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Successful development and introduction of a new product can challenge a company’s business. Various difficulties need to be resolved, and the market, consumers and competitors need to be analysed to sustain a product in the market. Thus, if you want your product to gain value and popularity in the market, you must follow new product development strategies.
What is New Product Development?
The process of bringing an idea into a tangible product is called new product development. This process checks customer needs, market opportunities and product feasibility before it is launched.
Product Development Strategy
Developing a strategy to introduce a product enables the company to attract customers with excellent and innovative offerings. It helps avoid overestimating and misreading the target market, launching an unwanted product, incorrectly valuing a product, and preventing the business from the unexpected competition.
To create lifelong product development strategies, you need to keep the following in mind:
- You must have a vision of where you want your company to be in the future.
- Steps you must take to achieve the targeted vision.
- List of priorities and budgets to take your project to its final destination.
The three categories on which the product development strategies depend are premium and innovative products with high price and value like the Apple iPhone, competitive products like Colgate toothpaste and low-cost products like Kirkland.
Stages of Product Development
- Ideating: The first stage is when the company works on finding and collecting innovative ideas depending on the information obtained through inside and outside sources. Inside sources are the company’s teams working on analysis and development. Outside sources refer to inventions by other similar businesses, the buyer’s needs, etc.
- Idea Sorting: Here, the ideas gathered in stage 1 are sorted. The ideas that fit the company’s quality and economic framework are selected.
- Product Concepts: Detailed product concepts are created. These concepts are made by taking customers and the market into consideration. Later, the concepts are tested.
- Marketing Strategy: The company devises innovative strategies to launch the product. It needs to focus on price, the revenue it will generate, and the advertisement of the product and distribution channels.
- Analysis: The product is thoroughly analysed to understand production cost, revenue, and risks. If the product can satisfy the company’s motives, then it is ready to enter the next stage.
- Product Development: After the product gets a green signal, it is sent for development.
- Market Testing: Here, the product’s market is studied. Is there a need for more advertisements? What is the correct production quantity? Queries related to packaging and distribution are answered.
- Technological Manufacturing and Prototype Evaluation: Computer-aided manufacturing creates a prototype of the product. This prototype is thoroughly reviewed and tested. Design defects are addressed in this stage.
- Manufacturing: After the product passes the prototype test, it is manufactured in bulk. To lower the production price, companies work on selecting the materials, packing lists, and the manufacturer.
- Commercialization: This stage decides if the product will be launched.
Conclusion
It is challenging for any entrepreneur or company to develop a new product. Introduction of the product doesn’t mean manufacturing and bringing it to market. A company must work on strategies and stages for developing and introducing new products. The stages are ideating, idea sorting, development of marketing strategy, analysis, product development, market testing, technological manufacturing, prototype evaluation, manufacturing, and commercialization.
