Product Development
Product development strategy is the process of bringing a new innovation to consumers from concept to testing through distribution. When existing business revenue platforms have plateaued, it is time to look at new growth strategies. New product development strategies look at improving existing products to invigorate an existing market or create new products that the market seeks.
The steps involved in product development are similar in each type of strategy.
After you’ve given product development some consideration, and you’ve decided to proceed full steam ahead, here’s how to develop new products and services to meet your market’s needs:
- Add new features or services by extending your current products. For example, cell phone companies add on media packages for text messaging, additional ringtones, and Internet access. Here are a few ways to extend your current offering:
- Adapt (to other ideas and developments)
- Modify (change color, motion, sound, odor, form, shape)
- Magnify (more for a higher price, stronger, longer, extra value)
- Reduce (smaller, trial version, shorter, lighter)
- Substitute (other ingredients, processes, power)
- Combine (other options, products, ideas, assortments)
- Develop additional models and sizes of your current products. For example, the iPod expanded to the iPod mini and the iPod nano.
- Develop totally new products. In this case, you usually leverage your brand recognition. Some good examples of this development are Gerber producing baby clothes and a CPA firm expanding from tax work into financial planning.
