Developing a new product is one of the factors that several companies find complex to undertake. The complexity occasions from the challenges such as poor reception in the target market, ineffective promotion of the product, and minimal sales. However, smart entrepreneurs know how to employ the procedures provided by the scientific method in development of a new product. Some of the main procedures that the entrepreneurs engage in include a good background research, construction of hypothesis, and data analysis. After the research and data analysis, entrepreneurs then draw conclusions from the findings and communicate them to the concerned stakeholders, who use them to make a decision. Recently, Coca Cola Company noticed that some of its consumers no longer use their products, and thus, plan to introduce a new product that outsmarts other brands in the market. The company plans to execute the project using a number of procedures tailored towards meeting consumer demands, understanding the marketing environment, and consumer purchasing power. Therefore, the essay explains the steps that Coca Cola Company plans to use in the development of a new product that is superior to competitor brands.
Apparently, several contemporary consumers are concerned with utility and value for their money. The drive to get more out of a purchase is a factor that has increased the selective nature of prospective clients. Consequently, introduction of several substitute brands that are slightly cheaper than the products from the company has reduced its sales margins. The sales volumes in the company have reduced because majority of consumers opt to purchase the substitutes and forego their products. As a result, the company intends to develop a new product that not only meets the preferences and likes of clients, but also amplifies its performance in the market. To introduce the product, the company plans to undertake a good market research so that it can ascertain the tastes and preferences of its target clients.
The company understands that before developing the new product, it has to embark on a good market survey geared towards understanding factors such as consumer demands and marketing environment. Imperatively, a good understanding of the factors facilitates insights into development of a product, which has superior quality. A good market research also enables the company understand what potential clients love and expect out of a product as well as their diverse purchasing powers. With the knowledge acquired from the research, the company then makes a wise decision based on the results. Rafinejad (2007) explains that a well-designed product planning using the correct research leads to successful introduction of the new product in the market. It is important to note that the main goal behind the development of the new product is to augment sales, heighten consumer satisfaction, and increase product performance.
The company plans to test a sample population of 100 potential clients using a simple random selection. Open-ended questionnaires will be effective as they give the respondents a wider spectrum of choices and feedbacks. The use of the increased spectrum implies that the amount of information collected using the questionnaires will be high. Some of the areas that the questionnaire intends to cover include the likes and preferences of consumers and their probable prices. In the assertion of Reid and Bojanic (2009), effective market research provides a clear understanding of the target market, consumer buying behaviors, and the various externalities that affect the marketing environment. With a good understanding on the market requirements, the company gets an insight on the degree of success or failure expected from the proposed actions. Consequently, if the product follows the required guidelines in relation to quality, technology, and consumer awareness, its performance outsmarts other competing products in the market, and hence, its success.
Some of the results that reflect the success of the product are increased product awareness, customer satisfaction, and high sales volumes. Increased awareness from the target clients and high sales volumes imply that the product is in high demand in the market. Additionally, the results demonstrate that consumers love the product than those from competitors. In a successful venture, it is important for the company to undertake regular assessment and evaluation so that the product continues to match market trends and dynamics. Regular evaluation helps the entrepreneurs to ascertain the ever-changing consumer trends and their level of satisfaction (Bradley, 2013). As a result, they can effectively use the likes and preferences to ensure that the new product has the desired features.
Conversely, if the product does not achieve the required sales volumes and receives low levels of awareness and satisfaction in the target market, the project becomes unsuccessful. Saxena (2005) elucidates that in unsuccessful instances, individuals need to asses consumer feedback and scrutinize the shortcomings that led to the problem. After scrutiny and identification of the shortcomings, it is imperative to correct the challenges and communicate the changes to prospective clients. A good system of redress and communication helps the product regain its place in the market as it indicates some kind of concern from the company towards its potential clients.
Development of a new product is one of the activities that require application of the scientific method. Some of the procedures that the entrepreneur needs to employ in successful product development include market research, construction of hypothesis, and data collection. After the data collection, the entrepreneurs analyze the findings and draw conclusions needed to make a decision. The need to develop a new product by the Coca Cola Company is a very practical example that explains the essential nature of the method in decision-making.
References
Bradley, N. (2013). Marketing Research: Tools and Techniques. London: Oxford University Press.
Rafinejad, D. (2007). Innovation, Product Development and Commercialization: Case Studies and Key Practices for Market Leadership. New York: J. Ross Publishing.
Reid, R., & Bojanic, D. (2009). Hospitality Marketing Management. New York: John Wiley and Sons.
Saxena, R. (2005). Marketing Management. Noida: Tata McGraw-Hill Education.