New Product Development for Microfinance: Evaluation and Preparation (Technical Note No. 1)

Publication Date: Sep 1998
Published by: USAID - Microenterprise Best Practices (MBP) Project
Document Type: Paper

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How to expand product lines?

Describes the process microfinance institutions (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