- Ideation – Generating ideas
- Ideas for new products can be obtained from basic research – Use the SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), market and consumer trends, the company’s R&D department, competitors, focus groups, sales & other employees, trade shows, etc. All these help determine how to work on new product lines and add product features.
- Read up on the front end of the Product development process
- Idea Generation or Brainstorming for new products/services/concepts – techniques like the 6 hats method can be applied later.
- Screening your ideas
- The objective is to eliminate unsound concepts prior to devoting resources to them.
- Before sharing ideas with outside parties, inventors should first look at protecting their ideas.
- The screeners should ask several questions:
- Will the customer in the target market benefit from the product?
- What is the size and growth forecasts of the market segment/target market?
- What is the current or expected competitive pressure for the product idea?
- What are the industry sales and market trends the product idea is based on?
- Is it technically feasible to manufacture the product?
- Will the product be profitable when manufactured and delivered to the customer at the target price?
- Concept Development & Testing
- Develop the marketing and engineering details
- Investigate intellectual property issues and search patent databases
- Who is the target market and who is the decision-maker in the purchasing process?
- What product features must the product incorporate?
- What benefits will the product provide?
- How will consumers react to the product?
- Prove feasibility through virtual computer-aided rendering, and rapid prototyping
- How will the product be produced most cost-effectively & what will it cost to produce it – check with a reliable company specialized in product development.
- Testing the Concept by asking prospective customers what they think of the idea.
- Develop the marketing and engineering details
- Business Analysis
- Estimate likely selling price based upon competition and customer feedback
- Estimate sales volume based upon the size of the market and such tools.
- Estimate profitability and breakeven points
- See what government funding & assistance is available
- Consider which option will work for you – licensing the product, partnerships or setting up your own business.
- Find out more on estimating a patent’s value
- Beta Testing and Market Testing
- Produce a physical prototype or mock-up
- Test the product (and its packaging) in typical usage situations
- Conduct focus group customer interviews or introduce at trade show
- Produce an initial run of the product and sell it in a test market area to determine customer acceptance.
- Work with companies like ODMasia to get your products listed on websites or at trade shows.
- Technical Implementation
- New program initiation
- Finalize Quality management system
- Resource estimation
- Requirement publications
- Publish tech. communications like product specs
- Engineering operation planning / Factory Management
- Department scheduling
- Supplier collaboration
- Logistics planning – see incoterms.
- Resource plan publication – Budgeting.
- Program review and monitoring
- Contingencies – Never forget Murphy’s Law and plan around it….
- Commercialization (often considered post-NPD)
- New Product Pricing
- Impact of new product on the entire product portfolio
- Value Analysis (internal & external)
- Competition and alternative competitive technologies
- Differing value segments (price, value, and need)
- Product Costs (fixed & variable)
- Forecast of unit volumes, revenue, and profit
We hope this information was useful and wish you best of luck with all new product development. The ODM Group is happy to assist on all steps of product development with our teams in Vietnam, Hong Kong & China.
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Want to find out more about how China’s ban on promotional products might affect your business? Read this blog to find out!
What are the key stages in new product development?
The first step is the ideation, generate some interesting ideas. Then, screening your ideas. The third step is the development of the idea and testing. Then, the business analysis. After this, the beta testing and marketing testing comes. Then, the technical implementation follows with the commercialization. Finally, the new product pricing is the final step.
What does the beta and market testing consist in ?
Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Produce an initial run of the product and sell it in a test market area to determine customer acceptance. Work with companies like ODMasia to get your products listed on websites or at trade shows.
What is the main important thing to do before launching the product?
Before sharing ideas with outside parties, inventors should first look at protecting their ideas.