Staying in the business is not about making some modest gains over your investments, it is about constant evolution and about conceiving new ideas to foster business growth.
But at the same time, no business wants to waste their time and money on a new product idea that has not been tested and analyzed for its practicality.
Putting a new product idea into production, without actually testing it can lead to dome detrimental losses that can shake your existing business and its image.
The initial analysis of a new product idea should be scrutinized based on four main perspectives.
Whether you’re into products or services, the first thing you need to scrutinize your new product idea is against your existing business image and its existing customers. The questions you need to ask yourself are:
• How will this new product influence the existing business image?
• Will the new product be well perceived by the existing customer base of the company?
• Will the new product idea have any negative effect on the sales of the current products?
• Will your new product be able to deliver the core promise that you’ve made to your existing customers?
• How can the new product benefit the businesses existing credibility in the market?
Once you’re clear that your new product idea is beneficial for your business, your second concern should be the target customers. When analyzing your new product idea in term of customers, do pay attention to influencers and the end consumers as well. You must ensure that your new product will be welcomed by each of these three categories of customers.
Look at all the existing competitors, in the same product category, in the market and see whether your new product can fight this competition. Also look at your existing business competitors, to see that getting into a new product won’t, in any way, let your business competitors to win over your existing business.
Your new product should be able to give you an edge over the competitors, and increase your customer base. Analyze your new product idea to see if it will help in strengthening your positions against the competitors.
If your new product idea scores well on all these above parameters, only then should you think about developing your idea any further.