Product Development Processes

Deciding the product policy is the main task in product development processes. What products should the company make? Where exactly are these products to be offered? What market, or market segment should it be offered in? What should be the relationship among the various members of a product line? What should be the width of the product mix? How many different product lines can the company accommodate? How should the products be positioned in the market? What should be the brand policy? Should there be individual brands, family brands and/or multiple brands? Can a product be left to middleman’s branding? Answers to these questions will constitute the product policy of a firm.

A growing business has to undertake a constant appraisal of its existing product line. No product lasts forever, and no product lines are perfect forever. Changes in the business environment, changes in customer tastes and preferences and the extent of competition all exercise some pressure on the product policy of a firm. A product might have lost its marketable image, be facing the threat of functional obsolescence, lost its profitability, be poor in quality or simply served its purpose and is on the decline.

The techniques employed by firms to render their product or brand distinct and different from 명품레플리카 the competing brands, is termed product differentiation. Differentiation can be based on product, channel and promotion. Product, however, lends the maximum scope for differentiation. The aim of a product differentiation strategy is to endow the company’s product with certain real differences compared with other competing brands. And the main requirement is that the consumers must perceive the product as different in some respect.

Here’s how to create successful new products if you’ve never had an original idea in your life. I’m not very creative, so that’s the only way I could create any products at all. All I’ve done is to create new products by improving on an existing product that already sells well. By doing this I’ve sold over $39 Million of products to major retailers.

Improving on existing products takes most of the risk away. With a totally new invention or completely new product, you don’t know at first whether it will sell. If you start with something that sells well already and you make it a lot better, you don’t have that problem.

Here’s a story that makes the point:

When I started my first business, my partner had a small screen printing operation and we set up a joint venture together to explore products I would create and sell and he would make. He was selling souvenirs and a popular look at the time was to make decals out of prismatic vinyl. (This a metallic material with a pattern embossed into it to reflect light into rainbows.)

Though I started by selling souvenirs, before long I noticed there were hundreds of companies starting to make stickers for kids and they were collecting them. (Note how quick I was to see this – after 100 other companies were already doing it!).

Most of these stickers were just traditional paper, so I decided to try our prismatic material and see how it would sell. We put a product line together of prismatic stickers on rolls and started selling some gift shops.

They sold better than anything else in the store so we decided to make some more – and amazingly, they sold well too.

The next step was to put these same stickers in packages to sell to the major chains. Long story short, in another couple years we were in Wal-Mart, Target, K-Mart, and about every other major retailer and we were selling over $1.0 million of stickers every month!

A few years later, I started another company selling school supplies exclusively to the major chains. We came up with an entire line of folders, notebooks, pens, pencils, 3 ring binders all with the prismatic/holographic look.

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