Product design and development.pptx

PRODUCT design and development basics

1. The NPD process involves eight key stages: 1. Idea generation  - brainstorming and coming up with innovative new ideas. See  generating ideas for new products and services . 2. Idea evaluation  - filtering out any ideas not worth taking forward. See  screening new product or service idea . 3. Concept definition  - considering specifications such as technical feasibility, product design and market potential. See  researching new product and service ideas . 4. Strategic analysis  - ensuring your ideas fit into your business' strategic plans and determining the demand, the costs and the profit margin. 5. Product development and testing  - creating a prototype product or pilot service. See  concept development and testing . 6. Market testing  - modifying the product or service according to customer, manufacturer and support organisations' feedback. This involves deciding the best timing and process for piloting your new product or service. See how to  test the market . 7. Commercialisation  - determining the pricing for your product or service and finalising marketing plans. See  pricing strategy for a new product or service . 8. Product launch  - a detailed launch plan can help ensure a smooth introduction to market.

2. New product development (NPD)   is a process of taking a product or service from conception to market. The process sets out a series of stages that new products typically go through, beginning with ideation and concept generation, and ending with the product's introduction to the market. Occasionally , some of the stages overlap or vary depending on the nature of the business

3. Idea generation  - brainstorming and coming up with innovative new ideas . Generating ideas for new products and services . A new idea is often the basis for starting up a business. Many entrepreneurs spot a gap in the market and start businesses that provide a product or service that fills it. Others come up with ways to improve an existing product . Idea generation The development of a new product or service usually starts with an initial idea. There are many ways to come up with an idea. To begin with, you can ask yourself the following questions: Is there a gap in the market in the industry that you currently work in? Are there gaps in your existing product range? Are there weaknesses in existing products that you may be able to address? Can you adapt, modify or improve your existing products? Can you use customer's feedback to enhance your existing products or services? Can you identify a need for a particular service or product that nobody else provides ? Ideation, or generating a good product or service idea, is your starting point in any new product or service development

4. 2. Idea evaluation  - filtering out any ideas not worth taking forward Screening new product or service ideas Successful new product development starts with identifying good product or service ideas. You will have to carefully evaluate each idea to determine which are worth pursuing and which you should discard. When screening or selecting your ideas, it might help to assess them against an objective set of criteria. For example, the criteria may include : the needs of your market and your customers   details of your customer behaviours and expectations the affordability of your idea, including resources needed for research and development the technical feasibility of your idea the market potential of your idea the profitability of your idea and the return on investment relevancy and desirability of your new products or product improvements your competition and their existing products You may also want to consider doing a  SWOT analysis  for each of your ideas to identify their strengths and weaknesses

5. SWOT analysis example A  SWOT (strengths, weaknesses, opportunities, threats) analysis  can help you understand how your business is positioned in relation to the market and your competitors. You can use SWOT analysis for any of the following: brainstorming business planning strategic planning competitor evaluation marketing product development business reports

6. 3. Concept definition  - considering specifications such as technical feasibility, product design and market potential Researching new product and service ideas The key to successful  research and development (R&D)  is conducting extensive market research. This is essential as it helps you to identify and understand the needs of your customers and, ultimately, develop better products or services. How to identify market need? To determine if there is a market or demand for your product or service, ask yourself the following questions: Does it satisfy or create a market need? Will it outlive passing trends or capitalise on the trend before it dies away? Is it unique, distinct or superior to those offered by competitors? What competition will it face - direct or indirect, local, national or global? Will the market want your product or service at a realistic price? Can you identify potential customers? Will your product be safe for public use and comply with relevant laws and regulations?

7. Market research and market reports Introduction A business that understands its customers and their buying habits can: sell more effectively compete with other suppliers target new customers identify new opportunities There is a wide range of data available, which can help you build up a picture of general trends and your customers' buying habits. This includes both published data, and information you can collect yourself. This guide explains  primary and secondary market research . It helps you to  plan your field research  and  avoid pitfalls . This guide includes  tips for effective market research .  This video explains how to use market research to gain knowledge about your marketplace, your customers and their behaviour to target them better: https://www.nibusinessinfo.co.uk/content/market-research-and-market-reports

8. 4. Strategic analysis  - ensuring your ideas fit into your business' strategic plans and determining the demand, the costs and the profit margin. 5. Product development and testing  - creating a prototype product or pilot service. See  concept development and testing . Concept development and testing Guide Concept development and testing is a crucial stage in the new product or service development. It takes place early on in the process and helps to identify key perceptions, user needs and wants associated with the product or service. What is concept development? Concept development involves coming up with a detailed description of an idea, explained from the perspective of your customer. A concept typically highlights the best features of the proposed solutions in terms of: convenience usability quality functionality performance price values experience When developing a new product or service, it is common to work with a large number of concepts and only develop the select few that show the most promise.

