89-2 |
Incorporate product life cycle management into new product development : Experiences of the Thai food industry |
P. SUWANNAPORN, Food Science and Technology, Kasetsart University, Paholyothin Rd. Jatuchak, Bangkok, 10900, Thailand and M. Speece, School of Management, Asian Institute of Technology, PO Box 4 Klongluang, Pathumthani, 12120, Thailand. Most products will become obsolescence when they pass certain period of time. Length and pattern of each product life cycle varies among product categories rather than individual brands. Our previous study found relationship between product life cycle,level of newness, and nature of business on NPD process practices in the Thai food industry. The aim of this study is to use the statistic means to find the different NPD practices in the short and long life cycle product and how it can apply appropriately in NPD process. Research was conducted using in-depth interview with 20 NPD potential food manufacturers in Thailand and 114 companies response to the questionnaires. Cross tabulation method was used to find relationship between NPD activity and product life cycle. Factor and discriminant analysis were applied in order to find differences of NPD practices between short and long life cycle product. By cross tabulation, we found that the short life cycle product account for 82.1% in highly NPD activity company and long life cycle products account for 85.7% in low NPD activity company (p=0.00). Discriminant analysis shows that supplier linkage (coefficient=0.844) and new product strategy and planning (coefficient=0.579) are usually practiced in company manufacturing short life product. Moreover product life cycle also have impact on type and mix of innovation. Short life cycle product tends to focus more on the product innovation stage and most of it are getting out of the market before passing to the process innovation or cost minimization stage. This cause high NPD activity in short life cycle product. In the contrary, long life cycle product will pass through the process innovation stage and focus more on process and cost minimization. By conclusion, to manage new product appropriately to its life cycle especially in issue related to supplier linkage, strategy and planning, information and communication will enable the company to sustainable their profit and growth.
Session 89, Product Development
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