When one think of choosing a type of product to launch in a market, lot of analysis goes into it. Product should cater to the "NEED" that customer is looking for. One has to figure out the problem that customer is facing and then design solution to that problem. Here are the different options entrepreneurs look for to develop a product:
1. New Product for new market:- When analyst or entrepreneur realizes that there is a problem that customer is facing and problem have no product catering to it, then idea to develop this kind of product comes up. Coming up with a new kind of product can give first mover advantage. For example: In late 90s when idea of Smart Phone arose when its creators saw the need of data transmission over phone. Other advantage of creating a new concept or product is that threat of substitutes is less, threat from competitor is negligible, demand of the product will depend on the severity of the problem that product will solve, so one needs to figure out the demand by building prototype and taking feedback from the customers. Significant challenges in developing new product are :
a) Finding investors or funds to start business
b) Building a right team
c) Finding supplier of raw material, which will be used to create the product
d) Regulatory environment of the country selected for the business.
2. New product for existing market: Idea to develop this category of product comes up when there is a new solution to the problem that customers are facing. So there is a need from the customer and there are various solutions available. So one has to figure out the following:
a) How severe is the problem that customer is facing?
b) How well other solutions are catering to that problem?
If other solutions are failing to meet the needs of customer, then there will be a sufficient demand for the new solution and hence there will be a good chance of getting market share by creating value proposition to the customer.
Apart from funding and government regulations challenge is to create the entirely different product from the existing products.
3. Existing product with some product differentiation : If there is a market and there are lot of products of similar kind that are serving the need of the customers; in that market coming up with a product can be a challenge. For example Telecom sector, where companies have identical product and any other firm entering into that market have to offer some distinguish features in order to gain market share. Challenge in this category is of finding the additional value proposition or unmet need or some features that customer would like to pay for.
4. INTANGIBLE product: Intangible products is a package that can be used to satisfy the needs of the customers. It is not a service associated with the product but a product that cannot be touched but can be experienced. Coaching centers, Salon and Spas can come under this category. This product can have the same kind of challenges and advantages as of the tangible product categories discussed above.
5. Services associated with the existing or new product: This is a service that is associated with some product. So the customer's need has been satisfied by the product. Opportunity is to provide services to maintain the performance of the product or to provide additional value to what is already been provided by product or to create accessories for the product. For example Customer care services for software or electronic appliances.
6. Information provider : This is the new field of opportunity. There is a segment of customer that needs information. Businesses need real time information to take decision. So to cater to this need entrepreneur can establish a firm that analyse data, retrieve information and sell that information. Competition, substitutes are very less in this area, but to create competency is a challenge. Resources such as software, trained individuals etc are scarce. Further one has to choose carefully the domain, area or industry to work in.
7. Problem solver: If one has developed expertise in any given area such as software, banking, investment banking, trading etc then he can utilize that experience in helping companies to meet their targets and their customer's needs. For example if one is very proficient in software development, then he can form a team that takes care of critical path of software development for XYZ company and help that company to meet its target. Another example could be of freelancing consultant, the one who on the basis of his experience guide companies in solving business problems. The main obstacle in this business is to prove competency and skill to customer, to make a name in the market and deliver.
Apart from above mentioned product and service type there can be further areas of opportunity. One has to be curious to be creative and meet the needs of customer. Entrepreneurs are problem solvers, they curiously find out the untapped opportunities, unsolved problems of people around and then come up with a new product.
1. New Product for new market:- When analyst or entrepreneur realizes that there is a problem that customer is facing and problem have no product catering to it, then idea to develop this kind of product comes up. Coming up with a new kind of product can give first mover advantage. For example: In late 90s when idea of Smart Phone arose when its creators saw the need of data transmission over phone. Other advantage of creating a new concept or product is that threat of substitutes is less, threat from competitor is negligible, demand of the product will depend on the severity of the problem that product will solve, so one needs to figure out the demand by building prototype and taking feedback from the customers. Significant challenges in developing new product are :
a) Finding investors or funds to start business
b) Building a right team
c) Finding supplier of raw material, which will be used to create the product
d) Regulatory environment of the country selected for the business.
2. New product for existing market: Idea to develop this category of product comes up when there is a new solution to the problem that customers are facing. So there is a need from the customer and there are various solutions available. So one has to figure out the following:
a) How severe is the problem that customer is facing?
b) How well other solutions are catering to that problem?
If other solutions are failing to meet the needs of customer, then there will be a sufficient demand for the new solution and hence there will be a good chance of getting market share by creating value proposition to the customer.
Apart from funding and government regulations challenge is to create the entirely different product from the existing products.
3. Existing product with some product differentiation : If there is a market and there are lot of products of similar kind that are serving the need of the customers; in that market coming up with a product can be a challenge. For example Telecom sector, where companies have identical product and any other firm entering into that market have to offer some distinguish features in order to gain market share. Challenge in this category is of finding the additional value proposition or unmet need or some features that customer would like to pay for.
4. INTANGIBLE product: Intangible products is a package that can be used to satisfy the needs of the customers. It is not a service associated with the product but a product that cannot be touched but can be experienced. Coaching centers, Salon and Spas can come under this category. This product can have the same kind of challenges and advantages as of the tangible product categories discussed above.
5. Services associated with the existing or new product: This is a service that is associated with some product. So the customer's need has been satisfied by the product. Opportunity is to provide services to maintain the performance of the product or to provide additional value to what is already been provided by product or to create accessories for the product. For example Customer care services for software or electronic appliances.
6. Information provider : This is the new field of opportunity. There is a segment of customer that needs information. Businesses need real time information to take decision. So to cater to this need entrepreneur can establish a firm that analyse data, retrieve information and sell that information. Competition, substitutes are very less in this area, but to create competency is a challenge. Resources such as software, trained individuals etc are scarce. Further one has to choose carefully the domain, area or industry to work in.
7. Problem solver: If one has developed expertise in any given area such as software, banking, investment banking, trading etc then he can utilize that experience in helping companies to meet their targets and their customer's needs. For example if one is very proficient in software development, then he can form a team that takes care of critical path of software development for XYZ company and help that company to meet its target. Another example could be of freelancing consultant, the one who on the basis of his experience guide companies in solving business problems. The main obstacle in this business is to prove competency and skill to customer, to make a name in the market and deliver.
Apart from above mentioned product and service type there can be further areas of opportunity. One has to be curious to be creative and meet the needs of customer. Entrepreneurs are problem solvers, they curiously find out the untapped opportunities, unsolved problems of people around and then come up with a new product.
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