9. What is concept testing? Concept testing is a process that helps you assess the customer reaction to your proposed product or service prior to introducing it to the market. It typically involves surveying potential users for their opinions on the concept. For example, you may want to ask them: Are they interested in the product? How much do they like the product? How desirable do they find the product's features? What features do they like most/least? How well would the product compare to other brands or a similar product? What price point would they find appealing? What would they like to change about the product? You may want to present several different concepts to determine which ones the customers find most desirable. Benefits of concept development and testing Developing a product concept may take time, but it is extremely important for the success of your project to define your concept clearly, test it rigorously and avoid making assumptions about the product's feasibility .

10. What is a new product concept? A new product concept is basically a blueprint for your idea. When developing a new product concept, you should: describe it from your customers' point of view list features and benefits of your product that may appeal to customers research and determine your target audience conduct focus groups and thorough market research consider resources required for designing, manufacturing and delivering the product Once you develop your product concept, you should test it rigorously with your intended customers to determine its viability .

11. 6. Market testing  - modifying the product or service according to customer, manufacturer and support organisations' feedback. This involves deciding the best timing and process for piloting your new product or service. See how to  test the market . Test the market Guide Prototyping and product testing  are important throughout the design and development process. While you are developing your new product or service, it's a good idea to keep testing the market to make sure you are still on the right track. New product prototypes Developing a prototype of your product allows you to bring it to life and  test  it in the market with your target customers. A  product prototype  can be as simple as a mock-up or an early commissioned sample. A prototype can help you determine: how to package, brand and market your product how your product's 'look and feel' appeal to your customers if the product meets the market expectations How to test your prototype You should test your prototype in the type of situations you expect it to be used by your customers. To test it thoroughly, you should: show an early version of your product to customers and refine it based on the feedback run focus groups - ask your targeted customer segment what they want from your product or service conduct questionnaires - try to get as wide a sample as possible

12. In-market testing You may want to consider testing even after your product goes on sale. Ongoing contact with customers can uncover both the shortcomings of your product and possible opportunities that you may have missed. Once you have a final product, you can then set about building a brand. A brand includes everything that is visible to the customer, such as the product name, its packaging and its delivery.

13. Concept testing will help you evaluate objectively which product ideas are likely to yield the best results. It may also help you to: estimate the concept market potential prove the viability of the concept eliminate poor concepts identify features that customers find most desirable develop and further test your prototypes segment your potential customer base identify the appropriate price point and position for your product estimate sales and potential return on investment

14. 7. Commercialisation  - determining the pricing for your product or service and finalising marketing plans. See  pricing strategy for a new product or service . Pricing strategy for a new product or service Establishing a pricing strategy for a new product or service is an important part of the development process. You should consider pricing the moment you decide to take an idea forward as it will determine how much you can afford to invest in the project. How to price your new product or service To set the right price for your product or service, you will need to take the following into account: the impact of your new product or service on your entire portfolio the analysis of its value - eg the benefits to the customer and the likelihood of them paying the price you want to charge the competition and their pricing - is your product or service innovative or are you following a market trend the selling channels you want to use - this will affect your promotional spend and distribution costs how quickly you want to establish your product or service the expected life cycle of your product or service how much you will need to charge to cover your costs Make sure to cost all the materials, other inputs, machinery, processes and administrative time realistically. You will need to research different suppliers and the cost of marketing and distribution.

15. Commercialisation is marketing or selling a product or service. If you have developed and tested a product or service you will want to commercialise it. As with previous steps you should bring together a multi-disciplinary team with design, manufacturing, finance, sales, and marketing expertise. All will be vital to fully executing the concept. 8. Product launch  - a detailed launch plan can help ensure a smooth introduction to market