Tag: product development plan

New product development

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 

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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 US.

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.

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The Basics of a Product Development Strategy

What is a product development strategy?

The market today is far more competitive than it used to be probably a decade ago. Single product designs are becoming obsolete, causing revenues to falter. Savvy companies have realized that product evolution and modification are inevitable to stay at the top of the game in the industry. An effective product development strategy is essential for this. Let us first understand what it is.

Product development strategy definition

A product development strategy can be defined as a strategy that involves developing new products or making modification to existing products and then offering them to current or new markets. A product development plan or a product launch strategy is employed when there is no scope for growth in the current market with the company’s existing offerings. Here, the companies have three choices to make- create an updated version of the current product, introduce a new product, or cease the production of an existing non-performing product.

Planning a product development strategy?

Leverage our solutions to make it easier, request a free brochure to know more about Infiniti Research’s solutions for business!

Benefits of product development strategy

Product development strategy acts as a framework for introducing new products or for improving the performance, cost and quality of existing ones. One of the key product development strategy advantages is that it helps companies achieve their business goals including venturing into new markets, selling more quantities to current customers, or winning customers from competitors. However, a new product development strategy requires careful planning in order to minimize the risk of costly mistakes. Some of the other notable product development strategy advantages include:

Win business from competitors

An effective product development strategy proves to be helpful in winning businesses from the competitors who are unable to meet the new performance levels of the company. A product development plan also helps improve performance and thereby raise revenue and profits by charging higher prices. Gaining firsthand information from sales representatives or the consumers themselves will be useful in identifying the performance factors that are most important to the market.

Reduced cost and improved competitiveness

A good product development strategy should take into account the best ways to reduce costs. When the costs are lower, the company is at liberty to lower their prices and consequently win new business. Reduced costs also contribute to increasing the profit margin. How to achieve reduced costs? The product development teams can attain this by eliminating product features that the market does not need, using lower-cost materials, and simplifying the manufacturing process by redesigning that product.

Improve reputation and goodwill

The company’s product development plan must include targets for quality improvements. This helps boost sales. It must be also ensured that you deal with companies who have their own set of pre-defined quality standards. Making quality improvements as a part of the company’s product development strategy also makes it easier for companies to enter the markets with stringent quality and regulatory requirements.

How strong is your product development strategy?

If you are not sure, it’s never too late to consult an expert. Know more about Infiniti’s data-driven solutions for business.

New product development strategy: Key questions to answer

Question #1: who will lead the new product development strategy?

Although a company might possess all the expertise and capacity required in developing a new product development strategy, there are chances that they might be consumed with other projects or lack specialized expertise to address specific challenges. A key component of a company’ product development plan will be to list out who will participate and how it will be managed. Companies can opt from the following options:

In-house: The product development strategy and the project management are executed by the company’s own resources.

Outsource: An external partner is employed to design the product, manage the process, and source and coordinate the work of additional suppliers. The company’s employees provide them with business oversight, identify requirements, and contribute feedback to the project.

Hybrid: In some cases, it becomes more feasible to manage the project in-house and then coordinating the work of a design firm and one or more suppliers. This is a mix of moth in-house and outsourcing functions.

Question #2: How to validate the product design?

Commercial failure is one of the biggest risks associated with a new product development strategy. Even if the product development is on-time and meets the specs and budget requirements, chances are that the sales will fall flat. So, throughout the product development lifecycle it is vital to seek validation of market demand, the product’s value proposition, and the product design and features. Some of the main strategies to achieve this include:

Crowdfunding: Use a popular crowdfunding platform depending on the product category. This may prove to be highly effective to promote your idea early in the development cycle, attract investment, and validate the appeal of the product idea.

Prototyping: Companies can use prototypes at several stages of the product development strategy to demonstrate the product idea, gain feedback, and secure lead customers.

Low-volume tooling: Major investments for hardware products include production tooling and setup. Companies can start by building less-expensive, short-life tooling for a low-volume production run of your product in order to facilitate a market test.

Question #3: What is the best business model for acquiring customers?

The company’s customer acquisition and revenue models may have implications for the product design. Products that work on modern technology such as IoT consist of ecosystems of hardware, applications, connectivity, data storage, and data feeds. This expands the company’s range of possible business models, here are the options you need to consider:

  • Subscriptions for data feeds, storage, or hosting
  • Opportunities to increase user engagement and the network effect, exposing
  • Purchase, lease, or metered usage for hardware or application components
  • Free basic functionality with paid upgrade opportunities
  • Recurring revenue opportunities through consumables, maintenance, and upgrades

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