'Brand new' gestation

Successful start-ups need equally successful products to keep them alive. Product development and the works, find out what goes on behind the scenes- right from the product inception till it hits the stands!

R&D efforts pay off when it comes to new products, upgrades, and modifications. Here is a step-by-step description of product evolution.

• Conceptualisation

It's generating an idea! It involves a systematic search for newer product ideas. This could come from internal sources, competitors, customers, suppliers and distributors. A typical Gillette product would be the outcome of 45 carefully developed new-product ideas in the development stage; only one idea really makes it to the marketplace!

• Screening

This calls for a closer look at ideas to make sure they are viable. The not-so-viable ones are done away with. Since product development costs rise sharply in the later stages, companies should spot ideas that are most likely to pay off, in this stage itself.

• Testing

Having passed the screening stage, the idea is then fine-tuned and formulated into a distinct concept that can be sold to customers. Testing involves trying the product out on a group of prospective customers.

• Marketing

The marketing strategy involves three distinct stages.

The target market- defining the reach, audience and market analysis

Positioning the product- defining your niche in the market.

Goals- sales targets, market share and profits for the first few years.

• Business Analysis

Evaluate the attractiveness of the product. This stage involves calculating the approximation of costs, sales, and profit projections. The analysis also ensures that the product can satisfy customer as well as company goals. If the product passes this stage it moves to the product development phase.

• Development

This stage concretises the product-idea, which is still a mere description, or a drawing. R&D initially designs a prototype that will satisfy and excite consumers. They also make sure that the product can be produced quickly at a low-budgeted cost.

• Test marketing

The product is released in the market as a sample on a small scale. This is to gauge customer response and test the marketing strategy, advertising, pricing, branding, packaging etc.

• Commercialisation

With the information provided by the test marketing project the company decides whether to launch the product. Once the decision is made, commercialisation ensues and the product takes on the market in a big way.

 

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