According to Kotler et al 2008:253 define new product development as “the development of original products, product improvements, products modifications and new brands through the firm’s own R&D efforts”
According to Business Dictionary (BD) defines new product development “as the process of developing a new product or service for the market. This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market. New product development may be done to develop an item to complete with a particular product / service or may be done to improve an already established product. New product development is essential to any
…show more content…
New products will make the company looks dynamic in the eyes of consumers.
Product development research can reduce the risk of failure despite it also brings out that market is not always a clear-cut answer for product. But however marketing research analyst can read data collected from research and determine the opportunity of launching a new product in the market.
According to https://tabisonresearch.wordpress.com/>, the main types of product development are as follows
1. New concepts – This has to do with completely new products that have arisen as a result of innovation and which can sometimes create new markets.
2. Additions to existing product lines – This has to do with new products that complement established product lines.
3. Modifications of existing products: This has to do with existing products that are modified in order to better meet customer needs, such as improved performance.
However, 90% of the product market research concentrate on product additions and product improvements more than newly conceptually product and it is of less risk than completely new conceptually
…show more content…
So, in order to ensure the existence of a company, it must have the ability of introducing new product in to the market to replace old products that are declining in the market. This serves as the mechanism for the growth and existence of a company.
BENEFITS OF SUCCESSFUL NEW PRODUCT
According to Ewah 2008 one main benefit of the new product development is to develop technical knowledge and realize commercial objective by building innovation capacity that would increase the company's product ability to stay on competitive in an ever dynamic business environment. There are also a number of benefits of introducing new product successful in the markets which will impact the company's profitability. This includes:
1. Creates a market for the firm or company’s product and improve its productivity level
2. Sustain the profit of the company as a going concern
3. Increase consumers selectivity or choice making
4. Acceptance for a company’s product and create a good image for the company
5. All resources of a company are put into useful purpose, especially idle
The next step is the growth stage. In this stage product growth is monitored and big investments are made. Maturity stage the growth of the outputs is significant. For the company to ensure product survival in the market and gain a competitive advantage over competitors it has to incorporate product differentiation. The final stage involves product decline stage. In this juncture product sale goes down and the product identification
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
Shareholder will benefit from the incremental value produce by the development of new products, and the growth of the company
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
It is understood that the product must be different from competitors on one or more dimensions that are meaningful to customers in the target market. (Darden Business Publishing).
For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47).
A company must identify its strengths and weaknesses in order to develop growth. Downsizing products is more important than developing new products. A company must be able to identify where there weak markets are at. Times change and so do products. The products that are less profitable or simply aged are the ones that must be downsized in order to make way for a different, more innovative market. When developing growth strategies a company must use the product/market expansion grid. First the company has to figure out whether they can have better market penetration, second they must consider looking for market possibilities for current products. Third they must develop their products into innovative products that people can’t live without having. Lastly they need to be diverse with their company, therefore expanding and including different features to the company could draw more attention from different
Today, advances in technology and design are providing many opportunities for new and existing businesses to re-invent themselves and their marketing strategies.
New technology can also allow a company to manufacture a product more efficiently to meet consumer needs and demand. Research is also vital as it provides information for the development of products Also research and development can be split into sub functions, 2 of which are product research and product development, which are linked. Text Box: Over 90% of previous ideas are abandonedHere is a rough drawing to show how the product research and product development work together on improving products. Text Box: Can help company’s plan Text Box: Market research, to discover consumer needs and thoughts Text Box: Product research, trying to develop new ideas for goods and services Text Box: May lead to Text Box: Product development, new goods and services to meet consumers’ needs Research and development is very expensive and can be very time consuming for many businesses to be see positive results from it, even though this can be the case most of the time most businesses invest greatly in research and development, some companies put millions into their research and development departments. Some of the main reasons are: * They gain an advantage over rivals * Developing new and better products for customers * Allows them to assess how they're products are doing
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
These capabilities have made companies successful in the strategy of continuously improving products for differentiated markets.
Product. Companies that follow this approach try to create a consumer product or service that is supposed to be unique or better than that of the competitor 's. Uniqueness or some upgrades in the product were believed
In relation to the iPod, the product has been innovated many times and has targeted different markets. The product has been improved and changed to provide better features for the customer
For the product, 100PLUS can be identified as an augmented product and potential product. Augmented product which is give rise to differential advantage in features or benefits that can be delivered bow to go beyond
The main challenges in the manufacturing companies are in the following stage of product development.