Product Development: Definition, Stages and Examples

aroundknowledge.co.id – Any idea that feels like the “next big thing”? Or maybe you want to expand on an existing idea to modify or improve it. There are many applicable use cases related to the product development process.

And for entrepreneurs and businesses that apply it well, it can provide extraordinary results. However, there is a big obstacle. For many people, the product development cycle can be daunting and even mysterious.

It can be difficult to know what applies where and what action to take at the right time. In this article, we'll look at the process basics, some examples, and six key steps to product development.

1. generation idea
2. Product and market research
3. Product and Business Plan
4. Prototyping
5. Sourcing and Manufacturing
6. Product launch

What is Product Development?

Product development refers to the entire process of bringing a product from concept to market. This includes conceptualizing the item, identifying audience needs, gathering feedback, building a product roadmap, and launching the item.

For some companies, product development involves improving existing products and introducing existing products into new markets. No role in any company is responsible for product development.

Whether an established company or an early-stage startup, product development spans all departments: engineering, manufacturing, UI/UX, and product marketing. Each unit plays a key role in building, defining, managing, testing and releasing the product.

What is New Product Development (NPD)?

New product development is an integral part of product design. You can continually iterate over new versions of your product by adding new features or enhancing existing features throughout the product's lifecycle.

In addition, stakeholders can continue to collect user feedback to help improve the product in the future. With evolving customer preferences, the product design process makes new product development even more important.

6 Step Product Development Process

Every product roadmap is different, but there are six key steps every product development team must take to ensure they are on the ground. Let's take a look at each one.

1. Idea Creation

Many aspiring entrepreneurs get stuck in the first step. They felt compelled to be inspired by a big aha moment that had never been done before. But the truth is, innovation can happen in small ways. When thinking of all the ways to approach product concept development, keep the acronym SCAMPER in mind.

• Substitutes: Replace one material or element with another
• Merge: Merge two existing products or processes
• Adaptation: changing one element of an existing product or process
• Modification: Changing the design or function of an existing product or process.
• Repurposed: finding new ways to implement existing products or processes
• Delete: Remove an element or step from an existing product or process.
• Reversal/Reordering: Changing the Result of an Existing Product or Process

2. Product and Market Research

Research is a very vital part of the product development process. Without it, you will find out later that you have made a big mistake. Or, without market research, you may find that you've spent a great deal of time and resources developing a product that your target market doesn't really want to buy!

Critical product validations must be gathered before proceeding to build the final product. But you can't just ask a few people if they like the idea. You have to dig deeper:

• Create a survey to gather opinions and suggestions
• Engage with other experts and potential end users through online forums
• Using market research tools such as Google Trends and the Pew Research Center
• Test marketing to test ideas with small groups
• Create a crowdfunding campaign to see how the market responds to your idea

3. Product and Business Planning

Once you've successfully validated your idea, it's time to make a plan. You want to create detailed product sketches and 3D models to help you get started with prototyping and building for product planning. The more detailed your blueprint is, the easier it will be to bring your idea to life.

You should also consider other planning factors for your product roadmap, such as:

• The specific material from which the product will be made
• How to pack and label what you want
• Calculate the cost, or the cost of producing each unit (eg. COGS or cost of goods sold), then figure out how much you need the item to cost to make a profit
• A general business plan, such as how to run your business and sustain it for the long term.

4. Prototyping

Now is the time to bring your masterpiece to life. During the prototyping process, you create the final product that will serve as a model for mass production. Depending on the type of product you are prototyping, chances are you won't get it right the first time.

It's common to build multiple versions of a product and then narrow it down to your favorite once you've had a chance to really get a feel for it and test it in the real world.

Your goal is to create a Minimum Viable Product (MVP), or a product that does the basics with good enough, but it doesn't have to include all the extras you want to add in the run long.

In some cases, you may want to create your own prototype, such as a clothing designer making their own item. However, if you are developing items such as electronics, toys, or accessories, you may want to start by finding a partner or manufacturer to help you.

5. Sourcing and Manufacturing

Once you are satisfied with your product prototype, the next step is to gather materials and find a manufacturing partner. The product supply chain is driven by the suppliers, resources, and activities required to make and deliver products to customers.

Project management becomes important at this stage of product development. Use in-person and online resources when looking for producers. For example, you could attend a trade show dedicated to sourcing.

Trade shows like Magic provide an opportunity to view and discuss materials with hundreds of suppliers at once. Face-to-face interaction with vendors can be useful when negotiating. You can also go through Alibaba, the most popular sourcing platform for manufacturers.

You can search Alibaba marketplace listings for raw materials or finished products. One tip is to find a list of products similar to yours and then contact the manufacturer to see if they can make the design you want.

6. Product Launching and Commercialization

The time has come! The world deserves to meet your product. At this stage, we launch our product to the world and listen carefully to initial feedback. Here are some ways to get noticed and drive sales early in your product launch.

• Create a beautiful and attractive website that describes your products well and gives users the opportunity to buy smoothly and easily.
• Build an email list by hosting a pre-launch giveaway or contest, then use email marketing to nurture those contacts indefinitely.
• Find the right marketing and distribution channels to get the right people to see your product.
• Develop a social media marketing strategy to build engagement on platforms like Facebook, Instagram, TikTok and SnapChat.
• Collaborate with relevant players in the industry, such as partnerships with influencers and other brands.
• Build relationships and spread the word by attending industry events, conferences and networking opportunities.

Product Development Example

Now that you know the definition of product development and its stages, let's now go through a live example so you don't get confused.

Food and Drink

One of the easiest products to start developing is food and beverages. You can manage your development from the comfort of your own home, at low cost. It's as simple as buying the ingredients you need for a particular meal and modifying the recipe in your kitchen.

However, to go from recipe to packaged food that can be sold online and in stores, you will need to find a licensed commercial kitchen to produce the food. If you're considering mass production, co-producing may be a better choice.

Food development must also consider:

• Expired date. You need to consider the longevity of your product and how you package and store it to contain it.
• Labels and Warnings. Many countries have laws regarding allergy warnings, food labels, and health claims that must be followed.

Cosmetics and Beauty

Health and personal care trends have created a thriving market for various cosmetic and beauty products. From skincare to bath products to makeup, many brands focus on organic ingredients, making it easy to prototype products using everyday ingredients.

You might also look into white labeling, where you find established manufacturers and then package and brand the products they produce. Cosmetics manufacturers must work closely with chemists and laboratories to ensure quality remains consistent.

Other factors to consider:

• Expiration period. Test your product and add the required expiration label to your product.
• Rule. Find out which FDA regulations apply to your product and packaging. Then make sure your product design fits that. Most countries require cosmetic manufacturers to warn of potential reactions with their products.