New Service Development Idea Generation and Concept Development Assignment requi

Question

New Service Development Idea Generation and Concept Development Assignment requirements 1. Generate 3 different service ideas 2. Develop at least 3 concepts for each idea 3. Show the process on how you have developed each concept For an example do the following: What do you want to serve? Who do you want to serve? Where do you want to offer the service? - What benefits would you like to offer? In what price range? -Or whatever is relevant considering your service offer. 4. Select the best concept and develop a service blueprint. Your report should include the following: 1. Introduction 2. Generation of ideas 3. Development of concepts 4. Development of a service blueprint 5. Conclusion

Explanation / Answer

Carefully plan the steps involved in testing your new product development (NPD) ideas. For every 7 new product ideas developed, 1 becomes successful. Defining your new product concept and testing it with your market will help you determine whether your new product idea will be a success.

The concept development and testing stage of NPD can be time-intensive, but it will help you avoid unnecessary costs later by ensuring you pursue the best new product concept in your market.

Create a product concept

A product concept is a detailed description of an idea, which you describe from the perspective of your customer. Taking your customers' viewpoint when describing your product concept will help you test and evaluate how responsive your market will be to your product.

Do your sums carefully

Make sure your idea can be designed, manufactured and delivered within your financial, resource and time constraints.

Talk to the people who will buy it

Take your idea to your target audience to determine what they think and where any gaps might lie. Market researchers can help you run focus groups and surveys to determine how customers will respond to your product.

Refine your target market

Detail your customer targets as accurately as you can. Your focus groups or conversations with your target audiences will help you determine whether you're targeting the right market segments.

Examine intellectual property (IP) issues

Find out whether another business or individual has already patented your idea by searching for a patent.

If your idea was the combined result of several members of your team, consider how you will recognize their contributions to the intellectual property when you protect your idea.

Identify the features

Based on the information you have gathered to date, list the features and benefits of your proposed product from highest market importance to least.

Take your time

Define your product concept clearly, test it with your audience and don't make any assumptions. Many NPD ventures fail because businesses rush through concept development and testing.

A business analysis of new products

A new product idea that survives the screening stage of new product development (NPD) requires a more sophisticated and detailed business analysis. A business analysis will help you determine the costs involved in your proposed NPD, and forecast the profits you may make from the product in future financial years. The costs of developing a product are substantial.

Your business analysis will also help you eliminate inappropriate ideas and avoid unnecessary costs.

Carry out the following steps to assess the viability of your new product.

Estimate your product price

Review your market and competitor research and your feedback from customers to determine the selling price of your product, and the profit you are likely to make.

Identify your product's market potential

Review your market research and the sales performance of existing products in your range. Use your recent sales figures and industry sales figures to help you identify the current level of market activity and interest in products in the same line as your new product.

Forecast your sales volume

Estimate the volume of the product sales you anticipate based on your research into customer needs, the size of your existing customer base and your market.

Identify your break-even point

Estimate the profitability of your product, and determine your break-even point - the amount of product you need to sell to cover your fixed costs (such as rent, electricity, and wages).

Determine your minimum sale price

Project your returns based on your anticipated discounted product price to identify your lowest sales figure per item.

Consider the long-term

Forecast the lifespan of your product in the market. How long will it be relevant to your market's consumers? How long will it take you to realize a decent return on your investment? What market share percentage does it have the potential to realize?

Scope your marketing strategy

Your marketing strategy will help you determine how to position your new product in the marketplace. The information you gather, next, in your market testing will help you identify which market segments to target and how. At this stage, however, you can use the data you have gathered in your business and market research to start shaping your marketing strategy - identifying relevant market and product information as well as approaches that will be important in your product marketing.

New product prototypes and market testing

Prototype testing is one of the most rewarding phases of new product development (NPD). Developing a prototype of your product allows you to bring your product to life for the first time and test it in its market. Your investment in market testing your prototype will help you prepare your product for market entry.

It is important to be careful and considered at this exciting stage of NPD. Take your time and invest in the human resources and expertise you need to perfect your new product.

