Chapter 6: Product Development
New Product Development Process
Before a product lands on the shelves or in the online catalog, it goes through a series of meticulously planned stages. Just like a movie begins with a script, followed by casting, filming, and finally the premiere, the New Product Development (NPD) process transforms a mere idea into a tangible product that consumers can buy.
1. Idea Generation: This is the brainstorming phase. Ideas can come from anywhere: market research, employees, competitors, or even customers. Take, for instance, 3M's Post-it notes. The idea stemmed from a need for bookmarks in a church hymnal.
2. Idea Screening: Not all ideas see the light of day. At this stage, ideas are evaluated based on their feasibility, market potential, and alignment with the company's goals. It's like a sieve, only letting the most promising ideas through.
3. Concept Development and Testing: The shortlisted ideas are now expanded into detailed product concepts. These concepts are then presented to a group of target customers for feedback. LEGO frequently engages its fan community to validate new toy concepts.
4. Business Analysis: Time to crunch some numbers! This involves assessing the potential sales, profits, and costs of the new product. Would it be lucrative enough? Is the market size substantial? These are some of the questions addressed at this juncture.
5. Product Development: The concept now transforms into a prototype. This prototype undergoes rigorous testing to ensure it meets quality standards and fulfills its intended purpose. Google Glass went through several prototypes before arriving at its current design.
6. Test Marketing: Before a full-fledged launch, the product is introduced in select markets to gauge consumer reactions and iron out any kinks in the marketing strategy. Ben & Jerry's occasionally releases new flavors in specific regions to see how well they're received.
7. Commercialization: The grand premiere! At this stage, the product is launched widely, and promotional campaigns roll out. Consider the buzz and anticipation Apple creates before launching a new iPhone.
8. Post-Launch Review: Once the product is in the market, companies continuously monitor its performance. Feedback is collected, and any necessary adjustments to the product or its marketing strategy are made.
The NPD process can be lengthy and requires significant investment, both in time and resources. But it's this rigorous process that ensures only the best and most promising products make their way to consumers. So, the next time you're admiring a newly launched product, you'll have an inkling of the journey it has been on.
