The buyers are back.
GDP growth is expected to be 3-4% in both
Whether the stimulus packages had any effect, the recession has turned into a recovery. Profits are soaring and people are looking at a new normal.
Federal governments are now considering raising interest rates to avoid inflationary pressures.
Companies are preparing for greater growth again.
While customers may be eager to buy more products, many of them are looking for new products. A great growth strategy for 2010 is to invest in new product development.
There have been many new products already this calendar year, but there is room for many more.
Here are 10 things to think about in your new product development strategy this year:
1) Think demographics. In 2001, Gary Hamel suggested in Leading the Revolution that the Big Bertha golf club was a result of an aging population. As people aged, they needed a bigger sweet spot, and were attracted to a club that would enhance their chance of hitting the ball further. Viagra has also done well by appealing to the older demographics. This year, it was Apple’s turn to give an older generation its due by making the iPad, which is essentially an iPod for older people. No longer do you have to strain your eyes on a small screen. While the youth prefer to carry the slim iPod around, older generations are attracted to the big writing and the generous keyboard size. What could you do with your products so it would attract more generations of clients?
2) Think Global. GDP growth in the
3) Think Green. Since BP’s oil pipe burst in the
4) Think Value. Consumers and businesses are buying, but they are always more cautious at the beginning of a recovery. They want a good return on investment. How can you change your products so that they represent a greater ROI for clients?
5) Think Quality. When computers first became available, quality was not an issue because the time being saved from the new technology easily eclipsed problems arising from low quality. Nowadays, consumer’s expectations are very high for quality in computers, and most other products. People often pay more for better quality, and the additional amount they’ll pay far outweighs the additional costs to engineer that quality. What can you do to become or remain the quality leader in your industry?
6) Think New Markets. You don’t necessarily have to go to
7) Think Innovation. People’s appetite for the next big thing continues to grow. 3D movies burst on the scene with Avatar becoming the largest grossing movie of all time, despite the lack of a rich or original plot. Nintendo recently introduced 3D video games, and Sony is eager to get their 3D Playstation to market later this year. While these are innovations in the entertainment industry, new ideas are popping up all over the place. Deere is perfecting their automated tractors to run without human intervention. Debit cards are adding chips for additional security. When I interviewed Isadore Sharp of the Four Seasons Hotel Chain, he told me that visionary leaders need to see things that others don’t. What is the next big thing for your industry?
8) Think Different Sizes. I went into the store the other day, and Coke was advertising their latest product. The recipe hasn’t changed, but the size of the small bottle is 414 ml, and it retails for 99 cents here. A while ago, I was surprised to see 6-packs of small cans of soft drinks for almost the same price as 6-packs of the normal size. I was shocked when the grocery stores couldn’t keep them in stock because of their immediate popularity. Technology firms can offer different sizes of their products as well. Think iPad. Can you package your products in different sizes to attract more customers?
9) Think Customer Needs. If you haven’t been keeping track of what your customers are looking for, now is a great time to ask them. Everybody wants fr.ee internet at hotels, but only a few hotels are listening. How can you incorporate more customer needs to distinguish yourself in the marketplace?
10) Think small changes. Not all new products have to be revolutionary. A few extra options might be all that is needed to help you differentiate yourself from the competition.
New products continue to garner attention, both from customers and from the media. A great weapon to add to your arsenal of growth strategies this year is new products.
The introduction of new products can ignite growth in your business as customers take notice. The R&D, Sales, Marketing and Operations staff become excited about the new offerings. It can be a win-win-win situation for the customer, the company and the employees.
Service of the Month
SHM Consulting has worked with many world-class organizations (including Costco Wholesale, Cisco Systems, TD Ameritrade and the Montreal Canadiens) to help them accelerate growth. Our consulting and coaching services are outlined on the SHM website.
This month, we are pleased to announce that we are offering a special new product development service called "Getting New Products Right." Participants will work directly with me, James Allan, to come up with breakthrough ideas for developing new products, and getting those products to market. Because of the time-sensitive nature required for this coaching program, the number of participants allowed will be limited.
Email us for full details.
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