Key Stages in the New Product Development Process
New product development must reflect the market situation, which is highly dynamic and complex, and therefore the mix of elements will be specific for every product development project, and depends on companies' acquired experience and knowledge. Each project requires its own set of objectives and mix of elements to be successful. The New Product Development Model of Booz, Allen and Hamilton Inc. (1982) is one of the most widely referenced models, which is appropriate for every product development project, and particularly for food products.
The overall product development process consists of the following basic stages, and each stage has activities that produce outcomes (information) upon which management decisions are made (Winge and Wall 2006):
Stage 1: New Product Strategy Development
The new product development process starts with strategy development. Companies consider their mission, associated objectives, and goals, and thus identify the new product roles in satisfying the given directives. At this stage, it is essential to clarify the strategic requirements that the new product should fulfill. Then the market environment is scanned for new market opportunities. The target segments are identified and the positioning strategies are set up. It is very important to determine the “perfect” fit between product characteristics and consumer value.