THE SEVEN (7) STEP STRATEGY FOR NEW PRODUCT DEVELOPMENT

Aside from the metaverse only becoming popular a few years back, several virtual reality products have existed before. And undoubtedly, what shapes the growth of every generation is new product development. Therefore, not having a new product development strategy to create a new line of products can make a business obsolete.

However, many intending founders need help to create new products. In fact, several company heirs and CEOs are struggling with their businesses because they cannot innovate. So, while we cannot outrightly infer that it is a simple thing, we can show you how it is done.

Having helped several businesses break loose from stagnancy, we have identified specific vital steps during the stages of new product development as a strategy.   

Key Points

• New products shape the growth of every generation.
• The main focus of this idea has to be solving a pertinent need of end users.
• Product concepts are used to determine if customers understand a product idea easily.
• During the market campaign, getting the developed new product to customers’ doorstep is vital.
• Once you know how sales go, you can either continue with the full launch or have a new product development strategy for a different version

STEP 1: Generating Ideas for New Product Development

The stages of new product development have to start with ideation. In this stage, you and your team have to come up with ideas for the product you want to work on. These ideas have to focus on solving a pertinent need of end users.

An innovation company, Viima, clearly stated that making progress as individual human beings depend on new ideas. In this article, the company talks further about idea generation.

This step or stage of new product development is the most open because all employees should be encouraged to come up with ideas. In fact, you can set up teams and groups to brainstorm ideas that you can use to improve the life quality of your customers. Usually, in-house ideas often take into consideration company finance and other restrictions.

Instead of coming up with ideas in-house, you can go through this stage of new product development open to your customers. Using an online survey to find the most desired product can be very helpful. Unlike employees who entertain restrictions when coming up with ideas, customers do not have such an embargo.

STEP 2: Developing New Products Through Evaluation

After your company has come up with ideas through individuals, employee teams, or online surveys, you need to evaluate the ideas. Unfortunately, most product development ideas at this stage are provided based on bias and preferences. A degree of favoritism is key to generating ideas, but it can hamper the whole development process.

Hence, idea screening or evaluation helps identify flaws in an idea that the individual who came up with it may not have noticed. For instance, the affordability of a new product is one of the key considerations during idea screening.

The management team is charged with this responsibility. Aside from other screening tools, they also use market research and SWOT analysis to determine viable ideas.

STEP 3: Testing Idea Concept Before Developing New Products

After picking an idea through thorough screening, you proceed to idea conceptualization. Coming up with idea concepts helps the company to get more information on the idea. For instance, you can find different versions of the same idea that can work for different customers.

These customers are then invited to test the idea concept that will be most acceptable in the market. The concept will be used to determine if customers will understand the idea easily. Additionally, you want to be sure the concept being tested matches the company objective.

STEP 4: Creation in New Product Development

After the planning, research, and discussion stage, the company’s development team is charged with putting every detail of the idea together. Here is where you have a real prototype. Alongside the prototype, the design team has to come up with the right packaging.

Hence, you can use the prototype and packaging to get actual feedback from customers. Also, you can share the prototype with some key partners. This stage helps test the product’s feasibility before going into full production.

STEP 5: Market Routes for Developed New Products

When developing new products, you need to perform a full cost analysis. Full cost analysis is the Marketing campaign’s total cost of developing the new product. This analysis would include direct and indirect costs that the company will incur on the product.

After coming up with a cost estimate, the company moves on to determine profitability and potential competitors. Finally, the company will use the comprehensive information gathered from competitors to find the best marketing route. During the market campaign, getting the developed new product to customers’ doorstep is vital.

STEP 6: Testing the Market of a Developed New Product

This stage of developing new products is where you can have a prelaunch. The purpose of the prelaunch is to test the chosen marketing strategy. But first, you need to know the product’s viability and strategy.

According to Harvard Business Review, the anticipated availability of a product partly determines the testing methods. HBR is a magazine published six times yearly on strategy, leadership, and innovation. This write-up discusses more key facts about test marketing ideas for new product development.

Once you know how sales go, you can either continue with the full launch or come up with a new version of the product. Essentially, this stage is for getting customer feedback.

STEP 7: Launching New Product Developed

The last step is the full commercialization stage of your final product. There are no more holdbacks again in your production and marketing strategy. Before this stage, you have an estimate of what number of products to produce and how to get the product to customers.

You focus on building relationships with advertisers, marketers, and distributors at this stage. Additionally, you may need to build relationships with the right manufacturers if your company does not have a manufacturing department

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Hottest Questions about New Product Development

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Conclusion

With new products, a business can make many changes to the way of living of several societies. And the way to achieve those changes is by following the stages of new product development strategy. Hence, this article has highlighted the seven steps for developing new products.

By following each step, your company can solve a pertinent need of end users. You can also find out if end users will easily understand your product concepts. But before the full launch, the company needs to know how customers feel about the invention.

LA NPDT is a company focused on helping you make a difference in the marketplace through new product development. We have a cross-functional team to help your business transform product ideas into sellable products.

Some of the services available at LA NPDT are building prototypes, CAD models and PCB circuits, and more. Message us today through lanpdt.com or call directly at 318-243-5789.