New Product Development for Microfinance: Evaluation and Preparation

Describes the process MFIs must undertake to expand their product lines. The note picks up after the MFI has evaluated the feasibility of introducing a new product and is ready to proceed with the development process, which includes design, testing, and product launch. Specifically, this note illustrates how MFIs:

• Gather the institutional resources and commitment necessary to successfully design, test, and launch the product;
• Undertake preliminary market research to segment the market and solicit focused feedback from target customers;
• Design a product prototype, to be used in the pilot test;
• Conduct a pilot test, to refine the prototype and determine if launching the new product makes sense;
• Develop a marketing strategy and internal systems to successfully launch the new product and manage its on-going refinement;
• Understand the factors contributing to successful product development.