Put someone in charge

Assign a member of your team (if not you) with strong project management skills to manage or coordinate the product development and delivery process. Ask your product development manager to maintain a practical, informative schedule and project plan that details the steps involved in developing your prototype and running your market testing.

Consult the experts

Product development specialists can help you streamline your process and avoid costly mistakes. Consider commissioning consultants who specialize in product engineering and design - for example, graphics or industrial designers, product engineers, product quality consultants, computer-aided design (CAD) specialists.

Protect your intellectual property (IP)

Make sure your patents are in place and your IP is protected before you take your product out for a test run.

Commission a prototype of your product

Building a prototype helps establish whether your idea or invention will function, provides information necessary to build your new product or system, and highlights any flaws or defects in your design.

A product mock-up will help you determine how to package, brand and market your new product. It will also help you test the look and feel of the product in sample segments of your market. Calling on technical expertise to help you at this stage is prudent, especially if you are not experienced in product development.

You may also be eligible for funding to subsidize prototyping.

Test the product in action

Put your prototype to use in the type of situations it's required in. Identify the characteristics that are most important to your customers and test those attributes, repeatedly.

Run focus groups

Enlist the help of a market researcher to facilitate a focus group that will help you gauge the response of your sample target market. Interview your customers and take your prototype to as many informed people as possible.

Make improvements

You may need to improve your product based on feedback. Use this opportunity to make changes that will increase your product's chances of success. Retest the product within more specific conditions that help you evaluate your changes - for example, by conducting a further focus group with a market segment that your product changes will affect most.

Test it in your industry

Attend industry events and trade or consumer expos to get feedback on your prototype. Take the opportunity to generate market interest and capture details of interested customers who want to hear about your product launch or even place advance orders. Consider whether you need to prepare an initial run at this stage to test customer acceptance more broadly.

Develop a marketing strategy

Your marketing strategy will help you accurately segment and target the right market for your product, set clear marketing objectives, and develop marketing strategies and tactics for your market segments. Start by reviewing all the information you have gathered in your business and market analysis and market testing. Learn how to develop a marketing strategy.

Develop a marketing plan

Your marketing plan will help you organize and implement the marketing tactics for your new product, plan your sales and product marketing activities, and reach your sales targets.

Launching and commercializing new products

Introducing a new product into the market is a significant business achievement. Launching your new product is your final, important step in the new product development (NPD) process. Deciding when, how and where to launch your product will determine its early impact on the market.

Your marketing strategy and marketing plan will direct your product launch and help you make the most of your business and product exposure opportunities. Consider including some or all of these approaches in your new-product marketing:

Develop a direct marketing campaign

Direct marketing methods such as direct mail, email marketing, and social media marketing can help you get straight to the customers in your target market.

Create your advertising plan

Plan and book your advertising well ahead. Analyse where your target market customers get their product information. Book advertising in industry print and online publications and consider product innovation publications.

Create communications materials

To support your launch you can create a product brochure and point of sale posters to draw attention to the new product.

Develop a public relations and news media strategy

Use public relations (PR) to your advantage. Mainstream media often pick up innovation stories. Launch a print and online news media campaign and target interested industry journalists.

Develop a sales plan

Develop a sales plan tailored to your new product. Sales planning helps you define strategies for your ideal customers and set realistic, healthy sales targets.

Develop a pricing strategy

Your pricing strategy should identify an entry-to-market price, a premium price, and a minimum sale price.

Contact your distributors

Give your distributors plenty of forwarding notice of your new product launch. Use your forecasts to calculate the product numbers you'll need to meet your anticipated sales volume.

Get professional advice

A number of public and private sector organizations provide support to businesses investing in innovation, commercialization, and NPD:

CONCLUSION.

? Every year millions of rupees are being spent on R&D for new products development. Such huge investment is necessary as new products are the only means of survival of a firm.

? Product development process includes; Idea Generation, Idea Screening, Concept Development & Testing, Marketing Strategy Development, Business Analysis, Product Development, Market Testing, Commercialization.

? New product development provides a number of advantages to the enterprise.

? To produce goods & services with the best quality.

? It helps in providing maximum customer satisfaction.

? To replace declining product and take advantage of new technology.

? To maintain/increase market share with competitive advantages.

? To fill a gap in the market

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.