New product development strategy Archives - Business Intelligence

Tag: New product development strategy

new product idea

Formulating New Product Ideas: Three Bits of Advice From Our Market Research Experts

A business that does not introduce new products in the market will most likely lose ground in the long run while its competitors invest in creating new products to increase market share. The success of a new product launch, therefore, plays a crucial role in driving business growth. In most cases, new product development begins with new product ideas. However, this might not be the case always since new product development is not always about new, innovative ideas but the creation of products that are most likely to meet the evolving consumer needs.

At Infiniti, we believe that new product ideas and the successful launch of products can redefine the growth strategies of companies across markets. Since product development is a complex and risky process, brands can avoid making blunders by adopting a systematic research backed approach that assesses the viability of new product ideas at an early stage in product development.

Integrating research insights into your product development process must be an ongoing process. Contact us to find out how we can help you.

To better manage product development, businesses today adopt a systematic, market research-backed approach that focuses on creating successful, new product ideas. Conducting product market research at an early stage in new product development enables businesses to gauge a new product’s viability from the initial stage to post-launch.

We believe every new product development strategy must have focal points to maximize success rates. Focal points must include a clear definition of the target market, analysis of competitors’ products within the same category, and a well-defined business case. This article sheds light on how in-depth market research insights, when used correctly, can shape the creation of new product ideas while minimizing the risk of product failures. By offering comprehensive insights into each phase of creating a new product idea, our experts also help you put an end to your quest of determining how market research aids new product development.

To discuss new product ideas and learn how Infiniti’s expertise can help you tackle unique product development challenges, integrate idea screening in new product development, and maximize product success rates. Request a FREE proposal now!

How Market Research Can Help Create New Product Ideas

Today, market research is revolutionizing the process of creating a new product idea. While leading businesses are already integrating research insights into their product development approach, a few companies are still skeptical of how and why research must be conducted at an early stage. If your business is one among them, here’s how market research can help.

new product ideas

Leverage market research to accelerate the creation of new product ideas

Market research can be used across all product development stages. However, it must be leveraged in the initial stage of creating a new product idea to ensure a successful launch.

Hear out the concerns of your customers using the voice of customer research

While businesses shouldn’t rely on customer feedback as the only source to generate new product ideas, it is vital to customer feedback and opinions while mapping out a new product idea. VOC analysis or voice of customer analysis can act as the ideal starting point for identifying and defining the unmet customer needs.

Focus on internal collaboration

Lastly, it’s crucial to make internal collaborations a part of your new product idea creation process. Ongoing collaborations and interactions between the sales, marketing, and R&D teams can help generate new product ideas. The more the ideas, the greater the likelihood of securing a winning outcome.

You’re just a click away, explore our services and learn how we can help you. Request a free brochure now!

Analyzing the Different Phases of Market Research in New Product Development

Conducting in-depth research at every stage of product development can help analyze customer needs, gain awareness of similar products, identify price benchmarks and the overall market potential for the new product.

Concept Testing Market Research

Concept testing must occur at an early stage, ideally during the new product idea generation phase. Leveraging research insights early on can help businesses gauge new products’ viability and success rates and focus their R&D efforts on concepts with the greatest market potential.

Market Opportunity Analysis

Once concept testing is completed, additional research is often required in the next stage to gauge new opportunities, analyze the market size and the potential for the new product. While research insights from the initial must be frequently incorporated into the business case, market opportunity analysis often provides evidence of the opportunity.

New Product Development

Market research at this stage generally focuses on quick customer reviews and the development of prototypes.

Product Validation and Launch

Validation based on customer feedback will empower businesses to gain insights into the product’s success rates. Post this should a product make it to the final stage in product development, its ultimate success can be traced back to getting the positioning, promotion, and pricing right, and the market research conducted at the earlier stages that enable companies to define and design the optimum marketing mix. However, a few companies conduct in-depth research post this stage to assess its initial uptake and keep track of the product’s position in the market over time.

While there is little doubt that the success of new product ideas depends on extensive market research and a detailed customer needs assessment, there is also no getting around the fact that it is an extensive and challenging process. Market research might seem challenging and contribute significantly to the overall costs of new product development. It is imperative to consider the potential costs of not conducting market research and developing a product only to find no market scope. Looking for comprehensive insights? Request more information.

Outsourcing New Product Development

Outsourcing New Product Development: Why is it the new trend and what can it do for companies?

