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Product Development

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How do you stay innovative and grow in a competitive market? Effective product development allows companies to sustain, grow, and thrive in both old and new markets. In this article, we'll explain what Product Development is, how to use it, how to customize our template to develop your own product, and if you watch until the end, you'll learn how Nike uses Product Development to beat the market. Our Product Development framework is useful for aspirational product developers who want to learn the product development process and for seasoned product managers who want to improve workflows with additional tools. The customizable template includes some of the best Product Development tools available today, such as Stage-Gate Process, Product Life Cycle, Product Dimensions, Growth Strategies, Scoring Models, and 25 other tools. Read on for a breakdown of how some of these tools can be used to develop a unique and innovative product.

While new product development is the process companies use to stay competitive and innovative in a crowded market, the risk of failure is high. But with the right strategy, a product manager can streamline the process with an emphasis on the creation of value for the customer.

Slide highlights

Stage-gate process.

The stage-gate development process, also referred to as phase-gate development, divides the product development process into different stages. Each stage is separated into decision points that inform the following stage. This slide provides a step-by-step guide that can be used for each new product. For instance, the initial idea for a product is followed by a preliminary screening gate. This gate determines whether or not a product manager wants to move forward with the development process. It's important to conduct market research and competitive analysis here before the project proceeds.

If it passes the preliminary screening, then the team moves forward to the preliminary investigation stage. The preliminary investigation stage is where the team decides what the development process will entail. If this is approved through a second screening, the next stage is to build a business case. Once a decision has been made on the business case, then it's time to move forward to the stage in which the product is finally developed. After a post-development assessment, the PM decides if it's ready to test and validate. After this validation stage, a post-launch review is conducted to decide if the product is ready for launch. (Slide 7)

Product life cycle

All products follow a similar life cycle. There's an initial introduction period, followed by a period of growth, then maturity, saturation, and possible further development. It's important to pay attention to the revenue curve, as its peak will determine the change from maturity to saturation, which can lead to three common outcomes. Worst case scenario, once revenue reaches its peak, it will either lead to the end of a product's life or a contraction in the product's market. On the positive end of the spectrum, new features could lead to a stage of renewed growth that extends the product's lifecycle. (Slide 10)

Product dimensions

A new product should always provide a customer with unique benefits to differentiate it from the competition. There are three main dimensions to every product. The first dimension is the core product in development. This is surrounded by a second dimension of core customer benefits, which are features or services the product provides to the customer. These could be the product's design, packing, quantity, functionality, or even branding. The third dimension is the extended products or services. These could be product-related services like step-by-step tutorials, payment terms, construction and installation, or free delivery.

For a company like Amazon, delivery is a core benefit rather than an extended service, while delivery from IKEA is an extended service as it's secondary to IKEA's core product of build-it-yourself furniture that customers select in-store. (Slide 12)

ABC analysis

ABC Analysis can be used to analyze revenues over a company's range of products. Plot each product in one of three ranges according to the product's volume of revenue share. In this example, only three products (according to the X-axis) in the A range account for over 60% of revenue (according to the Y-axis). Meanwhile, five products in the B range generate 30% of revenue, while 12 products in the C range generate only 10% of the revenue. When a PM determines the importance of each product range, efforts can be increased and directed towards products that provide maximum value. (Slide 14)

Having a great product that delivers the right value to customers is a good starting point. But then what? At what price point should you sell the product for? And how do you scale and grow the product? There are five main types of pricing strategies that can be used for a new product. Premium pricing can be used to price a product above current market value to generate more revenue, while price skimming takes a high introductory price and lowers it over time. The less price-sensitive will buy first and other customers will buy-in later at a lower price. Penetration is used to enter the market with a lower price point and then attract as many customers as possible to later raise the price. Freemium provides a free version of a product with additional features that must be paid for, either with a paid version or from ad revenue. Promotional pricing provides temporarily lowered prices via flash sales or discounted entry offers that revert back to the original pricing after a set date. (Slide 16)

Innovate and diversify

The product innovation process is used to improve an existing product in an old market. An example of this would be a smartphone that comes out with a new model that has additional features every year. Products can be analyzed to identify pain points to generate new ideas that are then incorporated into the product development process and introduced to the market as a new innovation. (Slide 20)

