- A.New Product Development (NPD) ✓
- B.Product Line Stretching
- C.Brand Extension
- D.Line Extension
Stage-Gate at Procter & Gamble is the textbook illustration of New Product Development (NPD). The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.
How to think about questions like this
Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.
For New Product Development (NPD) specifically, look for the signal: 80%+ of new products fail; structured NPD improves the odds. That signal is what distinguishes the right answer from plausible-sounding alternatives.