We’ve put together a new product evaluation process that will help ensure that your new business product will fly off the shelf – and doesn’t simply sit around gathering dust.
Here are 6 new product evaluation process tips to bear in mind while introducing a new business product.
- Does Anyone Need It?
You should first survey the market and find out if there is a need for the product. The need should be high enough for you to successfully market the new business product and earn profits out of it.
In short, it should be worth the time, effort and investment that you put into launching and marketing that product.
Another part of the new product evaluation process is to first introduce that product and then market it in such a manner so as to create a need for it.
However, this move is more suited to large corporations that do not have marketing budget constraints.
- Is There Any Existing Competition?
You will not only have to identify any existing competition that could spoil your chances of earning a healthy profit, but you will also need to calculate the approximate time by which your competition will catch on to your game plan and follow your footsteps.
If you feel that the product has the required numbers to keep you happy in spite of the competition, then you can take a calculated risk; but if you are doubtful, then avoid introducing without doing the required research.
- Will You Be Able To Provide Service?
If the new product requires after-sales-service, then calculate the costs and the manpower that will be needed to provide efficient service.
Introducing a new business product without a service plan will not only ensure that your product is a flop, but will also harm your image in the market.
- What Will Be The Volume Of Sales And Profits?
You will also need to make an estimated calculation as to how many units of the product you can sell within a particular period and the profit margin that you might make on those sales.
You will also have to imagine a scenario where your competitors try to undercut your prices. In this case, check to see if you could offer discounts or freebies to your customers without going into a loss.
- Do You Have A Product Pricing Strategy?
You will need to decide whether to price your product at a fixed or variable rate.
If your new product pricing strategy is to price your product at a variable rate, then you could launch it with an introductory low price for a particular period – or the other way around – before changing the price after that period.
This will depend on your product, market conditions, competition and your product pricing marketing strategy.
- Can Your Product Evolve With Changing Times?
You will also need to evaluate whether your new business product will be able to keep up with changing times, or whether it runs the risk of becoming obsolete within a short period of time.
Your customers will bank on you delivering products that can be upgraded in order to keep up with the latest technology. Make sure that you evaluate the life span of your product before launching it.
By using this new product evaluation process for any new business product before you launch it, you will greatly increase the chances of it succeeding in the market – and enhance your reputation in the process.