Market period of product
People believe that like human being, when a product reaches to the market, it is the time when it is born and died when it is withdrew out of the market. The full market period of a product can be classified into 5 terms:
- Launching to the market
With each period, people will apply different tactics
New products are the blood nurturing the organs of a company. New products are created to adapt nonstop changing demand of the customer, keep up with the technical evolution and to encounter the fierce competition on the market. However, product developing is full of risks and many products failed during development. We will find out steps to create a new product, launch it and develop it successfully to the market in this part.
To get a new product, there are 2 manners:
The first is to buy product from the others. The product can be buy and marketing by our own brand, or we can buy the design, know-how or license of producing a product from the other person.
Secondly, we can ourselves develop our product through R&D activities. Many products are very expensive in investment but they can be failed and Edsel of Ford is one of example when it spent 350 million USD losses, RCA lost 580 million USD into SelectaVision, New Coke of Coca Cola or Polarvision of Polaroid…
80% of fast-consumed products fails comparing with 30% from new industrial products. But on the other hand, there is a source proving that 95% of new products may be failed.
Why new products have fallen? May be the idea of product is good but because they have evaluated highly the actual demand of the market. Or may be the design of the product is not good as expected. Or may be the new product is dispositioned on the market. Some time it is because of the urgency in making product while the information of the market is absent. Sometime it is because the price of developing a new product is too high or our competitors have launched similar product before us.
Because many new products have fallen, the company should learn how to launch effectively new products into the market. Company can condense experience from successful product to find out the common point. Otherwise, we can learn through lesson from the failed product.
In conclusion, to develop a new product, the company should understand the need of the customer, the market, the competitors and develop a product with preeminent value for our customers.
Process of developing new product
- Searching for the idea of the new product
It may comes from the A&D division, from researcher, scientist, staff in machine, sale man… basing on the achievement of science and technology. Or by researching the change of customer for their demand, market to create new product, which meet better their new demand.
- Filtering idea
After searching the creation, we can harvest the proposal and the Board of management should filter and consider to pick up the good creation and eliminate the bad creation.
- Drafting idea of product and experimenting
A good idea should be drafted into a specific plan. That draft needs to be communicated to the customers to collect their feedback to improve better the product with the actual demand of the customers.
- Developing marketing strategy of product
- Drafting the first marketing plan for the new product
- Analyzing the potentiality of the business effectiveness
The company should analyze and draft out the market potentiality, the investment cost, the selling price, the producing cost and expected interest to know that if such new product meet the business target of the company.
- Developing product
R&D division will research drafted ideas to design a specific product, which meet the functional requirement and the need of the customers.
- Market experiment
Products will pass a real experiment by the customers before mass producing.
- Launching product to the market
- With the result of market experiment, the board of management of the company can decide the launch of such product into the market. If Company decides launching such product, the company should identify the producing time and select the market to launch first such product…etc.