New is always better. This is what the consumer base thinks and everyone knows that the customer is always right. Notions like these are what drives product development. Companies need to stay relevant and maintain their consumer base. Therefore, they develop and launch new product lines.
A company’s current success will not ensure the success of their future ventures. For every product line that endures, there are dozens like it that simply do not make the cut. There is no golden rule to help ensure product success, but it can help to know what you will likely face during the research and development process.
Is the gap in the market real?
It is all too easy to convince oneself that their product or idea fills a real need or gap in the market. But is the idea as good as you think it is? Large and small businesses alike are continually flooding the market with new products.
One surefire way to ensure that your product makes it big is by forecasting the demand for what you have to offer. This reassurance can be obtained by doing mammoth amounts of research. You can never know too much about what your potential customer wants.
Streamline the development process with caution
Once you have established that there is a demand for your proposed product, it can be tempting to attempt to cut down on development time. This would place your product on the shelf faster, thus speeding up the profit timeline. But it could also mean that you wound up cutting corners where you shouldn’t have.
The last thing any company can afford is to blow money on a product that does not endure due to defects missed as a result of sped-up development.
Research and development of a new product undertaken by a third-party is a good solution to speed up the process. It streamlines the entire development process and you can expect better results in terms of speed and quality.
Does the proposed product align with the company’s image?
Broadly speaking, customers will not just buy any product from a company they trust. Instead, they buy a product they know from a company they trust. Diversification in product lines is as potentially profitable as it is risky.
If successful, then the company branches into a new part of the market. You may land up with wasted research and development resources if the product is not what the company is known for. Even innovative and new products need to align with the company’s, image, values and competitive edge.
Where do you plan on selling your product?
Globalization does not imply universal standardization. Where are you planning on selling your product? Only in the USA or are you looking at markets abroad? These questions need to be asked and answered long before product development and testing starts.
This step is important because you need to be aware of the legal and technical ramifications of selling a product in an international market.
Some ingredients are not allowed to be imported in some countries, while others use a different voltage to the one used in the country of origin.
How do you plan on distributing and promoting your product?
Market demand is vital for the success of a new product, but it alone does not ensure success. You need to address the marketing and distribution planning needs during the initial stages of research and development.
There needs to be a succinct plan for the product once it has been thoroughly tested and developed. A brilliant product is of no use to a customer if they cannot get their hands on it. This same product is also next to useless if no one knows that it exists.