If you’re looking for a thorough and effective way to establish if your new product idea could be a success, then a new product feasibility study is the way forward.
A new product feasibility study offers a detailed overview of your project and the market, and can help you make an informed decision on whether or not it’s worth investing in.
In this article, we’ll be exploring the ins and outs of new product feasibility studies, including what they entail and how they can help you to make a wise decision. Read on for the ultimate guide to new product feasibility studies.
A new product feasibility study is a thorough examination of your product idea, giving you the information, you need to establish whether or not it’s viable.
A new product feasibility study typically involves an initial analysis of the product concept, followed by an assessment of the potential market size, the difficulties you might encounter, and recommendations for the next steps.
It’s important to note that while a new product feasibility study will give you a good idea of the pros and cons of your project, it’s not a guarantee of success – ultimately, you’ll need to make a decision on whether to invest in your project based on the information you receive.
What does a new product feasibility study involve?
A new product feasibility study typically involves a number of different steps, which will vary depending on your project. The following steps are typically involved in a new product feasibility study.
- Idea screening: The first step of a new product feasibility study is idea screening, where the project is analysed and assessed to determine whether or not it’s viable. This typically involves a brief review of the product concept, market research, and information from existing resources.
- Feasibility analysis: The feasibility analysis is the next step in a new product feasibility study, where the project is examined in more detail, and a number of different factors are considered. These factors include the product concept, the market size, the competition, the costs involved in developing, marketing, and manufacturing the product, and more.
- Feasibility report: Once the feasibility analysis has been performed, the results are compiled into a feasibility report, which is presented to the client. The feasibility report typically includes a detailed overview of the product concept, an analysis of the market, and a number of recommendations for the next steps.
- Market investigation: While a new product feasibility study will give you a good idea of whether or not your product is viable, it’s still a good idea to conduct further market research to gain a more detailed understanding of the market.
What is included within a feasibility study report?
The feasibility study report typically includes a number of different sections, which will vary depending on the project. The following sections are typically included within a feasibility study report, and should give you a good idea of what to expect:
- Executive summary: The executive summary is a brief overview of the project, which is written in a manner that’s easy to understand. This means that if the executive summary is well-written, it can be understood by someone who isn’t familiar with the project, such as a potential client or investor.
- Description of the product or service: The description of the product or service is essentially a description of the product in question, including any important specifications.
- Technology considerations: The technology considerations section outlines the different technologies that will be required to develop your product. This section should include a brief overview of the different technologies that will be involved, as well as an explanation of why they’re necessary.
- Product/service marketplace: The product/service marketplace section outlines the size of the market and the different types of products that are already on the market, as well as suggested reasons why they’ve been successful. This section will also outline the different types of customers who will be interested in your product, and the benefits that they’ll gain from using it.
- Suggested outline marketing strategy: The suggested outline marketing strategy section should outline a brief overview of:
- Marketing strategy
- Promotion strategy
- Pricing strategy
- Distribution strategy
- Communications strategy
- Organisation and staffing: The organisation and staffing section will outline the different roles that your business will require, as well as the skills and experience levels that will be necessary for each role. It will also outline the different departments that will be required and the roles that they will play in the business.
- Financial and ROI projections: The financial and ROI projections section should outline your financial plan, outlining projected costs and revenue for the business.
- Findings and recommendations: The findings and recommendations section should outline the key findings of the feasibility study, and should also outline any recommendations that have been made.
- Additional considerations: The additional considerations section should outline any additional information that hasn’t been included in the report, including any additional findings or recommendations that have been made.
If you’re an entrepreneur or Head of R&D for your organisation, you know how important it is to come up with a solid idea for a product or service that is well-researched before you go to market. But determining the feasibility of a new product idea can be a difficult task. You need to do the proper market research to make sure that there’s a market for your product, and that there is a way to sell it.
Innovolo provides R&D teams globally with market research support within their Innovation-as-a-Service plans.