NEW PRODUCT DEVELOPMENT CHECKLIST

NEW PRODUCT

DEVELOPMENT

CHECKLIST

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NEW PRODUCT DEVELOPMENT CHECKLIST

More than 30,000 new products are launched each

year, but 80% of them are considered failures. Why do

so many products fail?

While there are a variety of reasons that a product

might fail, it often boils down to this: In too many cases,

companies fail to adhere to a rigorous new product

development (NPD) process.

For their new products to succeed, companies must

answer specific questions at each phase of the NPD

process, based on data gleaned from carefully selected

market research studies.

This guide will help you stay on track with the NPD

process by:

x Defining the key phases of NPD

x Outlining the questions you need to answer

at each phase

x Identifying the research approaches you can

use to gain the insight you need

TOO MANY NEW PRODUCTS FAIL

Don't let yours be among them.

$1.55M

Average revenue generated from

product development

(n=210)

15X

Average return on product

development investment

(n=210-241)

1.5 MONTHS

Time saved due to product

development insights

(n=158)

3 /

THE NPD PROCESS

4 /

PRELIMINARY:

MARKET ANALYSIS

5 /

PHASE 1:

IDEA GENERATION

6 /

PHASE 2:

CONCEPT TESTING

7 /

PHASE 3:

PRODUCT REFINEMENT

8 /

PHASE 4:

MARKET WARMING

9 /

PHASE 5:

PRODUCT LAUNCH

10 /

PHASE 6:

PRODUCT REVIEW

11 /

ABOUT HANOVER

TABLE OF CONTENTS

Source: Hanover Research

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NEW PRODUCT DEVELOPMENT CHECKLIST

THE NPD PROCESS

To develop an effective product, businesses should follow a stage-gate new product development process.

This method protects product investment by developing projects in a measured, step-by-step process that

requires them to collect essential information and answer critical questions before moving to the next phase,

thereby minimizing risk and increasing the likelihood of a successful product launch.

PRELIMINARY MARKET ANALYSIS

Analyze markets and spot unmet customer needs needs,

industry trends, and competitor movements to ensure you

target the most promising markets

PHASE 1 IDEA GENERATION

Brainstorm potential ideas, offerings, and concepts

that spark customer interest

PHASE 2 CONCEPT TESTING

Screen product concepts to assess feasibility, including

ROI, production costs, affordability, and market potential to

determine if the product is a worthwhile investment

PHASE 3 PRODUCT REFINEMENT

Develop and improve concepts into fully functional

products that your customers want and need

PHASE 4 MARKET WARMING

Collect potential buyer feedback on the product, its look and feel,

and its packaging to understand the product’s key selling points

PHASE 5 PRODUCT LAUNCH

Proceed to full commercialization to see how buyers

interact with the fully vetted product

PHASE 6 PRODUCT REVIEW

Review product performance to identify areas for

improvement to build meaningful products that buyers crave

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NEW PRODUCT DEVELOPMENT CHECKLIST

PRELIMINARY: MARKET ANALYSIS

What is our current market position?

Before developing and releasing a new product,

your company should first understand its current

position in its respective market. With a brand

audit or a market analysis that includes specialized

market size modeling and competitive monitoring,

your company can position itself to identify

opportunities for further growth.

WHAT TO DO:

WHAT TO KNOW:

 I understand the size of my

current market.

 I have conducted a review of my

existing portfolio.

 I have identified my typical audience.

 I understand the role of my products in

my industry.

 I understand my market saturation level

and who my key competitors are.

 I have analyzed industry trends and

understand where my market

is heading.

 I have conducted a study of adjacent

markets and understand opportunities

for cross-selling.

 I have identified opportunities for

growth based on industry trends.

Industry Trend Brieng

Analyze industry news to

identify trends and forecasts

for your industry.

New and Adjacent

Market Analysis

Investigate and identify new

opportunities in your current

market and adjacent markets.

Competor Monitoring

Create profiles for each of

your competitors, focusing on

their overall business health,

product portfolios, and additional

company-specific information.

Market Size Modeling

Create a model of your target

market to understand market

size, growth rates, sales volumes,

pricing, and market share.

Brand Audit

Evaluate your brand's health by

studying customer awareness,

impression, prior usage, purchase

intent, preference, and Net

Promoter Score

(NPS).

Step-By-Step Guide To Market Analysis

Discover the ve crical steps companies

should follow to reduce risk and maximize

returns through a market analysis.

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NEW PRODUCT DEVELOPMENT CHECKLIST

PHASE 1: IDEA GENERATION

What new offerings could we sell?

Once your company has defined broad growth

opportunities, you can begin brainstorming

potential concepts. By reaching out to your

audience and employees, your company can

generate a rough list of product ideas that might

work well with your existing audience or in a new

or adjacent market.

