Product Development

A good idea for a product/service is a tool in the hands of an entrepreneur and finding a good idea is the first step to manifesting an
entrepreneur's creativity. Most entrepreneurs are successful in terms of providing good value for their products and services.
Creativity comes with being innovative, a factor that allows the entrepreneur to differentiate the business from the rest. It is
through innovative thinking that the entrepreneur keeps on searching for ways to improve his/her product or services.

Product development is defined as the process of conceptualizing, designing, creating, producing, introducing, and delivering
new products and services to consumers (new product development) or improving on the old (product improvements).

Introducing a new product at the right time can help maintain a firm's profits. In recent years, prospective buyers have been
more selective in their choices of products. Purchasers have to sort through an abundance of similar products. Many new products
are mere imitations of existing products and as such offer few, if any added benefits. The abundant flow of new products leads
to "product indigestion" for consumers.

Product Indigestion - the abundant flow of new products.

The remedy is to develop truly new products, that is, to innovate, not just imitate. Innovative products are unique. These new
products are also categorized as replacements that are significantly different from existing products in terms of form, function, and
most importantly, benefits provided.

Guided by a company's new product strategy, a new product is best developed through six stages, namely:

1. Generating a new product idea. It involves continuous search for new product opportunities. New product ideas come from
varied sources, from researchers, consumers, and competitors.
2. Screening ideas. In this process, the greater potential ideas are selected for further development. Ideas deemed poor or
unsuitable are rejected.
3. Business analysis. A surviving idea is expanded into a concrete business proposal.
In this stage, the management (a) identifies the product features; (b) estimates the market demand; (c) establishes a program to
develop the product; and (d) assigns responsibility for further study of the product's feasibility.
4. Product development. This stage focuses on the production of the new product into a tangible form, from concept, to test
stage, to development and marketing.
5. Market tests. This stage refers to the limited introduction of the product in areas chosen to represent the intended market to
know the possible buyers' reactions to the new product/s. It is a simple launching of the entire marketing process. This will provide
feedback that may improve the product. This also minimizes the risk of product failure. Management makes the final "go-no-go"
decision about introducing the new product.
6. Commercialization. The new product is introduced in the market. This involves expenses for advertising, personal selling, and
sales promotion. This becomes easier when the customers gradually accept the product. This reduces the risk and, should the
product fail to generate acceptance, minimizes the loss when introduced in a bigger location/nationwide. The product and
patent applications are carefully considered at this level.

In conclusion, the success of your product in any industry is determined by the interaction and integration of
value, time, cost, and quality. Creativity, willingness to overcome errors, and contingency planning are core requirements
for product development.

Example of Product Development Process in Dressmaking

● Producing a new product for customers is an undertaking for would- be entrepreneurs in the field of dressmaking. You can
create a market for teenagers, young professionals, or other members of the community. This product will help you
augment your family's income and enhance your sewing skills.

A Sample Product Development Process in Dressmaking

- Line Planning and Research: Describe your strategies to reach your potential customers, your expected sales, and
your selling methods.

- Design/Concept Development: Conceptualize products that can be offered to customers.

- Design Development and Style Selection: Create preliminary patterns and fit sizes, prototype samples of garments
to prospective customers.

- Marketing the Line: Sell samples to prospective buyers and retailers.

- Pre-production: Create production patterns according to size and finalize the creation of garments based on quality
standards.
 - Line Optimization: Present evidence of the marketability of the garments in terms of orders and forecast sales.

This process applies to the mass production of merchandise and can be used for innovating new designs/styles for different apparel.
This is also similar to the stages of product development as stated in the previous topic. A sample of the product development
process in dressmaking is presented.

Sample Product Development

Product: A Trendy Ladies' Blouse

The need for a trendy blouse is necessary for socially active women both the nonworking and working sectors blouses reflect the
lifestyles and activities of the wearer notwithstanding or malls/online the various designs of blouses in the department stores
shopping.

Stages of Product Development

1. Generating new product ideas

The demand for this product is high because the style is modern and looks great on women. It is loose enough for the wearer to be
comfortable. The fabric is also nice and soft. However, the sleeves need design improvement. Overall, although there are similar
styles in the market, this design is trendy enough to compete with the rest.
These are the sketches of the new designs for women's attire. These styles represent the preferred choices of blouses because they fit
women of any size and age. One can wear it for any occasion from casual to semi-formal.

2. Screening Ideas
● Blouse A can be worn on any occasion, from casual to semi-formal. It can also be worn during formal functions because of
its soft fabric. The blouse will last for a few years depending on the frequency of use. This can be an additional
mix-and-match apparel for one's wardrobe.

● Blouse B uses decorative lace in the shoulders and ramie fabric in the lower parts. This blouse is more expensive than
Blouse A.

