This assessment will cover the following questions are given below:
- Define and demonstrate the processes which involved in products development and services.
- Evaluate the life-cycle stages of the products in the portfolio of the company and analyse whether innovation adaption or renovation are required for the commodities.
- Plan and pitch the new renovated products or services.
- Describe the ability to reflect on skills of creative development, team working and presentation.
Product and Service development refers to the process of creating new goods or service with different features that offer additional benefits to consumers. Series of steps are set out in the process by which new product or service typically go through. It initiates with concept or idea generation and ends with its introduction to market (Beuren, Ferreira and Miguel, 2013). In the present assignment, chosen organisation is Samsung which is a well-known multinational conglomerate located in Samsung Town, Seoul. This report covers the process involved in new product development and assessment of life cycle stage of good or service in firm's portfolio. Need of adaptation, innovation or renovation is also evaluated. At last, designing and pitching of renovated product and reflection on team working, creative development and presentation skills is included in this project.
P1 Explain the processes involved in the development of products and services and the levels of customer integration
New product development is defined as the process of introducing new product to market. Every firm needs to undergo this process because of frequent changes in preferences of customers, technological advancements, increasing competition and to capitalize on new market opportunities (New product Development, 2018). Innovative businesses grow by understanding needs of market, developing new products and making improvements that meet and exceed expectations of customers. The process involved in new product development consist of various stages which requires to be undergo by Samsung. It is a eight step process which is defined below:
- Idea Generation: In this stage, number of ideas are generated and these can be come from various sources including internal and external sources. It involves customers, competitors, suppliers, market etc. Here, Samsung do systematic search of new ideas and generates hundreds of ideas.
- Idea Screening: Here, all the ideas are screened and the best ideas is selected. Poor ideas are drop and good ideas are selected among all. Main purpose of this stage is to reduce the number and pick up the most profitable idea (Boons and et. al., 2013).
- Concept development and testing: In this stage, idea is converted into concept which is a detailed version of idea. Samsung introduced this concept among small group of target audience. Some questions are asked from them to get their feedback, which assist company in taking decision regarding further development of concept.
- Business Strategy analysis and development: Results from testing assists company to come up with final concept to be transform into product. In this stage, managers of Samsung decide about branding, marketing and other strategies that will be utilized further. Costs and profitability are estimated and marketing mix is design for product (Chathoth and et. al., 2013).
- Product development: In this stage, the concept is convert into physical product that can be usable by consumers. A prototype of product is developed by Samsung and all the previously decided strategies are test and implement.
- Test Marketing: The product prototype is introduced among small group of target audience in order to validate the entire concept. Here, Samsung check feasibility and viability of product. Customer's feedback assists firm in making further improvements, if required.
- Commercialization: At this stage, product is ready, strategies are decided and marketing mix is applied. All the minor and major decisions related to introduction of product in market is taken by Samsung before bringing product into market.
- Introduction in market: This is the final step in which Samsung launch its product to make is utilise by end customers (Grönroos and Voima, 2013).
Level of customer integration in new product development:
In developing “Smart Mobilap”, integration level of customers in business is high. Before developing product, needs and preferences of customers are considered. On the basis of their requirements and choices, products are developing. Customer integration in new product development process provides various benefits to Samsung which are defined below:
- Consideration of customer needs helps in developing required product that effectively satisfy them.
- Customers feedbacks assists in making further improvements in product.
- Helps in earning high sales and profits in market.
