Toolkit on how to Start and Improve your Business

Product Development

Product development is one of the important implementation steps you should continuously consider. The following steps are presented to serve you as checkpoints.

• Identify product and produce based on feedback obtained from customer survey or simplified market research;

• Compare quality with competitors;

• Improve quality;

• Decide on packaging and pricing strategies.

New product development is successful when and if based on market research. Some consumers would like to purchase a given product just because it is newly developed. If the target market is responding positively to the newly developed product, then the strategy of producing new items will work. New product development has to refer to the following issues:

• Size of demand;

• How long demand will continue;

• Pricing issues;

• Implication of future competition;

• Availability of resource;

• Skills required;

• Rate of return on investment.

Producing customised items can give the benefit of offering personalised items, which may not be available in other competing firms. This system gives the option of getting goods that fit to the needs of a particular buyer. The promotional programme for selling customised items should emphasise the advantage and benefit the buyer can get from the product.

Modifying existing products is possible when the demand for an existing product declines and when there is possibility of changing design, size, features or the colour of the product. Modification of existing products requires expertise in product idea generation and technical skills. The buyer may be ready to pay for an increased price provided the modification is as per his/her needs.

After modification of a product you should ask questions such as:

• Did the technical modification of the product go well?

• How was the reaction of buyers towards the modified product?

• What was the cost of modification?

• Has the product a competitive edge?

• Was the increased price accepted by existing and new buyers?

Last but not least product quality is a prior for product development. Quality is considered as a key factor for the success of business enterprises through:

• Creating satisfied customers;

• Facilitating volume purchase; and

• Repeated purchase.

Business plan  I  Cost calculation  I  Financing  I  Administration  I  Marketing
Supply and Infrastructure  I  Product development  I  Business management

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