Do & Don’ts for new product development
Here are some points to remember and help put you in the 10% success bracket
Given that 90% of new product launches fail - it goes without saying that launching a new product carries a significant amount of risk. Here are some points to remember and help put you in the 10% success bracket.
Do’s
- Get a qualified formulation expert involved as early as possible - it can save time and money in the long run.
- Consider what will distinguish your product in an already crowded market place - is it value or efficacy?
- Set a realistic budget that includes all the core elements i.e. marketing, packaging, manufacturing, ingredients, regulatory and product development.
- Launch one product at a time - this will give you time to test the market and then scale up your product lines.
- Calculate the production cost per item and your ultimate selling price - ask yourself - am I going to make good margins?
- Consider the number of ingredients you will need to purchase and the minimum quantities required by manufacturers.
- Factor in delays such as stability and scale up issues.
- Allow a minimum of 12 weeks for stability and microbiological testing.
- Do your homework - analyse the competition; consider economic conditions; the legal and regulatory environment; industry trends; consumer behaviour and social trends.
Don’ts
- Develop a product and then find a market for your product.
- Spend all your money on the product - your marketing spend ratio should be greater - remember marketing will drive your sales.
- Try to launch several products at the same time - this is risky and costly, it ties up your capital, time and effort - leaving little reinvestment potential for new products.
- Totally rule out product development of a prototype - involving a small production run for sampling or test marketing.
- Think that you can have a product developed and launched in just a few months - it can take up to one year from conception to launch - set realistic milestones.
- Come up with marketing claims that will be difficult to substantiate.
- Think that you can skip the regulations - carefully consider the cost of a failed inspection - bad PR, financial penalties and long-term damage to the brand.
- Forget to research the regulations that apply to the country of launch - a cosmetic in the EU maybe a quasi-drug or a monograph elsewhere.
For more in-depth guidance on product development and regulatory compliance for cosmetics or household products, contact Vinetta Brew our Development Executive - vbrew@here2grow.com or visit our website at www.here2grow.com.
