New Product Development PDF

OPPORTUNITY SEEKING BACHELOR OF SCIENCE IN ENTREPRENEURSHIP 2 New Product Development BUSI...

OPPORTUNITY SEEKING BACHELOR OF SCIENCE IN ENTREPRENEURSHIP 2 New Product Development BUSI -NESS Product Introduction New Product Development PRODU CT www.website.com 1 2 3 4 NEXT OPPORTUNITY SEEKING BSE 01. 02. Product The New Product Development Stages Development Process CONTENTS www.website.com OPPORTUNITY SEEKING PART ONE New Product Development (NPD) is the process of creating and launching a new product, service, idea, or technology to the market. PRESENTATION  It's a complex, iterative process that involves many stages and departments, including design, engineering, marketing, and sales. NPD is a crucial process for companies that want to grow and stay competitive. It requires an understanding of consumer needs, market dynamics, and competition. Here are some key aspects of NPD:  Stages The NPD process typically includes ideation, concept development, market research, product launch, and post- launch evaluation.  Involvement NPD requires a collaborative team that involves potential users at every stage. User feedback is critical to the success of the product.  Approaches There are several approaches to NPD, including customer-centered, team-based, and systematic.  Types NPD can involve developing a new product, improving an existing product, extending a product line, or introducing a product to a new market.  NDP helps you:  Stay updated with new technology and trends  Beat the competition with creative solutions  Offer more products and find new streams of revenue  Adapt to changing customer needs  Use resources more efficiently  Improve your brand's image  Grow your business and ensure sustainability Types of new product development: When do you need an NPD process? NPD typically falls into one of these three types:  New-to-the-world products These are innovative products that have never been designed and developed before. These products have the capacity to create entirely new markets. Think of the first personal computers, for example, which brought computing into homes; or the initial release of smartphones, which changed how we communicate and access information. These products often come with high risks but also the potential for high rewards. New-to-the-firm products These products already exist in the market but are new to the company. Like when a male grooming company, initially focused on razors and beard care, expanded into new personal care products—like body wash and shampoo. This move doesn’t redefine the business, but it broadens the business offerings and can reach a wider audience.  Additions to existing product lines This involves introducing new versions or variations of existing products. For example: Software updates that introduce new features, improved security, bug fixes, and user interface improvements Revisions to an existing product's design, materials, or process to improve its functionality, durability, or cost-effectiveness Upgrades or replacements of specific components or subsystems within a larger product to improve its overall capabilities or performance The 7 stages of new product development: A step-by-step process  When it comes to new product development, each journey to a finished product is different. Although the product development process can vary from company to company, it's possible to break it down into seven main stages. Let's have a look at them one by one. 1. Idea generation Idea generation involves brainstorming for new product ideas or ways to improve an existing product. During product discovery, companies examine market trends, conduct product research, and dig deep into users' wants and needs to identify a problem and propose innovative solutions. 2. Idea screening This second step of new product development revolves around screening all your generated ideas and picking only the ones with the highest chance of success. Deciding which ideas to pursue and discard depends on many factors, including the expected benefits to your consumers, product improvements most needed, technical feasibility, or marketing potential. 3. Concept development and testing All ideas passing the screening stage are developed into concepts. A product concept is a detailed description or blueprint of your idea. It should indicate the target market for your product, the features and benefits of your solution that may appeal to your customers, and the proposed price for the product. A concept should also contain the estimated cost of designing, developing, and launching the product. 4. Marketing strategy and business analysis Now that you’ve selected the concept, it’s time to put together an initial marketing strategy to introduce the product to the market and analyze the value of your solution from a business perspective.  The marketing strategy serves to guide the positioning, pricing, and promotion of your new product. Once the marketing strategy is planned, product management can evaluate the business attractiveness of the product idea.  The business analysis comprises a review of the sales forecasts, expected costs, and profit projections. If they satisfy the company’s objectives, the product can move to the product development stage. 5. Product development The product development stage consists of developing the product concept into a finished, marketable product. Your product development process and the stages you’ll go through will depend on your company’s preference for development. 6. Test marketing Test marketing involves releasing the finished product to a sample market to evaluate its performance under the predetermined marketing strategy. There are two testing methods you can employ: Alpha testing is software testing used to identify bugs before releasing the product to the public Beta testing is an opportunity for actual users to use the product and give their feedback about it 7. Product launch At this point, you’re ready to introduce your new product to the market. Ensure your Product, Marketing, Sales, and Customer Support teams are in place to guarantee a successful launch and monitor its performance. To better understand how to prepare a go-to- market strategy, there are some essential elements to consider:  Customers: Understand who will be making the final purchasing decisions and why they will be purchasing your product. Create user personas and identify their roles, objectives, and pain points.  Value proposition: Identify what makes you different from the competition and why people should choose to buy your product  Messaging: Determine how you will communicate your product’s value to potential customers  Channels: Pick the right marketing channels to promote your products, such as email marketing, social media, SEO, and more Expert tips for creating a product development process: Align around the same vision Understand your customers’ needs Build a strong team  PRESENTATION //SLIDE Thank you For Listening www.website.com 1 2 3 4 NEXT