New Product Development Project Stages - Step-by-Step

An earlier post provided an overview of the product launch process. However, this post provides more of a project-oriented step-by-step guide to successfully complete the new product development (NPD) project, especially as those steps relate to (beta) testing. There is no single best set of steps that apply to all businesses. Consequently, these steps must be adapted accordingly. Hopefully, your main take away will be that, regardless of your business, having a new product development system is necessary for product success (ie the product's ability to advance through the product life cycle).

New product development (NDP) refers to the process of moving a product from a broad concept through to delivery for sale in the market. An NDP project process is likely to be more efficient in terms of cost, time and other resources and with fewer of the risks associated with new products. 

1. Business strategy goals (related to New Product Development)

As mentioned otherwise, new product development is a type of growth strategy (Ansoff Matrix) or even a means of re-engineering a current product to strategically re-position closer to being a star or cash cow it within your product mix / portfolio (See the BCG Matrix). 'Growth' relates to raising sales revenue and or sales volume (by seizing market share from the competition). Example(s):

strategic goals (related to business goals): 

• to increase share of existing market by x%
• to increase product X's contribution to business profit by x%. 
• To re-position brand more competitively 
• to be the first to enter the market with a certain product / product benefit
• to improve customer retention
• to enter into new market sectors
• to introduce a new product variant
• to determine the aspects of marketing where product development will provide the greatest competitive advantage
• To reduce risk of new product failure

strategic goals (related to product / product performance): 

• to improve product performance reliability by x%
• to streamline production cycle by x%

2. Conceptualization. 

This involves the first or 'research' part of the research and development process. As we know, effective marketing starts with understanding the target market. This stage should focus on psychographics that can help you to establish product objectives. Know your target market's key motivators, usually pain points or desires. If your market's pain points are sufficiently distinctive, even mutually exclusive, create defined segments with even more niche product objectives. This can provide a great opportunities for positioning your brand your unique value proposition (UVP). For a more efficient development process, absolutely do NOT skip this step. This step will save you from wasting time and other resources on random, directionless efforts. 

Spend time studying the competition's offering to understand the needs they are serving. You can also find out a lot about gaps in the market by reading the product reviews of several brands.

Example(s):  

• Need 'a': solution objective 'a'. 

3. Design 

Closely following the solution objectives (established above), plan what prototypes like formulations and sketches will look like. Do not get hung up on creating the most original design. After all, numerous successful products were the result of iterating on preexisting products. use the SCAMPER model as a guide for iterating upon preexisting products.

S - Substitute. Can you substitute materials or some other element?

C - Combine. Can you combine 2 otherwise unrelated products to have a synergistic outcome? Modern luxury cruise ships are essentially the combination of water-based transport with hotel accommodation and tourism.

A - Adapt. Can you tweak a preexisting product (or some other of the 4Ps) to improve it in some significant way?

M - Modify. Can you disrupt the market by changing something in the market, like: your production model (think Dell's 'Just in Time' production model in the early 2000s); the way the market consumes your product (think of how online courses disrupted the business of academia). 

P - Put to another use. Can you use another industry's declining product or waste otherwise?

E - Eliminate.

R - Reverse.

4. Validate your idea

The entire process is non-linear. For this reason, I find myself reverting to this step numerous times beyond (and even before) this point to test my thinking before investing further resources of time and money. I generally seek feedback for preliminary ideas from sources like the following.

• interest groups of fellow producers
• Reddit threads that are frequented by your target
• Crowdfunding that provides trustworthy validation of demand for your product
• Google Trends can provide insight into your market's interest level in your product and the types of keywords the market uses the most.
• Study your competition's products, their customers' reviews. Join their newsletter to see how they do marketing. Good reviews about a particular idea validates its marketability. You simply need to figure how to differentiate what your competition does. 

Establish formal engineering specifications not only for the product but the entire marketing 4Ps for products (production, promotion, etc) or 7Ps for services. 

