Marketing innovation is a concept of implement new ideas of promotion that includes important modifications in terms of design, packaging and promotion of the products in market. It plays an essential role and necessary for each business unit to take appropriate actions which are linked with the innovation for attracting a large number of customers and also, to help in attaining competitive advantage in marketplace. Further, competitive advantage can be termed as different types of situations which allow an organisation for producing appropriate goods and services at low prices which can be desirable for the target customers (Boachie-Mensah and Acquah, 2015). For example, there are various types of innovations that are carried out by Apple along with the new features in their products which developed high publicity in the market. Further, there is an important role played by market intelligence for achieving success in the business. It will also assist company to gain proper information related to products as well as to take appropriate decisions in terms of market opportunities.
Innovation is considered to be an important element that helps an organisation for gaining competitive advantage over other competitors. Along with this, customers are more interested to invest their money in terms of innovative products which is advantageous for a company. Further, a business enterprise can make enhancement in their customer base by offering innovative products which is overall helpful in increasing the level of productivity and profitability (Bryson and Daniels, 2015). In this, there is the requirement to have proper innovation in marketing because there are different types of challenges faced by company for gaining competitive advantage so that it is required to create a competitive edge over other in market to survive in the long run. Further, there is an innovative approach developed by Apple for marketing through appeal of brand name. There are different types of ideas of innovation that are carried out by organisation through various stakeholders such as customers, stakeholders as well as employees that help company to sustain with satisfying the target market as per their requirements. With the help of digital media, there is development in the marketplace where brand is reaching to the customers and company also adopts their requirements. Along with this, technology is considered as another element for creating innovation which is a strategy related to promotion by different suppliers as per the demand of customers.
In addition to this, marketing innovation is significant for a business in which marketers are able to identify the ideas for development with tangible process and there is requirement of innovative work environment which is a success element for achieving competitive advantage in the marketplace. It can be stated that the organisation is required to ensure about using an appropriate approach of marketing of products that is based on person centric approach with the demands of customers.Innovation in marketing assists in order to introduce strategy for development of products which helps to increase the level of performance of company (Carlborg, Kindström and Kowalkowski, 2014). On the other side, for an organisation, it is important to adopt different practices of competitive advantage which is essential for the survival in marketplace. Thus, it can be said that marketing innovation gives an appropriate exposure to the business along with increasing number of customers and also, helps in protecting competitive advantage of a company.
There is requirement to adopt Porters Generic strategy that is beneficial for business and helps in gaining competitive advantage in market. In this type of strategy, a way is provided for gaining competitive advantage in which firstly it includes cost leadership strategy where there is increase in market share by charging low prices of products which helps in earning higher profit. It will help company to attract more customers by providing low priced products (Damijan, Stare and Kostevc, 2014). Further, through the strategy of differentiation, organisation makes certain innovation in their products and services that are new in the marketplace or not have any close substitute. In this, it is required to ensure that innovation must not be made in such a manner which can be easily re-created by competitors. Moreover, another approach is focus strategy in which company increases their market share as their main concentration is on to narrow the market. Thus, it will help in increasing the level of revenue in company.
Furthermore, there is a direct relationship between marketing innovation and competitive advantage as there are different types of challenges faced by organisation in order to gain competitive edge over competitors (Ding, Eliashberg and Stremersch, 2014). It is essential for company to achieve high competitiveness with the help of innovation as it can be carried out by producing less costly products with better quality as compared to the services of competitors. Further, marketing innovation helps to maintain the growth and development in terms of different ideas used by company. It is considered to be important for business where company can make innovation in their process of advertising products by using social media marketing which is highly growing in the market. Thus, it can be stated that marketing innovation plays an important role in the growth and development of organisation. In context of competitive advantage, it provides strength to company in order to offer appropriate quality of goods and services according to the needs and requirements of customers (Ersun and Karabulut, 2013). Moreover, different competitive strategies of marketing are required to be followed by company which helps in gaining long term success in marketing. It will also be helpful for an organisation to remain competitive in the marketplace. Thus, it is important to have appropriate marketing innovation which will assist the organisation to grow and gain strategic competitive advantage over different competitors.
Marketing innovation is considered as an important part which is related to the unique attributes of the goods and on the basis of same, there is differentiation of products in the market and it also acts as an aspect of growth of organisation. Further, it is necessary to take corrective measures in perfect competition market along with the innovative products by which customers would get attracted (Hashi and StojÄiÄ‡, 2013). In context of present study Orbit drops is chosen as a product of Wrigley which was launched in the year 2003 in Austria. This company is considered as the leader in confections which provides a wide range of products that covers mints, gums as well as candies. It operates in 50 countries along with the distribution in more than 180 nations. The brand of Wrigley brings smiles on the faces of their customers around globe. This particular product is selected for launch according to the requirement of customers.
