New Product Development (NPD)
It is the complete process of bringing a new product to the market till its consumption & feedback from the end user of the business chain through the systematic procedure & parameter.It may be a Consumable product, service or idea.
It is the complete process of bringing a new product or service to market.
New product development may be done to develop an item to compete with a particular product or may be done to improve an already established product.
Examples — this type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market.
- Fair & lovely.
- Bajaj Pulsar.
- Samsung Mobile
Why New Products?
New product development is essential to any business that must keep up with market trends and changes.
Approximately one-third of the revenue a business generates is coming from products they did not sell five years ago
Changing environment creates new demands and needs
Key stages in the process of product or service development
The process involves eight key stages:
The Stages of New Product Development Process
- Idea generation — Searches for product ideas that meet company objectives.
- Idea generation — brainstorming and coming up with innovative new ideas. See generating ideas for new products and services.
- Idea evaluation — filtering out any ideas not worth taking forward. See screening new product or service idea.
- Concept definition — considering specifications such as technical feasibility, product design and market potential. See researching new product and service ideas.
- Marketing strategy development: Defines the target market, product positioning, sales, share and profit goals for the first few years. Also identifies long run sales and profit goals and the marketing mix strategy.
- Business Analysis: Further evaluates the ideas on the basis of quantitative factors, such as profits, Return-on-investment (ROI), and sales volume.
- Product Development: Turns an idea on paper into a product that is demonstrable and producible.
- Market testing: Is the stage of new product development in which the product and marketing program are tested in realistic market settings.
- Commercialization: determining the pricing for your product or service and finalizing marketing plans. See pricing your proposed service or product.
- Product launch — a detailed launch plan can help ensure smooth introduction to market. (Read More: Click Here)
In most cases, a phased approach to product development process will help you keep schedule, resources and costs under control.
My previous blog visit: Why Your Business Needs Video Marketing