7 Stages for Carrying Out Product Development
Creating a vision and an idea into a product is often one of the biggest obstacles for aspiring entrepreneurs. However, this is the first step in becoming a businessman that must be passed. Like David Barnett who had to learn to use design tools by himself to create PopSockets.
The effort is not in vain, because currently PopSocket is a cellphone accessory that many people use. Its success became an inspiration to develop products. However, product development in practice does not only refer to physical products.
What is product development?
This term refers to the process of manufacturing and bringing a product to market. Not only new products, product development also includes updating existing products and introducing old products to new markets.
By working hard and taking steps in product development, you can create products that customers love. This includes identifying market needs, creating a product concept, creating a product roadmap, releasing the product, and gathering feedback from customers.
Product Development Stages
Although the responsibilities of each business industry are different, basically the product development stage is divided into various stages, namely idea generation, research, planning, prototyping, sourcing, costing and commercialization.
1. Idea generation
Many aspiring business people get caught up in generating ideas and brainstorming. This happens because too often you want to give a new breakthrough to the product you want to sell. Building something "new" does seem innovative and creative. However, many good ideas emerge as a result of repeating existing ones.
To help build product ideas, ask SCAMER questions. This is a model question that makes it easier for you to build ideas. Each letter represents a question you need to answer, namely:
- Substitute, for example, plastic to make products that have faux fur
- Combine, for example, a cellphone casing with a battery.
- Adapt, for example a breastfeeding bra with a buckle at the front
- Modify, for example, an electric toothbrush with a slimmer design
- Put it to another use, for example a bed for dogs made from memory foam
- Eliminate, for example, eliminates intermediaries when wanting to make glasses, thus making consumers save money
- Reverse/rearrange, for example a duffle bag that doesn't wrinkle your jacket
2. Research
With a production idea that you already have, you may feel very enthusiastic about getting straight into production. However, such hasty actions can backfire. Especially if you fail to test the idea first.
Research is carried out to ensure that the products in circulation are suitable for use. For research, you can discuss ideas with family and friends, conduct online surveys to get feedback, create campaigns, and ask for feedback in online forums.
The research process can also be done by examining market demand with Google Trends. You can also create a banner or 'coming soon' information via email, or carry out a pre-order strategy to attract consumer attention.
3. Plan
The best way to start planning is to sketch the product you want to make. You don't need professional-quality drawings, but the sketch should be detailed. Provide information or labels that explain the components, materials, features and functions of the product.
You should also start considering your retail price or product category later. Will this product be used for everyday purposes or special events? Will it use premium or environmentally friendly materials? All these questions must be considered in the planning stage. That way, this will help you in subsequent processes.
4. Make a prototype
It is unlikely that you will get a finished product that meets your expectations in one trial. In the prototype phase you will carry out trials with several versions of the product, until you are satisfied with the final sample. This is done to create finished products as mass production samples.
Not only that, it is important to remember that you also have to test the suitability of the product, so that it is suitable for consumer use. This will help you get feedback from consumers, so you know what can be improved.
5. Sourcing
To make the product you want requires adequate manufacturers, vendors and resources. In the sourcing process you will look for producers, suppliers, shipping, and warehousing or a place to store the products.
When looking for a manufacturer or supplier, it's a good idea to compare costs and create backup options. This is done because if one manufacturer or supplier is not successful, you still have other options.
There are many places to find vendors, both online and in person. Even though it seems old-fashioned, many business people still look for vendors at fairs. Such events provide opportunities for business people and vendors to meet, see, discuss and build business relationships.
6. Cost determination
You must have an estimate of the costs required to produce the desired product. To determine costs, you can take from the business analysis you have collected, and add the cost of goods sold. From there you can determine the retail price, and gross margin.
Start by creating a spreadsheet with a breakdown of the costs required. For example, raw material costs, factory costs, production costs, and shipping costs. Also consider the location of production, and where the raw materials come from. If you want to import, pay attention to customs fees, because these fees can have a significant impact on the basic price. Compare the two options, and choose the one that suits your business.
7. Commercialize the product
At this stage you have prepared the product, and the final step that must be taken is to introduce the product to the market. Here product development will hand over control to marketing to release the product.
To make your product commercial doesn't always require a lot of money. If you have a limited budget, you can do several things, such as sending product release information to consumers, collaborating with influencers, storing products in the 'gift guide' discussion, activating Instagram Shopping, creating chat marketing, and collecting feedback from consumers.
All stages of product development have their own challenges. However, by doing all the necessary preparations, such as research, planning, prototyping, sourcing, costing, and marketing, you can be ready to prepare a product that customers will love.