In this study, product of Wrigley is chosen for launch in Austria which is considered as one of the most popular product (IliÄ‡, OstojiÄ‡ and DamnjanoviÄ‡, 2014). The main reason behind this launch is that the consumers of this brand have different perception so that the company is expected to launch Orbit drops and also provides various flavours in the product.This particular product was launched in the year 2003 in Austria. It can be stated that there is a direct connection between the launch of new product and trends of customers as new aspects are always preferred by them so that the product can achieve their targeting the customers.Customer trends can be termed as the behaviour and perception of people regarding buying of products as demands of customers are always changing. This is the reason company is required to make some specific changes as per the changing trends of customers (Junge, Severgnini and Sorensen, 2016). Further, there is increase in the level of performance of products of Wrigley which is gaining positive response that is on the basis of utilization of product along with the expectations and to announce new elements of the products.
In addition to this, in terms of marketing, the company already started launch their products outside US. They also provide appropriate services which are based on the perception of customers as goods which gives benefits to customers and value of the money along with it they serve high-quality products. Further, it is necessary to use effective strategies of marketing in order to promote the products in market which is advantageous for the company. It can be stated that in order to achieve success in terms of new product launch as it can be done by analysing the requirement of consumers. Further, it will prove to be effective for business to analyse the needs and requirements of customers before launching products in the marketplace (Kam Sing Wong, 2013). It is considered mainly as an appropriate sense of marketing which is required to manage the forces of sales as well as profitability. There are some of the strategies related to marketing which helps the cited firm to create an high level of profit in marketplace.
Orbit drops is chosen for launching it in Austriam after appropriate market research which shows the perception of the consumers regarding the products in market. On the basis of that market research, it will be helpful for company to analyse the tastes and preferences of customers. It is one of the most successful companies that launch products according to the requirement of customers. In context of citizens of Austria, they are already aware of the issues of health and started making reduction in the level of sugar in their diets. This leads to shift in the choice of their bubble gums to different sugar free chewing gums in the year 2016. On the basis of scenario, stated organisation came up with their brand that is Orbit drops that is sugar free and also accounts to 90% of the value of shares (Leeflang and et.al., 2014). This also helps in improving the dental hygiene of people of Austria. Further, due to high level of disposable income of people in US, they are able to spend high amount on buying products. They are concerned about their spending in those products which help to increase the level of standard of living to a significant extent. According to the theory of Maslow Hierarchy of needs, an individual looks for satisfying his/her basic needs to the self-actualisation level. In this, the safety needs of consumers are satisfied where they are given more healthy products which is related to sugar free content and it is considered as an appropriate option in order to maintain dental hygiene.
In order to determine the link between customer trends and launch of new product based on preference of consumers, there is an appropriate survey which is carried out by Wrigley regarding feature of Orbit drops which is to be introduced in the market. It includes the survey where people will be asked about tastes and preferences of products. It can be identified by using the product Anatomy model that helps to identify the different elements of product which includes the colour as well as the other usefulness of the product. It also covers the main product which helps in analysing the elements of product that is offered by company (Mohnen and Hall, 2013). It is considered as the main element which determines feature of product for attracting consumers. For instance, in context of demand of orbit chewing which involves an element of mouth freshener. Moreover, generic product includes the element that includes core ingredients which is useful in order to produce a chewing gum. There is high quality of material which is used by the company for the purpose of producing chewing gum in market. Along with this, expected product which helps in determining the appropriate features in which the customers may expect that there is high level of mint is present in the chewing gum along with the long period of time. Lastly, it includes the augmented product which covers those features that are not expected by consumers. However, company also provides some of the essence in goods along with the addition of value in products as compared to its competitors. In this, Wrigley might provide different types of flavours in their chewing gum that includes orange, strawberry, etc. which give more assistance to a wide range of customers.
Furthermore, in order to determine the market performance that mainly covers the attitude and behaviour of customers regarding the product which can be determine with the help of various techniques. It is essential to analyse the market performance and to make some changes in the products as per the requirement of customers. It will helps in giving contribution (Mooi, Wathne and Kayande, 2016). It includes some of the factors that are required to be considered in context of market performance such as brand awareness about the product of Wrigley through which customers are able to recall the brand. It is considered as the strategy of advertising and also, behaviour of customers. Thus, it can be termed as the probability where customers are familiar regarding availability of products. Further, there is another factor which is sales that helps to find out the market performance of new product which is going to be launched in marketplace which have many criteria that are advantageous for company. Sale of products and services assists company to identify the performance that develops a brand image for a wide range of customers. Also, it provides various opportunities to company for retaining the customers for their repeat purchase (Ping and Shunbin, 2014).
Moreover, for the purpose of managing the performance of product in market, customer acquisition is helpful for describing the process of new product in context of specific brand that will help in the enhancement of products and services. It will assist company for managing the products that are launched in market according to the needs of consumers. It is considered as an essential aspect for the purpose of evaluating an effective combination value that helps to bring customers to business. In addition to this, for the new product which is to be launched in market is required to engage a wide range of customers with the help of various techniques along with innovation that assists in order to increase the employee’s performance in marketplace. In terms of market performance, customer retention can be termed as the ability of an organisation for retaining their customers for a long period of time. If there is high level of retention of customers which reflects that they are able to purchase it that creates increase in the development and growth of business. It will help in managing an appropriate criteria according to the needs and requirements of customers which also evaluates the brand initiatives and loyalty of people. (Podmetina, Volchek and Smirnova, 2015).
