Many organizations adopt the strategy of developing new products to expand their business. However, before introducing a new product to the market, a company has the role of conducting market research. Market research is usually significant because it helps the institution determine a gap in the market. It also helps to know customer preferences regarding a product’s quality. Research would also enable the company to determine the existence of similar products in the market. This would help investors to know what other companies may not be doing when producing similar products or if there could be enough market for the new product. These findings would be critical because the organization will evaluate the success of the new investment. It also notes different strategies that can be utilized to give the new product a competitive advantage. There are various strategies the company needs to use for it to succeed in the new investment. These may include assessing the target market, choosing a good manufacturer for the product, evaluating market reception, proper packaging, and the possibility of adopting changes if a product does well.
The company has to consider the target market when manufacturing the new product. The target market is significant because it would determine the type of product that needs to be produced. It also facilitates the selection of the need that has to be met by the new product. Evaluation of the target market will also enable the company to know the composition of customers. For instance, they could know different ages in an area where the company intends to sell the product (Rummo et al., 2020). Considering these would enable the company to emphasize developing a product that meets the needs of older and younger generations. Most importantly, the institution will be able to identify the youth population in the market. This is because developing a product that appeals to the youth would assure the company’s longevity in the market. Notably, keeping the youth in consideration when producing the product would be beneficial to the company because it would be in a better position to get generational customers who would stick to the new product and probably become loyal to the organization to the extent of being willing to purchase other new products it may launch in the future.
The manufacturer’s choice would be crucial to the success of the new product. The company should choose a manufacturer who has a good reputation. The manufacturer should be known for making timely deliveries, producing good quality products, and using good production methods (Mohammadi et al., 2020). The manufacturing should also be relatively affordable, enabling the company to use only a little funding for the investment. The manufacturer should also have an efficient, well-laid procedure in case of production delays. This will ensure no shortages in the market and assure the company of continuous income. After analyzing these aspects, a manufacturer whom the company feels to be satisfactory would be ideal for entering into a contract. Additionally, while choosing a manufacturer, it would be significant to select a manufacturer who understands the target market and the needs the new product would meet. In this case, the company’s chosen manufacturer operates in a small town in China.
The reception of the product in the market is essential when introducing a new product. The company can, therefore, adopt an approach where the production of a low quantity of the product is done first. These products can then be availed in the market for customers to purchase. This would enable the company to research the new product’s potential to succeed. When selling a new product, salespeople should focus on how customers react. For instance, they may evaluate if the customers liked the packaging or even the percentage of customers who showed more preference for the product over similar products from other companies (Boz et al.,2020). The company can also advertise the product on different media platforms and provide store details where they can get it. If many customers show up to buy the product from these stores, the company should acknowledge that the product will do well in the market. In addition, the company may decide to utilize promotions. These promotions may entail giving customers a free sample of the new product when they purchase an old product marketed by the company. This approach would be critical in creating awareness of the new product.
The packaging of a product can affect its performance in the market. It is, therefore, essential for the company to choose good packaging. The packaging that will be utilized for the new product is a folding carton with a three-color print. The printing method I will choose for the small runs would be digital printing. This is because management of this method is easy since it only requires a little planning. The market is also dynamic, so changes may be adopted over time, making digital printing ideal. Digital printing would facilitate printing images and data from a computer to paper (Rahmat et al., 2022). This printing method has the advantage of making every print different, which can be significant in the penetration of the product in the market. Digital printing would also benefit the company because it is economical. It does not involve waste of resources like chemicals and paper (Rahmat et al., 2022). This would ensure that the company does not spend a lot in launching the new product. Additionally, I would choose digital printing because it does not involve the usage of ink, which can negatively affect the environment.
Some changes could be adopted if the product does well. For instance, changes can be made to manufacturing. The current manufacturer’s production potential must be assessed if the demand becomes high. If they cannot meet the demand, a proposal would be submitted to the current manufacturer to partner with another organization. This would ensure that the required quantity of products is available. Changes will also be adopted in the packaging after consideration of the culture of the customers (Boz et al.,2020). For instance, it may be challenging for three-color prints to appeal to American customers. In this case, adopting packaging that would be more attractive to these customers would be significant in the product’s success.
Businesses expand through investing in and launching new products. However, introducing a new product should be done after investors conduct research. Investors should emphasize assessing the target market, choosing the proper manufacturer for the product, evaluating the market reception of the product, choosing proper packaging, and considering the possibility of implementing a change if the product succeeds in the market. Considering all these aspects would contribute a lot to the new product’s overall performance and the company’s success.
References
Boz, Z., Korhonen, V., & Koelsch Sand, C. (2020). Consumer considerations for the implementation of sustainable packaging: A review. Sustainability, 12(6), 2192.https://www.mdpi.com/2071-1050/12/6/2192
Mohammadi, S., Al-e-Hashem, S. M., & Rekik, Y. (2020). An integrated production scheduling and delivery route planning with multi-purpose machines: A case study from a furniture manufacturing company. International Journal of Production Economics, 219, 347-359.https://www.sciencedirect.com/science/article/pii/S0925527319301987
Rahmat, N. B., Ali, N. A. M., Kamaruzaman, M. F., Rosnan, S. M., & Sumarjan, N. (2022). The Digital Printing Technology Exploration in Commercial Printing Companies. KUPAS SENI, 10(1), 34-41.https://ojs.upsi.edu.my/index.php/JSPS/article/view/7230
Rummo, P. E., Cassidy, O., Wells, I., Coffino, J. A., & Bragg, M. A. (2020). Examining the relationship between youth-targeted food marketing expenditures and the demographics of social media followers. International journal of environmental research and public health, 17(5), 1631.https://www.mdpi.com/1660-4601/17/5/1631
write