In a changing market, staying competitive often requires the development of new
products. As consumer tastes and needs change, products must also change. Developing new products, however, is a risky and costly venture. Market research is an essential tool to help boost the chances for success.
The new product development process has at least six stages.
1. Opportunity identification. To start, you should seek holes in the market that might be opportunities. At this stage, the following information gathering techniques are useful: focus groups, consumer surveys, analysis of customer suggestions and complaints, brainstorming, industry research (size of market, consumption patterns), and analysis of competitors products.
2. Concept screening. Next, you will move from generating ideas to testing ideas. In concept screening, you describe the product idea to potential customers and ask, would you buy this product? If consumers do not like the idea of your product, the physical product will probably not do well either. Concept screening allows for the evaluation of winners and losers early in product development before substantial resources are committed to a products development. At this stage, focus groups and consumer surveys are useful research methods.
3. Marketing strategy development. Next, you will set a plan for your marketing mix (the four Ps):
A. Product. Define your product in terms of varieties, quality, design, features, brand, packaging, sizes, service, and warranties.
B. Price. Develop a pricing strategy. Consider how you will use list price, discounts, allowances, payment periods, and credit terms.
C. Place. How will your products get to your customers? Which channels will you use (retail, wholesale, foodservice)? Consider the best locations to reach your target market. Also consider transportation, inventory, and storage.
D. Promotion. How will you use the following: sales promotion (coupons, allowances, discounts), advertising, salespeople, public relations?
4. Product development. At this stage, using the information you have collected and the decisions you have made about the 4 Ps, you will design and create the physical product, as well as its packaging, name, logo, and advertising. Research at this stage usually involves repeated cycles of product improvement and testing. Product testing includes both physical performance (e.g., shelf stability) and consumer reactions.
5. Market testing. This stage is a last check on the product before it enters the market. At this point, product performance tests are complete. Market testing aims to evaluate advertising, awareness, and usage (AAU) of the product in test markets. The techniques used include simulated store testing and controlled test marketing. Some marketing research firms offer AAU studies.
6. Product introduction. As you introduce the product to the market, you should test the distribution of the product. Is the product getting on the shelves? Is it getting a favorable presentation on the shelves?
Puerto Rico Agreement to Conduct Product Development Research is a comprehensive legal agreement that outlines the terms and conditions under which research and development activities for a product will be conducted in Puerto Rico. This agreement aims to create a mutually beneficial partnership between a company or organization and local research institutions, leveraging the strengths and resources of both parties. The Puerto Rico Agreement to Conduct Product Development Research typically includes the following key elements: 1. Purpose: This section defines the objective of the agreement, highlighting the specific product for which research and development activities will be conducted. It also outlines the desired outcome and benefits for all involved parties. 2. Scope of Work: This section comprehensively details the research and development activities that will be undertaken. It includes a description of the experiments, trials, testing procedures, and technical specifications required to achieve the desired outcome. The scope of work may differ based on the nature of the product and the specific requirements of the agreement. 3. Responsibilities: This section specifies the responsibilities of each party involved in the agreement. It outlines the obligations of the company or organization seeking product development research as well as the responsibilities of the research institution or partner. Clear delineation of responsibilities ensures effective collaboration and accountability. 4. Intellectual Property (IP) Rights: This is a crucial aspect of the agreement that addresses the ownership of intellectual property resulting from the research and development activities. It outlines the rights, licenses, and provisions for the protection of IP created during the project. Specific terms related to the use, transfer, or commercialization of the IP may vary based on the agreement. 5. Confidentiality and Non-Disclosure: To safeguard proprietary information, this section establishes provisions for maintaining confidentiality during the project. It typically includes clauses outlining the protection of trade secrets, proprietary data, and other sensitive information shared between the parties throughout the research and development process. 6. Financial Considerations: This section covers the financial aspects of the agreement, including budgeting, funding arrangements, payment terms, and potential grants or incentives provided by the Puerto Rican government to promote research and development projects. 7. Duration and Termination: This element specifies the duration of the agreement, including any milestones or deliverables and the estimated timeline for completion. Additionally, it outlines the circumstances under which either party can terminate the agreement, including provisions for renegotiation, notice periods, and any associated fees or penalties. Different types or variations of the Puerto Rico Agreement to Conduct Product Development Research may exist, depending on factors such as the industry, technology, or product category involved. For instance, agreements may be specific to sectors like pharmaceuticals, biotechnology, renewable energy, or advanced manufacturing. Each agreement will have unique requirements and considerations based on the nature of the research and development to be conducted.