Product diversification optimizes growth and revenue. Companies can overcome market stagnation and become more "bulletproof" against market swings through the diversification process. For example, risk distribution helps a company put all their eggs in one product basket. It's also a practice to expand from the original market for a product. It can be used to increase sales of an existing product line and is especially helpful if your business has already experienced the decline or stagnant sales that come after market saturation. (Slide 21)

To determine the type of diversification strategy a product dev team should go over, you can refer to this table and assess each entry's strategies, advantages, disadvantages, and the associated time, cost and risks of each. (Slide 22)

Airbnb business case

What does that transformation look like in action? In May of 2015, Airbnb had a process problem. Designers had to wait on engineers to write code to visualize mockups on-screen, while engineers had to wait for researchers to validate a product, only to learn some of their fundamental assumptions were off. This approach used research as a validation tool and lacked true engagement between teams at the earliest stages of the process. Their product designers, engineers, and researchers operated in a functional capacity instead of a process-oriented one.

Through a collaborative BPR process, the 300-person product team spent nine months to entirely revamp the process to improve efficiency and capture more value. They created a single digital collaboration environment where designers and engineers could work together in real-time to update and redesign prototypes. This took a process that used to take days for product revisions and reengineered it to take 45 minutes. In this instance, Airbnb used IT to streamline their systems, change management to coach the team through a nine-month whole system redesign, and changed their internal value chain to prioritize outcomes instead of features. And they incorporated the research team early into the process so the design could be iterative, streamlined, and tested early to achieve the best results.

This process orientation ultimately made the product team more lean, holistic, team-oriented, and autonomous as workers knew they could trust each other since the digital platform showed all updates and data in one place. If your current workflows are holding back more profitable outcomes, you need this presentation. Download the Product Development presentation for more slides on Gap Analysis, benchmarking, value chain analysis, and top BPR strategies, plus many more to save time and hours of work.

Customer satisfaction

In a customer-centric product development approach, customer satisfaction can be visualized with the Kano diagram. The Y-axis on this graph is the level of enthusiasm (or delight) that customers feel, while the X-axis measures product features from fully integrated to absent. It can also be used to measure features from basic to advanced. If a product doesn't have a ton of features and is somewhat satisfying to customers, it is considered basic. If it's adequate and pleases consumers, it could be considered a value buy. If it has high satisfaction and some special features, it could be a performance product. While a product with very advanced and comprehensive features that are considered delightful by most customers then it's likely a premium product with a cult following. (Slide 24)

Growth strategies

Ansoff's matrix, also known as the product/market expansion grid, can be used to plan product growth strategies. Diversification and marketing strategies are separated into related and unrelated technology groups. Related means there are synergies between new and existing products, while unrelated has no such synergies. For instance, a phone company that develops a camera would be a new related product with synergy to the company's existing product, while an example of an unrelated product would be a taxi service that launches a new shoe brand. (Slide 25)

Target costing is another growth strategy related to getting the right price point to attract the most people. You want to be in the middle with an adequate mixture of benefits and price. Determine target costs, how target costs are split, and finally decide the target cost. (Slide 26)

Scoring model

At the end of the product development process, it's time for an evaluation via a post-launch review. Assess different areas of a product's development, how they did or didn't benefit the company or impacted the customer and retailer relationship. Other questions to ask are how much is the company lagging behind or exceeding its competitors because of this product? Or how is the company adhering to regulatory compliance and environmental regulations?

The scoring model ensures each category can be weighted to what a company's main values are. For instance, the company's business needs, competitive advantage, and customer happiness could be the most important so they have a higher weight on the score. Once the weight is assigned, score each category from 1-10 on how well the company has met its criteria being evaluated. The end score will show where the team succeeded or where the product needs to be improved. (Slide 28)

Nike business case

Founded in 1964, Nike has maintained market leadership because of its attention to customer needs and its success in new product development. Founder Phil Knight says "Nike is a marketing-oriented company, and the product is our most important marketing tool." Nike uses a version of the stage-gate process as part of its product development process. The company's first stage is idea generation. At this stage, companies have a choice to source ideas internally or externally. Knight says "We used to think that everything started in the lab. Now we realize that everything spins off the consumer." Nike engages with customers for product ideas, whether it's through shoe design competitions or direct feedback through its websites.

