CompanyThis assessment will cover following questions:
- L’Oreal is a world largest cosmetic brand and having registered office in Paris. Analyse the process involves in new product or service development.
- Examine the life cycle stage of the products or services in a companys portfolio.
- Critically analyse the skill of team working, creative development and presentation.
INTRODUCTION
Product and services are the offerings that are provided by the companies in the market to the customers for satisfying their needs and wants. With the help of market research the organisation identifies the changes in the taste and preference of the customers with the help of which they can introduce changes in their products and services (Goodway, Ozmun and Gallahue, 2019). For this the organisation need to undertake the process of new product development so that the sustainability of the business can be maintained by the business. In this report the organisation that is taken into consideration is L’Oreal which is a UK based cosmetic company offering a wide variety of skin care, hair care, personal care products. In this report, the process of new product development is taken into consideration which includes various stages with the help of which the product can be developed. Apart from this a reflective report is prepared in which the ability of undertaking this development is discussed.
Illustrate Each of The Processes Covered in New Product or Service Development
In the competitive market place business can grow and develop smoothly by examining new product development process. New Product Development (NDP) is explained as, process by which goods and service can place their position in the market so as to accomplish long term success in the market. In the open market place on daily basis numerous products enter the market (Gomez, Salazar and Vargas, 2016). But out which only few of them are able to capture the market and are recognized by the customers. In order to make the goods and services successful in the market it is essential to innovative or make changes in the goods according to the expectation level of the client. By doing so productivity and profitability ratio in context of the product and services are raised tremendously. New product development has eight steps which are elaborated as under:
1. Idea generation: There is no fix place and time to generate idea. In the competitive market place it has been seen that millions are goods and services are entering the market but very few are able to survive in the market (Du, Yalcinkaya and Bstieler, 2016). Those products that are innovative go well in the market. In this particular step from the pool of idea the most suitable idea is selected and further proceeding is done. L’Oreal is coming up with anti-ageing unisex lotion. The various sources of idea generation are illustrated as under:
2. Internal sources: It involves research and development team and internal staff members are some of internal sources from where new idea can be generated. Many organization invite their employees to share their creative idea so that innovation can be done in the existing goods and services. Additionally, certain benefits and incentives are given to those workers who voluntary come up with innovative idea.
3. SWOT analysis: By deeply analysing own strengths, weaknesses, opportunities and threats company is able to come with new and fresh idea in the market (Cui and Wu, 2017).
4. Customers: Idea is generated by studying the feedbacks and complaints suggested by their targeted customers. It helps form to come up with creativeness in their product and services.
5. Competition: In the open market place other firm is benefited through SWOT analysis of competitors. From the opportunities and threats of rivalry new idea can be generated easily.
6. Idea screening: In new product development process this is the very next step after idea generation. Here, filtering of idea is done out of several idea and anti-ageing unsex lotion is selected. This is done in order to choose the most suitable and feasible idea. Idea screening refers to as selecting the most appropriate and fresh idea and drooping rest other idea. Management of the organization dies idea screening in order to come up with that idea where least cost is involved. By doing so chances of failure is reduced to some extent because proper scanning of idea is done.
7. Concept development and testing: Busies is unable to gain competitive advantages in the market until and unless organization figure out desire needs and preferences of the potential customers. It is possible through research and development of the goods before launching in the market. For testing of anti-ageing unisex lotion free sample is given to the customers. By this customers can be assured the quality of the lotion. On the other hand information regarding lotion is given through visual presentation so that benefits of anti-ageing lotion are spread among the targeted customers (Cozzarin, , 2017).
8. Market strategic analysis: When the innovative anti-ageing lotion of L’Oreal is tested among the customers the next step is to formulate marketing strategy. By scanning the market scenario organization come up with effective marketing tactics in to commercialize their lotion in the global market. Three steps are covered in marketing process that is discussed as follows:
9. Market decisions: Here, the suitable market is identified for the launching of the anti-ageing lotion. After this step pricing of the lotion is set and various promotional activities are determined in market decision.
10. Budget decision: Here, estimated capital required to promote the anti-ageing unisex lotion of L’Oreal is done. Before launching the lotion in the market business associates calculate the amount of finance required for its advertisements, promotion, campaigns and many more (Cooper, 2019).
11. Marketing mix decisions: The sum of 7ps (product, price, place, promotion, physical evidence, people and process) is marketing mix. It is very essential to deeply examine all the 7ps of marketing in order to make the anti-ageing unisex lotion successful in the international market.