Companies and manufacturers across all industries partake in new product development once at the least through their lifecycle of operations. If conceptualized, planned, developed, and launched strategically, the new product development process can lead to significant growth and success for the company. However, the product development process is neither easy nor short-term. Due to the amount of cost, effort, time, manpower, and skill that is required through the process, companies may outsource the process.

These outsourcing services can either handle the entire new product development process or take control of a certain part of the manufacturing process. Certain more specific activities, such as software development, or engineering skills, may not be readily procured internally, in which case, outsourcing becomes the most favorable option. For instance, in the automotive industry, some key players outsource up to 75% of the product development of a new vehicle. Outsourcing helps companies reduce costs, effort, and improve time-to-market substantially. In this article, new product development strategy experts at Infiniti discuss the types, benefits, and challenges of outsourcing.

Deciding to Outsource

The new product development process is long-drawn and requires highly efficient strategizing to be successful. Through this process, the company must ask a set of crucial questions before deciding, so they may be aware of their choices and decisions. In the case of outsourcing, the question to be asked is, “Who will lead the new product development strategy?” While companies may be equipped in terms of finance, manpower, and skill, handling multiple projects simultaneously can be detrimental to current and developing projects. At this point, choosing to outsource is the best option.

New product development is a difficult process and requires brilliant strategic planning. Speak to our experts to learn more about Infiniti’s new product development experts.

Categories of Outsourcing

Companies may choose to outsource the entire product development process or a certain set of functions. The outsourcing process can be divided into the following four categories, as per the functions that are provided:

  • Professional Outsourcing: Outsourcing functions such as legal, accounting, purchasing, and administrative jobs fall under this category.
  • IT Outsourcing: Functions relating to software or technological development are considered under IT outsourcing.
  • Manufacturing Outsourcing: This involves any part of the manufacturing process, be it the entire product, or a certain section of it.
  • Project Outsourcing: This includes the outsourcing of the entire project, such as outsourcing the whole product development process, to the point that it needs to be launched.

The Benefits of Outsourcing New Product Development

Outsourcing is used widely due to the various benefits it offers. When it comes to new product development, these benefits can be crucial to the success of the newly developed product. Five of these benefits are discussed below:

Lower Costs

Outsourcing most often results in quicker, more efficient results due to the dedicated resources and heightened focus, as compared to in-house product development. Additionally, outsourcing services save the cost of hiring temporary or permanent employees for the process of new product development. Many companies outsource to countries with substantially lower labor costs. These various factors combine to reduce costs by a large margin.

Workload Distribution

While in-house permanent employees would be ideal for producing a new product in many cases, the workload may be too high. However, in the case of outsourcing, current employees can focus on maintenance of existing products, while other professionals focus on new product development. This allows for efficiency and perfection across the board without losing quality due to quantity.

Innovation

As professionals, engineers, and other skilled employees work in the same space over time; their ability to ideate something radically different may be compromised. Outsourcing allows for the addition of other experts in the same field, to view the product, strategy, and development process in a different and unique light. Combined suggestions may lead to a product that is better than the original idea.

Expertise

In certain cases, the expertise required for a process may not be within the skill set of current employees. Guidance on engineering something different or manufacturing a new product type can help successfully deliver a product with the right expertise. With outsourcing, it is possible to acquire expert guidance through the process without investing in a new team of employees solely  to develop a new product.

Time Management

Outsourcing service providers have dedicated resources for the product that is being developed. Additionally, one team of employees attempting to maintain current products and developing new ones will increase the time to market. However, outsourcing reduces time-to-market and, in turn, leads to higher profits, faster returns, and proper maintenance of the systems already in place.

Outsourcing can be highly beneficial for many companies. Get more information to gain more comprehensive insights into the benefits of outsourcing.

Challenges of Outsourcing

Outsourcing is highly beneficial for the process of new product development. However, there are certain challenges of outsourcing. More particularly, certain details that companies must keep a note of when they choose to outsource. The following are three major challenges of outsourcing:

  • Control:

When outsourcing major functions such as manufacturing, it is crucial to ensure that quality is maintained. Clarifying the amount of control the company has over the entire process and being adequately involved in the process to ensure quality control is a major step towards avoiding losses and poor-quality products.

  • Communication:

As is the case with all business partnerships, clear communication is exceptionally crucial. Having clear project guidelines and continuous communication through the process can help reduce challenges, losses, and time-to-market.

  • Resources:

All companies must ensure that they are outsourcing to a provider who has the ideal equipment, skillset, culture, and manpower to provide the best results. As the new product development process is carried out, issues with machinery or expertise can take a toll on the entire process and the company, causing significant losses.

