The "Customers' Customers" Strategy in New Product Development : An Analysis of Chemical Industry(<Special Report>New Trend of Product Development Management)

Abstract

The present work discusses effective management of new product development in the chemical industry. Most of the preceding studies on the management of product development concerned assembly or system products/industries, and empirical studies on the chemical industry have been relatively scarce. The paper shows that patterns in concept development is a decisive managerial factor for successful projects by statistical analysis of the product development projects in Japanese major chemical businesses. The theory of product development management states generally that customers' requirements should be closely followed in the development of industrial products, as opposed to the development of consumer products where potential needs should be exploited. Analysis shows, however, that proposing concepts to customers based on anticipated needs of end users (customers' customers) is important also for successful development of industrial products. The present work examines conditions under which this "customers' customers" approach, which aims at satisfaction of end users, is effective.