Creating a new product idea is a challenging task for entrepreneurs it is both expensive and time consuming process to develop a concept into product, let get more specific.
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How to create a new product Idea ?
In the world of thick competitions where every business has a tsunami of new product launhes every day all of same type, look and feel the chance of success for one more similar product among this heap is razor thin. A new product idea is great way to cut through these stiff competitions similar to a hot knife running though butter. A unique and new product idea is great way for companies to grow their businesses.
A new product idea helps businesses in customer acquisition, retention and engagement. It allows entrepreneurs to create a unique value preposition for customers that would provide them with additional benefits and greater value.
However, for all of this to happen one has to first develop a new product. Developing a new product idea is perhaps the single most challenge that all new founders and entrepreneurs face when they start a new business. There is no straight path to develop a new product. Most entrepreneurs have to try a number of different things and fail at most before they finally get to that magic recipe.
Here are 4 proven ways explained below which have been used repeatedly by many founders and entrepreneurs to develop a new product idea from scratch.
1. PROBLEM SOLVING PRODUCT
The idea behind every product is to solve a problem. To develop a new product idea that solves an existing problem one has to first identify a nagging problem which is worth solving.
A problem-solving product is basically a product or a service that solves a real world problem of a customer. Some of the problem faced by customer could be really nagging and one would be desperately seeking for solution to such a problem and would be more than willing to pay a premium for the solution.
The essence of developing a problem-solving product is to first,
- i) Analyse the problem,
- ii) Identify a solution,
- iii) Develop a full-scale product plan,
- iv) Run a pilot project,
- v) Launch the product.
- vi) Build a Niche market segment.
That is the right way to create a problem-solution based new product idea.
A problem-solving product is good business strategy for most new businesses or even existing businesses to cut through intense competitions. As a problem solving product is more focused on a very specific problem of a customer it helps businesses to create a niche market category around such a product with a loyal customer base.
These products are easily marketable as it easy to draw customers attention through focused marketing campaigns. People who are aggrieved with similar problems will be more open to try your products or services even if they have to pay a premium price for such products and services.
Such customers are easy to convert from lead to sales and have higher retention rates and are brand loyal. A problem solving product also has lower customer acquisition cost as not much convincing is required to an aggrieved customer who will be willing to buy the product if it fits his needs.
Remember, that every difficult problem can be solved with scientific approach and positive mind set. Most complex problems can be solved by breaking a larger problem into smaller tasks which are both manageable and achievable.
Next, we move to another type of business strategy mostly deployed by existing businesses.
2. IMPROVING EXSISTING PRODUCTS
A product improvement is the process of altering, changing or adding a new feature to an already existing product in the market to attract newer customers and increase benefits to existing customers. For most established businesses product improvements is more convenient and time saving rather than developing a new product idea.
The core idea behind a product improvement is to make a very specific strategic changes to your existing products in order to create space for your product in an already crowded marketplace.
Most product improvement are aimed to improve products functionality, value addition, improve pricing, enhance appearances or increase ease of use. Products improvements are usually made after receiving positive or negative feedbacks from customers. Such feedbacks are critical for companies when deciding what changes to make to an existing product.
Here are some key areas in which businesses can look to improve their products to increase their products visibility and differentiate their products or services from their competitors.
- Improve existing features
- Add new features
- Make Appearances more appealing.
- Improve product packaging.
- Customer friendly pricing
- Mixing product improvement with Marketing Strategies
A product improvement is a continuous process to increase products efficiency and productivity overtime. Businesses need to periodically asses the performances of their products and services and also seek customer feedbacks to make necessary improvements in the products from time to time.
Remember that your competitors are always upgrading, updating and improving their products in the market and if your products and services are not in tune with the recent trends then you could run the risk of losing your market position and even customers to your rival businesses.
Next, we take a look into an old concept of “bottling an old wine in new bottle” strategy.
3. REVIVING OLD PRODUCTS
Reviving an older product rather than creating a new product idea sometimes can be very rewarding strategy. Retro, Classics, Medieval etc are the latest fashion trending in the markets.
Reviving basically means giving an older product a new lease of life by adding newer features and adding some modern appeal to the product while still keeping its original classic look and feel, so as to attract customers and renew their interest back to that product.
Some common strategies you can deploy to revive an old product areChange to a new product name
- Make the product more visually stunning.
- Change marketing strategies
- Revive the brand logo and tagline
- Change the product messaging
- Build a story around the product
- Add a bit of charm and glamour to the promotional campaign.
All most all of the businesses use this strategy from time to time to revive their declining products in the market by reinvesting in older products then in a new product idea. Reviving your older products helps in expanding the products life cycle and renew customers interest thus boosting its sales.
However, be cautious entrepreneurs who are aiming to revive older products should first analyse the reason for decline of the product. There could be a number of reasons for the systematic decline of the product like change in technology, fashion, trends, newer innovation or change in customer preferences. Entrepreneurs should conduct a thorough investigation into the reason of decline before jumping on to reviving old products.
Once you have identified the reason for decline it is time to do a demand analysis of the market. A demand analysis is done to determine the demand for a product among the customers. Survey the market to see whether there is an interest or craving for such old product among the target audience. This analysis will help you in determining if the revived product will be commercial hit or miss.
Revive your marketing strategies in tune with the product strategy to have an effective and lasting impressions on your customer. Build a story around your revived product to share the journey of the product with your customers to create an emotional connect.
Next, we discuss the concept of creating new product idea by combining two or more products.
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4. CREATING A COMBINED PRODUCT
Another great strategy for entrepreneurs who are searching for a new product idea is to create a completely new product by combining two or more different products or ideas. Most of new product’s that are in use today are usually a combination of several existing products or ideas put together to create one multi-functional product providing a one stop solution to all your problems.
For the ease of reference lets called such products “Combined Products”
A popular example, of Combined product would be the combo-meals offered by fast foods joints by combining its different meals and drinks together to create single new product in itself. Or another example, would be a Beauty hamper created by combining different skincare products, Make-ups, Perfumes, toiletries products etc from one or different brands all combined together to create a brand new product idea. Such new products are popularly known as Hampers, baskets, bouquets etc.
An entrepreneur can also invent a new product idea by combining different existing ideas in such a way that a single product can perform multiple functions which earlier required different products for different functions. For example, a multi-functional printer (MFP) has the combined ability of four different machines that is of a Copier, Printer, Scanner and Fax.
As an entrepreneur you should carefully study your target customers behaviours before creating a combined products and study in detail the following points such as,
- i) customers buying patterns,
- ii) product combination purchased frequently,
- iii) products interdependence on each other,
- iv) product combination that people demand often,
Such data is important for entrepreneurs to gather before they begin their brainstorming sessions to create a new product idea by combining above information gathered from the customers. This will help you to draw a rough sketch or an outline of a combined product you wish to create.
Such innovative ideas derived out of combining different ideas to create a single multifunctional product can give businesses an edge over their competitors and allow them gain a huge market share by creating a monopolistic business.
Combined products have gained lot of traction in recent years mainly due to the technological advancement and artificial intelligence based data gathering that has made it easier to create and build such combined products with relative ease.
CONCLUSION
As entrepreneur you should not limit itself just to above listed new product idea ideas but open yourself to greater possibilities by exploring uncharted territories. As entrepreneur you should have the appetite for risk taking and building business around new ideas. As an entrepreneur you should strive for innovation and bringing in fresh concepts for creating new products ideas which can help build greater value for your customer’s base.
