7 Simple Steps for Successful New Product Development

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Introducing a new product to the market comes with many challenges. There are multitudes involved in new product development that need to be considered and reconsidered. A valuable idea is worth pennies if not executed right. In this post, we discuss 7 simple steps that must be covered for new product development. Before we delve into them, let us look at the new product development process and what it entails.

What is the new product development process?

The entire process of developing a new software product, from conception to launch, is called new product development. A new product development process or cycle usually entails 7 simple steps.

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy and business analysis
5. Product development
6. Test marketing
7. Product launch

The product development cycle is often confused with the product life cycle, which is slightly different. A product cycle comprises stages such as introduction/launch, growth, maturity, saturation, and decline. The development cycle, on the other hand, focuses only on the introduction of the product to the market.

Each of the phases as mentioned above has a critical effect on the quality of the product that is developed in due process. A systemized approach to development can lead to better product development, ensuring product efficiency, quality, and reliability. Given are 7 simple steps to efficient new product development:

Idea conception and research

An interesting functional concept can go a long way when executed right. It is important to brainstorm and ideate consistently while keeping market trends and customer requirements in mind. The research should be thoroughly based on a few important parameters:

Target Audience

Building buyer personas is a great way to understand the intended audience of a product. It is an excellent opportunity to understand client needs and customers. Understanding a key demographic also helps identify gaps in current market trends and understand buyer behavior better.

Competition

Another important parameter is to study the competitors of the product thoroughly. What are the USPs, and what is the product’s unique quality already on the market? What are the needs that are not being catered to? Are you breaking into a market with a new product, or are similar products available? A thorough competitor analysis can go a long way.

Success metrics

One must also look out for various KPAs of the product. KPAs, or Key Performance Indicators, provide excellent insights into how the product is performing or will perform in the market. Various KPAs include average order value, deal size, customer lifetime value, and understanding how the marketing efforts turn in. Further SWOT analysis helps understand the strengths and weaknesses.

Idea Screening

This phase revolves around segregating the idea from the other ideas that have been brainstormed. Only the best idea with the most potential is decided upon after being run by industry experts and engineers. A POC or proof of concept further helps establish an idea’s feasibility in development and market. An agile development team can be a great consultant for providing product development consulting services for selecting the best idea and building a POC.

Concept development and testing

Once the Idea is screened, it is important to build a detailed plan of the idea and user stories. Concept development and testing usually entail a few important steps.

The easy-to-follow concept development steps include:

• Quantifying Gain/Pain Ratio: Metric to understand the difference and ratio between what the customer is gaining from the product and how much effort the customer requires for the same.
• Conducting a Competitor Analysis: Although covered in the Idea conceptualization phase, a more thorough competitor analysis can improve the product. Providing what a competitor fails to provide in their product further garners brand faith.
• Enlisting the Major Product Features: Products are often bombarded with extra feattures or lack basic features. This is why the feature list should be decided upon with much scrutiny on functionality and uniqueness.
• Create a Value Proposition Chart: A value proposition chart is a general, well-defined idea of the application for the customer/client and end-user.
• Concept Testing: Once the value proposition is ready, the concept is introduced to a select crowd and tested for its features. This helps identify popular and unpopular aspects of the product. It is essential to understand the market response and improve the product.

Marketing strategy and analysis

After the product is ready, developers work on the marketing strategy that involves marketing the product to its intended audience. The 4Ps of marketing strategy have been popular since the 1960s. These 4P’s in marketing stands for:

• Price: A competitive price should be decided for the product
• Place: The place of distribution should be next to the target audience
• Promotion: Apt promotions and advertisements are required for maximum penetration in the market.
• Product: The marketing campaign should revolve around leveraging the USPs of the product to the masses.

Product development

This is the most important phase in new product development, and this is the stage where the idea is primarily executed. While many development firms follow Agile methodology, few still believe in conventional Waterfall. Agile is different and considered more productive as it iterates the waterfall approach multiple times to identify early failures. However, five simple steps are common to both methodologies:

1. Define scope and plan the move forward
2. Design the blueprint for the next development process
3. Develop the product using the latest tech stacks and technologies
4. Test rigorously for potential failures and multiple scenarios
5. Deploy for the masses.

Test marketing

Test marketing is an innovative process in which the product is made available to a niche crowd on a limited basis. Critical feedback is then collected and used to improve the product for the final launch. The first prototype, aka Minimum Viable Product(MVP), has basic features and essentials for the initial crowd.

Product launch

In this stage, plans, specifications, and project blueprints are transferred to clientele for further production of software products. This is the final phase, in which the product is released to the customers as downloads and upgrades. It is also where the marketing strategies need to be implemented for maximum reach and market penetration.

Need for efficient New product development process — Conclusion

Effective new product development can be a game-changer for an organization looking to achieve organic growth by creating products to combat customer grievances. Apart from this, companies’ investment in new product development can help understand and meet changing consumer needs, maintain a competitive edge, and leverage the latest technologies. However, it is equally important to pick a reliable product development company that can help bring the company’s vision to reality.