Second in the process comes idea screening . Nike uses a creative team of 75 product designers to sift through ideas and determine which shoe will most improve athletic performance. After idea screening, Nike implements concept development and testing. Here, Nike seeks customer reactions about their product ideas and conducts market research. Product teams determine whether the shoe will be accepted in the market. If not, alternative shoe ideas are tested. A marketing team then develops the promotional strategy.

Once the concept and marketing is approved, Nike conducts business analysis to ensure the product is in line with its long-term objectives. Analysis of expected sales and budget outlook is also conducted here. If a shoe passes this gate, it is finally ready for development and Nike's R&D department goes to work. After development, Nike conducts marketing tests with a limited number of the final products, and if all goes to plan, it's ready for mass commercialization. Most of Nike's time and energy goes into preliminary screening and testing stages to ensure every product is fit for the company and won't be a waste of resources.

If you want to develop successful products like Nike, you need this presentation. Download the Product Development presentation for more slides on Influencing Factors, ABC Analysis, Innovation, Customer Satisfaction, and Product Marketing to save time and hours of work.

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Modern New Product Development Presentation

Try our Modern New Product Development Presentation for all your product-based presentations. This is a 100% user-friendly template with versatile features. This pre-built template holds your time and lessens your work in presentation-making. 

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This PowerPoint presentation includes 80 slides. This is useful for product managers for idea evaluation, opportunity screening & detail product planning. Users can easily edit our templates as all of these are 100 % editable in PowerPoint. Presentation slides are compatible with Google Slides. All PPT slides are available in both standard and widescreen formats.

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Content of this Powerpoint Presentation

