New product development stages with examples

Here are the typical stages of new product development (NPD) with examples:

Stage 1: Idea Generation

• Identify opportunities for innovation
• Encourage employees to submit ideas
• Conduct market research and analyze customer feedback
• Examples:
  • Apple's iPhone was born from the idea of creating a mobile phone that combined the functionality of a computer with the convenience of a phone.
  • Procter & Gamble's Tide Pods were developed from the idea of creating a convenient, single-dose laundry detergent packet.

Stage 2: Idea Screening

• Evaluate the feasibility and potential of each idea
• Assess the market demand, competition, and potential revenue
• Examples:
  • Amazon's Alexa was initially rejected by several investors, but Amazon saw the potential for a voice-controlled assistant and decided to pursue it.
  • Coca-Cola's Dasani water was initially met with skepticism, but the company saw an opportunity to capitalize on the growing demand for bottled water.

Stage 3: Concept Development

• Develop a detailed concept of the product or service
• Define the product's features, benefits, and target market
• Examples:
  • Tesla's Model S was developed from the concept of creating an electric car that was both stylish and environmentally friendly.
  • Netflix's streaming service was developed from the concept of providing a convenient, on-demand way to watch movies and TV shows.

Stage 4: Product Design

• Create a detailed design of the product or service
• Develop prototypes and test them with customers
• Examples:
  • Apple's iMac was designed to be a sleek, all-in-one computer that would appeal to both consumers and businesses.
  • Amazon's Echo smart speaker was designed to be a compact, voice-controlled device that could fit into any room.

Stage 5: Testing and Refining

• Conduct market research and gather feedback from customers
• Refine the product or service based on customer feedback
• Examples:
  • Microsoft's Xbox was initially met with criticism for its lack of games, but the company refined the product and added more games to make it more appealing to gamers.
  • Google's self-driving car was initially tested in a limited area, but the company expanded the testing to more cities and refined the technology based on customer feedback.

Stage 6: Launch

• Launch the product or service to the market
• Develop a marketing and advertising strategy to promote the product
• Examples:
  • Apple's iPhone was launched with a massive marketing campaign and became a huge success.
  • Uber's ride-sharing service was launched in San Francisco and quickly expanded to other cities around the world.

Stage 7: Post-Launch Evaluation

• Monitor the product's performance and gather feedback from customers
• Identify areas for improvement and make necessary changes
• Examples:
  • Amazon's Kindle e-reader was initially met with criticism for its lack of features, but the company added more features and improved the product based on customer feedback.
  • Facebook's Instagram was initially met with skepticism, but the company added more features and improved the product based on customer feedback.

These stages are not always linear, and companies may iterate back and forth between them. Additionally, the stages may vary depending on the company, industry, and product.