Product Development Process

The steps of the Product Development Process

1. Idea Generation: This stage involves generating new ideas for products or services from internal and external sources, such as market research and customer feedback.
2. Product/Service Screening**:** A SWOT analysis is used to evaluate the ideas generated, assessing their strengths, weaknesses, opportunities, and threats to determine their viability.
3. Concept Development**:** Develop a detailed version of the chosen idea, including a document that outlines the product's features and its Unique Selling Point (USP).
4. Feasibility Study**:** Investigate whether the product is commercially viable and can be manufactured effectively by evaluating costs, demand, and regulatory requirements.
5. Prototype Development: Create the first working model of the product to test its functionality and identify any necessary improvements.
6. Test Marketing: Launch the product on a small market segment to evaluate consumer responses and make adjustments as needed.
7. Product Launch**:** Begin full-scale production and distribute the product widely, supported by marketing efforts to ensure successful market entry.

Case Study: Kellogg's Crunchy Nut

1. Idea Generation**:** In a saturated market, Kellogg's sought to increase sales by developing new products. They conducted market research to identify new cereal ideas and asked customers about their preferences and trends.
2. Product/Service Screening**:** Kellogg's displayed all ideas and involved representative consumers in evaluating them. Consumer feedback helped identify the best idea, revealing that Crunchy Nut Bites was the most appealing option.
3. Concept Development**:** The concept for Crunchy Nut Bites was developed as an extension of the Crunchy Nut product line, offering new flavours or textures to attract customers.
4. Feasibility Study**:** Market research assessed consumer interest in purchasing the product. Financial projections and budget analyses indicated that Crunchy Nut Bites would be profitable.
5. Prototype Development**:** Several prototypes were created, including a mini crispy lattice and a nutty triangle. The recipe was refined using customer feedback, and packaging was developed and tested with consumers.
6. Test Marketing: Kellogg's conducted home usage tests where consumers tried the product and provided feedback. This included completing questionnaires and evaluating the product's appeal.
7. Product Launch**:** Kellogg's launched Crunchy Nut Bites in September 2008. Sales data showed it became one of the best-performing new products in the cereal category.