New Product Development
8-Stage Process for New Product Development (NPD)
- Have in place an overall NPD Strategy: what’s your goal? priorities? resources?
- Idea Generation: does not have to be something new to the world; sources of ideas can be: brainstorming, customers, competitors, salespeople, distributors, etc).
- Screening: create criteria to evaluate their commercial worth.
- Concept testing: allow the view of target customers into an early stage.
- Business analysis: develop formal business plan and financial projections: sales, costs, profits and NPV (discounted at WACC), etc.
- Product development: develop prototype and physical product to test its attributes, actual cost, durability, suppliers, etc.
- Market Testing: test the new product in the market, see if marketing mix is effective in acquiring customers, make adjudgements.
- Commercialization: formal launch of new product to mass-market.
Tags: innovation, new product development, process for launching new products