The life cycle of a product begins at its launch to the market for sale. However, before a product can have a life, it needs to journey through the phases of development. This process involves all phases from concept-to-product and includes the following product development services:
- Concept Development
- Market Analysis
- Budgeting and Fundraising
- Market Testing
- Analysis of Findings
It is important for a manufacturer to know when to outsource for guidance and advice throughout the development process.
Product development lends itself to both innovative ideas and the modifications to an existing product to extend the life cycle. It is the development of new and modified concepts that keep a company profitable by achieving economies of scale.
This service is the first step in product development as everything begins with an idea. Whether a new product or the re-marketing and re-positioning of an existing product, ideas need to be revolutionary and unique to the market.
Concept development through the exchange of ideas with those inside and outside of the company is a key step in the market introduction.
Once the best idea is chosen, the next step is to research the market to measure the demand for the product. It is crucial that thorough market analysis is performed, and for the analysis to be correctly interpreted.
This is the step to drill down to the specific features of the product to meet the demands of the market. Financing for a new or modified product will depend upon the results of an independent, third-party market study that proves feasibility.
Once a concept is refined, and market feasibility is proven, then a prototype is developed. Prototypes will be created through various design changes and specifications. The end product needs to be manufactured at a price and at a pace to meet the demands of the market and the profits of the company. It is during this phase that budgets are created, and any capital raise is planned. The budget will include all costs expended during the concept development and market analysis phases and will project future costs of manufacturing, testing the market and launching the product.
Before large amounts of capital are spent on the production and promotion of the project, it is wise to test the product on a small group within a target market to test viability, price point, and acceptance. This step will prove the results compiled in the market analysis phase. A solid plan for the launch will be the compilation of the market analysis and the interpretation of the market testing.
Analysis of Findings
With a look-back at the accumulated information and results, guidance is needed for final changes to the product, budget, price points, market strategies and profit projections. All representatives of the product development process will give their input and advice to move the product toward its launch.
Introduction to the Market
Introducing the product to the market after its journey through the development process marks the beginning of the life cycle and the end of development.
Through the product’s development, it will be important for the company to focus on cost management and to know when to end the process. Creating a successful and marketable product is not about getting through each phase of development. It is knowing and understanding the components of product development, retaining the appropriate consultants, and managing the process to make the most efficient use of the expended time, effort, and resources.
Companies understand that all products have a distinct life cycle and invest heavily in product development to ensure a concept becomes a product the market will absorb over the longest time. It is beneficial for a company to seek guidance and to outsource these services from concept to market introduction. Retaining a company with the experience and expertise to cover all product development services will result in a successful product launch.