How to Develop a NEW PRODUCT (From Concept To Market)

Summary

In this informative video, Michelle Bally outlines a six-step process for turning a product idea into reality, covering ideation, research, planning, prototyping, sourcing, and costing. She emphasizes the importance of validation and provides industry-specific advice for fashion, food and beverage, and beauty and cosmetics. Bally's firsthand experience in launching a makeup line adds credibility to her guidance, which includes leveraging tools like the SCAMPER model for ideation and considering print-on-demand for fashion. The video also touches on the significance of a diversified supply chain and concludes with a Shopify promotion for setting up an e-commerce store.

Takeaways

• 🚀 The product development process is not linear and varies based on budget, industry, and other variables, but there are common steps that can be followed.
• 💡 Ideation for a product doesn't have to be about creating something entirely new; often, the best ideas come from iterating upon existing products.
• 🔍 The SCAMPER model is a useful tool for generating product ideas through prompts like Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse.
• 📊 Validation is crucial to ensure there's a market for your product before investing significant resources; methods include crowdfunding, online feedback, and using tools like Google Trends.
• 📝 Research and competitive analysis are essential to understand the demand for your product and how to differentiate it from existing offerings.
• 📐 Planning involves creating detailed sketches and considering various aspects like materials, components, and the product's market category.
• 🛠️ Prototyping is an iterative process that requires multiple versions and improvements to reach a satisfactory final sample.
• 🔗 Sourcing involves finding the right materials, partners, and manufacturers, and it's important to have backup options to safeguard the business.
• 💰 Costing is about calculating the cost of goods sold (COGS) and determining the retail price and potential profit margin for the product.
• 👗 Fashion products often start with hand-drawn sketches and prototyping with samples of different sizes, and print-on-demand is an option for initial production.
• 💄 Beauty product development may focus on natural ingredients and sustainability, with options like white labeling and working with labs for mass production, while adhering to regulations.
• 🍪 Food product development can begin at home with simple recipes, but moving to packaged goods requires a licensed commercial kitchen or a co-packer for larger scale production.

Q & A

What are the six steps to bring a product idea to life as mentioned in the script?

The six steps are ideation, research, planning, prototyping, sourcing, and costing.

Why is it important not to get hung up on creating something completely new during the ideation phase?

It's important because many of the best ideas are the result of iterating upon an existing product, making it better, like the Dyson vacuum did with the traditional vacuum.

What is the SCAMPER model and how can it be used to generate product ideas?

The SCAMPER model is a creative tool where each letter stands for a prompt: Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse. It helps to think about different ways to improve or create a product by asking questions related to each prompt.

How can crowdfunding be used to validate a product idea?

Crowdfunding can validate a product idea by having people pledge money to make the business idea come to life. It shows that there is interest and willingness to pay for the product from complete strangers.

What is the purpose of the research step in the product development process?

The research step aims to validate the product idea to ensure that it is something people will pay for, protecting the entrepreneur from wasting time, money, and effort on an idea that won't sell.

What is the significance of creating a hand-drawn sketch during the planning phase?

A hand-drawn sketch helps to visualize the product design and function in detail, serving as a starting point for further planning and development before prototyping.

Why is it necessary to consider the category of the product during the planning phase?

Considering the category helps in making decisions about the product's intended use, materials, packaging, labels, and overall quality, which are essential for both product development and marketing.

What is the role of prototyping in the product development process?

Prototyping creates a finished product as a benchmark sample for mass production, allowing entrepreneurs to experiment with versions, eliminate options, and make improvements until they are satisfied with the final sample.

Why is diversifying the supply chain important for a business?

Diversifying the supply chain is important to safeguard the business from over-dependence on a single manufacturer or supplier, allowing for negotiation and reducing the risk of production delays or price increases.

What is the purpose of costing in the product development process?

Costing is the process of calculating the cost of goods sold (COGS) by adding up all the gathered information on production costs, which helps determine the retail price and potential gross margin or profit on each unit sold.

What are some tips for developing a new fashion product according to the script?

Tips include starting with a hand-drawn or digital sketch, developing a sample size set, considering print on demand, and working with a pattern maker or seamstress during prototyping.

What is the concept of white labeling in the beauty and cosmetics industry?

White labeling in the beauty and cosmetics industry refers to finding an existing product or manufacturer and then packaging and branding the products they already produce under your own brand.

What are some considerations when developing new food and beverage products?

Considerations include starting with a simple recipe, finding a commercial kitchen for small-scale production, working with a co-packer or co-manufacturer for mass production, and adhering to food safety laws and regulations.

How can Shopify help in setting up an ecommerce store for selling a new product?

Shopify provides an easy platform to set up an ecommerce store within days, offering a free 14-day trial without commitment, allowing entrepreneurs to build a fully branded, personalized online store.