12. Business analysis: The very next step in new product development process after marketing strategy is business analysis. Here, cost, sales and profit margin is examined by the organization in context of anti-ageing unisex lotion. It is a managerial procedure that includes analysis of market attractiveness of the lotion so as to launch the anti-ageing lotion in the global market. On the other hand budget cost sheet is formulated by the top level management in order to ascertain the profit ratio. By doing so best decision can be taken regarding the launching of the anti-ageing lotion in the open market place. However, failure of risk can be measured in order to get idea regarding the level of business success in the cut throat competitive world (Charter. and Tischner, 2017).
13. Product development: It is another step involved in new product development process where the anti-ageing lotion of L’Oreal is physically existed. Product development plays a critical role in making the lotion successful in the market. On the basis of quality, price, value etc. lotion is tested and accordingly decision of purchasing it from the market is done. In this stage all the plans and tactics are actually executed. By this weak area can be identified and necessary improvements can be done accordingly by the process of business analysis in order to gain productive results.
14. Test marketing: It plays a signification role in the market in regards of anti-ageing unisex lotion . In this specific stage lotion of L’Oreal is actually taken out for consumption by customers. Along with this lotion is tested by their targeted customers so as to render experience of the lotion to the potential client (Habe and Fargnoli, 2017). By doing so position of the product can be identified in the market by their reaction towards the lotion. It incur huge capital despite of this it is done in order to make the lotion successful in the global market.
15. Commercialisation: Here anti-ageing lotion is launched in the target market so that potential customers can be attracted towards the lotion and sales volume can be raised accordingly. Large amount of finance is required to commercialize the lotion in the market. However, it can be said that L’Oreal’s anti-ageing unisex lotion is ready for consumption (Bogers and Lhuillery, 2018).
An explanation of how each stage of the New product development process can be applied for the development or improvement of products or services .
New product development for the anti-ageing Unisex lotion
Idea generation: For determining the idea of new product or development in the existing one a research was conducted by the L’Oreal within the organisation. In this they took suggestions from their employees through questionnaire in which various open ended questions were included. On the basis of outcomes of the research it was analysed that the company can go for launching anti-ageing lotion which can be used by both males and females. This will make them unique as their competitors provide anti-ageing cream but with this the customers can take care of their skin of other body parts .
Idea screening: For efficient screening of the idea L’Oreal conducted a feasibility analysis with the help of which they can determine the demand of their product in the market, the loyal of the customers for their products and services etc. In addition to this the economic and financial feasibility will also be analysed. With this it is analysed that this option will be feasible for the company as with this their profitability can be enhanced (Ayllón and Radicic, 2019).
Concept development and testing: In this stage the research and development department of L’Oreal analysed the external market for the taste and preferences of the customers while the managers in the organisation determined the internal capabilities. Also in this stage the product are provided to the customers for the purpose of testing and feedbacks are taken from them so that necessary changes can be made. But positive responses were received which implies that idea is viable.
Market Strategic analysis: After analysing the taste and preference of the customers it is important for the organisation to formulate various strategies with the help of which they can effectively launch the products in the market. Various strategies that need to be formulated includes pricing strategy, promotional strategy, process with the help of which the products will be made available to the customers. This can be done with the help of marketing mix strategy of the marketing as it will enable them to take into consideration all the factors. For promoting the new product of L’Oreal i.e., anti ageing unisex lotion various methods such as traditional and digital marketing method can be adopted. Traditional methods such as advertisement through newspapers, television can be done. Along with this postcards and magazines can be used for promoting the new products. In addition to this digital marketing method must be used as people are more connected with various online platforms. They must focus upon various social media platform, direct marketing and online advertisement for targeting their customers.
Business analysis: In this step of new product development process, availability of the funds is identified on the basis of the budget so formulated. Also various estimations are done in context of profits and cost that they may have to bear. The risk associated with the launch of new product and the improvement in existing business is to be analysed so that the possibility of the impact on the business can be understood. Similarly for this new product of L’Oreal is done by their managers (Veiga and Weyl, 2016).
Product development: In this stage sample products are developed on the basis of various identified features of the product. Such products are then tested by the quality team of the company so that the quality of the offerings can be insured. With the help of the production department of L’Oreal can continue their production or introduces changes as per the requirement of the quality team. This newly launched product anti-ageing unisex lotion belongs to the product range of skin care products of L’Oreal Paris. It will help them in expanding their skin care product range.
