hello everyone welcome to business school 101 the new product development process is a structured and systematic approach that businesses use to bring new products or services to the market it involves a series of steps and activities aimed at identifying developing and launching Innovative offerings that Meet customer needs and contribute to business growth so what are the stages within this process are there any noteworthy examples of success and failure in the real business World in this video I will discuss these questions with you Section 1 the process the new product development process typically consists of the following stages stage one idea generation this is the initial phase where the process begins ideas for new products or Services can come from various sources such as employees customers competitors market research and brainstorming sessions businesses may also encourage Innovation through idea Management systems and open Innovation strategies to gather a wide range of ideas for example Apple's iPhone the idea for the iPhone came from Apple's desire to create a revolutionary product that combined a phone an iPod and an internet communication device the concept emerged from internal brainstorming and Steve Jobs vision of a single seamless device stage 2 screening in this stage the ideas generated in the previous step are evaluated and filtered based on predefined criteria these criteria can include Market potential alignment with the company's strategy technical feasibility and resource availability the goal is to eliminate ideas that are not viable or do not align with the company's objectives saving time and resources for example Coca-Cola's new beverage products Coca-Cola continuously generates ideas for new beverages but not all of them make it to market the company May screen ideas for new flavors or products based on market research and consumer preferences before investing in production and marketing stage 3 concept testing once potential ideas are identified they are further developed into product or service Concepts these concepts are presented to a select group of Target consumers to gather feedback and gauge their level of interest and acceptance concept testing helps refine ideas and ensures that the product or service aligns with customer needs and preferences for example Proctor and Gamble's Tide Pods before launching Tide Pods PNG conducted concept testing to gauge consumer interest in the idea of a single-dose laundry detergent the positive response from potential consumers helped validate the concept stage 4 business analysis in this stage a detailed analysis is conducted to assess the potential profitability and feasibility of the concept key factors like projected sales costs pricing and market demand are examined Financial models and business plans are developed to determine whether the new product can generate a sufficient return on investment for example Tesla's model 3 Tesla conducted an extensive business analysis before launching the model 3 electric car the analysis included projected sales production costs pricing strategies and expected demand ensuring The Venture was financially viable Stage 5 product development once the concept is approved through business analysis the product development phase begins this stage involves designing engineering and prototyping the product or service collaboration between cross-functional teams including RND marketing and production is crucial to ensure that the product meets quality and design specifications for example spacex's Falcon 9 rocket spacex's Falcon 9 rocket went through rigorous product development including design engineering and testing phases it was developed to be reusable reducing the cost of launching payloads into space stage six test marketing before a full-scale launch some businesses opt for a test marketing phase during this stage the product is introduced in a limited geographic area or to a specific target audience to assess its performance and gather real-world feedback test marketing helps identify any potential issues and allows for adjustments to the marketing strategy or product itself based on consumer responses for example Netflix's International expansion when Netflix expanded internationally it conducted test Marketing in select countries like Canada and the United Kingdom before a full-scale global launch these test markets allowed Netflix to fine-tune its service and content offerings for different regions stage 7 commercialization this is the final stage where the new product is officially launched into the market it involves setting up distribution channels marketing campaigns and sales efforts commercialization aims to maximize Market penetration and revenue generation ongoing monitoring and adjustments to the marketing mix may be necessary to ensure the product's success in the market for example McDonald's McFlurry McDonald's introduced the McFlurry dessert in the United States after successful test Marketing in Canada the commercialization phase involved Nationwide marketing campaigns and setting up McFlurry machines in all their locations section 2 failed examples introducing a new product to the market always entails risks and even well-established companies have experienced failures in their histories here are two of the most renowned examples number one New Coke Coca-Cola in 1985 Coca-Cola introduced New Coke in an attempt to reformulate its classic Coca-Cola formula the company believed that the sweeter Taste of New Coke would better compete with rival Pepsi however this decision resulted in one of the most famous product failures in history consumers reacted strongly and negatively to the change Coca-Cola faced widespread backlash and protests from loyal customers who cherish the original flavor the company underestimated the emotional attachment people had to the traditional Coca-Cola taste number two Google Glass Google Glass introduced in 2013 was a wearable smart glasses product that aimed to provide users with augmented reality experiences however it faced significant challenges during its development and launch the product was met with privacy concerns as it had the potential to record video and take pictures discreetly additionally its high price tag and limited functionality made it unattractive to Consumers eventually Google halted consumer sales of the product in 2015 although it continues to explore Enterprise applications for the technology Section 3 summary the new product development NPD process is a systematic approach that businesses follow to bring Innovative products or services to Market successfully it consists of seven key stages idea generation screening concept testing business analysis product development test marketing and commercialization throughout the entire new product development process effective communication and collaboration among different departments and stakeholders are critical additionally continuous evaluation and adaptation are essential to respond to changing market conditions and consumer preferences all right that's all for today's topic if you have any questions regarding this video please leave your thoughts in a comment below I hope you guys have enjoyed this video and if you did make sure you give it a thumbs up and subscribe to my channel thanks for watching and I will see you next time