Definition of New product development

New Product Development refers to the process of launching and introducing new products and services in the field of business and engineering. From launching new services to testing new products, there are a lot of crucial aspects associated with this particular phenomenon. One needs to generate new ideas, conduct thorough market research, and design products and services in accordance with the trend. Now that you are willing to know about the same by exploring the fundamentals of a New Product Development process, then here is something for your knowledge.

What Is Product Development?

First things first, you need to understand what exactly does new product development means. In both engineering and business, new product development is said to cover the entire process of bringing a new product or service to the market.

The product design is considered as the primary aspect of development. However, it is to be mentioned that New Product Development shouldn’t necessarily refer to a new product development process. It may involve modification of an already existing product, its presentation and formulation in accordance with the market niche.

An ideal product development ensures the end product will fit all requirements and meet all codes with perfection. From using industry data to improve the product and the entire project to conceptualising the entire idea behind the latest improvements; it’s a lot of things. We shall learn about the same and explore various facets of New Product Development in the following sections. 

Process structure of new product development 

Now that you know about the definition and functionality of new product development, it’s time to understand the new product development process. Here are the crucial points one must consider. Watch out.

The entire new product development process (NDP) in Australia, the UK, the USA or in any other country across the globe refers to the journey from conception to market. Initially, every potential product or service remains merely a concept. Things tend to change or improve gradually when that very concept is turned into a concrete plan.

The NPD process sets out a series of stages. And the new product is required to go through the same. Here are the key stages one must consider taking his/her products and services through. Take a look.

The 7 Stages of New Product Development Process

1. Generating saleable ideas: Not just ideas, you need to come up with ideas that sell. Prior to planning a new product or a service, you need to generate relevant ideas. Invest enough time in brainstorming, call your board members and employees for a joint meeting and figure what develops at the end of the session. Venturing out without proper planning will always lead you towards potential risks and failures.

2. Defining the concept: Merely generating a saleable idea is not enough. If you are not defining the concept and making things clear in your head, then the entire idea of new product development will simply go waste. You should consider jotting down the key points and aspects of your idea in a piece of paper, and define the same by highlighting technical feasibility, product specifications and functionalities.

3. Strategic analysis: It is absolutely important for an individual to analyse each of the strategic points thoroughly. The idea is to evaluate each of the strategies and confirm whether the aspects fit as per your business requirements. Take note of other crucial strategic plans that determine company goals, costs and profit margin.

4. Product testing: Now comes the most significant stage, which is product testing and development. Prior to introducing or launching a new product, you need to create a prototype and see how things work. If you find loopholes then consider fixing the issue before launching the service or the product.

5. Market testing: Once you are done testing the product, it’s time for market testing. Take a closer look at the market trend and read your consumers’ mind. Based on their preferences and purchasing behaviour, you may choose to make improvements by modifying the product according to the customer, manufacturer and support organisation’s reviews.

6. Commercialising the product: Prior to launching the product, consider commercialising it on the basis of price determination. You need to take note of each of the features associated with the product. Once you are done evaluating the same, consider finalising marketing plans based on the proposed price of the service or the product.

7. Launching the product: And here comes the real deal! Once you are meeting each of the aspects mentioned above, consider launching the product or service accordingly. Jot down the vital points and attributes you would like to talk about during the launch. Make sure that the product launch ensures a seamless introduction to the competitive market.

Now that you are aware of the 7 stages of the new product development process, here are the aspects you should consider exploring. 

Approaches for analysing and responding to the marketing challenges of a new product

Launching a new product is no child’s play. You are already aware of the different aspects associated with it. However, there’s more to it. There are certain limitations and challenges associated with the approaches for new product development and launch. Below mentioned are the different challenges one might face. Take note of the same and consider resolving the issues to avoid hindrances in any form.

• Technical challenges: Product development and launch in the USA has been acknowledged for doing a good job of standardising the technology. But, what is more, critical in this context is the fact that the technical standards do not always match. Things tend to change as per countries, and that’s where the challenges and limitations are created. For example, the standard electrical voltage tends to differ country wise. So, the products or the services should be designed in accordance with the electrical standards.

  This means that each of the product or services meant for different countries are required to be designed separately. Another major challenge associated with new product launch and marketing is the aspect of raw materials. You never know, but the raw materials that are available in the United States might not be easily available in Canada.

• Distribution challenges: For example, distributing a new product in the USA might be made easier due to the availability of Wal-Mart and Target. However, the scenario might not be the same in other countries, especially if those countries lack a proper national distribution channel.

  In such cases, the new product developers and distributors are required to look for other alternatives. In some cases, countries lacking structured chains of national distributors have to collaborate with regional chains, independent stores and local distributors.

• Legal challenges: In addition to technical and distribution challenges, there are legal challenges associated as well. For example, the laws associated with new product development in Australia may vary with the laws prevalent in the USA and the UK.

This, as a result, will require the company to abide by the laws of other countries (in the case of global market penetration). Moreover, certain services and products might get banned or discontinued, if the targeted country does not observe the law in support of the proposed product.

Apart from each of the above-mentioned challenges, there are other limitations concerning the promotion of product, functionality and acceptance. In case there is a deficit of promotional channels and the availability of social media platforms in a particular country, reaching out to a wider base of the audience might be a major issue. If in case the product demo fails to impress the target audience, then the company might have to reorganise things and design the product in accordance with the preference of their clients.  

In 2017, a group of innovation team members from UNILEVER approached SPRINT with a simple mission. It was about gaining consumer insight for their new 100% plant-based margarine, available in several oil-inspired flavours. The product was about to hit the market.

THE CHALLENGE: Quick Assessment of the Consumers

UNILEVER was interested to know how consumers would interact with and use the new flavours. The information collected was useful for the company as it helped them to design their product according to the consumer’s choice and behaviour.

However, SPRINT faced the biggest challenge, which was to gain access to the right consumer for this project within a short period of time.

THE APPROACH

Dairy Study

SPRINT reached the target consumers and figured out their experience with UNILEVER’s products. They found out how the consumers used the margarine by uploading images of their margarine-inspired meals.

Market Research

Steady and interactive conversations were introduced among the consumers. The respondents had the opportunity to view and respond to each other’s experiences related to the product.

Analysis Questionnaire

Few key questions were raised. The respondents were asked to indicate on what occasions and how frequently they would use the product. In addition, they were also asked why they thought the product was best for them. They were also asked about similar products that could prove to be an ideal substitute.

RESULTS

SPRINT was successful in conducting the research on the UNILEVER product which was scheduled to launch soon. Top-notch and informative insights were drawn within a short timeline. In March 2017, UNILEVER launched its new product successfully. 

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