How to Develop a Product: A Basic 7-Step Guide

Creating a product from scratch might sound overwhelming, but you need not worry. It’s usually simpler than it seems. Every product you see around yourself today, from the phone to the chair, started as just an idea. Turning an idea into a tangible product is about following the right steps. 

So, how to develop a product? It’s a methodical process, and if you follow the process, product development can be both exciting and rewarding. Remember, building a product is about solving real-world problems, understanding your audience, and creating something that adds value.

You can take the steps listed in this blog to easily navigate the journey of transforming a simple thought into a market-ready product, from understanding your customers to creating a prototype and launching it. 

But first of all, you should know what product development means.

What is Product Development?

Product development is the process of transforming an idea into a real product. It starts with identifying a need or problem and ends with the creation of a solution that meets that need. 

However, the product development doesn’t just stop there. The most successful products are those that continue to evolve long after their initial launch. Think about how Apple has been able to evolve and innovate with each new product.

At its core, product development is about solving problems. When you develop a product, you’re creating something that people need or want. The development process involves many stages, from the initial idea and research to design, prototyping, testing, and manufacturing. 

Types of Product Development

There are many types of product development, each tailored to meet specific market demands and business goals. You must understand these types to choose the right approach for your project. Here are some main types of product development:

1. Incremental Development: This approach focuses on making gradual improvements to an existing product. Consider how smartphone manufacturers often release new models with enhanced features, such as better cameras or faster processors.
2. Disruptive Development: This approach is about creating a new product that fundamentally changes an industry or market. A notable example is Netflix, which disrupted traditional video rental businesses and also transformed how audiences consume media. 
3. Adjacent Development: This type involves extending a company’s current product line into related markets or categories. For instance, Apple started as a computer company but successfully entered adjacent markets by expanding into smartphones, tablets, and wearable devices.
4. Radical Development: Radical product development focuses on creating entirely new products that often rely on groundbreaking technologies. An example is Tesla’s electric vehicles, which revolutionized the automotive industry with innovative battery technology and autonomous driving features. 
5. Custom Development: This involves creating bespoke products based on individual customer requirements. For instance, Codewave offers custom software development for clients to streamline their operations or improve efficiency. 
6. Collaborative Development: This type involves partnerships between companies to develop products. This development can combine resources, expertise, and insights to develop innovative products. For example, Spotify and Starbucks collaborated to create a music experience in stores. 
7. Open Innovation: Open innovation involves leveraging external ideas and technologies to enhance product development. Companies like Procter & Gamble have successfully utilized crowdsourcing to gather insights and ideas from customers, inventors, and researchers.

Codewave can help you stay ahead by offering continuous iteration and improvements in your App development through agile methodology and Automated QA and Testing. We make sure that your apps and software meet every aspect of your customer needs! 

Read more: Understanding the Agile Design Process and its Principles

Still wondering, ‘How to develop a product?’ Let’s take a step-by-step look at the process. 

How to Develop a Product: Step-by-Step Process

Developing a product requires careful planning and execution. By following this step-by-step process, you can increase the chances of creating a successful product that meets market demands and drives your business toward growth.

Step 1: Generate an Idea

Every successful product starts with a bankable idea. However, it’s difficult to come up with a winning concept. It requires careful thought, research, and structured brainstorming. Let’s break down how you can generate an idea that has the potential to turn into a successful product.

1. Brainstorming

Your product development journey starts with brainstorming. At this stage, it’s all about creativity. Gather your team and encourage everyone to contribute. It’s important that you involve everyone’s perspectives as what may seem insignificant to one person might spark a big idea for someone else. 

2. Understanding Your Target Market

Before you settle on an idea, you need to understand your target market–the group of people who will benefit from your product. Research their preferences, behaviors, and pain points. Ask questions like: 

• Who are they? 
• What problems do they face? 
• How can your product make their life easier? 

The better you understand your audience, the more focused and effective your product idea will be. 

