The Journey of a Product: From Concept to Market
A detailed look at the steps involved in bringing your new food or complementary medicine product to fruition.
Developing a new product involves a series of activities that an organisation undertakes to introduce a new offering to the market. A New Product Development Consultant can assist companies in using a well-structured process that fosters innovation and accelerates product launches. Typically, the process is divided into stages or phases, which include idea generation, market research, prototype development, and testing, before the final product is launched in the market. The consultant works with various internal and external stakeholders during the project's duration, such as sales and marketing teams, technical and operational staff, research organisations, ingredient suppliers, and third-party manufacturers. Product development is both an exciting and challenging endeavour. From initial ideation to research and prototyping, no two product launches are the same. However, there is a general process that can help you get started with the product development process.
Ideation
It is crucial to have a good understanding of market needs before creating a product. Ideation, or idea generation & screening is the first stage of the product development process, where new product ideas are generated, screened, and prioritised.
Ideation starts with thorough market research and a comprehensive competitor analysis which may incorporate customer interviews, focus groups, and surveys and the use of data analytics. It is also important to perform a SWOT analysis to analyse the strengths, weaknesses, opportunities, and threats associated with the concept. This will help to differentiate the product and identify it’s unique selling propositions (USPs), which can lead to the generation of disruptive and game-changing ideas. Together, these factors provide a clear understanding of where opportunities exist, leading to successful brainstorming sessions.
Once ideas have been brainstormed, product stakeholders will evaluate and prioritise them based on factors such as feasibility, profitability, alignment with business objectives, customer value proposition, and competitive advantage. The best concepts will then be chosen for further development, validation, and strategic innovation management. This process ensures that the product portfolio is refined and meets current and future customer demands, ultimately leading to greater success.
Concept Development & Testing
Once an idea has passed the initial screening stage, it is then developed further into a concept or detailed blueprint of the idea. This should clearly indicate the target audience for the product, the features, benefits & USP of the solution that may appeal to customers, and its proposed price. Important technical attributes requiring investigation by the consultant may include the following:
Regulatory Category: Is the product a food or therapeutic good (listed medicine)
Regulatory Compliance: Are the desired ingredients permitted? do any regulatory restrictions apply? What are the desired product claims (if any) and how will they be validated and assessed? are there are safety concerns? what is desired and required on the product label?
Format: Ready-to-eat/drink food, medicinal capsule, tablet, gummy
Ingredients: What are the best ingredients to achieve the product's functionality, purpose and benefits? achieve any on-pack product claims, meet target costs, ensure shelf stability and comply with sustainability requirements.
Processing: How and where will the product be processed (manufactured) and how will the process be designed, optimised and risk minimised to ensure it is safe and shelf-stable?
Packaging: What packaging is going to work best? Is it sustainable? Does it support the product’s stability? What about the User? How will it look on the shelf?
Pricing: How much will the concept cost to design, develop & launch, what will be the cost of goods, margin and retail price?
Once the concepts have been developed, it is prudent to conduct consumer testing to validate ideas with users before investing time & resources in building them.
Marketing strategy and business analysis
After the final concept selection, it is important to create an initial marketing strategy. This strategy will help with introducing the product to the market and evaluating its business value. The marketing strategy should guide the product positioning, pricing, and promotion. Once the marketing strategy is in place, the product management team can assess the business attractiveness of the product idea. The business analysis involves mapping out the distribution strategy, and reviewing sales forecasts, expected costs, and profit projections. If these projections align with the company's objectives, the product can move on to the product development stage.
Product Development
The product development stage is a critical phase in transforming a product concept into a finished and marketable product. This stage typically involves creating and technically validating a prototype and then testing it with users to gather feedback and determine how they interact with it. Prototyping helps product teams validate design decisions and identify any flaws or usability issues before moving on to the development stage.
Experienced consultants who specialise in new product development play a vital role in creating and improving superior products that meet market demands. This involves ensuring that the product is cost-effective, has the desired shelf life, and optimises sustainability claims, taste, texture, and aroma for food products, while also ensuring that the product is nutritious. For complementary medicine, it is essential to select unique ingredients at the correct dose, that are supported by sound scientific evidence to achieve all desired on-pack claims. In addition, the product must be readily scalable for commercial production and follow industry best practices and processes to ensure safety and quality.
Test Marketing
During this stage, it is crucial to keep in touch with customers and collect research data to gain a better understanding of what aspects of our product or service resonate with our target audience, and what doesn't. The findings can be used to craft messaging and copy for the launch.
Commercialisation & Launch
The final stage of the new product development process is commercialisation, where the products are introduced to the market. This stage is the result of brainstorming, research, and iteration, where target audiences can finally make use of what has been created. However, commercialising a product can be a challenging and expensive process. Even minor mistakes can lead to significant obstacles for the project.
The primary objective of the commercialisation stage is to outline the specifics of the production, marketing, and financial plans and then combine them into a single operational plan to ensure the product's successful launch in the market. Since numerous individuals are involved in commercialisation, effective communication and coordination are critical.
The goal of any product development project is to introduce a profitable new product, which can only be deemed a complete success when it is launched on time and within budget. Adequately organised and resourced commercialisation can help guarantee this outcome. Although this is the final stage, many businesses launch their products and return to make improvements to their products based on customer feedback and market changes to ensure they’re always providing the best possible customer experience.
Final Notes
Developing a new product requires an efficient process that helps you launch it on time and within budget. This process involves a strategic and multifaceted approach, which can be challenging to navigate without expert guidance. By working with experienced consultants, you can differentiate your product and improve its chances of success.