Customer and Employee Surveys

Gather feedback from your customers

and employees to understand their

perception of unmet customer needs

and opportunities.

Adjacent Market Analysis

Invesgate and idenfy new

opportunies in your adjacent markets.

Product Porolio Review

Assess your products' current level of

success to identify future opportunities

and potential risks to avoid when

creating new products.

Market Drivers Analysis

Assess the viability of your potential

product or service by analyzing

market demand, size, trends, and

competitor strength.

Atude and Usage Studies

Gain a greater understanding of

your market strength by evaluating

customers' general attitude toward

your products and their use of them.

Voice of the Customer Interviews

Gather feedback from your customers

to understand how they respond to

your potential product concepts.

WHAT TO DO:

WHAT TO KNOW:

 I understand the unmet needs of my

customer base and what resources are

available to them.

 I understand the extent of resources

available to my customer base.

 I have reached out to my employees to

understand our portfolio needs.

 I have generated a list of ideas that best

fit potential growth opportunities.

The State of Product Development

Understand how execuves across

industries eecvely pursue

product development.

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NEW PRODUCT DEVELOPMENT CHECKLIST

PHASE 2: CONCEPT TESTING

Which are the most promising

product concepts?

Once you have gathered a list of viable ideas

from the initial brainstorming process, you can

begin to evaluate them to identify the one that

is most promising. By reaching out to your target

audience and screening ideas by criteria such as

ROI, affordability, and customer demand, your

company can focus on the product or concept that

best aligns with market needs.

WHAT TO DO:

Concept Tesng Surveys

Gather feedback from your

audience to inform further

refinement to your concept.

Voice of the

Customer Interviews

Integrate customer feedback into

your decision-making by speaking

with your customers.

Focus Groups

Bring customers together for a

preliminary guided discussion about

the product before it launches.

Customer Sasfacon Surveys

Gather feedback from your

customers to understand their

overall feelings about your concept

and how it can address their

pain points.

WHAT TO KNOW:

 I have identified the strengths of each

concept and why they resonate with

my customers.

 I am aware of the potential pitfalls

I may encounter for each concept.

 I have formally evaluated the strengths

and weaknesses of all concepts against

each other.

 I have identified which idea has

the strongest feasibility and

market potential.

 I am starting to become aware of

how I may further improve the

winning concept.

Product Concept Testing:

The Secret to Meeting Customer Needs

Learn how product concept tesng can

help organizaons understand customer

needs and gauge reacons.

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NEW PRODUCT DEVELOPMENT CHECKLIST

PHASE 3: PRODUCT REFINEMENT

How do we move from concept

to product?

Upon finalizing the product type, proceed through

a repetitive loop of product development and

improvement to take the idea from the initial

concept into a refined working prototype. At this

stage, your company can investigate the design

specifications to pursue and begin to specify

manufacturing methods.

Feature and Concept

Conjoint Analysis

Evaluate which features your

customers want in your new

product and which they prioritize.

Pricing Opmizaon Study

Determine the price to set for your

product by analyzing how demand

varies at different prices.

WHAT TO DO:

WHAT TO KNOW:

 I understand the unmet needs of my

customer base and what resources are

available to them.

 I understand the extent of resources

available to my customer base.

 I understand the price range available to

my target audience.

 I have reached out to my employees to

understand our portfolio needs.

 I have generated a list of ideas that best

fit potential growth opportunities.

Critical Pitfalls of the New Product

Development Process

Idenfy the common mistakes business

make when developing a new product and

how they can be avoided.

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NEW PRODUCT DEVELOPMENT CHECKLIST

PHASE 4: MARKET WARMING

Which customer segments should

we launch to first?

Market warming is key to gaining momentum

before a larger launch. Tap early adopters for

feedback that can guide messaging to inform

brand strategy, and pinpoint any needed product

refinements to be addressed before launch. This

process includes value proposition development

and other final preparation work for the launch,

such as the deployment and evaluation of

pre-sale campaigns.

WHAT TO DO:

Brand Message Tesng

Ensure your marketing campaigns

drive ROI by testing message

concepts with customers.

Focus Groups

Bring customers together for a final

guided discussion about the product

before it launches.

Product Tesng

Collect data on customers' potential

usage behavior, preferences, and

reactions on the product by allowing

them to use the product before

it launches.

Go-To-Market Strategy

Specify how you will reach target

customers and be competitive in

your market by creating a blueprint

for market entry.

WHAT TO KNOW:

 I have evaluated how competitors

manage the design and marketing

strategy for their products and

have identified how I want to

differentiate myself.

 I have developed a broad value

proposition model for my product,

including any taglines and slogans.

 I have identified the ideal look, feel,

and packaging for my product.

 I have developed a final prototype

for my product.

 I have run my final prototype

against my target audience and

identified where I need to make

final adjustments.

 I have made final tweaks to my

product, features, and packaging.

 I have identified who my early adopters

are likely to be.

