New Product Development

New Product development refers to a series of steps from concept generation through post-launch analysis to launch a review that helps businesses understand different methodologies through the various aspects of launching new products and bringing them to market. In short, it is the process of building a new product from concept to launch. Companies follow a precise process known as the product development process to carry out the product development process.

The goal of product development is to increase market share and satisfy customer demand. Cultivating, maintaining, and increasing the company's market share by satisfying customer demand. Companies often make changes to keep their products as popular and attractive as possible. This means improving an old product or introducing a new one to a new market. And also it is a process that helps companies stay ahead of the competition by introducing new products or modifying existing ones. This process can include developing a product that has already been proven to work, known as regular product development, or starting from scratch and developing an idea until it becomes a product, known as new product development. Both large and small organizations place a high priority on new product development. The series of processes necessary to bring a product from its initial concept to the market is known as the product development process. Every stage necessary to bring items from the original concept to the ultimate market launch is covered. Reasons for product development include shifts in the target market, new technology, organization reputation, increasing competitors, risk diversification, and more.

A good product development process has several benefits. The main benefits of a good product development process include: assisting in the production of high-quality goods at competitive prices; assisting in maximizing the use of available resources; assisting in the opportunity to expand market share; assisting in the ability to enhance an organization's reputation; assisting in the expansion of profitability; and etc. While designers are in charge of usability, usability, and other user experiences, there are many other factors that affect the success or failure of new products, many of which are beyond the designer's direct control. Factors affecting the success of new product development: Top management, by giving enough attention and priority to the new product program and having a good background in marketing and research knowledge, skills, and experience in the relevant product areas, and top management support is very important for the success of a project. And we are able to make new products successful through market orientation, and technology; the technology used to create and distribute the good product is very suitable for the market. However, a large number of product development efforts failed. Employees with less expertise, a lack of quality control, a lack of resources, a lack of technology, poor design, and other factors can all be identified as reasons why the product development process failed. Because it makes many losses, it diminishes the reputation of the organization, it wastes the money and other resources of the organization and etc. However, obstacles can often stop small businesses from implementing successful new product development. As the writer mentioned in earlier, a good product/service development process is a very essential thing for the success of an organization.

New product development and commercialization provide competitive advantages and are critical to company growth and sustainability. Each path to a finished product is unique when it comes to new product development.  There are several stages of new product development.  Here we have explained the eight-step product development process. Such as idea generation, idea screening, concept development and testing, marketing strategy, business analysis, product development, test marketing and commercialization.

Idea Generation: the process of creating new products begins with idea generation. It explains how an entrepreneur develops a new idea into a finished product or service or the systematic search for new product opportunities that incorporate trends, research, and user needs and wants. A company will frequently generate hundreds or even thousands of ideas before deciding on a select few that are worthwhile. The most significant sources of new product ideas originate from both within and outside of a firm, including customers, competitors, distributors, and suppliers. When considering what the company can do when generating new product ideas, it must identify customer needs and expectations and find ways to solve problems and meet expectations.

Idea Screening: it outlines how businesses should choose the best ideas and reject the bad ones.  That is, a process that helps eliminate product concepts from consideration. Objectively evaluating concepts, using pre-testing and customer feedback, helps ensure that only good ideas are brought to market. When considering what the company can do when screening new product ideas, we should conduct a SWOT analysis and also we should validate the proof of concept. Then we can go on the right path.

Concept Development and Testing: it explains how to put the concept into practice and how to monitor the development of an original product or service. Companies should approve the product launch at this stage. A concept is a complete explanation of your idea. It includes information about your product's target market, the features and benefits of your solution that customers are interested in, and the suggested retail price. By creating different product concepts, you can find out which ones are popular with your customers and choose the one that offers the most value. Here are the things that the company can do, calculate the profit, do the competitor analysis and do the concepts test.

Marketing Strategy: To market your concept, you need to develop a marketing plan and assess the commercial viability of your solution. Many businesses perform STP analysis at this point to decide on marketing mix-related actions. In this part, we should Conduct an STP analysis to identify the market position.

Business Analysis: This phase involved examining the anticipated expenditures, casting sales, and estimated profits for the created product. Business analysis reviews sales, costs, and profits to advance product development, Conduct financial analysis, and Conduct an audit about the cost of invented products.

Product Development: This is the process of turning an idea for a product into a finished, marketable product. That is, companies develop the product concept and create a 100% complete and ready-to-sell product. In here prototypes are built and a minimum viable product is built and tested.

Test Marketing: In this stage, companies introduce product and marketing programs into the market settings. You can use one of two testing techniques. There are alpha testing and beta testing. The test marketing phase's objective is to confirm the new product's overall concept and prepare for launch. Here we consider branding, pricing, packaging, etc.

Commercialization: It refers to the introduction of a new product or service to the market. Creating the master plan for launch and execution for production, the execution of the master plan is done here.

The product development process is very important. It is important for companies of all sizes to have a successful NPD process. One study found that the success of an NPD project depends on the specific steps an organization takes in the process. However, there are some limitations on how products or services are developed. Additional costs, lengthy processes, etc. Companies can teach their staff to work more efficiently, replace modern equipment with used equipment, and take other measures to address these issues.