All of these specifications are an integral aspect of Risk Management to assess and mitigate the risk of product failure within the immediate term and, in general after launching, to avoid product defects whose non-compliance can result in product liability claims. To clarify, product failure refers to when new products do not advance through the normal product life cycle, for one of several reasons that include some type of marketing research oversight or the adoption of a 'killer assumption'. 

Example(s): 

• Colgate is a brand that is renowned for toothpaste, a product used for removing waste from the mouth. Not surprisingly therefore, when Colgate tried to use its well established name to create a food product line, the product failed. Many consumers might have had gag reflexes over the idea. This is one among numerous cases that illustrate that, since markets form strong associations with brands over time, brands can not easily switch industries. 
• Regarding production; mechanical exfoliant x and fragrance y can be used in the 'comedone' segment but never for the segment with sensitive skin. Even production as it relates to manufacturing should meet specific standards like requiring electronic product formulation worksheets for preventing errors may be used. Regarding promotion as it relates to product labels; appropriate warnings are required to ensure that members of the sensitive skin segment avoid using unsuitable exfoliating products. 

5. Prototype's Design Testing & Iterating 

Alpha testing / Inhouse testing

As you will recall, design risk is the most serious form because its dangers are persistent rather than being one off. Consequently, comprehensive product testing is necessary at this stage to ensure the design works as required and the product meet its objectives. Example: You may test to ensure that the ingredients combine well and do not go bad in different conditions. Even if you as the manufacturer are not the target market and can not judge, you try to do preliminary tests as a consumer regarding the things you can test like safety. Before proceeding to the next stage, you may also ensure your processes allow you to easily replicate the same results. For instance, you may have a recipe sheet that include all the minutae which you will follow to make samples.   

Beta testing in the market & launch 'collateral' production.

Validation is sought from members of the target market regarding whether the product can in fact meet customer needs. When this product objective has been reached, the testing market members provide positive feedback that will be used as promotional material for the product launch, called 'collateral production'. Marketing collateral refers to any media material used for promoting goods or services. Extending the example of the cosmetic company, Members of the target market's 'comedone' segment can confirm (r disconfirm) whether the product exfoliates sufficiently well. Beta testing can be either closed or open. 

• Closed beta testing aka 'private beta testing' involves releasing the product to a restricted group. 
• Conversely, open beta testing, aka 'public beta testing' is open to larger groups or any interested member of the general public. 

Beta testing is nerve wracking because you are exposing your work for third party judgement for the first time. To ensure the process is fruitful, get testers who are 1) representative of the target market 2) unbiased (which excludes family and friends who can respond based on jealousy or fear of hurting your feelings), 3) are willing and able to share their feedback emotionally, intellectually and logistically. Furthermore, your participation as a researcher can be improved if you 1) observe tester behavior before asking questions, 2) ask questions in a way that is unbiased and not leading and 3) create a data collection & analysis tool like a survey using apps like Google Sheets.

As just mentioned, recruiting unbiased beta testers is necessary. One means of accomplishing this is that, once you already have social media, set up an invitation to an 'join the exclusive beta testing team'. You can set up a landing page to collect emails. Be sure to remind testers to provide feedback as many do not remember. 

Remember to test all of your 4Ps or 7Ps, not only your product. For instance, you should test the following. Example(s):

• regarding a new product:
• your supply chain. Can it withstand supply problems associated with single suppliers?
• regarding a new service:
• Will your clients find your process easy (or tedious)?

6. Business Feasibility Analysis

As part of this process, do feasibility testing of the potential financial success of your proposed solution. 

7. Commercialization & Launch

If the product remained away from the general public, you can launch it at this point. Read more about preparing for a product launch. If you have already done a soft launch for a minimum viable product / MVP, you can intensify your promotions to a wider audience.

8. Product Improvement

Data mining through customer relationship management (CRM), reviews and the like should be in place to allow a business to continuously evaluate and re-evaluate the product's design (and marketing mix elements) for improvement.

