New product development (NPD) is the term used to describe the complete process of bringing a new product to market. A new product can be either a new product extension (such as a new flavor of an existing product) or a totally new product.
The NPD process typically includes the following steps:
- Generating new product ideas
- Screening and evaluating new product ideas
- Developing a business case for the new product
- Creating a prototype of the new product
- Testing the new product with potential customers
- Launching the new product
- Managing the new product post-launch
Each of these steps is important in the overall process, but generating new product ideas is where it all starts. This is typically done through market research, which can be either primary (conducted by the company itself) or secondary (obtained from external sources).
Once potential new product ideas have been generated, they need to be screened and evaluated to determine which ones are worth pursuing further. This is done by taking a close look at factors such as the target market, the competition, and the resources that will be required to bring the product to market.
After evaluating the potential new product ideas, a business case is then developed for the ones that show the most promise. This business case will include an analysis of the risks and rewards associated with the product, as well as a financial analysis to determine whether or not the product is likely to be profitable.
Once the business case has been approved, the next step is to create a prototype of the new product. This is important in order to get feedback from potential customers on things like the design, function, and overall user experience.
After the prototype has been created, it needs to be tested with potential customers to get their feedback. This feedback is important in order to make any necessary tweaks or changes to the product before it is launched.
Once the product is ready for launch, it is important to have a well-thought-out marketing plan in place. This plan should include things like setting a launch date, creating marketing collateral, and determine how the product will be priced.
After the product has been launched, it is important to monitor sales and customer feedback in order to make any necessary changes or improvements. It is also important to track the competition in order to see how the new product is performing in the market.