Every year, companies and entrepreneurs introduce 30,000 new products into the market. Unfortunately, 95% of these products fail.
If you are a business owner asking yourself what could go wrong in product development, the statistics say almost everything. The resources you invest in launching a new product could go down the drain.
Are you wondering how you can beat the odds and develop a new product without flopping? You can start by understanding the do’s and don’ts of product development.
Here is a list of things you should do or avoid to ensure that your product is among the 5% that succeed.
The Do’s of Product Development
If you have a grand idea for a product you are eager to develop, there are some things you should do before diving in. Examples include the following:
Identify the Product’s Distinguishing Feature
Always ensure that your product has a distinct feature that differentiates it from competitors. The unique feature could be related to style, function, or efficacy. The distinguishing feature will give you a competitive edge in the market.
Start by getting to know your customers. Find out what delights them and what would make them even more delighted. Such information will give you more ideas on how to distinguish your product.
Budget for All Core Elements in Product Development
If you have asked yourself how to develop products, then you know there is so much that goes into the process. There is design, product manufacturing, and marketing, among others.
Each of these stages will cost you. Because you can’t avoid them, create a budget that accounts for each one.
For example, you will need a budget if you plan to outsource a manufacturer for your product. One of the key tips for product manufacturing is to find a manufacturer who can produce a custom product for you.
You will also need to budget for marketing to ensure that your product reaches the intended target audience. Examine each product development element and determine how much it will cost you.
Develop One Product at a Time
Concentrate on a single product every time you introduce a product to the market. The focus will allow you to conduct thorough research on your target market.
When working on a single product, it will be easy to review the existing competing products. You will also have an easy time determining the differentiating features that will make your product sell.
Once you successfully launch one product, you can scale up your line of products.
Focusing on one product will also allow you to reinvest in new products. You can focus more on aspects like production inspection to ensure that the new product meets all the quality standards and sells better when reinvesting.
Do Thorough Research
When venturing into product development, you should research everything that could affect your product’s success.
Research into the industry and social trends. In this case, understand things like the social media platform that facilitate more marketing success.
Don’t forget to research consumer behavior and how they make their buying decisions. The research will help you develop a product that consumers need most. You will have insight into the features that attract consumers to your competitors’ products.
The Don’ts of Product Development
When developing products, there are some mistakes you are likely to make. If you don’t want to send your product down the gutters, avoid the following:
Don’t Develop a Product Because Your Sales Are Falling
You may notice a decline in the sales of your flagship products. You will be making a mistake if you decide to develop a new product to offset the lagging sales of the existing product.
It is unwise to embrace a reactionary approach to poor sales. If you start developing a new product, you will not address the root cause of your current problem.
You will not understand why your products are not selling. Don’t rush to develop a new product without understanding whether you can refine the existing product to make it tick.
Don’t Develop Without Doing Market Research
It is a bad idea to prioritize product development over market research.
In today’s fast-paced world, the marketplace is shifting more than sand dunes. Your product may no longer be relevant by the time you introduce it to the market. Your competitors may also have a better version of the product you are killing yourself developing.
So, don’t start developing a product without a thorough market review. Don’t skip market audits, even when you think they are time-consuming.
Don’t Overspend on Product Development
You might think that developing the best product will guarantee you more sales. As such, you might go overboard in designing and manufacturing your new products. When the product is ready, you will have no resources to market it.
Don’t forget that you will need marketing to get customers for your products. You may need to pay for advertisements. You may also need to hire marketers to reach your target audience.
If you lack the resources for marketing activities, you will delay introducing your product to the market.
Don’t Rule Out a Product Prototype
An experienced business owner will tell you that one of the crucial product design tips is to have a sample product before manufacturing it on a large scale.
Don’t ignore having a sample product that transforms your idea into something real. Your product idea may sound perfect when you’re theorizing it. However, it may shock you to find flaws once you create the physical product.
If you rule out a prototype, your product is likely to fail. You can present a prototype to your target audience and ask for feedback about it. The feedback will tell you whether the target customers like the product.
If you have no prototype, you will be unable to gauge how potential customers will react to the actual product.
Make Your Product Development Successful
New product development is a challenging endeavor. However, you can make the process satisfactory by following the right steps before diving into product development. This guide tells you what to do and avoid to ensure that your new product sells.
At China 2 West, we provide product development services to ensure that your new product doesn’t get lost in the long list of unsuccessful product launches. Contact us today for advice on launching a new product.
