In the business world, it's easy to say that time is money. But when it comes to creating new products and services, time may be more precious than any other resource. A product manager who has a good idea for a new product should be able to work with their team quickly to bring their vision to action as soon as possible.
Reading about the seven stages of the New Product Development process will help you understand how your company can get ideas from conception to store shelves effectively. It will also help you to understand how to create a fool-proof product development strategy.
Understanding the stages of new product development is crucial for any entrepreneur who wants to create new products relevant to today’s market and appeal to a customer base. To achieve a new product launch, you first have to develop it. Let’s see what this process looks like for the most successful companies in the world.
The Stages Of New Product Development Process
The new product development process (NPD) is a collection of steps organizations follow to create new products. In some cases, the entire process may be handled in-house. For example, a company might have an internal team dedicated to creating innovative products and services.
But in other instances, the NPD process may involve multiple stakeholders from across the organization and outside sources. This post aims to provide you with a comprehensive 7 stages of the new product development process and help you understand how it works.
Step 1: Idea Generation
You already have an idea to build a product or invention, but you will still need to conduct market research and understand your target audience. You can do this by using the SWOT technique to analyze your product idea: evaluate its strengths, weaknesses, opportunities and threats. Alternatively, you might want to develop different versions of your idea for various scaled projects.
Step 2: Idea Screening/Evaluation
New product development is hard to manage because you may be blind to flaws or unsuitable ideas. Screening your product with your management team and analyzing the ROI and affordability are crucial to its success. Ensure that you share your product idea with your management team and analyze the ROI and affordability numbers.
Step 3: Idea Testing
This stage is different from the test marketing stage because you are now testing the concept of your product, not the product itself. The concept is what you use to market your product, and you must get this right before revealing it to the public. You will need to find and gather several people from your target market demographic and introduce them to the concept of your product.
Step 4: Business Analytics
Once you have confirmed the details of your product, you will need to work out how to make it successful! This stage will analyze your marketing strategy and full cost analysis will be carried out to work out profitability. You also need to find and analyze the potential competitor's data at this stage, as you can get ideas from their product development analytics.
Step 5: Product Creation
The final process of your product is creating a prototype and getting customer feedback on how it looks and feels. How to patent your product? A prototype can be made in many ways, but the most common way is using 3D printing. This means that you will be able to see your product in action before it’s even out on the market! Not only the product but you will also see the packaging of it.
Step 6: Test Marketing
This is where you can put all the feedback that you received from your prototype and use it to your advantage. You can advertise the positive aspects of it and do a small product launch to see how well they sell. If the results are good, then you’ll know what to do for the full-scale launch. You can also revise your product pricing strategy based on the results.
Step 7: Launch
This is the moment to celebrate! Your product is now public and has started to sell in the market. You can now launch your products or sell directly, depending on your market size or manufacturing options. However, this stage involves a lot of work, as you need to decide the number of products to sell and the desired location of it. At this point, ensure to build strong relationships with product distributors and advertisers.
The New Product Development process is long and can be broken into 7 stages. These different stages in product development are important to the success of any new product and should be followed closely by those in charge of bringing it to market.
At the end of the day, your product needs to solve a problem or serve a need to be successful. When you are developing your new product, make sure that you keep this in mind at all times and consider everything so that you can create the best product possible.
We at OpenGrowth Academy aim to convert your one idea into a full-fledged business. We are a next-gen platform to nurture your dreams into reality. Visit us to know more about the Academy programs, sessions, and events. Are you excited? Get insights on “How to Measure Product Market Fit” with us.
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