Manufacturing a new product or modifying the existing one as per the market or the end users’ requirements, and returning those products to existing or new markets is the definition of product development strategy. Custom product development strategy is a bit complicated. To frame an excelling new product development strategy, as an entrepreneur, you need to focus on every tiny detail. It requires keen attention to competitors’ products, and customers’ requirements, the ability to design and prototype, full in-house manufacturing capabilities, and a potent marketing plan. To your knowledge, there are several subsets of product development strategy, and they are as follows:
Product Development Diversification Strategy
This product development strategy is employed when a company’s existing market is saturated, and returns and profits are still or falling. There is no or a very diminishing opportunity for business growth. A product development diversification strategy helps a company overcome its prevailing business ecosystem, and a new product is manufactured for a new market. Due to the recession and heavy competition, when an insurance company selling insurance products decides to develop a financial education program targeting college students, it is called a diversification strategy. Because of existing competition and the presence of similar products, the new product developed may not be revolutionary in nature, but it is new to the company manufacturing it.
Product Modification Strategy
A product modification strategy is quite common among entrepreneurs and is normally aimed at existing markets. A hidden advantage of this strategy is it allows entrepreneurs to capture new customers for the new product. Toothpaste is the best example of a modification strategy. Toothpaste that promotes anti-cavity or teeth whitening qualities is built on existing simple toothpaste that only guarantees clean teeth and healthy gums.
Revolutionary Product Development Strategy
Under the hood of a revolutionary product development strategy, revolutionary new products are designed and developed to solve specific problems or meet end users’ requirements. Smartphones and advanced computers are the best examples of a revolutionary product development strategy. Before these revolutionary products made their way to market, consumers did not know they needed them. However, a revolutionary thought of creating a better device for communication ended in products that have modified the rules of communication and have considerably altered the competitive landscape.
Benchmarking the Process
Whatever product development strategy you employ depending upon the nature of your business, the new product manufacturing process must be carefully thought through. It also requires a sequence of benchmarks along the way. These benchmarks evaluate whether the manufacturing process should be continued or not because custom product development is normally high-priced and time-consuming. For instance, a company is manufacturing a new product, but a competitor takes on the market with a similar product with advanced features, then your company must make a “Go/No Go” decision about its new product development options.
Consumers Front and Center
Depending upon your business ecosystem, whatever product development strategy you decide to continue, always keep your targeted customers in the front and center, and involve them in the process from start to finish. Set a limit for your manufacturing overheads. Keep aside an adequate budget for consumer evaluation of the new product at the ideation, prototyping, and bulk manufacturing stages. An important point to remember is that whenever you opt for new product development, don’t include only customers who represent your primary market, but also include secondary customers to whom your product might appeal shortly.
The GID Development Corporation is a custom product manufacturer based in California that caters to start-ups, and small and large businesses’ unique requirements. Valued as one of the leading product manufacturing companies in the United States, GID is known for setting the bar for product design, rapid prototyping, testing, and bulk manufacturing.
To assist entrepreneurs in developing flawless new products, the GID Development Corporation is now offering a free 15-minute conference to answer questions related to new product development. There is no risk, and no obligation; contact them now at 714-323-1052.
