12/ 16/ 2002
by Vicki Gerson
If you have a new product you're thinking of bringing into the marketplace, plan step-by-step how you'll design, build and market your idea.
Family-owned and operated Kane Graphical Corporation in Chicago, Ill., manufactures and distributes interior and exterior signage and merchandising fixtures. Approximately two years ago, Vice President Jonathan Kane was contemplating introducing new outdoor banner stands for the financial industry. Although a few other companies were making banner stands, some of his customers were inquiring whether he had an outdoor banner stand.
Kane thought he could bring weather-resistant banner stands to the marketplace that would be structurally sound and serve as an alternative to what was already being sold. Based on what his competitors were charging, he knew a product could be designed so the list price would be equal or less.
"I believed thousands of banner stands could be sold," he says. "I designed it along with our engineer over the course of a year. There must have been at least 10 prototypes made at our plant until we finally got the right version."
Kane estimates that it cost the company approximately $10,000 to develop the product. According to Kane, it's important to make prototypes because something can look very good on the drawing board, but not work as you expect once it's built.
The final result was ViewPoint, an outdoor banner stand that could provide changeable banner messages for a bank's customers using the drive-up facilities. The company has applied for a patent because it believes the product is so unique.
To market the product, Kane placed information on its Web site, mailed flyers and postcards to customers and prospects, went to trade shows and mounted a public relations campaign to get information in trade and consumer publications.
It takes a lot of time and effort to introduce a new product. To ensure that your hard work will pay off, use the following questions to determine if the new product will be a success.
- Who will use the product?
- What are their occupations?
- What are their ages?
- Will this product be too expensive to bring to the marketplace?
- What makes this product unique?
- How many similar products are already being sold?
- Can this product compete favorably with similar products in regard to style and quality?
- Can this product be priced at the same price or below the competition?
- What features can be added to make this product unique?
- Does it pay to financially attempt to create this product?
