Risky Business

The creative process may appear to be no more than a Eureka moment or a flash of inspiration but actually can take a long time and for very good reasons. In the world of plant breeding for example the process from idea to commercialisation can take many years of work and collaboration for all involved. There are many things to consider and get right before commercialisation can go ahead. Corporate social responsibility and business ethics are both very important areas than must be satisfied before new products can go on commercial sale.

The new product idea generation process may simply be an extension of an existing product line. The screening of ideas or varieties 1,2,3...plants must first undergo criteria rating setting out the specific features of each potential new product. New product ideas must be protected whever possible so that there is no plagiarism or important developments or sensitive information falling into the wrong hands. Mendel's plant breeding discoveries were developed by Hugo de Vries but in a totally different context and with different intentions and they cannot be described as Mendelian or of the school of Mendel.

Concept testing and positioning regarding the potential market will give data concerning whether the customer definitely would buy or definitely would not buy the potential product. Significant investment may have to be made to make the actual physical product from the ideas. Prototypes and tests for efficiency, quality and consistency will need to be carried out using laboratory tests, taste trials and so on for food products which could possibly lead to further disagreements. The length of the development phase can be very unpredictable, possibly many years, and involve many areas of expertise. It is the case in areas of ethical debate where arguments and feelings are very strong from a number of different quarters. Very sensitive or controversial products such as genetically modified foods make take years to develop and still fail to meet the requirements of stringent testing and the pressure groups totally opposed to biotechnological developments along those lines. In the fashion industry it can be as short as a few weeks.

Test marketing takes place in realistic marketing settings. It may also take long time again many years and be very expensive. If large investments are involved there is usually lots of test marketing in real environments, to finish fine tuning, and give an opportunity to change the mix variables and, especially in markets like agriculture and plant breeding, assess in the field things that are difficult to assess on paper. Trade shows, standard and controlled test markets are ideal places to present new product ideas. Test marketing gives all the information necessary to decide on whether the product is ready to launch from what is left of the original ideas.

New product development can be a risky business. It is a well established fact that most new consumer products fail but the market is dynamic and constantly changing. New products give a competitive edge. Existing products cannot be relied on to last forever. They all have a life cycle and eventually go into decline. New products are vital to survival but simply introducing new products is not enough. Good management is important to ensure new products come on stream to satisfy market demand (Kotler, 1999, Brassington and Pettitt, 2000).