CONTENT RELATED TO NEW PRODUCT DEVELOPMENT & PRODUCT TESTING

• Articles related to  New Product Development (NDP)
• Minimum viable product, a quicker way to market in the new product development process
• New product launch
• Register and protect your trademarks
• Project management 101
• Boston Matrix
• Risk Management 101
• Product liability insurance.
• Read an overview of the product launch process
• Brand awareness & brand awareness srategy
• Brand strategy
• Break-even analysis

Register and Protect Trademarks - Intellectual Property

Trademarks (specifically mascots, brandnames, taglines and or logos) are types of intellectual property business asset. Their raison d'etre is to unmistakably identify their intellectual source; you. A trademark that is doing its job prevents confusion in the mind of consumers regarding the source of their intellectual property. From a marketing perspective; they help to differentiate your brand; lower customer acquisition costs; create trust (an important aspect of customer relationship building) and promote brand awareness, loyalty and competitive advantage. In fact, your intellectual property can even become a valuable and resellable proprietary asset. Consequently, this mental shortcut to your brand should therefore be protected, much like one uses insurance over other business assets. If you invest time and effort to build a brand, it will never be too early to secure it. One of the key risks against which protection of intellectual property provides includes unfair competition through theft and or new marketplace entrants. This protection is provided through registration of your trademark with a governing body. Consequently, if faced with threats on your intellectual property rights, you can exercise the legal right to make demands.

Just to be clear, there are no legal obligations for registering trademarks. For instance, a business may conduct business with a trademark without registering it legally in any office without any problem. In such a case, that business simply places the letters 'TM' after the brandname (or 'SM' for services). However, such a business runs the risk of missing out on powerful legislative rights to protect you in the event of attack or innocent cases that require resolution of confusion between sellers. Since trademarks are designed to ensure that consumers are never confused over who they are getting a product from. Consequently, your trademark is likely to win if some form of confusion arises that requires one company to step back.

From this point, this post discusses trademark registration, how to do it and key considerations. 

As a general rule, there is no one-step method of automatically protecting your trademark for all countries. Consequently, if you want protection in 7 foreign countries and want intellectual property protection there, you might need to request the counsel, ie the help of trademark lawyers in each of those foreign countries to protect / register your trademark. 

However, the Madrid Treaty presents an exception to this rule. The Madrid Protocol Treaty (aka Madrid System of 'international registration') allows its members to use a single, standardized application for obtaining protection in multiple member countries and or regions. Members not only include individual countries but also groups of countries that the agreement treats as 'single countries'. Such regional groupings include the European Union (EU), the BeNeLux (comprising Belgium, the Netherlands and Luxembourg) and the African Intellectual Property Organization (OAPI).  

Some benefits of membership and international application include:

• Cheaper application and renewal
• One-stop application and renewal of the registration
• One-stop administration for tasks that include name changes and so on.
• You can make subsequent applications to further extend the initial international registration to include other countries. (Beware however because if the addition of additional countries occurs shortly before the overall registration expires, it might be better to apply for registration for new countries individually because their registration will be limited to the time period of your overall registration. Otherwise, you might need to wait until the registration expires before adding additional countries.) 

Disadvantages may include:

• Sometimes, it ends up being more costly than expected. This occurs if a single member rejects an application. Such rejections will require you to revert to seeking local counsel to deal with the rejection.
• The World Intellectual Property Organization (WIPO, aka 'OMPI' in French and Spanish) international registration applications are subject to the 5-year 'Central Attack' policy that establishes a dependence of foreign registration on home registration for the first 5 years. For instance, if your 'home country' is in the US and your application has been denied at home (in the US), all the other WIPO applications will be automatically denied. In short, although applying to a group is cheaper, more efficient and usually proceeds without problems, it is sometimes advantageous to forgo your benefits of membership to the Madrid Protocol by just applying one country at a time. On this basis, invest extra time to investigate the potential risks associated with your home country before making group applications.  
• The trademark can not be changed. For instance, you can not  change the spelling or the goods and services listed in your original registration.

BTW since businesses from non-member countries can not apply for international protection using the Madrid Treaty (requiring them to apply to all individual '7' countries as per the example above), their common workaround is to set up a branch in a member country just for this type of purpose.  

