Q. Explain Feasibility Analysis and Product development process?

Once the product concepts have been  formed, the feasibility studies are conducted. This study involves the following:

1)  Estimation of demand in the target market at different price levels.

2)  Forecasting sales based on demand estimation and competitive analysis.

3)  Cost benefit analysis.

4)  Calculation of the break-even point and sales volume.

Once the product concept seems feasible, the firm now takes the concept to the next stage of product development.

Product development

The product development involves various stages of development. The stages being:

a)  Studying the ingredient characteristics

b)  Technique standardization

c)  Variations

d)  Product standardization

e)  Product development

f)  Sensory evaluation/consumer acceptance

g)  Product modification

h)  Final product

The development of the  product involves vigorous functional and consumer tests. Functional tests are performed under laboratory  and field situations to test the product feasibility.  Consumer testing involves various sensory  evaluation tests to study consumer acceptance.