P2 Apply these processes in application to the development of a specific organisational product or service
Samsung is one of the well-known electronics manufacturing company that offers variety of products to customers. As the needs of market is changing frequently, it is very necessary for company to bring a new and innovative product into market that satisfy needs of its existing and potential customers. After analysing current market trends, management of firm decides to introduce a new product, i.e., “Smart Mobilap” which is a completely new product that offers features of both mobile and laptop to users. Its size is only 7.9 inches that enables people to easily carry it with them anywhere. In addition to this, various other features like iOS operating system, long battery life, dual camera, high display resolution etc. are provided in it (Gustafsson, Kristensson and Witell, 2012). In development of “Smart Mobilap”, several stages are involved which are defined below:
Idea Generation: It is the initial stage of product development in which number of ideas are generated. These ideas can come from anywhere and by using various sources like market research, internal sources, customers, competitors etc. Here, management team of Samsung develop various ideas by conducting market research and carefully analysing needs and requirements of customers. A lot of ideas are generated in this stage by management of company.
Idea Screening: This is the second stage of new product development in which all the generated ideas are screened by management and selection of the best idea among all is made. Idea is selected on the basis of its feasibility in which different factors play crucial role like strengths and weaknesses of firm, ongoing trends, needs of customers, expected ROI, affordability etc. In this stage, the idea selected by Samsung is development of “Smart Mobilap” device which provides features of both laptop and mobile phone to users (Kahn, 2012).
Concept development and testing: Concept refers to the blueprint version or detailed strategy of idea. After considering every aspect of idea, concept is developing to make it presentable. In this stage, the concept of developing “Smart Mobilap” device is test by Samsung with small group of target audience. Information about concept is provided to target group which assist them to visualize product. Several questions are asked to them and their feedbacks regarding concept of “Smart Mobilap” helps company in taking decision about further development of concept.
Business Strategy analysis and development: Here, the concept is finalized and management of Samsung analyse and take decisions related to marketing, branding and other strategies. Here, managers estimate profitability of product, decide marketing mi and other strategies for product. Target market for “Smart Mobilap” is premium group customers. Behavioural segmentation strategy is used by Samsung in which market is segmented on the basis of usage, choices, behaviour, preferences and decision making of customers (Kindström, Kowalkowski and Sandberg, 2013). “Smart Mobilap” provide the features of mobile and laptop as well to users. It makes easy for users to carry it anywhere as its size is too small. Various initiatives can be taken by company for branding its product like organise big campaigns, sponsor events etc. Review of costs, sales and profit projections are made to determine whether it satisfy firm's objectives or not.
Product development: After deciding all the strategies, the concept is transformed into actual physical product. In this stage, Samsung develop a prototype of “Smart Mobilap” device and calls for long jump in investment. All the previously decided strategies are test and implement in this phase.
Test Marketing: In this stage, prototype of “Smart Mobilap” is introduced in market to check the validity of whole concept. It provides an idea about success of product before undergo large investment. By test marketing, feasibility and viability of product can be check by management of Samsung. Feedbacks from customers helps firm in making any further changes in product if required (Marques and et. al., 2013).
Commercialization: In this stage, everything is set up: product is ready, marketing strategies are decided and marketing mix is applied. Here, management of Samsung takes final decision to launch “Smart Mobilap” in market. Managers brief responsibilities and targets to each department and all the minor and major decisions are taken before introduction stage of “Smart Mobilap”.
Introduction in market: This is the final stage in which Samsung launch its new product, i.e., “Smart Mobilap” in market.
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P3 Assess the life-cycle stage of the products or services in a company’s portfolio
Product life cycle is defined as the phases a product go through from introduction to decline. It is related with changing in marketing condition, therefore, influencing marketing mix and marketing strategies. Samsung is one of the well-known company which is known for innovation. Being a customer oriented enterprise, Samsung emphasize on its innovation, development and renovation (Rapaccini and et. al., 2013). The company constantly strives to accomplish innovating sustainability by introducing and renovating product which is having improved social or environmental profile. The stages of product life cycle of Samsung are defined below:
Introduction: This is the first stage of product life cycle in which Samsung seeks to create awareness of its product among people and develop a market for it. The size of market for product is small which depicts that sales are low. Whereas, the cost of consumer testing, research and development and marketing is high.
Growth: This stage emphasizes on developing brand preference and developing market share. It is the stage where where Samsung attains high growth in sales and profits because firm starts getting advantage of economies of scale in production. It enables firm to invest more money in promotion and maximize its shares.
