New and Novel Product Development with Acumentia
New and novel products are an exciting area and a way for new ideas and concepts to arrive in the market place. There is particular opportunity for well conceived and developed new products in food and confectionery due to the lack of genuine new product development from the major players in the market.
The knowledgeable and experienced members of Acumentia will almost certainly be able to offer help, advice and support, but it is essential that you have clarity of ideas and plans to put to them for discussion
It is unlikely that you will have considered all or even most of the issues highlighted here, that is not a problem, because we are here to help, and there will certainly be iterations as concepts and products develop and require changes “upstream”
It is worthwhile considering some of the key issues which entrepreneurs may face when considering how to develop and bring their product to market, because overall the most important questions are
How will you create value and make money from this idea?
Do you have the resources to finance the development?
It really doesn’t matter what type of product or service you are considering, if you can’t ultimately understand how it is going to create value for you then it is not something to pursue, you will just end up frustrated (and poorer)
Before the product is created and refined and certainly before it is produced in any quantity the next important questions are:-
What sector is the product aimed at?
Who is going to buy the product?
Why should they buy it?
How will they know about it?
Where and how will they be able to buy it?
The target market and the route to that market need to be considered very carefully and with some positive evidence. Just because you think the idea is wonderful you need to know how many people will agree with you!
Whist the internet and social media are certainly powerful tools, it is vanishingly easy for people to “like” ideas without any real prospect of them actually purchasing the product or service.
There is also the issue of prior knowledge and reputation - sales outlets and customers will be reluctant to stock or spend money on something new from an unknown supplier, remembering that particularly with food and confectionery products you are part of the “ultimate trust” - one person offering another something to eat or drink.
Next we need to consider some practical issues for physical products
What raw materials are required?
Do you understand the cost and sourcing of those raw materials, particularly on a small scale?
What is the likely ingredient cost for the product?
Roughly how is it made?
Have you produced samples by hand?
Are they reasonably “shelf stable”?
What type of wrapping may be needed?
What quality control procedures will be needed?
Going a little further in terms of physical products
Has anyone other than yourself tasted it?
Have you considered ways in which it may be changed or improved?
How will you be sure customers will buy the product repeatedly rather than just once as “something different”?
And what are really longer term questions, but ones you need to think about as ultimately they will determine the product’s fate.
What is the likely manufacturing process?
What type of company do you think might manufacture the product and at what cost and scale?
How will it be distributed?
What price points do you think can be achieved, allowing for manufacturing, sales, marketing and distribution costs and your own remuneration?
How will you handle consumer complaints?