Slide 1 : This slide introduces New Product Development Process and Strategy. State Your Company Name and get started. Slide 2 : This is an Agenda slide. Present your agendas here. Slide 3 : This slide presents an Outline for New Product Development. Slide 4 : This slide presents Product Idea Screening with- New Product Introduction, New Product Detailed Overview, External Sources of Ideas, Internal Sources of Ideas, Understanding Customer Needs, Product Roadmap. Slide 5 : This slide shows New Product Introduction with- Technology used, Benefits, Product Details. Slide 6 : This slide presents New Product Detailed Overview. This step is crucial to ensure that unsuitable ideas are rejected as soon as possible as Ideas need to be considered objectively. Slide 7 : This slide presents Understanding Customer Needs. Slide 8 : This slide showcases External Source of New Product Ideas such as- Consumer Activity Analysis, Market Gap Analysis Competitors, Long Range Studies, Learning From, Market Research. Slide 9 : This slide shows Internal Sources of New Product Ideas with the following subheadings- Sales Force, Innovation Group Meetings, Stockholders, Employee Suggestions, Research and Engineering: Product Testing, Product Enhancement, Brainstorming, Management: Strategic Planning, Marketing Manager. Slide 10 : This slide presents a Product Roadmap showing- Product Launch, Bootstrap Upgrade, Data Logging Module, Chrome Support, Public API. Slide 11 : This slide also presents a Product Roadmap showing- Product Launch, Bootstrap Upgrade, Data Logging Module, Chrome Support, Public API. Slide 12 : This slide presents a Product Roadmap showing- Finish, Data Logging Module, Chrome Support, Public API. Slide 13 : This slide shows New Product Analysis categorized as- Detailed Analysis, Category Analysis, Porter’s Five Forces Analysis, Category Analysis - Example Slide. Slide 14 : This slide showcases a Detailed Analysis displaying- Strengths, Weakness, Features, Benefits. Slide 15 : This slide shows Category Analysis with the following subheadings- Packing formats types & materials: What is the most common pack size in the category? Are products sold individually or in multipacks? If products are sold in multipacks what is the number of products in a pack? Do multipacks format products differ in size to those sold individually? What material is used for packaging. Consumption Drivers: Are the products packaged and sold in a way to encourage single- serve consumption or sharing? Is there focus on the convenience of the product? Do health claims encourage the consumer to purchase the product –if so what are the health trends focused around losing weight, added vitamins? Price: What is the price in the category (lowest-highest)? What is the average price in the category? Does the price premium change according to the size of the product? Positioning Claims/trends: What are the common claims made by products in the category- for example, no added sugar, GM free perfect for lunchboxes, 5-A-day etc.? What are the key themes of the claims-health, convenience? Once the concept has been tested and finalized, a business case needs to be put together to assess whether the new product/service will be profitable. Slide 16 : This slide shows Category Analysis- Example Slide with the following subheadings- Products, Details, Positioning claims/trends, Claim, Price, Consumption drivers, Packaging, Promotion. Slide 17 : This slide presents Porter’s Five Forces Model displaying- Bargaining Power of suppliers, Bargaining Power of Buyer, Barriers to Entry, Substitutes as Intensity of Rivalry. Slide 18 : This slide showcases Product Life Cycle displaying- Repositioning a Product, Introduction Stage, Maturity Stage, Decline Stage, Growth Stage. Slide 19 : This slide presents Product Life Cycle Stages crest grpah showing- Introduction, Growth, Maturity, Decline. Slide 20 : This slide shows the Introduction Stage with the following subheadings- Cost: High cost per customer acquired Targets: Innovators are targeted Competition: Little competition Profits: Negative profits Sales: Low sales This stage of the cycle could be the most expensive for a company launching a new product in which these 5 factors play a key role. Slide 21 : This slide shows the Growth Stage consisting of- Pricing, Distribution Channels, Product Quality, Promotions. The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, profit margins will increase. Slide 22 : This slide shows Maturity Stage with- Enhance product features to make it more appealing than competitors, Reduce prices due to stiff competition, Promote the factors differentiating your product from others. Slide 23 : This slide presents the Decline Stage comprising of- Maintain The Product, Possibly Rejuvenating It By Adding New Features And Finding New Uses, Reduce Costs And Continue The Offer, Discontinue The Product. Slide 24 : This slide presents the Tools and Techniques- Listed ones are- BCG Matrix, Ansoff Matrix, Kano Model, Empathy Map. Slide 25 : This slide shows a BCG Matrix in terms of- Market Share and Market Growth. Slide 26 : This slide shows an Ansoff Matrix showing- Market Development: Selling existing products to new customers Penetration: Selling more of your existing products to existing customers Diversification: Selling new product to new markets Product Development: Selling new products to existing customers Slide 27 : This slide shows an Empathy Map. Slide 28 : This slide shows a Kano Map. Slide 29 : This slide presents Market Analysis with the following points- Market Segmentation, Product Market Mapping, Market Attractiveness, Competitive Strategies. Slide 30 : This slide showcases Market Segmentation divided as- Geographic: Region, Country, Population, Climate. Demographic: Age, Gender, Nationality, Ethnicity, Occupation, Income, Family Size. Psychographic: Lifestyle, Personality, Values, Interest. Behavioral: Brand Loyalty, Benefits Sought, User Status, Usage Rates, Occasion, Readiness to buy. Slide 31 : This slide showcases Geographic Segmentation on a world map image. Slide 32 : This slide showcases Geographic