While it is highly beneficial, outsourcing can be a challenging step forward. Request a free proposal to strategically approach and develop the ideal new product development strategy.

New product launch

New Product Development Strategy: How we Helped a Leading CPG Company to Develop New Products for Connecting with Millennial Consumers

With the millennial group becoming the generation with more buying power in the European market, it’s more important than ever for marketers to understand what makes millennials willing to open up their wallets. Also, for companies to remain relevant, it is essential that their products satisfy the ever-changing needs of millennial consumers. A failure to meet these demands can hamper the overall growth of the company. Therefore, companies are partnering with market research firms like Infiniti Research to leverage their expertise in offering new product development solutions to launch a new product in market satisfying the needs of the millennial group.

4 Millennial Shopping Trends Your Business Needs to Keep Up With 

fb

To capture the enormous purchasing power of millennials, you need to shift your techniques to match the preferences of these young consumers. It's high time to quit traditional marketing approaches and take up new product development plans. REQUEST A FREE BROCHURE to know more about our services portfolio.

Business Challenge

Our client, a leading consumer goods company based out of Central Europe that offers authentic and accessible food to customers, faced stagnant growth and rising competition in the rapidly evolving market. With evolving millennial food interests, from the rise of superfoods, to experimentation with flavor and form, to an increased interest in organic options, the company found themselves striving to develop and produce products specifically for this specific consumer group. In order to prepare for a future in which satisfying the ever-changing needs of millennial consumers is essential, the client approached Infiniti Research for a solution. With Infiniti’s new product development strategy, the company wanted to develop and produce products aimed at millennials. Also, they wanted to study the market and create an efficient innovation process that puts the consumer at the center of its thinking and product development.

Solutions Offered

To help the client introduce a new product for satisfying the millennial customers’ demands, the experts at Infiniti Research adopted a comprehensive four-phase approach. The new product development strategy involved determining market potential, securing approvals, developing product life cycle stages, and product tracking. Also, the experts conducted an ethnographic study of global emergent consumer tastes and food cultures in the European market.

Armed with new consumer insights, the company was able to conceptualize, produce, and release a series of products for millennial consumers. Our new product development strategy also supported the company to begin a health-centric overhaul of its current and upcoming products. The company also introduced new organic offerings in their meal, snack, and beverage categories. By placing innovative consumer-centric thinking at its core, the company has emerged as a robust food brand for the modern consumer.

With Infiniti’s new product development strategy, the company was able to strengthen their reputation as a resilient and modern food company. Also, they were able to enhance their sales rate by 33%.

Consumer preferences are evolving, and you must find ways to keep up with these changes. REQUEST A FREE PROPOSAL to know how our new product development strategy will help your company devise products meeting your customers' demands.

What is new product development? 

New product development is the process of bringing a new product to the marketplace. The process of new product development involves, conceptualizing, designing, developing, and marketing a new product or service. Having a well-defined plan for new product development can help businesses generate high profits. Today’s businesses need to engage in an new product developmet (NPD) process due to changes in consumer preferences, increasing competition, and advances in technology or to capitalize on a new opportunity.

What are the Stages in New Product Development Process? 

Bringing up a new product to the market can make a huge difference in a company’s sales rate. But, certain businesses fail while trying to launch a new product in the market. Have you ever wondered why? New product developments are extremely challenging. Therefore, companies must follow a step-by-step process while bringing up a new product to the market. Below, we have listed up the stages in the new product development process.

fbStage 1: Product idea brainstorming – Conducting market research and consumer surveys play an important role in this initial stage of new product development process. It is imperative for businesses to analyze products that customers are looking for. Therefore, better market research of the target customers can help companies uncover the needs of their customers.

Stage 2: Analyzing customers’ reaction towards similar products – Analyze the top competitors marketing similar products and study customers’ response and demand towards similar products.

Stage 3: Business analysis – Business analysis is a very important step in new product development process. Here, detailed business analysis is done. This helps the company figure out whether the new product would be commercially profitable or not.

Stage 4: Product development and distribution: In this stage of new product development process, production department makes plans to produce the product and marketing department makes plans to distribute them.

Stage 5: Commercialization: This process involves advertising the new product on mass media like TV, radio, newspapers, magazines, and more.

Stage 6: Review of market performance – In this stage of new product development process, company must continuously monitor the performance of the new product. They must make the necessary changes in their marketing plans and strategies continuously.

CONTACT US to learn more about our new product development strategy.

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice