Eight Simple Steps For New Product Development
Developing a new product shouldn’t feel like you’re fighting in the
dark. There’s an easier way. What you need is a structured road-map that gives
your business a clear path to follow.
Actually developing the tangible product or service is only a small part
of the new product development process, which includes the complete journey
from generating the initial idea to bringing the product to market.
By setting out the steps involved, and sticking to them, your product
development will become a more focused and flexible approach that can be
adapted for all different types of products and services.
1.
Idea Generation
The development of a product will start with the concept. The rest of
the process will ensure that ideas are tested for their viability, so in the
beginning all ideas are good ideas (To a certain extent!)
Ideas can, and will come, from many different directions. The best place
to start is with a SWOT analysis, (Strengths, Weaknesses, Opportunities and
Threats), which incorporates current market trends. This can be used to analyses
your company’s position and find a direction that is in line with your business
strategy.
2.
Idea Screening
This step is crucial to ensure that unsuitable ideas, for whatever
reason, are rejected as soon as possible. Ideas need to be considered
objectively, ideally by a group or committee.
Specific screening criteria need to be set for this stage, looking at
ROI, affordability and market potential. These questions need to be considered
carefully, to avoid product failure after considerable investment down the
line.
3. Concept
Development & Testing
You have an idea and it’s passed the screening stage. However, internal
opinion isn’t the most important. You need to ask the people that matter – your
customers.
Using a small group of your true customer base – those that convert –
the idea need to be tested to see their reaction. The idea should now be a
concept, with enough in-depth information that the consumer can visualize it.
Do they understand the concept?
Do they want or need it?
This stage gives you a chance to develop the concept further,
considering their feedback, but also to start thinking about what your
marketing message will be.
4. Business
Analysis
Once the concept has been tested and finalized, a business case needs to
be put together to assess whether the new product/service will be profitable.
This should include a detailed marketing strategy, highlighting the target
market, product positioning and the marketing mix that will be used.
This analysis needs to include: whether there is a demand for the
product, a full appraisal of the costs, competition and identification of a
break-even point.
5. Product
Development
If the new product is approved, it will be passed to the technical and
marketing development stage. This is when a prototype or a limited production
model will be created. This means you can investigate exact design &
specifications and any manufacturing methods, but also gives something tangible
for consumer testing, for feedback on specifics like look, feel and packaging
for example.
6. Test
Marketing
Test marketing (or market testing) is different to concept or consumer
testing, in that it introduces the prototype product following the proposed
marketing plan as whole rather than individual elements.
This process is required to validate the whole concept and is used for
further refinement of all elements, from product to marketing message.
7. Commercialization
When the concept has been developed and tested, final decisions need to
be made to move the product to its launch into the market. Pricing and
marketing plans need to be finalized and the sales teams and distribution
briefed, so that the product and company is ready for the final stage.
8. Launch
A detailed launch plan is needed for this stage to run smoothly and to
have maximum impact. It should include decisions surrounding when and where to
launch to target your primary consumer group. Finally, in order to learn from
any mistakes made, a review of the market performance is needed to access the
success of the project.
New product development can be made much simpler and focused, with a higher
likelihood of success, by following these steps to guide you.
