Discuss About The Managing Product And Innovation Summarized.
Introduction of a new product or service involves a dictation of a number plans and procedures. The procedures are summarized in a theory called New Product Development (NPD). Coles supermarket when intending to form new product or services are confined to this theory which helps them to introduce successfully a product in the market. Some of the different explanations that were done in a class, I have compiled them and written down in the essay below. I included what I learned on the subject majoring on the introduction of new product or service using the NPD majoring in the Coles supermarket within Australian which deals with organic products.
The first process in the development of new product or services in the market involves idea generation. The knowledge of a new product or service can be invoked in diverse ways which include brainstorming, purposeful discussions, views from skilled people, research on the market and borrowing or buying of the ideas. Ideas can be generated by brainstorming where individuals can come up with diverse thoughts which may be part of their experience (Marion, Eddleston, Friar &Deeds, 2015). The Coles supermarket idea generation came from researches done in the market and also from stakeholders. Groups’ discussion in a perfect avenue where ideas can be generated (Wooten & Ulrich, 2015). There exist motivation in meetings which promote individuals involved to come up with numerous ideas.
Skilled people who had been in the Coles supermarket stand a position to offer good ideas to the organization on better products and services to implement. Researches which done on the market gave good reports to the Coles which helped to generate of ideas which aided in coming up with a new product and service. It formed the best part of idea generation in the market as the product or service missing in the market were easily identified and implemented. The Coles borrowed ideas from different individuals or institutions. I learnt that Ideas can be borrowed from one nation to the other (Stark, 2015). The ideas gotten from different areas must be screened or checked into before they are fully implemented. The process checks on the feasibility of the ideas and how practicability and effectiveness of the ideas. In idea screening, specific ideas are picked from the pool. The rest of ideas which do not pass the screening are discarded or placed under investigation. The Coles used this criteria which made the organization to be successful.
The Coles implemented the NPD’s third level of product development. In this phase, the idea is laid out which gives room for testing to see the actuality of the concept. The processing of testing gives answers to question formulated and directed on the idea. The individuals or entities who came up with the idea must answer the questions raised towards the idea. Failure to do this, the idea is dropped. The concept of the idea is compiled and it pushes the idea to the next level after testing. The next step involves business strategy development (Eppinger & Ulrich, 2015). The idea is brought into the business area and its profitability is calculated. A business opportunity is approved from the idea. A listing of the markets under which the idea is based is done. Plans are done on how to launch the idea product or service in the market. The supply of the product must be equal to the demand in the market. All these factors are check unto before proceeding to the next level.
Product development is the next level of market strategy. The product or service is fully defined. It is done the branding which involves giving a name, in the case of the Coles each organic product was given a specific brand name. A good name communicates a lot and forms part in suggesting the demand that will be invoked in the market. The ingredients or procedures are fully defined and the product or the service is actualized (Ernst, Hoyer, Krafft & Soll, 2017). After development, the product or service is brought to the market for testing. In this stage, promotions are done where it is offered freely to the target consumers if it is possible who in turn give the feedback needed. The statistics are recorded and actual research is done on the success of the product or service in the market. When the research prove positive it initializes the next level (Armstrong, Kotler, Harker & Brennan, 2015). Commercialization is the subsequent level which involves the pricing of the product or service. There is some consideration effected at this stage, the price of similar goods and services existing already in the market. All the legal procedures are followed to commercialize the product. The final step involves the introduction of the product and service to the market.
In summary, as seen in the Coles supermarket an introduction of a new product in a market the NPD is the best to theory to be implemented. Failure to follow the procedure, the process may turn out to be unsuccessful. A product and service which followed the entire procedure was successful in the Coles supermarket. The NPD outlined procedures which include idea generation and screening, concept development, business strategy development, product development, testing and marketing, commercialization and eventually introduction to the market, form the ideal procedure for introduction of a product in the Coles supermarket.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Eppinger, S., & Ulrich, K. (2015). Product design and development. McGraw-Hill Higher Education.
Ernst, H., Hoyer, W., Krafft, M., & Soll, J. H. (2017). Virtual Co-Creation with Customers in the Early Stages of New Product Development.
Marion, T. J., Eddleston, K. A., Friar, J. H., & Deeds, D. (2015). The evolution of interorganizational relationships in emerging ventures: An ethnographic study within the new product development process. Journal of business Venturing, 30(1), 167-184.
Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (Volume 1) (pp. 1-29). Springer, Cham.
Wooten, J. O., & Ulrich, K. T. (2015). Idea Generation and the Role of Feedback: Evidence From Field Experiments with Innovation Tournaments. Working Paper.