Tuesday, October 18, 2016

New Product Development in Small Business

In this world where everything is changing, products also need change to survive and gain more market share. Innovation / change or  new product development is necessary to stay ahead of your competitors. Customers expect and demand something different time to time. A good change gives new life to the product.

Unlike, big organizations small businesses have limited resources so when a small business opts for new product development then the owner has to share the major work burden.


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New product development could be a totally new product or could be a change in packaging, size, design, material or in  product features etc. Some of the advantages of new  product development are:

            * keeps your clientele intact.
            *  helps you stay ahead of your competitors.
            *  helps you increase your market share.
            *  prolongs your product's life.
            * improves quality of your product.
            * mostly it reduces your cost.
            * eventually leads you to more profitability.

Following are the steps needed to be taken for New Product Development:

Understanding when there is a need for product development: An unwanted change / innovation is not helpful for anyone. Timing is crucial. If you are late then your competitors may take advantage and capture bigger market share by launching the new product before you do.

Generating ideas how to fulfill the need: Once you know that change is necessary and market is ready to welcome it then think how will you deliver it. You can generate ideas by brain storming, talking to experts, research through internet, by visiting libraries, listening to your office concerned staff etc.

Do a detailed research on your idea: Once you have finalized your idea then do a detailed research on it. Find out how much time & money will it take to realize your dream. What will be the market size, profitability etc. Also, how is it going to benefit your customer.

Testing your idea: Once you are fully comfortable with your idea then produce the new product on a small scale for test marketing. Show the new product to your marketing staff, retailers and to the end users to get their feedback. If necessary make amendments accordingly.

Making a comprehensive launching plan: After you receive a positive outcome from test marketing make a comprehensive launching plan. Workout every detail i.e. funds needed, manpower requirement, ad campaign etc. Then set the deadline and give your best shot.

Post launching review: After the launch be in constant touch with your marketing staff, customers and other stakeholders. Give importance to the feedback you receive from them and make changes and improvements accordingly. Here, understanding customer needs and delivering according to their expectations is the key to success.

I hope you found the above helpful. please free to comment.







            

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