New Product Introduction (NPI) is a process in which an idea is taken from the first working prototype to a refined and reproducible product. In the process, a new or improved product is defined, developed, and launched through a set of activities.

Decisions also include activities that are necessary to present a product to its target market and begin generating income from sales of the new product.

Why is a New Product Introduction Important?

New product introduction establishes a framework to help organizations turn an initial concept or idea into a finished product. It enables businesses to enhance manufacturing efficiency, lower development costs, accelerate time to market, and enhance product quality.

What is the reason for introducing a new product?

New products give you a competitive advantage over your competition. It might be new sales, more shelf space, consumer impressions or other advantages. If you are the market leader, you want to keep your competitive advantage, if you are not the market leader – you need a competitive advantage.