The MBP Guide to New Product Development - Synthesis Report on Field Tests

This paper presents the experience and lessons learned from four independent field tests of microenterprise best practices (MBP) Guide to New Product Development. The paper provides details of the processes undertaken for the test and introduces the process of the new product development (NPD):

• Evaluating the ability of the institution and the availability of resources to undertake new product development;
• Designing a prototype product based on market research and the financial and operational costs of delivering the product;
• Testing the prototype in the market to collect quantitative and quantitative information on the viability and profitability of the prototype;
• Launching the product following the development of an integrated market strategy and building the institutional capacity to deliver the product.

Drawing from the test results, the paper suggests the following for making the MBP Guide to New Product Development more rigorous:

• Strengthening the section on evaluating new product ideas;
• Enhancing the role of higher management in quantitative analysis;
• Emphasizing the need for internal marketing and capacity building of staff.

Presenting lessons for microfinance institutions (MFIs), the paper concludes that new product development requires high technical capacity which can customize the process according to the MFI size, age, legal status and mission.