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New Product Development Process refers to the method that an organization undertakes to introduce new products in the market.
New Product Development Process starts from idea generation and ends with its commercialization.
It is an important concept that helps in understanding markets, consumers, and competitors to develop and deliver superior value products for the customers.
Stage 1 Idea Generation
Idea Generation refers to a systematic search for new and unique product ideas and creating a large pool from external sources like competitors, channels of distribution and internal sources like the R&D department, end-customers and employees.
Example: Google
Stage 2 Idea Screening
Idea Screening refers to evaluating and filtering all the available ideas and segregating the good from the poor ones based on compatibility, relevance, assumptions, constraints, feasibility and value. The two types of error common in this stage are
- Following a bad idea
- Discarding a good idea
Example
- FRIENDS
- Starbucks - My Starbucks Idea
Stage 3 Concept Development and Testing
Attractive and unique ideas are developed into product concept in this stage after taking into consideration potential target audience, product usage and potential value propositions.
Example: Lego Ideas
Stage 4 Marketing Strategy Development
This is the stage where an initial marketing strategy is designed for the new product. It includes a description of the target market, product’s planned price and its marketing mix strategy
Stage 5 Business Analysis
This stage deals with reviewing the costs, projected sales and profit projections. It is then compared with organizational goals and objectives and if satisfied only then is sent for production
Stage 6 Product Development
In this phase, a physical product is developed by the R&D department to ensure that the product idea can be turned into a workable product.
Example: Samsung Note 7 Failure
Stage 7 Test Marketing
In Test Marketing the product and the marketing program are tested in realistic settings that include Standard Test markets, Control Test Markets and Simulated Test markets.
Example: Samsung Galaxy Fold Failure
Stage 8 Commercialization
The final stage is about introducing a new product in the market after considering important factors like the time and place of introduction and related future strategies
This video is on New Product Development and has the following sub-topics.
Time Stamps
0:00 Introduction to New Product Development
00:40 New Product Development Process
01:04 Stage 1 Idea Generation
01:46 Example: Google
02:23 Stage 2 Idea Screening
03:27 Example 1: FRIENDS
03:54 Example 2: My Starbucks Idea
04:28 Stage 3 Concept Development and Testing
05:06 Example: Lego Ideas
05:55 Stage 4 Marketing Strategy Development
06:30 Stage 5 Business Analysis
06:55 Stage 6 product Development
07:49 Stage 7 Test Marketing
08:44 Example: Samsung Galaxy Fold Failure
09:27 Stage 8 Commercialization
