New Product Development Process

Five steps in the New Product Development Process are:

1. Idea Generation

• Brainstorming – thinking about it
• Creating a new product based on some observed need
• Thinking of a new product based on some accident or chance circumstance

2. Screening

• Getting opinions from
  • Employees
  • Potential customers
  • Media
  • Government
• What are the weaknesses of existing products that are similar
• Is there any competition for a new product
• What are the industry sales and market trends the product idea is based on

3. Idea Evaluation / Concept Development

• Estimate costs, revenue, profit,
• Do market research
• Target market segmentation
  • Describe the main group of people who will be the first customers

4. Development of Product / Business Analysis

• Physically design and manufacture the product
• Estimate likely selling price based upon competition and customer feedback
• Estimate sales volume based upon size of market
• Produce a physical prototype or mock-up
• Test the product (and its packaging) in typical usage situations

5. Commercialization

• “Make enough to sell”
  • Manufacture a large amount to send out to the stores that will stock the items so enough inventory on hand for the public to buy
• Launch “promotion campaign”

Product Development Process:

Opportunity Identification:

• Internal sources
  Company employees at all levels
• External sources
  Customers
  Competitors
  Distributors
  Suppliers
  Outsourcing

Idea Generation (Ideation):

• Cross Functional Team
• Generate Ideas

• Brainstorming
• Suspend judgment
• Encourage creativity

Identify Opportunity Areas

• Problem solving to bring new ideas to the table
• Sketching or prototype
• Idea prioritization

Generate New Product Concepts and evaluate against a set of company criteria for new products.

Concept Development:

• Done by Marketing and/or Advertising Agency

• Conducting “Focus Groups”
• Objectives

Judge whether the concept fits the opportunity area, and constraints

Refine and / or describe the product concept

• What it is :
• What benefit(s) will it deliver to the user
• Key information – size, varieties, package, price

Concept Screening / Testing:

• Produce a Concept Board
• Conduct a survey

• Representative sample of end users via Internet, Panel
• Show concept and ask buying intent, uniqueness, value

Analyze the results

• Compare scores to internal criteria, benchmarks, norms
• Forecast “Trial”

If end user shows interest in trying the product during the trial
forecast, then the concept qualifies for development – It clears the
first stage gate.

Explore posts in the same categories: MANUFACTURING PROCESS

Tags: company criteria, conducting focus groups, development estimate, estimate costs, existing products, external sources, five steps, functional team, internal sources, launch, opportunity areas, opportunity identification, physical prototype, product business, product idea, promotion campaign, research target, target market segmentation, typical usage, usage situations

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