What you need to know about new product development
New product development is a complex process involving many departments. Market research is essential to validate a need, determine the market landscape, and develop the best solution. The process itself can be long, and the outcomes don’t always work. This is the reason some companies form a dedicated team this purpose, while others employ an outside firm to handle the task.
The first step in new product development is idea screening. Checklists along with product scoring models and other tools can be used to determine if a solution is feasible and if it fits with your company’s strategy. For instance, if you’re known for sneakers and T-shirts changing to microprocessors could not be the best choice for you.
The next step is to design the product if you are certain that it will be successful. The team brainstorms and comes up with multiple ideas to address the identified need. The team will test their ideas with an audience of potential customers to see what they think. After the designs are finalized then the team will modify the designs as needed to arrive at a final product that everyone is happy to develop and launch.
After the launch, the new product will enter the growth phase, and sales will start to grow quickly. The product will have earned some customer loyalty and will count on repeat business to keep its momentum going. This is when it becomes especially important to keep improving your product and keeping up with customer expectations.