Page 3: Product development
Product development is the process of developing and improving existing products and introducing successful new ones. In the modern world, firms regularly change the specifications of their products, whatever they may be, aerosols, aeroplanes or sandwiches. Consumers have come to expect change and improvement, and continually search for new, better experiences.
Existing products may need to be altered to satisfy changing customer requirements. At the same time new products need to be introduced to meet the needs of consumers looking for something new and exciting.
At Greggs plc, product development involves finding out what customers want in order to implement strategies that will meet these needs. It is also important to identify potential gaps in the market and to keep an eye on what competitors are doing.
The illustration below outlines an approach to product development.
In some industries, the risks and rewards of 'being in there first' can both be
very high. In retail baking, there are large benefits in being the first to identify and act on shifts in consumer preferences.
The product development process involves filtering hundreds (perhaps even thousands) of new ideas into just a small number of successful products.