Creating new products for consumers in the market benefits both the organization and customers. For our case, the new product would be an improvement to the organization’s existing product. Precisely, the product that I will introduce to the market is a new and improved frozen orange juice concentrate. It is a minor change to the product, but it would result in a significant amount of benefits to the organization. The package of the product will have a different appearance to that of the frozen juice concentrate. The package will have the words “new and improved” because the product possesses an excellent flavor and it is practically free from defects. The product will have varying colors that will include pink, orange, light yellow and purple-red colors. The package of the product would be in plastic containers and cans. Moreover, the new and improved frozen juice concentrate possess a long shelf life; hence, storing the product would be easier for consumers who would like to buy them in bulk.
With the introduction of the new product to the market, its development process will entail the following. First, the development process will involve generation of an idea. The organization will engage in developing many ideas and settle on one that is worth pursuing. The major sources from which an organization can generate ideas include competitors, customers, and suppliers. Similarly, conducting a SWOT analysis is important because it incorporates the current market trends (Lamb, 2012). Second, the marketing team will engage in idea screening whereby unsuitable ideas would be rejected. The committee will have a thorough analysis of the new idea keeping in mind the reaction of the consumers towards the new product. The screening criteria will entail techniques that will involve open discussions with the concerned parties (Lamb, 2012). For our case, our new product would add benefit to the existing benefits being offered by the current products in the market.
Third, in concept development and testing, the organization will present the new product idea to the target market and get the reaction of the consumers. Besides, the organization uses concept development and testing to acts as a predictor of success for the new product. Fourth, business analysis entails product ideas that have passed the screening stage of the development process. The marketing team will specify product features and resources that will be helpful during the production process (Pride, Hughes & Kapoor, 2010). In addition, it will involve calculation of preliminary figures for sales, demand, cost, and profitability. The committee will estimate and compare the costs and revenue the new product might generate. Fifth, after the approval of the new product, a prototype is developed, and it will entail the package design, physical characteristics and brand name. The prototype should satisfy and excite the customers and produced within the budget set. Functional tests will be conducted to ascertain the safety and effectiveness of the new product.
Sixth, with test marketing, the organization will introduce the product and the marketing program to the realistic market settings. The process allows the organization to adjust the marketing mix before enduring the expense of launching the product. Finally, the organization will engage in the commercialization of the new product. It involves the decision to introduce the product to the market. The decision will depend on the company’s ability to bear risk and reach to all the distribution targets.
For a product to run smoothly and have a great impact on the market, it needs an effective launch strategy. The product that the organization will launch to the market is a new and improved frozen orange juice concentrate. The objectives for launching this new product include the following. First, the organization would like to increase the sales of frozen orange juice concentrate by 20 percent within the first two months of its introduction to the market. Second, the company has the objective to increase the brand awareness of the new product by 15 percent in five months. Third, the organization would provide two clear differences between its products compared to what the competitors offer.
With the objectives being set, it is important for the marketing team to develop a strategy that will ensure a successful launch of the new product. The product targets both young and old people. Multisegment marketing would be ideal for this case since it allows the organization to meet the needs of the different segment of customers. The market positioning strategy for this product is different from that of the competitors. Positioning in an advertisement will include a motivational advert that shows the benefits consumers will derive from consuming the product. For instance, the advert would have a combination of a teenager and an old man enjoying the good taste and flavor of frozen orange juice concentrate. The other strategy is the use of promotional platforms such as social media sites and blogs. The social media sites will keep the consumers informed about the new product (Armstrong, Adam, Denize & Kotler, 2014). Similarly, the use blogs and company’s official website is ideal since consumers will get up to date information about the product. Therefore, the company will generate post such as “coming soon” on the social media and websites to create awareness of the brand.
It is the responsibility of the company to review its pricing strategies and set one that will be used when selling the product to the customers. An organization can set a price to maximize profitability, defend the existing market or increase market share. For our case, the company will use a pricing strategy because of its need to launch the new product to the market. The company will use penetration-pricing strategy when entering the market. The strategy entails setting a price below the normal market price with the objective of increasing the market share of the new product (Pride, Hughes & Kapoor, 2010). Moreover, the strategy will provide room for the organization to increase the price of the frozen orange juice concentrate once is objective is met. Setting the price lower than the intended price would attract more customers since the product is affordable.
The diagram below provides an illustration of how the marketing budget for the frozen orange juice concentrate is allocated. From the illustration, the company can decide to make changes where necessary.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.
Lamb, C. W. (2012). Marketing. Toronto: Nelson Education.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2010). Business. Australia: South-Western/Cengage Learning.
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