Companies in contemporary world understand that innovations are vital for their survival. As such it is significant to find a balance between maximizing the benefits of existing products and introducing better products into the market. It is necessary to coming up with new concepts and ideas, doing continuous research on the market as well as consumers and analyzing the results designing and developing products and services. The final step is the marketing of the product. Successful companies have a systematic way of introducing new products and services to the market and prepared well in advance for any eventualities that may arise. Introduction of new products and challenges are discussed in this case study.
Bringing new product or service to the market is a challenge and initial stages this challenge is to survive in the market. As the times goes by the challenge differs and it is to increase the sales. In every challenge there is scope for growth and there are opportunities. It is necessary to face the competition in the market and due to the ever changing nature of market, advancing of technology, it cannot afford to be behind the competition when it is introducing a new product or service. When the market is changing rapidly product or service also must fit into the change.
Effective Communication is the key to the success when introducing a product or service to the market and it is necessary to communicate effectively to achieve the common goal which is making profits.
There are several critical factors to be considered when introducing a new product or service such as competition, ideal customers, unique selling proposition and advertising etc. “ Half the money I spend on advertising is wasted, and the problem is I do not know which half ” British founder of Unilever Lord Leverhulme once stated so it is necessary to invest money on advertising in proper way otherwise it is only wasting money.
There are many reasons for a new product or service in the market to fail. It is necessary to do research beforehand about the product or service idea and consider the outcome of research. Sometimes reason for failure is wrong pricing or distribution methods. In the other hand advertising may not be effective. Successful product relies heavily on research and solves many problems in advance.
Research of the market is extremely significant. It is also necessary that information and data collected and analyze them in order to decide the direction. It identifies the needs of the customers, their choices, features of product or service, pricing structure and distribution. They are critical factors to decide in advance prior to introducing a new product or service to the market.
Another area of significance is the process of coordination. When the advertising is going on and with the increase of demand, products must be readily available in the market. It is necessary to make a time frame and stick to it in this connection. There are many instances new products are announced by companies and then no adequate supply and again announce non availability and as a result company loss credibility, loss sales and product or service introduced to the market can be a failure.
In the event the product or service is successful manufacturing capacity must be there to cope with the demand of customers. Quality testing system must be a continuous process and also need to attend to customer complaints on time in order to satisfy the customers. Therefore, after sales service is vital to address the customer’s issues and complaints. It is also necessary to make sure that the sales people are comfortable with the selling of the product or service as they are the key people who are taking the products or services to the consumers.