Product planning involves creating a proposal, test report, and market study. The proposal outlines profitability, risks, marketing, manufacturing, and competitiveness. A proof of concept report is developed, followed by market testing of a prototype before production.
Product planning and development involves the creation of a product proposal, a test report, and a test market study. When an idea is generated, a product proposal must be created which discusses how it will be profitable for the company and identifies any associated risks. If the product is found to be within the company’s focus and budget, it is reviewed further, based on marketing, manufacturing, and competitiveness considerations. Once it passes further scrutiny, plans for its design, manufacturing, and special circumstances are finalized and assigned to someone chosen to lead the project. A prototype is then built and tested to gauge customer reactions, concerns or satisfaction.
Product proposals are the first step in product planning and development. When an idea warrants consideration by a company, a proposal provides management with reasons why this product will be a positive contributor to its current offerings. Not only does the proposal discuss details about the product idea, but it also outlines the associated risks and financial estimates. It should touch upon the marketing, manufacturing and competitive areas to discuss what will be needed and whether additional resources or equipment will be needed. Once the proposal is approved, management will assign the project to someone who will be responsible for it through the planning and development phase.
A proof of concept report is typically developed after the product proposal has been approved, moving it forward in the development phase. This report provides details on product specifications, manufacturing requirements, applied for patents, and prototyping results. At this stage, the product features have been finalized, the design has been studied and a prototype has been developed. Market research should also be conducted to ensure that the product meets customer expectations and needs as well as a strong positioning and marketing strategy. If it appears that the product will not meet consumer needs or give the company an edge over its existing competition, the product will need to be modified.
Typically, a prototype is market tested in the final stage of product planning and development, before it is released to the public. This stage allows the company to make final changes to the design, features or packaging of the product. It also lets you see how it will rank among its competitors and whether its marketing strategy should be changed. Prototype development and test marketing must be iterated until the company receives the desired consumer response before moving from the product planning and development stage to production.
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