In short, if your company's home country is a Madrid Protocol member, you can pursue the single, standardized application for international registration / protection using the WIPO application process. The WIPO's 'International Bureau' maintains the single international registry (or database). That single application is automatically forwarded to all the member countries in which you expressed an interest. Each country's local counsel reviews the application and responds. You will need to pursue a separate application at the level of a single country within a group (like the EU) only if that country's counsel rejected you original WIPO application.  

STEPS. HOW TO REGISTER & PROTECT YOUR TRADEMARK

• Familiarize yourself with the definitions and laws related to trademarks. The definitions will help you to be clear regarding the correct legal term of the instrument you require. For instance, you can avoid errors by learning the subtle difference between trademarks ('marcas') and 'commercial names' (aka 'company names' or 'ficticious names'). For the sake of clarity, the concept of commercial names is discussed briefly only after this post as an extra note because this post focuses exclusively on trademarks).
• Contact the Intellectual Property rights department of your country's national registry to perform preliminary research.

• Regardless of whether your country qualifies for international applications; start investigating potential risks of confusion assocated with the registration in your home country.
• Seek out access to the intellectual property registry database specific to your country at all levels. For instance, in the US, federal databases may not include state-level information ... and vice versa.
• Specifically request assistance for finding cases that are in process. This is key because, in some countries, databases available to the public do not share information about cases that are not listed despite being unavailable, for many reasons that include trademark inactivity that has resulted in a grace period during which owners still have preemptive rights ahead of anyone else and can therefore still reclaim the trademark. NB; this step should never be overlooked, even if you are more interested in selling internationally. As mentioned above, the success of your home application will affect those of other countries if you pursue the international registration option. Although there is assistance to show you how to search their database, the office will usually not provide full scale preliminary, legal assessments before you formally apply. However, take full advantage of whatever free assistance you can get. The search takes a lot of time and effort that should be considered a reasonable investment into the reputation of your business. For instance, in the US, after using easier types of searches like common internet search engines to find use of similar trademarks, it will be wise to review the secretary of state registries for all US states. That is a lot of work but worthwhile for knowing what is in the market in the form of registered and non-registered aka 'common law' trademarks. You can also save yourself considerable money and time because your application may be rejected if your proposed trademark causes confusion with another listing.
• If you are interested in protecting your trademark in countries other than your home country, conduct the following research. Do this regardless of whether you are interested in and your country qualifies for international applications
• As an option, consider getting professional help. Some options for professional help of attorneys include the following. 
• Trademark Factory. I like the fact that they allow you to even schedule free qualification meetings, ie in addition to having a live chat function on their website (though I am unsure of its schedule of operation). They also boast a flat fee that saves customers the headache of uncertain cost spikes that can unexpectedly arise during the registration process.
• Research the availability of (brand) names on the World International Intellectual Property Organization (WIPO) website continuously updated database from multiple national and international sources, including trademarks, appellations of origin and official emblems. 



Select the 'brand' tab. Type a name. In this example, 'abd'. As an option to simply entering 'Search', you can use the dropdown menu in the field to filter the search according to how well the proposed name matches other brands. Results will appear to the bottom of the page.

• Research trademarks using other free online tools like TM View that keeps a database for the primarily the EU but also elsewhere. I find this resource easier to use and understand (than the WIPO database). 

• Determine the applicable Nice Class (NC) / Clase de Niza (CN), ie an international classification system used to classify goods and services for the purposes of the registration of marks. Example, non-medicated cosmetic products have a class number of 3. The PDF downloadable information about this class of product provides full details which you can use to ascertain whether you have chosen your class correctly. You can select multiple classes. The NC indicates the scope of protection your mark can receive. NB Third parties are allowed to use similar or identical brands, but only if their goods and services are registered under other Nice classes and there is no risk of confusion, association or loss of reputation. (Famous brands like Coca Cola are an exception as their protection transcends the Nice classification system.

If the name of another brand is similar or the same (in any way, including sound), notice its Nice Class (NC) to determine whether you can proceed without causing any chance of confusion between the brands. In this fictitious example, this mark is registered under the NC 3 for cosmetics. If uncertain, investigate the other brand to understand the product offering. Be mindful of potential overlaps in classes that might cause confusion. In that case, if in doubt, review not only your proposed class but also that of the other brand. Additionally, consider applying for all classes to which your mark can apply. 

