...Every business owner wants to grow their business but it is often difficult to determine the best way forward. Here is a straightforward description of four different growth strategies and an explanation of how to determine which is best for your business. Igor Ansoff suggested that business owners’ ability to grow their businesses comes down to how they market new or existing products in new or existing markets. He outlines four distinct strategies: - Market Penetration – selling more of the same things to more of the same customers - Market Development – selling more of the same things to different customers - Product Development – selling new products or services to the same customers - Diversification – selling new products or services to different customers Using Ansoff’s matrix, business owners can evaluate each of the growth strategies in turn to assess which is likely to result in the best possible return. Market Penetration Market penetration is the easiest way to grow in an expanding market. However, it becomes more difficult as the market matures and competition increases. The obvious step is to increase advertising or add more sales people to increase sales. Alternatively, business owners can win business from competitors through competitive pricing, discounting, vouchers or other offers. Business owners can also boost sales by providing additional incentives to sales staff through commissions, bonuses or other reward schemes or by introducing customer loyalty...
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...Market definition 8 3.2 Total market size 8 3.3 Market need 8 3.4 Estimated segment size 9 Using a product development process 10 Process application – Opportunity identification and selection 10 Concept generation 10 Concept/Project evaluation 10 Defining the product protocol 11 Conclusion 12 Recommendations 13 References 14 Executive Summary New product development in tourism companies has been a nearly ignored theme in tourism marketing. Research on product development has in major studies handled destinations, development of resorts or sites as a total tourist product. We will aim to identify the major problems as well as key phases of the new product development process in tourism. We will have the challenge to innovate more and more attractive activities to fulfil the customers’ needs for emotional experiences. The theoretical framework is based on the traditional product (and services) development theory, which suggests it to be a process of following stages: idea generation, service concept development and evaluation, business analysis, service development and testing, market testing, commercialisation and post introduction evaluation. We will evaluate the usefulness of the traditional product development model in the direction of creating a service to give adventurous experiences to tourists. INTRODUCTION The service concept, the core product is built on an idea of e.g. hard adventure, soft adventure, water sports etc. The concept is then developed...
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...Strategic Management Seminar Work Topic: “Classification of Strategies” Moritz Irmen 14.11.2012 University of South Bohemia Ceske Budejovice Table of Contents 1. Introduction 2. Strategies in General 1. Market Strategy 2. Product and Service Strategy 3. Organization Strategy 4. People Strategy 5. Finance Strategy 3. Ansoff Matrix – Applied Strategies to four different senarios 1. General Information 2. Product Penetration 3. Product Development 4. Market Development 5. Diversification 4. Conclusion 1. Introduction Strategies are often being used to adapt to different scenarios in the market and push the company in the better situation to handle the new and often inexperienced environment. They are specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives. The wide rage of strategies, in every field/part in an organization, allows companies to find the right strategy for implementation in different kinds of scenarios. 2. Strategies in General 1. Market Strategy Market strategy is an essential part of the strategic management, in order for companies to succeed in the comparative market that exists today. This strategy takes in account the company’s relationship to existing and potential customers, its knowledge...
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...improve the new-product development process at FHE? I would be remiss if we didn’t start by mentioning that the problem actually started with the Executive Management Team and the CEO. The organization chart shows a lack of cross-functional decision making which results in the inability to integrate operations. I don’t believe it is his place, but Lum Donaldson should suggest that Phil Thomas, vice president of corporate development and marketing who is currently responsible for both areas of marketing and design engineering split his duties and Merle Alison who is obviously in charge of the engineering group be put in charge of design engineering. Phil, needs to do what he does best and lead the marketing team to working with customers to create demand of the company’s products. This way there can be clear direction designed for the coordination of successful introduction of new products. With an extended Executive Committee consisting of Phil Thomas, Merle Alison and Norman Hart there will be more collaboration and better insight to running a new product through the companys processes. Lum Donaldson needs to coordinate the relationship between product managers, technical program managers, and marketing managers. Lum needs to clearly define the requirements necessary at each phase of project development so that the engineering services department is able to produce results in a more efficient manner than is currently possible. The new product development process can...
