New Product Management

Question: Discuss about the New Product Management. Answer: Brief description about the organization: Increasing complexity of the business environment and changing preferences of the customers has induced organizations to look for developing new products. It has been evaluated that proper introduction of new products can actually provide new dimension through which businesses is conducted in the market. New product development not only allows organizations to retain existing customers for long time but also help to capture new customers as well. However, development of new product requires relatively higher investment from the organizations that increases the risk level associated with the business as well. In this report, the focus would be on the new product development process of Natural Fruits Drinks Pte Ltd (NFD). The focus organization was established in 1988, with the objective of providing superior quality of drinks in Singapore market (drinkeveryday.com 2017). Over the years, it has focused on increasing the product diversification for grabbing the major share of the Singa pore market. The existing product range of NFD includes concentrated juices, cordials or syrup, soy powder and other type of fruit juices. NFD also provides white coffee is the Singapore market for enhancing the sales volume in a major way. In case of white coffee, NFD has transformed white coffee into three in one packaging for providing unique taste and preferences to the customers. Moreover, NFD has also tried to utilize innovative and aggressive marketing strategies for grabbing the major share of the market. The report will try to assess the best possible new products for the organizations for enhancing the sales volume even further. Justification of the selected potential market opportunity: As illustrated by Raassens, Wuyts and Geyskens (2012) it is important to examine the market potential in an in-depth manner for creating desired impact on the sales volume. It has been examined that proper understanding of market potential will allow organizations to select target market in an appropriate way. Now, NFD primarily serves different types of fruit and other drinks to the Singapore people. Therefore, most likely management of NFD has clear cut information about the taste and preference level of the organization. Over the past few years, the revenue generated from selling fruit drinks have increased in a significant manner for NFD. It has encouraged the organization to provide more diversification in the current product range for enhancing the sales volume in an effective manner (Poetz and Schreier 2012). The current market trend has highlighted the fact that people in Singapore are becoming very health conscious over the years. Therefore, it has increased the market for a ll health and fitness related products in Singapore. Thus, it is reflecting a greater share of the market for NFD to increase the sales volume in an appropriate way (Aarikka-Stenroos and Sandberg 2012). For that reason, NFD will have to focus on capitalizing the health awareness of the people to enhance the sales volume in an effective way. Moreover, NFD will also have to focus on establishing its presence in the countries like Malaysia, Indonesia and Thailand market for increasing the sales revenue level in an effective way. As per the article by Yan and Dooley (2014) international business expansion is critical for achieving consistent growth in this competitive market. It has been assessed that international expansion will allow NFD to emerge as one of the most popular brands in providing fruit and other drink products. Hence, it will help to fulfill all the business objectives in an effective manner. Now, NFD has already established its presence in the Malaysia and Indonesia market. For that reason, it will not have to face too much difficulty at the time of introducing new products in these markets. NFD does not have presence in the Thailand market as of now but continues economic growth and per capita income has induced NFD to create strategy for grabbing major share of the Thailand market (Acur, Kandemir and Boer 2012). It has highlighted the fact that NFD has focused on capturing major share of both national and international market for enhance the sales volume in an effective manner. Two new product concepts and the process through which it connected to the selected potential market opportunity: In order to expand in Singapore and International market, NFD is looking to provide more innovative product to the market. Now, it has been examined that people in all across the globe are becoming more health conscious (Chen, Reilly and Lynn 2012). Therefore, majority of the people are spending comparatively larger amount to keep fitness at the desired level. People are also engaging themselves in yoga, cardio and other activities. For that reason, it will be wise for NFD to capitalize this increasing awareness of the people for the business expansion perspective. Therefore, it will wiser for NFD to launch health drink segment for providing extra benefit to the people in keeping their health at the optimum level. As per the article by Haeussler, Patzelt and Zahra (2012) health drinks can be extremely helpful for the people to keep their health at the desired level. Now, health drink is obviously not in the similar segment products that NFD is used to sell in the market. For that rea son, it will have to conduct in-depth market research for covering all aspect of the market in an appropriate manner. In order to enter into the health drink sector, it will be wiser for NFD to target a greater potential market for maximizing the sales volume effectively. Thus, NFD will have to target people from all age and income group in order ensure maximum revenue from the market. Moreover, it will also have to assess the needs and wants of the people living in Thailand and Malaysia for keeping the health at the optimum order (Smals and Smits 2012). For that reason, NFD is looking to develop health drink with chocolate flavor so that it can attract kids and teenagers as well. Thus, chocolate flavored health drink product actually has the potential to grab major share of the market. Moreover, it has been assessed that around 33% of the total population in selected three countries is less than 35 years of age (Thrassou et al. 2012). Thus, it will allow NFD to target larger potential market in an effective manner. On the other hand, extending the fruit juice range even further is also another probable option for NFD for creating desired level of impact in domestic and international market. Therefore, it can look to introduce mix-flavored fruit juice, as it will allow customers to taste something new. Yang (2012) has illustrated the fact that effective use of new and innovative products can allow organizations to enhance the sales volume in a major way. For that reason, it will be wise for NFD to introduce fruit juice with mix flavor including pineapple, grapes and watermelon for fulfilling all the business goals and objectives in an appropriate manner. It can be expected that increasing awareness and knowledge of the people will allow the understanding the significance of consuming fruits on regular basis. However, heavy work schedule and other complexities often does not allow people living in Singapore, Thailand and Malaysia market to consume required amount of fruits on regular basis (Thoma s 2013). Therefore, mixed flavor fruit juice can provide opportunity to the people in fulfilling all the requirements in an appropriate manner. Now, mixed flavored fruit juice is the conventional expansion of the product for NFD. Therefore, it is expected that management of NFD will posses clear idea about the kind of impact it can create on the market. For that reason, it will allow NFD to initiate effective marketing and promotional strategies for grabbing the major section of the targeted