3. The SCAMPER Model

How to develop a product that’s effective? One efficient tool is the SCAMPER model which is crucial for idea generation, which stands for:

• Substitute: Can you swap out a component to improve the product?
• Combine: Can you merge two ideas to create something new?
• Adapt: Can you modify an existing idea to better suit the target market?
• Modify: What can you change to make the product more valuable?
• Put to another use: Is there a way to use the product for a different purpose?
• Eliminate: Can you remove features that aren’t needed?
• Rearrange: Can you change the order or structure to improve the product?

SCAMPER lets you rethink existing products or ideas and come up with new concepts as it focuses on change and innovation.

4. SWOT Analysis

Once you have a promising idea, you can evaluate its potential using a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. 

• Strengths: What does your product do better than others?
• Weaknesses: What are its limitations?
• Opportunities: Are there market gaps your product can fill?
• Threats: What external factors could impact your product’s success?

Before you dive into product development, you must validate your idea. A thorough market research can help. It ensures you’re not just building a product, but building the right product. 

Step 2: Conduct Market Research

Market research allows you to understand your audience, evaluate competitors, and predict market trends. 

1. Methods of Product Validation

• Online Surveys: Start by gathering responses directly from your target audience through surveys.
• Social Media Polls and Email Newsletters: Use these channels to engage potential customers and gauge interest. 
• Pre-launch Landing Pages: Build interest and measure early traction before launching your product.
• Small Pilots or Minimum Viable Products (MVPs): Test your idea in the real world with a limited audience before moving into full-scale development.

2. The Need for Unbiased Feedback

Seeking validation from sources that are biased is a major problem. Instead, you should look for honest or objective feedback. You must get input from potential buyers–who will be using your product. Unbiased feedback helps you identify weaknesses, blind spots, and areas of improvement.

3. Competitor Analysis

Competitor analysis is a critical part of market research. You must examine what your competitors are doing to spot gaps in the market. Start by identifying who your competitors are and what products they offer. 

You can study their pricing, features, and customer reviews. What are customers praising? What are they criticizing? 

4. Market Trends and Buyer Intent

As market trends constantly change, you must stay ahead of them. You can do so by researching the current trends in your industry. 

• Is there a growing demand for sustainability? 
• Are customers leaning towards convenience? 

After validating your product, now comes the part where you develop a solid plan. A well-thought-out plan is essential to keep the development process on track. You can use it to address all the essential aspects of bringing your product to life.

Step 3: Develop a Plan

Let’s take a look at the step-by-step breakdown of the development of a plan.

1. Create a Product Roadmap

A product roadmap is like a blueprint that outlines each stage of development, from concept to completion. It also mentions clear timelines and milestones. A clear roadmap can help your team get aligned on priority tasks. In addition, it makes sure everyone knows what to expect at different stages.

The roadmap should cover everything from design and development to testing and launch. You may start by defining the major goals and breaking them into smaller tasks. 

We, at Codewave help you craft detailed product roadmaps for your project. If you need expert advice, get a consultation from Codewave and see how we analyze your user’s problem statement through KPIs. 

2. Technical Illustrations and Specifications

Technical illustrations and specifications provide a detailed description of how your product will work. These documents are critical for your engineering and design teams. They outline the materials needed, the design requirements, and the functionality of your product. 

For example, if you’re developing a tech product, this could include wireframes or software flowcharts. For physical products, you might include blueprints or sketches of the design. 

3. Address Product Specifications

Product specifications are the features and functionalities that your product will have. At this stage, you must clearly define what your product will do, what problems it solves, and how it will be used. 

Specifications can range from software capabilities to physical product dimensions, material choices, and durability. The goal is to create a product that meets customer expectations and performs as required. 

4. Establish Marketing and Pricing Strategy

No product plan is complete without a strong marketing and pricing strategy. Your marketing plan should include how you will promote your product, reach your target audience, and differentiate yourself from competitors.

• Select Platforms: Consider which platforms (social media, email marketing, or partnerships) will be most effective for reaching potential customers. 
• Competitive Pricing: Regarding pricing, you must figure out the right price point that reflects your product’s value. Research what customers are willing to pay and compare your product with others on the market to find the right balance.

With your product plan in place, it’s time to bring your concept to life by creating a prototype. 

