In order for businesses to stand out in the local or global market, they need to manufacture innovative products their target audience will want to buy. However, developing and launching goods is tough, especially when the competition is high.
Even well-known brands have difficulty creating new merchandise and maintaining their existing wares due to the ever-changing landscape of the retail industry. In spite of this, a lot of companies are able to overcome this challenge, thanks to the new product development process.
The new product development process is a series of stages that begin from the conception of a product and end with the product’s introduction to the market. A typical process only has 7 main stages, but depending on the nature of the company, the number of procedures may vary. The 7 stages of the new product development process are as follows:
1. Generating of Ideas
Every good product starts with an idea, but many companies are unsure if the concept they have can address the demands of the market. For this reason, businesses will need to generate several ideas, so they can agree on an idea that’s worth pursuing.
Companies can gather new ideas by conducting market research. They can do this by sending surveys, speaking with their consumers, or checking their internal sources. However, working with an FMCG research company will make the process easier. This is because FMCG research companies use a broad range of strategies to present valuable data to meet their clients’ research objectives.
2. Concept Screening and Evaluation
Once the ideas are generated, the next step is to evaluate the concepts even further. Giving them another look will help highlight any flaws and allow companies to disregard any idea that doesn’t align with their goals. During this stage, it’s essential to work with the management team and project partners. Getting feedback from different perspectives increases the chances of the product’s success. It’ll also reduce the number of ideas to just one or two.
3. Concept Testing
Before creating a sample product, businesses will have to pitch their ideas first to their consumers. This will help them visualize the potentials of their product when they reveal it to the market. In this stage, companies will also have to consider their idea’s specifications like its design and technical feasibility.
When it comes to choosing a concept testing method, the most commonly used strategy is creating a focus group. This allows companies to listen to what their customers have to say about their product and get helpful feedback on how they can improve their idea.
4. Marketing Strategy and Analytics
With the concept now fleshed out, the next thing businesses have to do is to develop a marketing strategy for their product. In this stage, companies can determine the product’s target market, price, and marketing budget. With a robust marketing strategy, businesses will be able to review the product’s possible projected sales, cost, and profits.
5. Making the Product
After all the data has been collected and companies have decided on what their product is going to be, they can start developing the physical product. This stage requires a huge investment because several prototypes will be made before an actual, workable product is produced.
6. Market Testing
When the final form of the product is created, it’ll have to go through market testing. In this phase, businesses can do a small product release in select areas to see how well their product sells. By exposing the product to a more realistic market setting, marketers will gain the opportunity to make the necessary adjustments to ensure that the product’s official launch will be a success.
7. Preparing for Product Launch
The final stage of the new product development process is the preparation for the product’s launch. Here, businesses will have to prepare for the cost of their merchandise’s manufacturing, advertising, and promotion. They’ll also need to decide when and where the launch will be held. To make sure that the product is properly introduced to the market, businesses must create a detailed product launch plan.
There are a lot of steps and factors involved when it comes to creating a new product. However, by using the 7 stages of the new product development process as a guide, the entire process can be simplified.