Segmentation on a US map image. Slide 33 : This slide showcases Demographic Segmentation with different segements to fill information for. Slide 34 : This slide presents Psychographic Segmentation showing- Opinions, Attitudes, Activities, Behaviors, Values, Interests. Slide 35 : This slide showcases Behavioral Segmentation in hierarchy form consisting of- Rejecter, Not yet repeated, Repeated, Target Market, Aware, Unaware, Light to other, Switcher, Loyal to other brand, Light user, Regular user, Heavy user, Negative opinion, Neutral, Favorable opinion, Not tried, Tried. Slide 36 : This slide displays Behavioral Segmentation with different segments to be shown. Slide 37 : This slide presents Product Market Mapping in terms of Market Attractiveness and Competitive Strength. Slide 38 : This slide displays Competitive Strategies matrix showing- Broad Differentiation strategy, Focused Low Cost Strategy, Overall Low-cost Provider Strategy, Focused Differentiation Strategy in terms of Competitive Advantage and Competitive Edge. Slide 39 : This is a Market Attractiveness risk matrix showing- Business Position, Market Attractiveness, High Attractiveness, Medium Attractiveness, Low Attractiveness. Slide 40 : This slide shows Development Plans consisting of- Manufacturing Plan, Operations Plan, Marketing Communication Plan, Digital Marketing Plan, Marketing Launch Plan, Budgeting Plan. Slide 41 : This slide shows Manufacturing Plan in gantt chart form. Slide 42 : This slide presents Operation Plan table. Slide 43 : This slide presents Marketing Launch Plan showcasing- Update the website, Create press release, Garner endorsements, Use Twitter, Build Demand, Use Advertising, Attend Tradeshows, Create Email Contests. Slide 44 : This slide presents a Marketing Communication Plan consisting of- Direct Marketing, Personal Selling, Sales Promotion, Advertising, Public Relations. Slide 45 : This slide showcases a Digital Marketing Plan. Slide 46 : This slide showcases a Budgeting Template. Slide 47 : This slide showcases Product Lifecyle with- Repositioning a Product, Repositioning Strategy, Maturity Stage, Decline Stage, Growth Stage. Slide 48 : This slide shows Repositioning A Product maze with- To new Consumers: Presenting product with a different twist to entice new customers, and minimize alienating current users. In some instances, leads to a new category Among Existing Customers: Involves promoting new & alternative product uses. Revitalizes product by building a new character. In same instances, leads to a new sub category. Slide 49 : This slide showcases Repositioning Strategy matrix with- Image Repositioning, Intangible Repositioning, Tangible Repositioning, Product Repositioning. Slide 50 : This slide presents Building Brand Preference in tabular form. Slide 51 : This slide shows Cost Analysis consisting of- Production & Operation Cost Analysis, Marketing & Launch Cost Analysis, Business & Financial Analysis. Slide 52 : This slide showcases Production & Operation Cost Analysis in tabular form. Slide 53 : This slide shows Marketing & Launch Cost Analysis in tabular form. Slide 54 : This slide displays Business & Financial Analysis in tabular form. Slide 55 : This slide showcases Product Feasibility & Review with- Feasibility Review, Evaluating Scores, Product Quality Check, Launch Monitoring Dashboard, Alpha & Beta Testing Timelines. Slide 56 : This slide showcases Feasibility Review with- Comments on Feasibility of product, Scheduling Requirement Feasibility, Legal Requirement Feasibility, Economic Feasibility, Operational Feasibility, Technical Feasibility as Project Analysis. Slide 57 : This slide presents Evaluating Scores. Score the product’s listed factors from team members perspective (the listed factors can be altered). Slide 58 : This slide shows Alpha & Beta Testing Timelines showing- Alpha Testing, Beta Testing, Full Scale Show. Slide 59 : This slide shows Product Quality Check in metric scale with- Bad, Poor, Average, Good, Excellent as parameters. Slide 60 : This slide presents a Launch Monitoring Dashboard showing- Customer Satisfaction, Return on Investment, Target Units Sold, Monitor the launch of the product on the basis of any three KPI’s in terms of Medium, High, Low. Slide 61 : This slide presents Icons for NDP. Use them as per need. Slide 62 : This slide is titled Additional Slides to move forward. You can change the slide content as per need. Slide 63 : This is Vision, Mission and Goal slide. State them here. Slide 64 : This is Our Team slide with names, designation and text boxes. Slide 65 : This is an About Us slide. State company/team specifications here. Slide 66 : This is Our Main Goals slide. State your goals, aspirations etc. here. Slide 67 : This slide showcases Comparison of two entities in tabular form. Slide 68 : This slide displays a Dashboard. State performance aspects here. Slide 69 : This is a Location slide of world map image to show global growth, presence etc. Slide 70 : This is a Timeline slide to show company growth, milestones etc. Slide 71 : This is a Puzzle image slide to show information, specifications etc. Slide 72 : This is a Target Achievement slide. State targets, goals etc. here. Slide 73 : This is a Venn diagram image slide to present information, specifications etc. Slide 74 : This is a Mind map image slide to show information, specifications etc. Slide 75 : This slide is titled Our Charts to move forward. You can alter the slide content as per need. Slide 76 : This is a Pie chart slide. State specifications, comparison of products/entities here. Slide 77 : This is an Area chart slide. State specifications, comparison of products/entities here. Slide 78 : This is a Clustered Column chart slide. State specifications, comparison of products/entities here. Slide 79 : This is a Line chart slide. State specifications, comparison of products/entities here. Slide 80 : This is a Thank You slide with Address# street number, city, state, Contact Number, Email Address.

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7 LU7 New product development strategy and product life cycles ONLINE PPT (2)