• Collect all the relevant documents and information required to file a valid application.  Noteworthy points include the following. Avoid common mistakes.
• Owner: Should be ONLY the business and NOT the person(s) filing the application.
• Differentiate between goods 
• Other key details required in the application process. See instructional videos provided by the US Patent & Trademark Office (USPTO). 
• Conduct an international application if you qualify, ie if your home country is a member of the Madrid Protocol.
• Check whether your country is a current member of the Madrid Protocol.
• Before doing this step, conduct preliminary research as mentioned above regarding the availability of the desired trademark(s) in all the relevant countries, including your home country.  
• Wait and remain contactable during the review period by a legal team. Your application does NOT guarantee approval and registration because your applpicant details must be studied and compared, not only with pre-existing registered trademarks but also with other current applications in the office's application pipeline. Review periods may take as many as several months. The objective of the legal team is to ensure that your trademark does its job, ie it does not cause confusion in the mind of consumers. Be prepared to submit additional documents if required as in some cases. 

CASE STUDY ON BRAND RISK MANAGEMENT

The following case study illustrates why having control of one's intellectual property is critical consideration for brand risk management. (Risk management 101). McDonald's lost its product brand rights in Europe in 2019. During that time, competitors took full advantage with the following types of advertisements. To avert this type of problem, brand managers should have reminders and the wherewithal to avoid this brand risk by renewing the rights on time.

CONTENT RELATED TO REGISTERING A TRADEMARK

• While you may register a trademark on your own, some countries require an intellectual property lawyer in order to registering a 'company name' aka a 'fictious name' or 'doing business as / DBA' name. Just to clarify, a 'company name' is an officially recognized name that is usually more informal, more recognizable and commonly used, much like having an officially registered nickname (or what is called a 'fictitious name' in some US states). Customers might find it easier to remember 'Yum Yum' for an eatery but not your company's name 'MBR & Sons Ltd'. (Unlike trademarks, commercial names must be done in person)
• After your register and protect your brand's trademark, you can rest assured that it will help you build brand awareness.
• Branding 101
• All things 'Branding' (Brand mascot, etc)
• Protecting intellectual property is only one form of risk maangement to consider. Read more about risk maangement.
• While this post focuses mostly on tradenames, an application can include anything that identifies your brand as in the case of the following. 
• Trademark symbols (which include logos).

•  

  Trademark sounds (aka 'sound marks')

  • MGM's roaring lion (technically a 'service mark')
  • NBC's chime
  • Homer Simpson's "D'Oh!"
  • The Lone Ranger

  Trademark packaging

  • Coco Cola's bottle
• (Attributing creative commons)

Product Liability Insurance for Small Manufacturers

Your customers and other consumers have a legal right to expect that your product is safe which means that it will not cause them harm. Consequently, they can sue you, the manufacturer or seller when they suffer injury. This type of legal action falls under tort law, which is interested in awarding compensation aka 'damages' to persons who have suffered as a consequence of wrongdoing by another. To be clear, the complaint may relate to harm suffered by any end user. In that case, the buyer of a car may sue on the basis of harm caused to his or her child as a passenger (even if the child was not a driver or the paying customer).

This type of liability can be established based on the following two conditions.

1. the manufacturer operates a business. (A manufacturer's liability exists only on the basis of proof of harm, while a hobbyist's liability requires other forms of proof, like unsafe production conditions)

2.   the product has not been changed before reaching the consumer.

Additionally, complaints must be based on at least one of the following three 'product defects', as contrasted against the standard of safe competing products.