Test marketing: After the products are developed they are send for the testing in the market where the products are promoted by the marketing team of the company. With the help of this they can determine efficiency of various strategies formulated by them. The responses of the actual customers are taken by making their new product available in the departmental stores, by distributing sachets of the lotion among the customers. This will enable the customers to provide their reactions, with the help of this the marketing team can analyse their reactions towards the product.
Commercialisation: This is the last stage of new product development in which the focus is laid on the commercialising the products so developed by the company. They unisex lotion will be available to the customers in all the stores such as in all general merchandise stores, supermarkets etc. where their existing products are made available to the company. Also for taking the competitive advantage they can sell this product in the market with the help of various online platforms such as through various e-commerce website and even from their own official website (Ward, Oosterwal and Sobek II, 2018).
Reflection of the report
At the time of undertaking I analysed that in this project of developing the new product various steps need to be followed by the company. For this the responsibility of identifying the ides of innovation in the product and service or new product can be determined by our teams. On the basis of this it was analysed that they need to undertake various research which can be conducted by the company at organisational level or on market level. The tasks were divided by our team leaders among all the team members as per our capabilities and level of understanding. I was given the task of analysing the various stages of product life cycle and in this I had to go through various stages through which the product has to pass. For this I evaluated each and every stage of the product life cycle for the variety of product that is offered by the L’Oreal. This enabled me in identifying the area where they are lacking behind. Also I had to go through with the analysis of various stages of PLC for the innovative product that if offered by the BODY SHOP which is herbal sunscreen cream for both males and females. Various stages of the PLC include introduction, growth, maturity and decline. This enabled me in suggesting various strategies to the management on the basis of the analysis done by me. I identified that the in the introduction stage, the product struggles to gain recognition among the customers. Then in the stage of the growth they need to adopt various strategies that can give them competitive advantage while at the maturity they need to maintain the level of their product with significant improvement in them so that the interest of the customers can be made in the offerings. I analysed various products that are offered by The BODY SHOP and L’Oreal with the help of which I analysed that they are planning to offers similar type of product that can offer the customer a solution for dealing with a specific issue. The analysis so made by me need to be presented before the team leaders so that they can analyse the effectiveness and further they need to be presented before the management of the company as with they can formulate various strategies that they can undertake for managing their products.
Each and every member of the team was allocated in various tasks on the basis of various skills and competence that are possessed by them. I was given responsibility of analysing the PLC and various strategies as I have sufficient knowledge of it. Out team leaders has provided instructions and guidance about who has to do and how. Due to this I was given the responsibility of writing the content for the presentation. For this I had to consult each and every member so that their data and information can be taken on time and final content can be prepared on time.
All the tasks that has to be performed was allotted time limit within which it has to be completed. Due to I planned various activities along time limit due to which I could complete my part on time such gathering of the information, their analysis and many more. We had effective communication among all the team members due to which all the activities went on smoothly. But the decision making powers were with the team leaders this was with the aim of avoiding the chances of the conflict among the team members.
A group discussion was conducted for the team members in which all the members was given opportunity to express their opinions, suggestions, problem etc. so that the organisation can bring innovative significantly in their existing products or by way of new product. On the basis of my analysis I suggested L’Oreal to launch a lotion that can fight ageing because anti ageing creams are available but lotion is not, while The BODY SHOP must offer an herbal sunscreen cream to their customers as these days the customers prefers so. With the help this discussion creativity was brought in team.
All activities went smoothly but in the initial stages while task were allocated some of the team members resisted the allocation as they felt that they not been allocated various roles and responsibilities as per their capabilities. But such resistance was easily managed by the team leader as he could justify his actions. For further improving the results various recommendations are made which includes:
- All the team members must have same level of competence and specific capabilities on the basis of which work can be allocated to them. This can reduce the chances of conflicts among the employees (Abualloush, Bataineh and Aladwan, 2017).
- Various skills need to be development among the team mates that can lead to collaborative working practices among them. With this better understanding can be developed.
- Various barriers must be identified that can lead to some issues such as diversity among the team members, communication gap etc. as it will enable the team leaders to manage the efficiently.
Also Read :- Advantages and Disadvantages of Fast Food Industry.
CONCLUSION
From the above report it can be summarized that business need to focus more on innovation so that they can survive and sustain in the marker for longer time duration. New process development helps the organization to make their innovative goods and services successful in the international market. On the other hand with the support of product life cycle the tactics are identified which can be followed by the business administration with the goal of enhancing the goods efficiency.
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