Classification of new product
The classification of a new product is a crucial step in the product development process, as it helps to determine the product's potential market, competition, and profitability. Here are some common ways to classify new products:
- Radical Innovation: A radical innovation is a new product that creates a new market or changes the existing market dynamics. Examples: Apple's iPhone, Tesla's electric cars.
- Incremental Innovation: An incremental innovation is a new product that builds upon existing technology or products. Examples: Samsung's Galaxy series, Toyota's hybrid cars.
- Disruptive Innovation: A disruptive innovation is a new product that disrupts the existing market and creates a new market. Examples: Airbnb, Uber.
- Sustaining Innovation: A sustaining innovation is a new product that improves upon existing products or technology. Examples: Intel's Core i7 processor, Nike's Flyknit shoes.
- Product Line Extension: A product line extension is a new product that is similar to an existing product, but with some added features or improvements. Examples: Coca-Cola's Diet Coke, Toyota's Corolla Hybrid.
- New Product Category: A new product category is a new product that creates a new market or category. Examples: Smartwatches, e-readers.
- Me-too Product: A me-too product is a new product that is similar to an existing product, but with no significant improvements or innovations. Examples: Generic versions of branded products.
- Platform Innovation: A platform innovation is a new product that enables other products or services to be developed. Examples: Google's Android operating system, Amazon's Alexa.
- Service Innovation: A service innovation is a new product that provides a new service or experience. Examples: Netflix's streaming service, Airbnb's home-sharing service.
- Business Model Innovation: A business model innovation is a new product that changes the way a business operates or generates revenue. Examples: Spotify's music streaming service, Warby Parker's eyewear subscription service.
These classifications are not mutually exclusive, and a new product may fit into multiple categories. The classification of a new product can help businesses to:
- Identify potential markets and customers
- Develop targeted marketing and sales strategies
- Determine the level of investment required
- Assess the level of competition
- Develop a go-to-market strategy
It's worth noting that the classification of a new product is not a one-time event, but rather an ongoing process that requires continuous monitoring and evaluation of the product's performance and market dynamics.