257 Section 10.1 Product Copyright Goodheart-Willcox Co., Inc. Depending on the product, packaging can influence its safety and quality. Breakable items need more packaging than sturdy items. This can increase the cost of the product. Weight and size of the package may affect the expense of shipping or storing. Some products are subject to labeling laws, which require listing contents and the country of origin. These laws especially affect foods and clothing. It is necessary to research the legal requirements for labeling products. When selling products globally, laws related to the product may differ from laws in the United States. New Product Development The business is going well and you think it is time to add a new product. Sounds good, but do not jump too soon. Make sure it is the right time to add a new product. Research is necessary to make sure a new product or service is the best business decision. Confirm that the business can financially support a new product and that the product will generate sales. Product life cycle is discussed later in this chapter. After a product completes its life cycle, a new product or service may be needed to replace lost revenue. Develop ideas for new products or how to improve old ones. Generating ideas and brainstorming are discussed in chapter 2. Many of the same steps used to create new business ideas will be repeated when creating a new product. Generate Ideas Brainstorming is a good way to start generating ideas for new products. Observe, think creatively, and bounce ideas off others. What new product or product improvement makes sense for the business? Conduct Research Conduct primary and secondary research to learn whether the product will meet customer needs and wants. Talk to people in the industry, research trends, read articles, and gather information. Pay attention to social media discussions and what are the current trends. Investigate a Concept Talk to the target market. Send surveys or hold focus groups to discover how to meet the needs of the market. If the first new product idea does not test well, develop another one. Analyze the Finances Research the cost to bring a new product to market or to revise a current product. Are funds available to create and market the product? Look at the market research to see if the product will generate enough sales to cover costs and make the desired profit.