New Product Development:
Importance of new product development:
Developing a new product is a series of steps and actions taken by the organization in order to generate and then convert new ideas into products or services (Murthy, Marvin, & Trond, 2008). It is important to know the importance of developing a new product before looking into its process.
Organizations exist for the purpose of earning profit by satisfying needs of the potential customers. Every organization has a purpose yet some organizations have their own distinct vision of coming up with a different product altogether whereas some organizations become followers and provide nothing different than the others. The later type of organizations can stay for a short term in the market but in order to stay and earn economies of scale in the longer term, organizations must understand to provide their customers with additional benefits and distinctive products or features in those products, which their competitors or other players don’t provide.
Process of developing a new product:
It depends on organization to organization how much deep it wants the new product development process to be or how much easy it wants to make it but usually in theory and academia, 8 step/stage process is known for the purpose of developing a new product. In our case, if we choose instant tea mix to be our product which we want to introduce new in the Fast Moving Consumer Goods industry then the process, steps, and stages are as follows:
1. The idea generation stage:
In this stage, first of all a detailed analysis of internal and external environment should be done. This is also known as SWOT analysis in which the company’s strengths and weaknesses are noted down along with the opportunities and threats it currently facing or is likely to face in the future. Strengths and weaknesses are internal to the organization whereas opportunities and threats are external. Moreover the company should investigate the best practices...