Product development is a process in which a product is designed. It starts with the idea of generating, designing and creating. I have chosen part (a) product development because productivity is a key to success. If I am working in an industry, it will easy for me to carry out new product, because industry can help me in product marketing and can tell me the strategies, which could be useful for me. Creating new ideas can give boost to your business.
New Product Development Steps and Strategies
Entrepreneur that productivity can lead your business to heights, the development of new product is not easy to develop a product many things should be discuss. There is a need of team or employees to solve the problem and to given the suggestion or to help in decision-making (Brands, 2013).
Step 1: Generating
For product development, the first step is to develop a product, after using basic internal and external SWOT analysis and the modern marketing trends. One can design the product but competitive advantage should be in the mind, the brands already existing are tough to compete. There are different types of risks level, which could affect your product. The product should be simple and affordable. Assume I have made a new product named ‘Mint Refreshing Juice”.
Step 2: Screening the Idea
The second stage is idea screening it means should the product develop or not? While developing a new product, in idea screening the new product is compared to others product in market. Product related ideas are also seen that if this product give benefit to our business or not? The ideas, which are not beneficial or relevant, are excluded in this step. This step is also known as “prescreening the product ideas”. For example in the case of refreshing juice it is seen that which more flavors should be invented and which should not be.
Step 3: Testing the Concept
After reviewing the ideas of new product development next step is testing the concept that our concept is how much effective, It is tested that what are the need and want of the consumer as our product could satisfy the customer or consumer need or not. After consumer analysis, we see other things like product development with the new time and technologies also the pricing, branding and sales and distribution of the product. In the case of juice, juice could be given to many retailers and pricing should not be higher than other juice brands.
Step 4: Business Analytics
After testing concept, here comes the business analytical step, in this step statistical and operational analysis take place. That what will be the percentage of new product sales and all other statistics in figure are calculated that could be helpful in the future. if all statistical analysis proven then product development take place.
Step 5: Beta / Marketability Tests
After statistical test, there is beta or marketing test in which the product is tested to get valuable information. This is also called last minute improvement, last minute improvement like if there are ant faults or flaws in the product then it should be test again. Beta testing is very effective for the development of the product.
Step 6: Technicalities + Product Development
When product passes through the different tests, now production department work starts that what logistics, publication, scheduling and resources will be use. The finance department provides the finance useful for the product.
Step 7: Commercialize
At this stage our product is commercialize now, like consumer are drinking and giving reviews about our juice. Our progress is monitor at this stage. Our distribution process needs to fast up at this time. We have to make new refreshing and exiting advertising so the people attracts toward it.
Step 8: Post Launch Review and Perfect Pricing
After the NPD, process there is still need to look for incessant improvement of the product. We have to make our product up-to-date, so consumer does not stop buying it. You have to review your product at this stage and ask for suggestion for the improvement. The pricing should also keep in view. If people like the juice, it does not mean to raise its price.
Analysis and NPD methodology:
Every day thousands of products come into market. My product is innovative and seems beneficial to the customers so people will buy it. Before product development, analysis is needed in which to understand the market is important, to understand the client is more important that what our client needed at what time and is the demand of consumer. Many questions should be answer like if the consumers are willing to buy our product. What kind of problems could be occur or generate while when product introduce in market. Total information about the product is also very important, and could be the design and methodology we should use for the product. What technology should be use? One should aim of a product mix, because there are many strategies. There is high-risk and high-cost strategy for developing a new product. Product marketing, product positioning and product life cycle should be discussed and kept in mind before introducing a new product.
Research planning of product:
The first phase in product development is to do planning and then develop a product concept. Markets usually do not do planning before launching the product this is way they have to face problems in future. To understand various customers thinking and needs is most important than another thing. Research planning is useful for any product and gives advantage in the future. After when the research planning is done, after knowing customer mind and his satisfaction level then the product development take place. The researcher has to consult different companies and different websites when could help them in planning. In product planning different strategies and decisions take place that what will be the price and place of the product and what kind of techniques should be used for the promotion of the product. Product planning also involves different decision-making concepts about the sales and discount and as well as production. The discussion and planning to improve product line is also discussed at this stage. The planning about packaging and color is also, there at this stage. There should be research on, how to get competitive advantage should be achieved and what will be the competitive reaction after knowing about your product. What new packages could be given to the employees and how could we tell customers that we are better than other competitors, company suppliers are also discussed at this stage (McKee, 2013).
In literature review of product development, we study that how product takes place in market from different companies. There should complete knowledge about the product and the market strategies. The focus is on one product, In the case of our product we have to adopt the perspective of product development in which we to take so many decisions related to our product. The pricing strategies and the market growth rate as well as the competitive environment should be reviewed. The research should be on various aspects of the product. In literature review the post of employees is also discussed, the work of project leader, customers and suppliers for good outcomes trainings are given to them. There should be clarity regarding marketing, engineering and a development of new product. All the perspective at macro and micro level should also be discussed. Risk management methodology should also be used, to tackle with in problems if ant risk occurs.
Summary and conclusion:
After the development of the product and satisfaction of the consumers, companies should make steps to develop new products if they want their name to grow. While making new product company should focused on the customers problems and take their feedback. From their feedback, it is know that how much customer is satisfied from the product. Technologies must be update with time (cleverism.com, 2014). Work should be done within the form of team. Team based new product development is important for any company. To review, evaluate and manage the new product should be part of any new project. Employees could play important role in managing the innovation or brining new ideas. Company should value customer experiences; product owner should finalize the product before it goes in the market. Try to make want-satisfying products after reviewing the customers. Make your company more competitive for the future. The company should also be preparing of the losses and risk alleviation.
The team should be balanced, as if team should have marketing and business expertise. Company should also have collaboration with different companies. Because companies can share their costs and risks, but not all the time companies could be helpful, they may also use you for knowing about the secrets, for competitive advantage. With the clear goals, mission and vision Company should work. Team can ensure product development if they are competent, productive and relevant. Senior management could also play positive role in product development. Product development could only be successful if the entire company is attentive.
- Brands, R. F. (2013, may 27). New Product Development. Retrieved 2 17, 2016, from https://www.innovationexcellence.com/blog/2013/05/27/8-step-process-perfects-new-product-development/
- cleverism.com. (2014, july 10). Product Development . Retrieved 2 17, 2016, from https://www.cleverism.com/product-development-overview-idea-product/
- McKee, S. (2013, november 19). Research Plan. Retrieved 2 17, 2016, from https://www.surveygizmo.com/survey-blog/how-to-develop-a-market-research-plan/