NEW PRODUCT DEVELOPMENT STAGES

NEW PRODUCT DEVELOPMENT STAGES 

new product development (NPD) is the complete process of bringing a new product to market. New product development is described in the literature as the transformation of a market opportunity into a product available for sale  and it can be tangible  or intangible goods,  A good understanding of customer needs and wants, the competitive environment and the nature of the market represent the top required factors for the success of a new product.  There are many uncertainties and challenges throughout the process which companies must face. The use of best practices and the elimination of barriers to communication are the main concerns for the management of NPD process.

There are 8 stages of NDP 

Step 1: Generating

Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance themselves from the competition by generating ideologies which take affordability, ROI, and widespread distribution costs into account.

Step 2: Screening the Idea

Identifying the prospect and target customer growth is important because it help in examine the cost of serving the target market

Step 3: Testing The Concept

Produce a physical prototype or mock-up.Test the product (and its packaging) in typical usage situations.it it Conduct focus group customer interviews or introduce at trade show,Make adjustments where necessary,Produce an initial run of the product and sell it in a test market area to determine customer acceptance

Step 4: Business Analytics

During the New Product Development process, build a system of metrics to monitor progress. Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback.

 Step 5: Beta/Marketability Tests

Arranging private tests groups, launching beta versions, and then forming test panels after the product or products have been tested will provide you with valuable information allowing last minute improvements and tweaks. Not to mention helping to generate a small amount of buzz.

Step 6: Technicalities and Product Development

Provided the technical aspects can be perfected without alterations to post-beta products, heading towards a smooth Step seven is imminent.

Step 8: Post Launch Review and Perfect Pricing

Review the NPD process efficiency and look for continues improvements. Most new products are introduced with introductory pricing, in which final prices are nailed down after consumers have “gotten in.” In this final stage, you’ll gauge overall value relevant to COGS (cost of goods sold), making sure internal costs aren’t overshadowing new product profits.