Maturity: At this stage, sales start to diminish and competitors are entering into market. Here, Samsung mainly emphasize on defending its market share and at the same time, maximizing profit. Samsung requires to make improvements or modification into products which might provide it competitive advantage.
Decline: Here, the sales of product are decline and the product market will begin to shrink. The main reason behind can be market saturation or switching of customers towards other brand (Tukker and Tischner, 2017).
P4 Evaluate which appropriate product line management choices are required for individual products or services
Product line refers to the group of similar product which comes under single brand that is offered by firm. Line management choices options are the decisions that are taken by administration regarding adaptation, innovation or renovation in its existing product line to gain high growth and sustainability in competitive market. It helps company to reach potential customers, diversify market and meeting changing market needs which makes Samsung the global brand. In order to satisfy needs and requirements of customers, firm constantly brings innovation in its product and invest high amount of money in research and development. The product line management choices option is based on various factors. The main decision of Samsung is based on selecting one of the below mentioned strategies (Tukker, 2015).
Standardization: It is defined as the strategy in which firm doesn't make any changes in product aspects like name, material, packaging, quality, etc. irrespective of location or nation in which it exporting its goods. Company offer its various products in different areas with same features and price.
Adaptation: It is defined as the strategy in which firm respond to various contexts of its market. It involves the process of making improvement, changes in terms of product design, delivery process, specifications, social relations or financial strategy. Samsung offer and add new features in its products on timely basis which assist firm to maximize and enhance satisfaction level of consumers that attain by utilizing a particular product.
Samsung is well known company in manufacturing innovative electronic products with reference to diversity by its brand portfolio. Therefore, in order to satisfy needs of its global customers, firm adopt Standardization strategy in product line management.
P5 Design and pitch a product or service taking in to account market testing, product/service launch and distribution
In present competitive market, high growth is been experienced in demand of mobile phones. People considered it as a status symbol and wants to buy the best phone which have innovative features and is different from others. This market trend and increasing customer's demand enables company to introduce new and innovative product into market (Wilson and et. al., 2012).
New Product Development: A large market is covered by Samsung in electronics industry. In order to maintain its sustainability in market, firm is planning to introduce a new mobile phone with flexible screen. This will shape the smart phone's future. Organic light emitting diode technology is used in its manufacturing. Plastic substrate will be use in this phone which will reduce the weight of device and enables for easy portability. This provides an ability to user to fold and increase its size.
Market testing: In order to test this product and check its feasibility and viability, Samsung will test it to small group of its target audience. This market testing is expected to assist company in ascertaining the response of customers towards flexible screen mobile phone. Feedbacks of customers helps company in making any improvements in product, if required.
Product launch: In order to successfully launch its flexible screen mobile phone in market, Samsung conduct various promotional campaigns and sponsor some events that helps in capturing attention of large number of customers. Samsung can implement integrated market communication strategy that focuses on encouraging customers to buy their product (Yoon, Kim and Rhee, 2012).
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P6 Complete a reflective statement that critically reflects on team working, creative development and presentation
As a human resource manager in Samsung, it is my prime responsibility to develop competencies and skills of employees. In order to increase productivity and profitability of company and ensure timely attainment of its goals, it is very essential to encourage team working and creativity among team members. For bringing innovation within firm, commitment of employees towards organisation is necessary. So, for increasing skills and team working ability of individuals, I formulate individual development plan which involves creating communication with each individual to get knowledge about their interest and career objectives. This assists in ascertain need of employees and providing them appropriate training session to develop their skills.
As per the above mentioned report, it has been concluded that new product development is an essential aspect for every business firm as it assists in its growth and success. Before developing new product, it is required by company to carefully analyse market trends and needs of customers. It assists company in satisfying their needs in more effective manner and earning high profit ratios in market. It is highly essential that product must be innovative and new as it assists in gaining attention of large group of customers.
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