Essay Example on the Aptest Product Development Cycle: Suttle's NPD Methodology

Introduction

There is a myriad of product development cycles/steps that have been put forth by different scholars. However, this paper finds that the aptest is the methodology put forth by Suttle (2016). A product development cycle, as Suttle (2016) explains, is an outline of the stages that a new product goes through, from its birth in the thought process to its actualization as a product on the market. Suttle (2016) also notes that it is prudent to know that the NPD (New Product Development) varies from product to product and from industry to industry. For instance, the process GlaxoSmithKline goes through to develop a new cough syrup is different from the process Starbucks goes through to come up with a new blend of coffee.

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The NPD methodology put forth by Suttle (2016) has seven key steps, these are; Idea Generation, Screening, Concept development and Testing, Market Strategy Development, Business Analysis, Physical product development, Test Marketing and lastly, Commercialization. Each step has different processes within it and to fully understand NPD, it is vital to breakdown these key stages, as outlined.

Idea Generation

At this stage of product planning and development, the organization tasks a team or department with the generation of novel ideas. Most organizations usually have a Research and Development department, which comes up with new ideas of products/product concepts. Other sources of ideas for new products may be Market trends, demand from customers, competitors, sales personnel, and focus groups (Robert, 2013). For instance, Instagram uses focus groups to aid in idea generation, when it wishes to launch new plugins to its social media platform. The use of focus groups best suits it as it is a social media company.

Idea Screening

At this level of NPD and planning, the ideas generated from the above sources are put through pre-determined metrics (specifications) to assess their viability and feasibility. The idea must be shared and examined against all possible threats that may threaten its viability. Ideas that are deemed inviable and unfeasible are stricken from the list of possible product ideas. This ensures that only worthwhile ideas are focused on, thus saving time & money. For instance, automobile manufacturer McLaren frequently consults car enthusiasts and car magazine journalists when it wishes to produce a mass-production car, and this gives them a rough estimate of what its customers want.

Concept Development and Testing

At this level, the different ideas or ideas are made into a likely product (usually called a test product or beta product/concept) that can then be presented to a target audience. The target audience's reaction towards the test product thus determines if the product will proceed to the development stage or if its cycle ends, both Brands (2013) and Suttle (2016) agree on this. If the reaction towards the product is positive, the product moves to the next stage and vice versa. The feedback from the testing process of the products and the adjustments of the product to fit the exact demands of the consumers.

Market Strategy Development

Following a successful screening, the marketing department comes up with strategies to introduce the product to the market. These strategies normally outline the product's population segment, targeting, and positioning stratagem.

Business Analysis

This stage analyzes the economic feasibility of the new product, to establish whether it will be financially valuable in the long run or not. The analysis will also see the examination of the strengths, weaknesses, opportunities and threats. The process of SWOT examination will help with the examination of the competitors' progress and ways to counter their moves.

Product Development

Once determined to be economically viable, the product is given physical shape. This stage is the most capital intense of all the stages in NPD. For instance, Coca Cola normally invests a lot in product branding, and the majority of this cost is attributed to the mold and design of its bottles and soda cans. The process of product development is very crucial going by the fact that several aspects, such as pricing, shaping, color, and packaging, are considered. This is a do or dies stage of the entire plan.

Test Marketing and Commercialization

At this stage, the product reception to its target audience is ascertained. The product expectation is also ascertained at this stage. Any changes that may need to be made to the product will be done at this stage, after which the product will be tested again until it is ascertained to meet the majority if not all of its customer expectations, as Hall (2018) agrees. After a successful test marketing phase, the organization launching a product then decides when, how and where to launch the product, to have maximum market coverage/exposure, which in turn is expected to generate sales.

Conclusion

Depending on the product, a product development cycle can be chosen. It is worth noting that some products have more complex development cycles than others, and thus, it is important to get the product development cycle that best suits the product at hand.

References

Hall, G. (2018). Product Planning & Development Overview. Accessed from https://medium.com/blackstar/product-planning-development-overview-8f3446ba5fa3

Suttle, R. (2016). Six Steps of New Product Planning. Accessed from https://smallbusiness.chron.com/six-steps-new-product-planning-18032.html on 12th February 2020

Robert, B. (2013). 8 Step Process Perfects New Product Development. Accessed from http://www.innovationcoach.com/2013/05/8-step-process-perfects-product-development/

Brands, S. (2017). New Product Development Stages: Top 7 Stages, Process, Steps, and Notes. Accessed from https://www.businessmanagementideas.com/marketing/new-product-development/new-product-development-stages-top-7-stages-process-steps-and-notes-7-answers/17963