Step 4: Create a Prototype

Prototyping is where your idea begins to take tangible shape. A prototype is essentially the first version of your product. You can test and refine your prototype before moving on to full production. Prototyping allows you to see whether your design works as intended so it meets your customer expectations. 

1. Prototyping Methods

There are several ways to approach prototyping depending on the type of product you’re developing. 

• Physical Products: For physical products, 3D printing is a popular method. It allows you to create detailed models quickly and cost-effectively. 
• Digital Products: If you’re working on a digital product, then wireframes or mockups can become your prototype. Using these prototypes, you can visualize the user interface and user experience (UI/UX) to spot any usability issues early on.

2. Testing Prototypes

Once you’ve created your prototype, it’s time to test it. Focus groups are an excellent way to get feedback from real users. You can invite a small group of people from your target market to try out the prototype. Make sure you observe how they interact with it and gather their opinions.

Designing is a fundamental part of the product lifecycle. But you might be thinking, how to develop a product through prototyping and designing? Understanding the product design process is key to having a successful product launch at the end of the development process. 

It’s time to bring your product to life at scale. It involves sourcing the right materials and finding reliable production partners. 

But what if you could develop and test your prototype faster and more efficiently using AI? Codewave’s AI Prototype Development services help you build AI-driven prototypes that adapt to real-time user feedback. Using AI, you can reduce time-to-market, optimize design iterations, and ensure your product aligns with user expectations from the start.

Step 5: Source Materials and Production Partners

Your supply chain is the backbone of your production process. It involves everything from sourcing raw materials to manufacturing, logistics, and delivery. 

• To build a robust supply chain, you can start by identifying suppliers and manufacturers who meet your quality standards and deadlines. 
• Research thoroughly—whether you’re sourcing components locally or internationally.

The more reliable your supply chain, the smoother your production process will be.

1. Best Practices for Sourcing

When it comes to sourcing materials, there are a few best practices you should follow. 

• Prioritize Quality Over Cost: Cheaper materials may save money in the short term but can lead to product issues and increased costs in the long run. 
• Ensure Supplier Consistency: Make sure your suppliers can meet your production volume consistently. 
• Have Backup Suppliers: Always have backup suppliers in case something goes wrong with your primary source. 

2. Managing Relationships with Suppliers

A key to long-term success is building and maintaining strong relationships with your suppliers. Regular communication, clear expectations, and transparency can create trust. Plus, paying invoices on time and giving feedback where necessary will improve your working relationship. 

Profitability and sustainability are the main for any product. Understanding the costs involved in developing your product can help you with pricing. Let’s see how you can use proper cost analysis to make informed decisions.

Step 6: Determine Your Costs

The first step is conducting a thorough cost analysis. This involves identifying all the expenses that go into developing, producing, and delivering your product. These include raw materials, manufacturing, labor, packaging, shipping, and marketing. You must break these down into: 

• Fixed costs (expenses that don’t change, like rent)
• Variable costs (expenses that fluctuate based on production volume)

1. Calculating Cost of Goods Sold (COGS)

COGS includes all direct costs associated with producing your product, such as raw materials, labor, and production overhead. This figure allows you to determine how much each unit costs to make. It also helps you determine a baseline for your pricing strategy. COGS helps you identify areas where you may be overspending.

2. Developing a Pricing Strategy

Your pricing should cover your COGS as well as leave room for a nice profit margin. There are several methods to set your pricing. 

• Cost-Plus Pricing: This approach involves adding a fixed percentage to your cost of goods sold (COGS) to ensure profitability.
• Competitive Pricing: Here, you set your price based on market rates and competitor pricing to stay aligned with industry standards. 
• Value-Based Pricing: This focuses on pricing your product according to its perceived value to customers.

If you need help in crafting an effective strategy, the marketing experts at Codewave are a great resource. Codewave ensures your product stays up-to-date with market trends and customer expectations. Consider checking out these services provided by Codewave. 

After months of development, testing, and planning, your product is finally ready to hit the market. The launch phase is a critical moment in the product lifecycle. So, how you execute it can make or break the success of your product. 

Step 7: Launch Your Product

Let’s explore the key elements of a successful launch.

