While Product Discovery searches for the reasons why an idea or product needs to be built, the New Product Development process focuses on shaping and creating the Idea keeping all the critical and risk aspects in mind.
The seven primary stages devised for the New Product Development process are:
1st Stage – IDEA GENERATION
The motive of this stage is to generate raw and unproven ideas that can later be shortlisted to find the best ones that work.
1. Finding Solutions
You start by finding a problem/issue that everyone faces and trying to seek an acceptable solution.
2. Validating the Solutions
You validate your solutions based on their feasibility with the problem you have discovered or compatibility with the users or customers.
3. Sorting the Solutions
A problem may possess numerous solutions only the most effective, feasible, and appealing one has the potential to become your Unique Selling Proposition (USP).
For instance, Zoom surpassed Skype, an 8 years old video calling app, just by focusing on its USP, group meetings.
2ND Stage – IDEA SCREENING
An essential aspect of the New Product Development process is choosing the most workability and potential idea. There are several methods devised for the purpose:
- ABC Analysis: In this method, the ideas are tabulated according to their importance and precedence. A-for most essential items, B-for somewhat essential items, and C-for marginally essential Mostly only the A items get filtered through.
- Cost-Benefit Analysis: This involves weighing the costs against the benefits and prioritizing the idea based on the outcome.
- SWOT Analysis: As we all know, SWOT stands for Strength, Weakness, Opportunities, and Threats. It aims at identifying the strengths and weaknesses of an idea that unravels opportunities or threats with the product features.
3RD Stage – CONCEPT DEVELOPMENT & TESTING
A concept of your mobile app development must be built first, keeping the customers POV (point of view) in mind. This process helps you get rid of the loopholes in your idea.
- Gain v/s Pain
Gain = the benefits the customer gets.
Pain = the efforts he/she puts in.
- Scrutinizing your competitors, which help you infer:
- Flaws in their product
- Scope of innovation
- Spot white spaces in the Market.
- Highlighting your product USP to enhance its economic values.
- Formulating a Value Proposition Chart.
- Testing the concept with a few customers to gain product validation and generate reports based on:
- Initial Reaction of focus groups
- Uniqueness of Concept
- Concept Appeal
- Concept Likeability
4th Stage – MARKET STRATEGY/BUSINESS ANALYSIS
Market Strategy is all about setting up a pathway for your products to reach their target audience. McCarthy’s 4P marketing technique could help you the most.
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The selling price needs to be smartly strategized using tried and tested techniques such as:
- Markup Pricing: a 20% markup
- Target Return Pricing: this is based on expected ROI
- Perceived-Value Pricing: buyers’ perception of the product’s worth sets its price.
- Value Pricing: more for less philosophy
- Going Rate Pricing: charge what everyone else is
- Auction-Type Pricing: companies bid prices to get a job
5th Stage – PRODUCT DEVELOPMENT
With the New Product Development idea in place and its marketing strategy finalized, the actual product development starts.
- Prototype Development
Developing the UI/UX of the product to perfectly elucidates the USP to the customers.
- Minimum Viable Product (MVP)
MVP refers to the initial version of your product that demonstrates enough features to attract early adopters who validate your idea.
The methods to develop MVP include:
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6th Stage – MARKET TESTING
Market Testing is an essential procedure after the prototype is built. Modifications are carried out keeping customers’ POV in mind.
- Alpha Testing: Alpha testing, also known as acceptance testing, is carried out with internal employees of the organization, who give necessary feedback to identify issues and bugs in the final product.
- Beta Testing: In the second phase of testing, the product is tested in a natural environment by real users. Here, bugs that were overlooked in the alpha testing phase are usually fixed.
7th Stage – MARKET ENTRY/COMMERCIALIZATION
Your product placement in the market and the users’ perception ensure its failure or success.
Marketing fundamentals that ensure a successful product placement include:
- Marketing the Concept over Product
In the markets, the ‘why’ sells more than the ‘what’ for the products. The focus should be on the marketing strategies to promote “how” your product makes their life easier more than the features it has.
- Having a Compatible Brand Voice
Anything that etches a lasting memory in your customers’ minds can be its voice. This unique voice could be a person, blog, email, or the content of your website.
Focusing on innovation while creating value is the thumb rule of the New Product Development Process.
Creating a monopoly in the market is paramount. With the help of the New Product (App) Development model, PAYG Apps can help you gain a competitive edge over your competitors using USP as your strength.