● Blouse C uses silk fabric. There are ruffles in the sleeves, which takes a long time to sew. More yardage of fabric will be
needed to make the sleeves of the blouse. The fabric is also expensive and not all can afford to buy this blouse.

When considering the design, materials used, functionality, and capital needed for the production of the blouse, choosing Blouse A is
the best option.

3. Business
In this stage, the management (a) identifies product features; (b) estimates the market demand; (c) establishes a program to develop
the product; and (d) assigns responsibility for further study of the product's feasibility.
The product is a trendy blouse for women suitable for any age level. Different colors of plain design blouses will be produced to suit
the taste of the customers. It is expected that there will be a big demand for this blouse because of its price, wearability, and
functionality.

The development of the product includes the following:

a. Prepare a budget for the total number of blouses to be produced
b. Prepare the marketing plan for the product
C. Buy the needed materials for the product
d. Prepare patterns for the product
e. Produce the product and do a quality control check
f. Put labels/tag price for each product
g. Distribute the products to store outlets

Further study of the feasibility of the project can be undertaken by an assigned personnel to determine the marketability of the
product to the target segment of customers in terms of price, wearability, and acceptability of the blouse, promotions, and other
preferred styles and fabrics.

4. Product development
Based on the survey on the acceptability of the blouse as a new product, a prototype was developed based on its design. It was tested
and offered to young teenagers and young professionals in the locality. The evaluation was undertaken to determine the preferences
of the customers and later on, to decide whether to introduce the new product or not.
The manufacturing costs are:
For one blouse: 1½ yards at P120.00
Cost of fabric : 1½ yards at P120.00
Supplies : P 40.00
Subtotal : P160.00
Labor : P75.00
Total Cost : P235.00
Selling price : P350.00
Expected profit = P115.00 per piece
Production cost for 10 blouses = P2,350.00
Total sales for 10 blouses = P3,500.00
Net profit = P1,150.00

This initial computation shows that there is room for profit and that the price appears reasonable.
The unit method of sewing the garment will be utilized in the production of the blouse. Example: neckline, sleeve, side seams,
bottom or hem of the blouse

5. Market tests
Market tests involve actual consumers. The new product will be given to consumers. Users are then asked to evaluate the new
product. Findings include sample sales of the product. Management makes a final "go-no-go" decision about introducing the new
product.

6. Commercialization
This stage involves the production of the new products (i.e., blouses) and includes budgeting for advertising, personal selling, and
sales promotion, among others.

Unique and Competitive Product/s

More consumers are concerned about the quality of the natural environment. To preserve the natural environment, more "green
products" have been introduced to satisfy a growing number of consumers. The following are examples of green products:

● Building panels made of recycled materials such as corrugated cardboard and plastics. These products are sold for use in
furniture, exhibits, and stage sets. By using recycled materials, the company saves trees and keeps waste out of landfills.
● New products such as steel-wool soap pads that include plastic fibers from recycled bottles as well as phosphorus-free
soaps.
● A well-known clothing company's new technologies such as converting PET bottles into clothing, hybrid down, and 3D
knitwear.
● A fiber and textile company's technology that can turn seawater into freshwater and recycle plastic bottles into polyester
fibers that can be made into an innovative, super soft, light, and comfortable fabric that quickly wicks sweat and moisture
away from the body.

Obviously, these products offer functional benefits to the customers concerning the physical characteristics and target markets with
the environmental benefits presented as another reason for buying the product. They deliver "value" to customers. Moreover, some
product types may not be new, but their makeup and other benefits may be regarded as new. Some replacements significantly differ
from existing products in terms of form, function, and most importantly, benefits provided. Finally, a product's newness and
uniqueness also depend on how the intended market perceives it. If a product is quite different from competitive products in some
relevant characteristics (such as appearance or performance), then it is considered a new product.

Innovative Techniques to Develop Marketable Products

There are many ways to develop a new product/service, but people often find it hard to create new concepts. The
criteria for new products are:

● There must be adequate market demand. A product is destined to fail if a need does not exist or is it not important to
consumers.
● The product must satisfy key financial criteria. Questions that should be asked are: "Is adequate financing available?"
"Will the new item reduce seasonal fluctuations in the company's sales?," and "Can we make a sufficient profit with the
product?"
● The product must be compatible with environmental standards.
● Key questions include: "Does the production process avoid air and water pollution?" "Will the finished product, including
packaging, be friendly to the environment?," and "After being used, does the product have recycling potential?"
 ● The product must fit the company's present marketing structure. Questions related to these criteria include: "Can the
existing sales force be used?" and "Can the present channels of distribution be used?"
● For a product to be deemed marketable, it must: (a) keep to the company's objectives and image; (b) be compatible with
the firm's production capabilities; and (c) satisfy pertinent legal requirements.

