In business, new product development (NPD) refers to the comprehensive process of introducing a new product into the industry. The central aspect of new product development is product design. It also involves various considerations. NPD is also described as the transition of a market opportunity into a final product which is available for sale. New product development needs an understanding of consumer needs, the market, competition, and other factors that may affect product creation. Cost and time are also additional elements that can impact customer needs. As such, innovative companies should implement continuous practices in addition to strategies to satisfy customer requirements while increasing their market share.
Stages of New Product Development
New Product Strategy
New product development strategy is the practice of introducing an innovation to customers from the concept of ideation to testing and distribution. When the revenue platforms of a business have plateaued for some time, a company should look at other growth strategies.
Idea generation refers to the creative process that a company utilizes to create solutions to challenges. The process entails coming up with ideas in a development team and selecting the best one. It also involves creating a viable plan to implement the concept and putting it to practice.
Idea screening refers to the process of evaluating and contrasting new product ideas in order to get a promising concept for a business. Some ideas won’t be relevant to a company. Screening is done using criteria that assesses technical issues and market opportunities.
Concept testing refers to the process of using qualitative methods to assess customer acceptance of a new idea before the introduction of a product into the outlet. Concept testing is neither advertising testing nor packaging testing.
A new product idea requires a sophisticated business analysis. The analysis will assist a company in determining the costs that will be involved in the creation of new product development. It will also enable a firm to forecast the profits that can be made from the product in the coming financial years.
Product Development and Prototype Testing
Prototype testing is a rewarding phase of NPD. Creating a prototype allows a firm to bring the product to life and test its market. The investment made in testing a prototype will assist the company in preparing its merchandise for market entry. Owens Design can help in developing a viable prototype.
Market testing involves modifying the product according to the needs of the consumer. It also involves determining the best timing for piloting a new product.
Commercialization refers to the process of introducing new products to the market. Commercialization involves production, distribution, sales, customer support, and marketing.