1. Design Defect. This would apply if, even before making the product, some planned element has an inherent flaw that can cause harm. Every unit made is therefore potentially harmful. Consequently, multiple parties (not just the odd one or two) are likely affected.
2. Manufacturing Defect. Manufacturing defects usually affect only one or a few units of the product, often because of one-off or temporary challenges like errors made by a new employee that has been poorly trained or if a natural disaster causes production line errors. 
3. Warning (aka Marketing) Defect. This defect refers to non-disclosure of and or inadequate instructions for avoiding foreseeable harm. This applies when risks are inherently potential during use or when there are limits to which protection should be expected. Examples: hand sanitizer that is responsibly sold should warn consumers of the hazards of combustion with the use of the globally recognized symbol #3 (for flammable products); matching tyres to different weights and types of motor vehicle. Just to clarify however, rest assured that not all injury gives consumers legal right as in cases in which consumers sustain injury while inappropriately using your product or modify your product in a way that contributed to their injury. Furthermore, injury can be claimed for only physical products. Consequently, electronic products that render undesirable results do not count. 

DO's

• Get product liability insurance coverage. Even if you design the best possible product, consider that the risks are too great if members of the public with rare, unforeseen circumstances can be adversely affected by your product. While many of your colleagues will likely confess to not having insurance coverage as claims are rare to none, insurance provides peace of mind against that one-in-a-thousand-cases complaint that costs you your entire business and life savings. To be clear, you should also consider insurance once persons other than you use your soap. This even includes if you make soap only for the sake of giving them away soap free of cost as Christmas gifts. After all, even someone suffering from an allergy against ingredient X can end up with steep medical bills they find unbearable as their justification to demand your financial assistance. 
• Consider specific ways in which your product type can potentially harm consumers. This will be your guide for taking preventive action. For instance, if you sell cosmetic products you make, like most other such serious (cottage industry) manufacters, you may feel complacent because you likely already ensured that your formulations are safe for your target market, ie your product design is safe. Do not stop there. Tackle the other 2 types of product defect. For instance, consider all the ways you can improve your communication to manage the risk of 'warning defects' on product pages and labels. If there are known allergens, they should be stated. Do you use utensils for other formulations that contains allergens like nuts, gluten and so on? Do not hide ingredients, especially those with the potential to cause allergic reactions in some people. Have you even noticed YouTube videos with very technical information suggesting that the information is only for educational purposes and that the consumer of the information should seek professional advice? Such producers are protecting themselves. Similarly, even product manufactures often provide infomercials in a similar way. 
• For no additional cost to you or other key stakeholders acting on your behalf like authorized retailers, you can offer to name their business as an 'Additional Insured' on your General and Product Liability policy. It relieves the other parties of the burden of product liability claims involving your product. Ideal for B2B customer relationship building!
• If possible / applicable to your work, transfer risk to suppliers. Needless to say, whenever possible, do business with those suppliers that can name your business as an 'additional insured' on their 'ACORD Certificate of Liability Insurance' aka Certificate of Insurance (COI). This offers protection in the event that their product is responsible for a product liability claim. However, this is rare in manufacturing because most manufacturers alter their supplier's product. However, this may work if your process does not alter your supplier's product. If possible, include a 'Hold Harmless' clause in your contract that can absolve you of legal liability for any injuries or damage suffered by your counterparty. Hold harmless clauses are also rare and rightfully approached with much caution.
• Find options for insurance coverage that work with small manufacturers, particularly if they specialize in your type of industry. Here are some examples.
• RLI provides coverage for home-based manufacturers with craft-oriented categories that include bath and body that earn relatively low gross profits. For instance, if your business earns under roughly USD 8,000 yearly, you may be eligbile for coverage up to roughly USD 1 million and need to pay premiums at roughly USD 300 yearly. RLI is therefore ideal for new, small-scale manufacturers. However, your physical manufacturing primary home base must be the mainland US, Canada or Puerto Rico.
• Industry trade groups aka trade associations provide the advantage of offering members highly customized insurance options.
• The Handcrafted Soap & Cosmetic Guild /  HSCG is a highly specialized trade association that can provide from the most basic formulation instruction to the more advanced support that in addition to insurance, includes discounted rates for operational costs (like postage & supplies), business advertising and supports legislative advocacy. In addition to different tiered costs of membership, insurance costs roughly  USD 275 to 380 yearly, with the second option providing property coverage. As per usual for US-based trade associations, membership is restricted to US-based persons. However, there are free resources that include website-based classes, YouTube videos and other useful soap business documentation. 
• Although Indie Business Network aka IBN exists for general life and business planning, it offers insurance as an optional complementary service to members based in North America and selling in North America or internationally. Despite being a complementary service, there are even specialized areas like food & beverage, handcrafted soap & cosmetics (& jewelry), infused products and so on. Outside of the cost of the pre-requisite IBN membership of USD 195/year, the insurance policy typically costs USD 275 to 330 / year. If you are new to this network and need more insight or consideration time, sample some of its free resources like podcasts that often feature interviews of fellow members. Otherwise, the school offers short courses for a relatively small fee.
• Other option(s): The HandMadeInsurance company /  https://www.handmadeinsurance.com/