market. Increasing product diversity in the fruit juice department will also reduce the risk level associated with the organization in an effective manner (Felekoglu and Moultrie 2014). It will eventually help NFD to achieve sustainable growth in the potential targeted market. Thus, both the new product has the potential to create positive impact on the business level of the organization. Evaluation of two new product concepts and selection of one concept for the next stage: As per the article by Filieri (2013) organizations need to go through systematic procedure for identifying the best new product for maximizing the profit level in a major way. Firstly, NFD will have to focus on conducting market survey in Singapore, Thailand and Malaysia market to understand the kind of taste and preferences people are looking to avail. In this survey process, NFD will have to understand the excitement level of customers from different income and age group. As mentioned earlier, NFD is looking to initiate chocolate flavor health drink for inducing people from all age group to consume the product. Therefore, it will also have to collect responses from all age group regarding the perception about new product. It is expected that chocolate flavor will increase the popularity of the health drink among the children in the targeted market (Cankurtaran, Langerak and Griffin 2013). Therefore, it will help to increase the revenue level in a major way. On the other hand, intro duction of mixed flavor fruit juice will only allow targeting current customers of the organization. For that reason, introduction of fruit juice is not likely to increase the potential market share of the organization. From this perspective, it can be mentioned that introduction of chocolate flavor health drink will allow to increase the market share of the organization in a major way. However, in order to introduce chocolate flavor health drink successfully in the targeted market, NFD will have to invest massive amount for fulfilling all the responsibilities in an effective manner. For instance, NFD will have to invest good amount on RD or new product development department for fulfilling the needs and wants of the customers. Moreover, introduction of chocolate flavored health drink product will also induce NFD to distinct marketing strategies for positioning the brand uniquely in the targeted market. For instance, it will have to focus on utilizing all popular marketing tools like social media, website, newspaper, magazine, television, radio and direct marketing activities for providing required information to the potential targeted customers (Song, Ming and Xu 2013). Hence, NFD will also have to invest massive amount on the marketing and promotional activities for creating awareness among the potential customers, which will increase the overall cost related to t he operational process in a major way. Thus, it will have to take greater risks from the market at the time of introducing chocolate flavored health drink (Jrgens 2013). On the other hand, introduction of mixed flavored fruit juice will not require aggressive marketing strategies to reposition the brand in the targeted market. Therefore, introduction of mix flavored fruit juice will minimize the risk level associated with the business in an effective manner. Still, NFD will look to introduce chocolate flavored health drink, as it can allow the organization to penetrate in the untouched market (Drechsler, Natter and Leeflang 2013). Thus, it will provide higher business opportunity for the organization, which is among the prime goal of the NFD. Moreover, NFD will also look to introduce chocolate flavor health drink, as it is a relatively new concept in the market. For that reason, NFD will not have to face too much competition from the many competitors at the time of establishing business in the targeted market. As emphasized by the Patanakul, Chen and Lynn (2012) introducing product in the intense competitive market is much tougher compared to introducing product in relatively less competitive market. Therefore, it will allow NFD to handle initial fluctuations in an effective manner. It will also help to develop strong brand name that will help to counter different types of future challenges associated with introduction of new products in domestic and international market in an appropriate manner. Recommendations: The above illustration has highlighted the fact that both the new product has the potential to create positive impact on the business level of NFD. Still, NFD will have to choose chocolate flavor health drink, as it will allow organization to target complete new set of customers. However, in order to maximize the utility of new product, NFD will have to follow the following recommended strategies: Proper understanding of the customer needs in different countries: As NFD is looking to introduce chocolate flavor health drink in Singapore, Malaysia and Indonesia market, it is recommended to identify all the differences in taste and preference level in a major way. For that reason, NFD will have to focus on assessing cultural, behavioral and ethical background of the people living in the mentioned countries. It has been assessed that people living different cultural and geographical background often depict differences in the taste and preferences level. Therefore, NFD will also have to focus on understanding the cultural and ethical differences in a comprehensive manner. Identification of any political or legislative challenges at the time of introducing new product in the international market: As described by Coenen and Kok (2014) proper understanding of political and legislative challenges is critical at the time of introducing new product in the domestic and international market. For that reason, NFD will also have to focus on assessing the kind of rules and regulations initiated by the government of the focus countries, as it can create massive impact on the overall profit level of the organization. It is also recommended for NFD to identify the restricted drug list in the country, as it might be required for the development of health drink product. Proper assessment of the competitor strategy: As mentioned earlier, chocolate flavored health drink is still a relatively new product concept. For that reason, NFD does not have to face too much competition at the time of introducing product. Still. Proper analysis of all the potential competitors is recommended, as it will help to avoid any type of future obstacles in a comprehensive manner. Thus, NFD will have to focus on assessing the quality of the competitors products as well as initiated marketing strategy for developing counter strategies in an effective manner. Conclusion: The above evaluation has highlighted the fact that new product development is absolute key for achieving success in the market. New product development not only increases the sales volume but also allow reaching to new customer segment. Therefore, it can help businesses to achieve sustainable growth in the competitive market. The above analysis has highlighted the fact that NFD has two new product development options. However, it has selected chocolate flavored health drink, as it has the potential to create maximum impact in the market. The study has also highlighted the significance of targeting both domestic and international market at the same time for enhancing the sales volume in an effective manner. However, new product introduction come up with different challenges that organization will have to deal with in an effective way. Otherwise, the prime objective of introducing new product will not be fulfilled. To conclude, it can be mentioned that NFD has able to cover the entire bases related to new product introduction, which is likely to fulfill all the business objectives. References: Aarikka-Stenroos, L. and Sandberg, B., 2012. 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