Keeping a steady strategic head during new product development

The
process of new product development (NPD) can be one of the most
exciting times for a business. Bringing something new to the market, and hopefully reaping the
rewards
[N1] . This[N2]  won’t always be the case. We have seen
it plenty of times when products, a lot of the time launched by very large
companies have completely flopped when they’ve gone to market
[N3] . Seeing these business
giants topple like
this
[N4] can be scary to the point of
paralysis for smaller businesses who are wanting to develop new products and
bring them to market. In this article, we will look at how to avoid this by
having an NPD strategy.

In
short, a solid strategy will help avoid wasting time, money and resources. It
will make sure that product planning and research is properly organized and
structured. Alongside this, you will put in place a way in which customer’s
views and perceptions are correctly captured. This will allow you to have an
accurate plan produced on how to proceed and resource the whole NPD project.

There
are several key areas a good strategy should help you avoid. Such as
overestimating and/or misreading the target market a new product is aimed
toward. Or[N5]  it can help make sure you
don’t spend resources you don’t have due to higher-than-expected[N6]  development costs. While also
keeping in mind
[N7]  where your business
currently lies; and making sure this isn’t exposed to risks and threats due to
the NPD process.

There
are some key steps that need to be taken when developing your NPD strategy.
Firstly, make sure you accurately define your product and have strict
parameters in place from the beginning. This will reduce the chance of running
out of resources before NPD is completed. While also highlighting potential
pitfalls to avoid along the way.

Finally,
a new product should usually address some form of gap in the market it is
targeting. So it is important that market needs are clearly identified. This
will mean asking questions such as: What is the benefit of the proposed new
product? What is the specific target market the new product is aimed toward?
What are the specific market needs of this target market? What is setting this
new product apart from the competition? The list could probably continue
indefinitely. A solid NPD strategy is one which works out the necessary criteria
to take into consideration when examining a target market.


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