Any product on the market goes through a product development process which is defined as a creation of a new product or a modification of an existing product. Many dietary supplement manufacturers have developed their own model of the product development process which has created a large spectrum of ethics in the industry. Some companies take short cuts to get their products on the market quickly, while others take extensive measures to ensure the safety of their products. With the lack of a premarket approval system companies more or less have the freedom to manufacture products as they please.
A popular product development process model is the Stage Gate Model. This process is divided into stages and separated by decision points known as gates. The gates act as check points to determine if the product should be stopped in the product development process or continued to the next stage. While this model is ideal, many companies follow an adapted version of this model.
The Stage Gate Model
Stage 1: Ideation – Ideas for products are generated. Typically, market trends, customer behaviors and needs, and current areas of opportunity are considered.
Stage 2: Idea Screening – A preliminarily elimination process takes place where product ideas are screened looking at the organization’s objectives, polices, current legislation, technical feasibility, and financial viability. Eventually, the company narrows it down to one idea.
Stage 3: Concept Development and Testing – Legal and practical aspects of developing and launching a product are taken into account as well as ingredients, formulation, flavor, and color. Once a clear concept development plan is established, a target market, purchase decision makers, product features, potential benefits, and consumer reactions to the product idea are considered.
Stage 4: Business Analysis – Once the concept has been tested and design details are in place, a business analysis of the product is conducted to assess the potential profitability of the product. Things to consider include the cost of the product compared to its expected benefit, resources required, capital expenses, break-even point, profit margin, and anticipated sales.
Stage 5: Beta and Market Testing – A physical prototype of the product is produced. Safety and efficacy of ingredients as well as dosage are taken into the account. The product goes through various tests to determine its clinical efficacy. Depending on its intended use, different types of claims can be made.
Stage 6: Technical Implementation – Quality and management systems are finalized. In addition, suppliers and logistics are determined as well as a system for monitoring the process/ product once it is launched.
Stage 7: Product Launch – The final product goes to the market. In order to help persuade undecided consumers to become actual buyers, marketing communications and brand presence of the product need to be strong, relevant, visible, and updated.
Stage 8: Product Pricing – A review of the entire product development process is conducted in order to identify areas that excelled as well as areas that need improvement. In addition, the impact of this new product in relation to existing products should be evaluate. An ongoing analysis or system needs to be present to evaluate changing customer needs and market trends.