How to Develop a NEW PRODUCT (From Concept To Market)

Introduction

Developing an original product idea and bringing it to market is a multifaceted process that varies based on individual circumstances such as budget and industry. Although there is no one-size-fits-all blueprint for this journey, entrepreneurs have consistently employed a structured approach to successfully launch their products. Below are six steps that form the product development process:

1. Ideation

The first step is to come up with a product idea. It's common for entrepreneurs to get stuck in this stage while waiting for a perfect idea to materialize. Instead of striving for something entirely novel, consider iterating on existing products. A useful tool for generating new ideas is the SCAMPER model, which involves probing existing products with seven prompts:

• Substitute: What materials can you substitute to enhance the product? For example, consider crafting dumbbells with alternative materials that prevent calluses.
• Combine: How can combining two products result in something new? Look at wireless earbuds, which merged earbud technology with Bluetooth functionality.
• Adapt: What tweaks can be made to improve the product? If demand is excessive, consider adapting the manufacturing process.
• Modify: Reflect on how you can alter systems for better efficiency. Netflix modified the way audiences consume movies.
• Put to Another Use: What are the potential benefits of using an existing product in a different context?
• Eliminate: Analyze what can be removed to simplify the product while maintaining its core functions.
• Reverse: Innovate by altering the order of production or processes.

Setting a timer for three minutes and writing down every idea, unfiltered, can also help to activate your creativity.

2. Research

Once the idea is formed, validate it through thorough research. Ensuring that you’re developing a product that people will actually buy is crucial. Instead of rushing into production, gather feedback through various means:

• Start a crowdfunding campaign on platforms like Indiegogo or Kickstarter.
• Seek opinions on forums, for example, through platforms like Reddit.
• Check Google Trends for relevant keywords and historical data indicating market interest.

Also, perform competitive analysis to ascertain if there is differentiation potential against existing products. The goal of this stage is to answer two critical questions: Is there demand for my product? Can I differentiate myself from competitors?

3. Planning

Before building a prototype, approach the planning step with a detailed outline of your product's design and functionality. Begin with a hand-drawn sketch that visually represents your concept. Include annotations describing features and materials needed.

Consider whether your product is for everyday use or special occasions and whether it will be premium or environmentally friendly. This stage will also assist in shaping your marketing strategy.

4. Prototyping

The goal of prototyping is to create a finished benchmark sample for mass production. It's unlikely you’ll get everything right on the first try, so be prepared to experiment with several iterations. Depending on the type of product, you may prototype yourself or hire professionals:

• For clothing, you may engage a local seamstress, while 3D rendering may be necessary for hard goods.
• Utilizing 3D printing can significantly reduce costs and time.

As you refine your prototype, be ready to make improvements based on feedback.

5. Sourcing

In the sourcing phase, gather the right materials and partners to bring your product to life. This involves evaluating multiple suppliers and manufacturers to reduce dependency on one source. Attending trade shows can be an effective way to meet potential vendors and discuss materials in person.

Importance of Diversifying

Learning from the experiences of others, such as the founder of Nike in Shoe Dog, underscores the importance of having multiple suppliers and manufacturers to safeguard against disruptions.

6. Costing

After completing the sourcing phase, you’ll have a clearer picture of what it will cost to produce your product. Create a detailed spreadsheet outlining all costs, including raw materials, manufacturing, and shipping. This will lead you to calculate your total cost of goods sold (COGS), helping determine your retail price and profit margins.

Industry-Specific Tips

Fashion and Apparel

Product development usually begins with a hand-drawn sketch or a digital equivalent, moving to a prototype. Some businesses may utilize print-on-demand services to avoid the need for larger inventory upfront.

Beauty Products

Many brands now focus on natural ingredients and sustainability. White labeling and working with a lab and chemist are common practices in cosmetics. Be sure to research FDA regulations related to your products.

Food Products

Food and beverage items can often be developed at home using simple recipes. Once scaling up, you will need access to a licensed commercial kitchen or a co-packer that specializes in food manufacturing.

In summary, the process of bringing a new product to market can be complex, but by systematically approaching each step, you can effectively navigate the challenges. Tap into the power of a positive mindset as you embark on this entrepreneurial journey, and embrace the potential for success.

Keywords

• Product Development
• Market Validation
• SCAMPER Model
• Prototyping
• Sourcing
• Costing
• Fashion
• Beauty
• Food & Beverage

FAQ

1. What is the SCAMPER model?
The SCAMPER model is a brainstorming technique that helps generate ideas by suggesting ways to improve existing products through substitution, combination, adaptation, modification, alternative uses, elimination, and reversal.

2. How do I validate my product idea?
You can validate your idea through crowdfunding campaigns, gathering feedback on forums, and checking historical data using Google Trends.

3. Why is prototyping important?
Prototyping provides a tangible model of your product for testing and refinement before moving to mass production, allowing for adjustments based on feedback.

4. What types of suppliers should I look for?
It's advisable to find multiple suppliers for various materials and manufacturers to ensure you aren't overly dependent on a single source.

5. How do I determine pricing for my product?
Begin by calculating your total costs (COGS) including materials, manufacturing, and shipping, then set a retail price that achieves your desired profit margin.