due to products introduced in the last three to five years. This is a common metric for assessing NPD effectiveness for the business as a whole.” (New product vision, 2013, para.