Product development is the process of creating, adjusting or changing a product.  Therefore a successful product development requires skillful planning. You have to make sure the right product is available on the right market at the right time and at the right price. It is essential to have an overview of the process, to plan, to understand what information and actions are required, who you need to involve etc. Making a decision about exactly what you want to sell means making a decision about how your customers will perceive you, so it is important to think carefully.

To analyze your current product or service line, ask yourself the following questions:

•  How well are my current products / services doing?
• Are there any new products / services I would like to offer?
• What do my customers actually want? Make sure your desire to launch a new product is matched by your customers. It is important to actually ask your customers what they want.
•  Check with your employees - what do they think of the current product range and of your proposed new product? They are in constant contact with your customers.
• Visit trade shows, talk to people in the industry, look at what is new in the field or identify something that inspires you. Cited: CBI, 2011.

For those of you with existing products - how do you ensure that your product is viable?

• A great way to extend your product line is by offering products in a variety of different sizes. In order to maximise product placement orders, you can sell your consumable product in small, medium and large sizes. By offering a small size of your product, you can often attract customers to try your product, which can in turn lead to an increase in overall sales.
• Make changes to products that are nearing the end of their life cycle. By updating or improving your product, you can recapture falling market share. A great way of making product changes is by making your product more eco-friendly. By doing this, you can reach a wider market and portray your product with a cleaner image. Also, promote this to your existing customers and grab their attention too.
• Another natural progression for a product line is by improving quality. By offering a range of products from low cost-lower quality to high cost-higher quality, your product is able to reach customers at various income levels. By doing this you can cater for all types of customers and at the same time leave less room for new competitors to find a niche gap against your products. Cited:MSN, 2011.

For those of you with new ideas or new products ? how do you ensure that your new idea or product is viable?

You have to be prepared to undertake careful research. The internet has made a world of useful information available and cheap. There is also the local library, which also has several trade publications available. As research is done several key factors are considered including the potential lifespan of products / services and how to maximise marketing returns during this period.

Using available resources it is possible to determine if industry experts have detected any trends that could impact upon what you are planning to sell. It is possible to see how competitor stores move the range of products and services they provide.

Combining theory, practical advice and creativity, can help you develop a clear and informed strategy for product development.

Sources

• CBI
• Businessplansnz
• MSN

Page Updated: 26 March 2012