 I have conducted a pre-sales

campaign within my early adopters to

build momentum.

Product Message Testing

Aract customers through product

messaging that resonates.

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NEW PRODUCT DEVELOPMENT CHECKLIST

PHASE 5: PRODUCT LAUNCH

How do we optimize our sales and

marketing strategy?

Once you have fully developed and tested

your product, it is ready to go to market.

Finalize and communicate the sales

and marketing strategy — including targeted

messaging to audience segments — to your

sales and distribution teams.

Customer Segmentaon Study

and Cluster Analysis

Study which customer groups or

segments are most likely to buy

your product.

Go-To-Market Strategy

Update your strategy based on

your initial findings to ensure

you reach your target market

and can differentiate yourself

from competitors.

Event Database

See if customers are responding to

your campaigns and other company-

sponsored events centered around the

product.

Social Media Monitoring

Study your brand sentiment and what

your audience is saying about your

product by analyzing your social media

platforms and mentions.

WHAT TO DO:

WHAT TO KNOW:

 I have conducted a customer

segmentation study to determine how

to best market to specific subsegments.

 I understand my target audience: which

industry associations they belong to,

which trade shows or events they

attend, which publications they read,

and which thought leaders they respect.

 I have taken account of all meaningful

marketing channels and made sure I am

present in all of them.

 I have identified which sales and

distribution channels are most likely to

resonate with my target audience.

 I have made sure that my social

media channels have properly hyped

my product and have been tracking

consumer engagement.

5 Tips to Protect Your New Product

Development Investment

Leverage these ve ps to protect your

NPD investment and idenfy early

signals of failure.

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NEW PRODUCT DEVELOPMENT CHECKLIST

PHASE 6: PRODUCT REVIEW

What areas can we improve

or enhance?

Following the product launch,

evaluate the success of your product to identify

any opportunities improvement and to further

optimize sales and marketing.

WHAT TO DO:

Pre- and Post-Tesng

Examine how customers' feedback

about your product before launch

compare to customers' feedback

post-launch.

Lost Customer Surveys

Reach out to lost customers

to understand why they have

discontinued using your product,

analyzing the specific pain points

they encountered.

Win/Loss Analysis

Evaluate won and lost sales

opportunities to determine

your product's go-to-market

impact and how it compares to

competing products.

WHAT TO KNOW:

 I have conducted a win-loss analysis

to identify areas where I can further

optimize my sales strategy.

 I am keeping track of customer

satisfaction via an email campaign

or a customer satisfaction survey.

 I continually gather feedback from

my customers and keep track of

opportunities to improve.

 I have started to brainstorm other ideas

for my next new product launch.

5 Questions To Ask After a

Product Launch

Evaluate how your product is performing

and gather insights to improve and grow.

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OUR CORPORATE SOLUTIONS

MARKET ANALYSIS

Drive growth and outperform competitors

through targeted exploration and analysis

of hard-to-quantify markets.

We leverage a deep understanding of your business

challenges to provide critical intelligence that helps

you uncover new opportunities, minimize risk, and

accelerate growth.

OUR BENEFITS

DEDICATED

Exclusive account and

research teams ensure

strategic partnership

EXPERT

200+ analysts

with advanced

multiple methodology

research expertise

Ongoing custom

research agenda

adapts with

organizations’ needs

FLEXIBLE EFFICIENT

Annual, fixed-fee

model shares

costs and benefits

OTHER

PRO VIDERS

FEES

# O F PROJ ECTS

www.hanoverresearch.com @hanoverresearch

ABOUT HANOVER RESEARCH

CUSTOMER EXPERIENCE

Understand the complex customer journey

to pinpoint problem areas and uncover

opportunities for high-impact improvement.

y Market Entry Strategy

y Market Penetraon

Strategy

y Trend Analysis

y Market Share Idencaon

y Market Segmentaon

y Merger and Acquision

Opportunity Analysis

y Compeve Analysis

y Voice of the Customer

y Consumer Decision-

Making Process

y Customer Segmentaon

y Customer Needs

Assessment

y Buyer Persona

y Customer Sasfacon

y Customer Journey

y Lead Scoring

y Pathway to Purchase

PRODUCT LIFECYCLE

Optimize each stage of a product’s

lifecycle from ideation, development,

launch, and marketing.

BRAND STRATEGY

Identify and measure the most important

metrics for assessing brand and

cultivating effective messaging.

y Product Lifecycle

Management

y Product Development

y Product Porolio Review

y Package Design

y Pricing Strategy

y Product Message Tesng

y Channel Strategy

y Customer Needs

Assessment

y Brand Equity

y Brand Awareness

y Brand Percepon

y Brand Tracking

y Brand Development and

Posioning

y Content Markeng

LEARN MORE: hanoverresearch.com/contact-us

linkedin.com/company/hanover-research

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