• When seeking a policy, consider the following. Some brands provide relevant 'fine print' information in very digestible lists like 'what is covered', 'what is NOT covered', 'schedule of costs' and so on (like IBN regarding insurance coverage for handcrafted soap and cosmetics). 
• Whenever possible, liability insurance should cover legal fees. After all, legals fees are often enough to severely hurt a business.
• The policy should naturally cover the damages / cost of the judgment, thereby protecting your (personal) assets up to the policy limits.

CONTENT RELATED TO PRODUCT LIABILITY

• Figuring out insurance is necessary, even while you prepare to launch your new product.
• See how to create a risk management plan. Risk management can eliminate or at least mitigate the tedium of facing product liability claims at all.
• Avoid 'warning' / 'marketing' product defects. Know about hazards management.
• Ensure your product labels avoid 'warning defect'. Learn about multilingual product labels.
• Another way of protecting your personal assets is by separating the operations and assets of your business and personal assets. One key way of doing this is by registering the business as a limited liability corporation (LLC).
• Do not be surprised if farmers' markets ask to be named as 'additional insureds' on your insurance policy.
• Just to be clear; do not confuse product liability insurance with other forms. For instance, it will not cover employees. If you wish to have coverage for employees, you will need a different policy outside of product liability. Recognize the distinction between you and anyone working on your behalf and the public that comes into contact with your business and or product. Consequently, if a customer walked through your establishment or that of an 'additional insured' retailer and had an accident like tripping over boxes on the floor, your insurance might also cover the case, even though the accident does not directly relate to the final intended use of product.

How to Create a Product Line

A product line is a group of related products sold under a single brand by a company. 

Benefits of a product line 

• A product line enhances a business' chance of having long term success. For instance, a product line creates more opportunities for increasing the customer lifetime value (CLV), ie the among of money a customer spends over the period during which they remain an active customer. 
• Once customers already know and like your brand, marketing all the other products within the product line becomes easier than selling new stand alone products.

How to create a product line

• Decide the focus of the product line. An example includes a specific deliverable perceived customer value to a specific market profile. It  may essentially be the unique  value proposition for that collection of products. Whether it is published, this focus should guide all of your product mix considerations. After all, customers buy benefits and not the physical product or service. For instance, one skin care product line may focus on anti-aging while another may focus on detoxification. This statement may be something like the following. "The [product line X] offers [product x] for [target market] to [unique value proposition]. Unlike [the alternative], we [competitive advantage]".
• Add interrelated versions of the central ideal of the product line. Each variation should be similar enough to be clearly recognizable as being part of the single product line. The differences in the variations should have some justifiable reason like specific customer pain points withing the overall central idea. For instance, your anti-aging product line may include variations for 1) age spots, 2) re-hydration and so on. 
• Add different products that complement previous ones, even if those other products are very different. Consider the circumstances in which the product will be used and the customers' needs. For instance, if you are selling sunblock, you can imagine the customer is likely to use the product in a sunny location. Consequently, you may also be able to sell eye shades. For instance, customers using the age spots variations of the product may be happy to buy a floppy hat to protect them from the sun.

CONTENT RELATED TO CREATING A PRODUCT LINE

• Strategically plan your product line. First establish a unique  value proposition.