Posted tagged ‘opportunity areas’

New Product Development Process

September 14, 2011

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:

01-new product development process-the fuzzy front end

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.