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Eight Simple Steps for New Product Development

Eight Simple Steps for New Product Development takes an idea through screening, concept testing, design, trial and launch in a fixed order, so a product earns its way to market on evidence rather than on the loudest voice in the room.

Eight stops line up left to right, each one a hurdle an idea clears before reaching the shelf.

1 Idea generation 2 Idea screening 3 Concept testing 4 Marketing strategy 5 Business analysis 6 Product development 7 Market testing 8 Commercialisation
The eight-stage route from idea to commercialisation.

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How to run it

  1. Generate ideas from every source you've got - customers, competitors, your own team - before spending real money.
  2. Screen them hard against your objectives, feasibility and finance, and let weak ideas die here rather than later.
  3. Turn the survivors into a tested concept, not just a pitch, and get a real customer reaction to it.
  4. Set the marketing strategy for how it'll reach the market.
  5. Run the business analysis honestly - the sales, cost and profit case - including the case for killing it.
  6. Design, build and test a real prototype before committing to production.
  7. Test the market in a controlled trial before the full rollout.
  8. Commercialise it: launch at full scale.

A worked example

Situation. Abdullah Al-Otaibi runs Otaibi Outdoor Furniture, a garden-furniture manufacturer in Riyadh, Saudi Arabia, where new ranges had always launched on the sales team's gut feel.

Applied. For a new folding-table range he ran the full eight steps for the first time, including the marketing strategy and market-testing stages the business had always skipped.

Result. The trial batch showed the mid-size table selling and the large one sitting in showrooms; he cut the large size before the full production run, saving a season's worth of dead stock.

1 Idea generation 2 Idea screening 3 Concept testing 4 Marketing strategy 5 Business analysis 6 Product development 7 Market testing 8 Commercialisation
Nowak Metalworks' trial run at the Market testing stage exposed the large table as a slow seller before full production.

The catch

The eight steps assume you can move sequentially, and real product decisions rarely wait that politely - competitors don't pause while you finish stage four. It also treats 'kill the idea' as a valid outcome of every gate, which only works if leadership will actually let a bad idea die.

If the person who champions the idea also runs the gate meant to kill it, the gate never closes.

Origin: Philip Kotler & Gary Armstrong (New Product Development process)