Unique Selling Proposition (USP)

Unique Selling Proposition is a strategy used by businesses to encourage customers to buy from them and not from their
competitors. A typical example of USP can be identified by completing this phrase: "Customers will buy my product because it is the
best when it comes to "Your modified as your business or your market changes, and you can have varied USPS for different types of
customers. USP is very useful in increasing the sales of one's product/service. You can do the following:

● For a brand's USP to be better accepted, emphasize the important attributes of the product. For example, some product
attributes of home water purifiers can be categorized as filter life span, bacterial removal, mineral content, odor, and waste
removal.
● Find a feature that the product must have because buyers want it and meet their standards.
● To gain consumer acceptance, the product must possess value and usefulness.
● Get feedback from customers on why they chose your product. You will know more about what they want and what other
benefits they can get from your product.

Using a USP is a means of increasing sales for a particular product/s or service/s. As customers have plenty of options to choose
from, it becomes important for them to know why they have to choose your product instead of a competitor's. In marketing, your
USP will facilitate in selling your product to consumers by defining what sets you apart.

The guidelines in making a USP are the following:

1. Determine your target customers. Know what benefit/s you can give if they buy your product.
2. Think of ways in which your product can help solve their problems. To potential clients, the benefits of your product are more
important than the features.
3. To encourage people to buy your product, you can offer a guarantee once they buy it. For example, they can change or return the
product if it malfunctions within seven days from the date of purchase.

Digital Marketing

As people nowadays have access to the Internet to look for items to buy,it is an effective way of reaching customers. Selling online
does not require putting up a physical store nor does it necessarily require a lot of manpower. Setting up an online store may be done
through a personal website or a hosting site. The advantage of using web hosting lies in the site's popularity and the convenience it
has to offer. There are some guides available on the Internet that explain how to set up online stores. Digital marketing can be done
both online and offline.

The following are some of the best ways you can market online:

a. Search engine optimization. You make your website friendly for online advertisements, which will allow you to send promotional
content of your product/s to the target audience.
b. Search engine marketing. You can use paid search, such as pay per click listings and advertisements to connect to users.
c. E-mail marketing. You can increase the effectiveness of your e-mail campaigns by using personalization.

Examples of Unique Selling Proposition (USP)

Example 1: Food Industry

I have to deliver this package.
USP: This pizza is for vegan customers. It is a halal product and, therefore, uses only natural flavorings. It is healthy for everybody.

Example 2: Massage and Wellness

I have to try the package.
USP: The brand uses organic ingredients such as pure coconut oil and is used as a massage oil to relieve body pains.

Example 3: Clothing Industry

I want a new T-shirt.
USP: The company lets the buyer choose the design and text printed on the T-shirt. This is a personalized product.

Brands Products can be copied by a lot of competitors. However, a brand cannot be copied. With a brand name, a relationship
exists between the product and the consumer. Consumer perception is measured by how they feel and think about a brand. Brand
refers to a name, term, symbol or design, or a combination of them which identifies the goods or services of one entrepreneur and
differentiates them from their competitors' products. A brand property (symbol, name, and design) influences consumers in what
and how messages are conveyed by the brand.

Benefits of a Good Brand

● Brands help target customers in identifying the products offered for sale in the marketplace and make it possible to secure
a standard quality. Usually, a branded product is superior to a non-branded one.
● Branded articles enjoy prestige in the minds of consumers, thereby increasing brand loyalty and shared values of the
product/s. Brand loyalty reduces marketing costs because it is cheaper to retain old customers than to gain new ones.
Satisfied customers can result in powerful word-of-mouth awareness which can reassure new customers. (Go, 1996)

Steps in Developing a Brand

The following are the steps in developing a brand:

1. Use something short, simple, easy to remember, and easy to pronounce.
2. Choose an appropriate name that fits the product.
3. Focus the brand name on the quality of the product that may persuade customers to buy it.
4. Adopt an attractive logo that must also be reflected in the packaging.
5. Register brand names and make them visible on websites, mobile applications, and other social media platforms.
6. Convey a brand message with value-added benefits for the customers.

Designing Your Logo

● The product logo is an important element in packaging.

● The logo conveys the type and benefits of your product. Your logo is crafted to stir up the interest of your prospective
customers. You must have a different design from your competitors. A logo is expected to be attractive and eye-catching as
it will serve as a tool for sales promotion.
● The use of brand names contributes to product differentiation and provides consumers legal protection in the
marketplace.
● Observing the steps in choosing a brand name will help increase sales in marketing new products.
● USP is a strategy used by businesses to encourage customers to buy from them and not from their competitors. 6. The
success of your product in any industry is determined by the interaction and integration of value, time, cost, and quality.
Creativity, willingness to overcome errors, and contingency planning are core requirements for development.
● New products offer functional benefits to customers with respect to the physical characteristics and target markets with
environmental benefits presented as another reason for buying the product. They deliver "value" to customers.
● Selecting a viable business idea will help ensure success in one's chosen career option and contribute to the economic
development of a community.