Core Aspects Of New Product Development Strategy: Phases Of Implementation

By Author: Vijay K Shetty
Total Articles: 2542
Comment this article

Concept development
The creation of new product starts with a bunch of ideas. If you are trying to come up with new one, expect long hours or brainstorming. It is a really big task especially for a small company who does not have the money to spend on research companies to supply you with market studies. Some people find the creation of the product organic. It is all up to the kind of niche and of course, your motivation to build the product. It will involve concept development, screening, selecting manufacturers and evaluation. Proper pricing and packaging is also included in this part.

Business analysis
Once you have come to a decision about the concept and strategy, you can now evaluate if they are business worthy. You will be relying on the sales costs as well as projections for profit. If you are contemplating on sales cost, look at the past sales history on other products and use these as your guide. You must also look into the risks. You have to make estimates on product prices, sales volume as well as the estimate for profitability. These numbers chart and studies are necessary to see the financial ...
... attractiveness of the product that you intend to sell to the market.

Product development
In some cases, the concept of the product has only materialized in a form of a blueprint, a schematic, a computer generated image or a bunch of words at the very least. If the business test was favorable, product development is the next part of the cycle/ strategy. In this part, you are expected to dish put some considerable amount to make the prototypes. During this time, the product will normally undergo several revisions, prototypes and samples. Test is also done to ensure that the functionality of the product is present. This is also critical to ensure that the design is useful.

Test marketing
Once the tests are up and the results are favorable, test marketing ensues. In this part, the product and marketing is set on realistic conditions. This immerses the whole strategy to real market situations and it will help in figuring out the best marketing strategies and costs that will be implemented. This part, yet again is quite pricey since you will need to have considerable amount of product, conduct focused group discussions do initial runs, and look at initial customer acceptance. This prepares the company to seeing the possible response and cost of pushing the product to the market. You can also do standard tests to sample different cities

Commercialization
This is part of the strategy where you formally introduce the product to the market an d you will be spending more now on promoting, advertising and exposing the product that took you considerable amount of time to create.

Vijay K Shetty, Platinum Level Author.
Get more information on New Product Development Strategy, Marketing Excellence