1. Marketing Strategies

A well-thought-out marketing strategy can give your product the attention it deserves. You can start by defining your target audience and identifying the best platforms to reach them (social media, email marketing, or paid ads). Focus on communicating the problem it solves and how it adds value to their lives.

2. Building Anticipation and Momentum

Tease your product on social media and through newsletters, sneak peeks, and behind-the-scenes looks. You may consider setting up a pre-order option or running an early bird promotion to generate buzz among your target audience. Hosting a countdown on your website or offering limited-time deals can help build momentum.

3. Distribution Strategies

Depending on your product, you may want to use a multi-channel distribution strategy. This can involve selling through your website, online marketplaces, or even retail stores. If you’re going international, consider the logistics of shipping and customs. 

You must have clear inventory management processes in place to handle the influx of orders that typically come during a launch. 

4. Customer Service and Support

Offering excellent customer service helps you maintain a strong relationship with your buyers. Make sure your customer service team is trained to handle inquiries, resolve issues, and provide support if needed. An easy-to-access FAQ page, live chat, or help desk feature on your website are much-needed support options. 

You might want to consider checking out the importance of a Product Strategy Framework in the development process. However, it’s important to keep in mind that product development does not always go as planned. Here are some challenges you may face.

Challenges Businesses Face During Product Development

Product development is a complex process. You might encounter several challenges in your development process that can hinder progress. You can navigate through the process easily by understanding these key challenges.

1. Identifying Market Needs

One of the primary challenges is accurately identifying what the market truly needs. For instance, a tech company might invest in developing a new app based on trends without conducting proper market research. They may end up with a product that does not resonate with potential users.

2. Resource Allocation

Many startups may have limited financial and human resources, which can result in insufficient testing or rushed development. For example, if a company decides to reduce the timeline by cutting costs, the final product may be filled with bugs or lack essential features.

3. Effective Communication

Proper communication between teams is often overlooked in most businesses. Consider this situation: if your marketing team does not communicate properly with the product development team, it can lead to confusion and your final product may have features that are not ready for the market.

While there may be challenges along the way, if you follow the steps mentioned above, you can deter them. One way to gain valuable insights into effective strategies and innovative practices is through real-world examples. Let’s look at a few examples of tech products.

Examples of Tech Product Development 

These notable tech product examples illustrate various aspects of the product development process:

• Slack

Initially developed as an internal communication tool for a gaming company, Slack pivoted to become a stand-alone product. The team focused on user feedback and iterated on their features, like channels and integrations with other apps, to enhance its potential as a team collaboration app.

• Spotify

Spotify revolutionized music streaming by focusing on user experience and content availability. Their product development emphasized data-driven decision-making which analyzes user behavior to create personalized playlists and recommendations. 

• Tesla

Tesla approached product development by integrating cutting-edge technology with sustainable energy solutions. Tesla continually updates its vehicles through over-the-air software updates. This shows how product development can extend beyond the initial launch and evolve through ongoing improvements and innovations.

Conclusion

So, if you still ask how to develop a product? Here are the summarized answers that we have discussed: It starts with an idea and ends with a market-ready solution. 

• First, you begin by identifying and validating your idea through brainstorming and market research. 
• You then create a detailed plan and roadmap, followed by prototyping and testing your concept. 
• For smooth production, source the right materials and partners.
• Use careful cost analysis to develop a pricing strategy.
• Finally, a successful launch with strong marketing and customer service can set the stage for your product’s success in the market.

Once your product is out in the world, the journey isn’t over. Continuous improvement is vital to keeping your product relevant and effective. Try to gather feedback, monitor performance, and make adjustments. 

The market is always shifting, and customer preferences change. By staying flexible and open to feedback, you’ll be able to adapt your product to new trends and expectations. At Codewave, we specialize in helping businesses turn ideas into market-ready products.

With our design-led tech development services, we guide you through each step, ensuring your digital product, whether it’s an app or customer software, stands out in the market. Whether you’re an SME founder or a product manager, we can help you scale with confidence. 
Ready to take your product idea to the next level? Get in touch with Codewave today and let’s start building something great together.