In this, there is another factor which is market share that helps to identify the performance of a new product launched in target area. It will help in developing an appropriate assessment of market portion that is controlled by company and considered as volume on the basis of total share of business outside various segments. It is calculated by organisation through the sales over specific period of time which is divided by the total number of sales of business. Market performance can be identified by stated organisation through the use of balanced scorecard. It is a tool for measuring performance that assists the business enterprise for assessing level of performance and to execute activities according to the set goals. The stated company can utilise this tool through measurement of performance on daily basis according to the strategies and objectives. This will help the organisation for getting information of plans which assist them to perform in a better way (Soltani and et.al., 2015).
In addition to this, diffusion of the innovation model will create awareness between consumers related to products and services. There are different types of advertisements placed by company on social networking that provide information to a wide range of customers about Orbit gum which are offered in varied flavours. According to the existing customer trends, stated organisation can establish their marketing innovation with the help of digital platforms. The target market which is selected covered for chewing gums are youth and students who are active on social media (Wagner III and Hollenbeck, 2014). Thus, the current trends of consumers helps the company to use appropriate platform so that they can place their product in market.
From the above carried out study, it can be inferred that marketing innovation plays an important role for a business where there are different types of strategies adopted by firm for attracting customers. In this, marketing is related to the brand of Wrigley. There is an appropriate product selected which is Orbit drops of Wrigley which is preferred by the consumers in the marketplace. In terms of above mentioned aspects which identified that the product is launched according to the requirement and needs of customers. Further, it is mainly considering the appropriate requirements and needs of customers as compared to the existence of products of Wrigley in marketplace. There is the requirement of analysing market where product is going to be launched and it will help company to produce as per the demands of customers. The selected product which is Orbit drops is required to apply some theoretical models which help company to gain competitive advantage in the marketplace. It can be stated that there are effective strategies used by company which help the firm for creating a strong brand image by producing it at a large level and most of the customers get attracted towards it. Thus, it will prove to be effective for the business to use those tactics so that they can make their product popular among the customers.
Books and Journals
- Boachie-Mensah, F. and Acquah, I. S., 2015. The effect of innovation types on the performance of small and medium-sized enterprises in the Sekondi-Takoradi Metropolis. Archives of Business Research. 3(3).
- Bryson, J. R. and Daniels, P. W. Eds., 2015. Handbook of service business: Management, marketing, innovation and internationalisation. Edward Elgar Publishing.
- Carlborg, P., Kindström, D. and Kowalkowski, C., 2014. The evolution of service innovation research: a critical review and synthesis. The Service Industries Journal. 34(5). pp.373-398.
- Damijan, J. P., Stare, M. and Kostevc, Ä., 2014. Impact of innovation on employment and skill upgrading of firms (No. 819). Bruegel.
- Ding, M., Eliashberg, J. and Stremersch, S., 2014. Innovation and marketing in the pharmaceutical industry. Emerging Practices, Research, and Policies. New York: Spring Science. Print.
- Ersun, A. N. and Karabulut, A. T., 2013. Innovation management and marketing in global enterprises. International Journal of Business and Management. 8(20). p.76.
- Hashi, I. and StojÄiÄ‡, N., 2013. The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4. Research Policy. 42(2). pp.353-366.
- IliÄ‡, D., OstojiÄ‡, S. and DamnjanoviÄ‡, N., 2014. The importance of marketing innovation in new economy. Singidunum Journal of Applied Sciences. 11(1). pp.34-42.
- Junge, M., Severgnini, B. and Sorensen, A., 2016. Productâ€Marketing Innovation, Skills, and Firm Productivity Growth.
- Kam Sing Wong, S., 2013. The role of management involvement in innovation. Management Decision. 51(4). pp.709-729.
- Leeflang, P. S. and et.al., 2014. Challenges and solutions for marketing in a digital era. European management journal. 32(1). pp.1-12.
- Mohnen, P. and Hall, B. H., 2013. Innovation and productivity: An update. Eurasian Business Review. 3(1). pp.47-65.
- Mooi, E. A., Wathne, K. H. and Kayande, U., 2016. Openness and Innovation Performance Revisited. Journal of Marketing Behavior. 2(1). pp.69-76.
- Ping, H. and Shunbin, L., 2014. Analysis of marketing innovation risk based on network model. International Journal of u-and e-Service, Science and Technology. 7(4). pp.95-102.
- Podmetina, D., Volchek, D. and Smirnova, M., 2015. The relationship between innovation and internationalisation in a turbulent environment.International Journal of Technology Marketing. 10(3). pp.326-341.
- Soltani, S. and et.al., 2015. Marketing innovation in rural small food industries in Iran. Journal of Food Products Marketing. 21(5). pp.533-551.
- Wagner III, J. A. and Hollenbeck, J. R., 2014. Organizational behavior: Securing competitive advantage. Routledge.