Find a New Product for Your Manufacturing Firm

All products have a life span. Some mature products can be rejuvenated through an updated promotional campaign or packaging. In some cases, a small manufacturer can expand sales in new or existing markets with product enhancements. In other cases, the only way a small manufacturer can maintain market share and expand sales is to introduce a new product.

To find the right product, you need to do some research and answer some basic questions about the suitability of new products in relation to your current production resources. Set some minimum standards that a new product must meet for you to even be interested in the venture. And, before you invest too much time and effort into the endeavor find out what the market trends are for products. Keep in mind that a new product must be in response to consumer demand.

You may have a particular product in mind already or you may be searching for a new product that has never been brought to the marketplace. Begin researching product possibilities. Sources of information that can provide leads are information on government owned patents, privately owned patents, the U.S. department of Commerce, inventors trade shows and licensing brokers. Take time to get a perspective on the range of available products. Then begin to narrow your search to the handful of products that may fit into your marketing and manufacturing mix.

Ask yourself the following questions. Can you introduce a new product that would be an add-on to an existing product line? Are there market indications that a particular product is in demand within your general product category? Do you see the potential to use existing resource in the production of the product? Can your current manufacturing operation be readily modified to bring a new product to the market? Will this new product be targeted to your current customer base or do you need to target new customers?

Pay particular attention to your physical capabilities within the manufacturing context. You will need to modify existing equipment or purchase new equipment to handle product on the new product. Also consider personnel training and the complexity or simplicity in the manufacturing of the new product. In addition, you must consider your in-house resources for the storage and shipping of the new product. Can this product be distributed through existing channels? Ideally, you want to incur as little expense and make as few changes to overall operations as possible. Part of your goal is to maximize manufacturing capability and allow the structure of your firm to support the distribution of a new product.

Take these three tangible steps in your quest to launch a new product: decide on a product; gathered information about market demand; and define manufacturing requirements. Once completed, you can move on to the competition. Who are your potential competitors? Has a similar product already been introduced? Can you improve on the product to effectively compete.? Could a larger competitor step in and capture the market? Identify competition obstacles and plan sales strategies. You and your sales team need to carefully plan the product launch, sales goals and customer service levels related to the new product.

If you would like to discuss new product development, manufacturing reorganization or a new product launch, contact the SCORE Association (Service Corps of Retired Executives). More than 12,000 volunteer, business counselors provide free and confidential advice to small business owners. SCORE is a nonprofit association and all business counseling is offered as a community service. SCORE has assisted more than 3.5 million entrepreneurs. For a referral to the SCORE chapter nearest you, call 1 (800) 634-0245.

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