Product development

Product development strategy is the process of bringing new innovation to consumers from concept to testing through distribution. When existing business revenue platforms have plateaued, it is time to look at new growth strategies. New product development strategies look at improving existing products to invigorate an existing market or create new products that the market seeks. The steps involved in product development are similar in each type of strategy.

Improving existing products is an efficient method for product development. It is not as expensive as creating a new product because a lot of the time and resources were already devoted to creating the original product. Businesses then take feedback from consumers and find ways to improve upon products.

The technology industry is well known for this. Think about the latest version of your smartphone or desktop operating system; the foundation was created in a previous version. Sometimes there are 10 previous versions, each building on the one before.

However, improving existing products is not limited to any one industry. Exercise equipment rolls out new models. Even pen manufacturers find ways to improve ink flow and reduce smudging, making the product better. The goal of improving a product is to take an already successful product that consumers love and use, and then improve the product to maintain, or increase the competitive advantage.

Innovative new products are risky because you don’t know how consumers will respond to something new. This is why developing the product properly is imperative. New products enter the market all the time. Large corporations are constantly developing new products.

The evolution of home deodorizers started with candles and air fresheners to plug-in wall diffusers. Each was a new product intended to improve upon older, less effective methods.

Crowdfunding, infomercials, and television shows such as Shark Tank encourage inventors to bring innovations to the market. One such product was a bee box with a spigot that enabled honey to be collected more easily. New products require that the maker identify a need and then develop a solution to make life easier, safer, or more enjoyable.

Whether you’re improving an existing product or innovating a completely new product, follow a process to ensure you are creating a product that consumers will buy and use. Identify the need. If this is an existing product that needs improvement, there may have been an oft-reported problem with the product. Creating a new product often results from hearing common complaints about a similar issue.

For example, tablets were created because people enjoyed the convenience of smartphones but wanted a larger yet portable platform to work on.

Survey the market and develop a prototype based on the collected data. Find out what people like and don’t like about an existing product. Determine if any patterns exist for consumers that are showing a trending problem.

For example, vacuums have become more nimble with articulating joints, because consumers reported that they did not like heavy vacuums that were difficult to maneuver. Once prototypes exist, develop a financial plan for scaling production and establishing the target market with reasonable sales estimates.

Test the product in the market with smaller runs. Keenly observe sales and actively seek feedback from real consumers on the real product. Adjustments might be required before going into mass production and commercialization.