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... We would also like to express enormous gratitude to our respectable teacher “Mam Malka Liaqat” for providing the direction, all scope of this report and for helping us in refining our effort and ideas. We also acknowledge the help and pleasant gathering of all our class Fellows. We are also thankful to all of those people who helped us in Accomplishing our report. Executive Summary Production strategy is critical to effective international operations. Since most goods and services have very limited lives, MNE’s must continually provide new offerings and this can be accomplished only through a well-formulated production strategy. The purpose of report is to understand how MNE’s carry out this process. In doing so, we have focused on the entire range of production strategies from research and development to manufacturing, to shipment, and to the final international destination. We have discussed the most current...
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...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product development...
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...ASSIGNMENT COVER SHEET(to be completed by the student) | AIB student ID number: | A12784 | | | Student name: | JASON FARADAY | | | Course name: | MARKETING MANAGEMENT | | | Subject name: | NEW PRODUCT MANAGEMENT | | | Subject facilitator: | TIMITRA WILLIAMS | | | Teaching Centre: | SITAL COLLEGE OF TERTIARY EDUCATION LIMITED | | | No. of pages: | 14 | | | Word count: | 1913 | | | DECLARATION | I, the above named student, confirm that by submitting, or causing the attached assignment to be submitted, to AIB, I have not plagiarised any other person’s work in this assignment and except where appropriately acknowledged, this assignment is my own work, has been expressed in my own words, and has not previously been submitted for assessment. | ASSESSMENT SHEET(to be completed by the examiner) | Student name: | | | | Course name: | | | | Subject name: | | | | Assessor/marker: | | | | COMMENTS | Principles learnt (for example, number and understanding of principles referred to, their influence on the structure of this paper, number and correct citations of references, use of appropriate jargon) | | /4 | | | Application of principles. That is, the analysis and evaluation of the example problem based on the principles, including the final recommendations and their justification | | | /8 | | | How well the example problem was described, including the extent and depth of information...
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...six assumptions held by Kelly; six to nine assumptions held by Pat; two to three assumptions held by Cliff; two to three assumptions held by Chris. a. Kelly- the Senior Engineer is perhaps the most realistic of the employees. The statement in the February 19, 2003 email explaining, “I can design one feature completely and make it work by August," is credible (UOP, 2003, p. 17). After all, the same email explains that programming involves much more than key strokes. It involves planning, testing and quality control (p. 17). In the previous February 19, 2003 email to Chris, Kelly explains how difficult it is for the programming staff to maintain existing services and find time for something new (p. 16). While programming staff was dramatically reduced in the year prior, Kelly’s belief might be partially fallacious. If the new project utilized the current programming code or design and need some refinements, it might be possible. In many ways, Kelly makes an appeal to pity, seeking exemption from the requests. Whereas Kelly does articulate the reality of engineering and programming, the processes involved and the timeline, Kelly believes that her meeting with Chris will also result in another argument. This belief...
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...Accelerated Innovation: The New Challenge From China Magazine: Summer 2014Research Feature April 23, 2014 Reading Time: 23 min Peter J. Williamson and Eden Yin Rather than focusing on technological breakthroughs, Chinese companies are finding new ways to innovate that reduce lead times and speed up problem solving. Companies elsewhere should take notice. Chinese companies are reengineering new product development in ways that reduce lead times. Chinese companies are opening up a new front in global competition. It centers on what we call accelerated innovation — that is, reengineering research and development and innovation processes to make new product development dramatically faster and less costly. The new emphasis is unlikely to generate stunning technological breakthroughs, but it allows Chinese competitors to reduce the time it takes to bring innovative products and services to mainstream markets. It also represents a different way of deploying Chinese cost and volume advantages in global competition. Silicon Valley and other technology hotbeds may be able to match the speed of Chinese innovation in particular sectors such as electronics and Internet-based services. However, what’s distinctive about the strongest Chinese competitors is their capability to combine accelerated innovation with rapid scale-up to high volume at low cost, and to apply these techniques across a wide variety of traditional industries. We saw accelerated innovation being deployed...
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...R&D/Product Engineering Services Mukesh Dialani IDC OPINION As HCL Technologies likes to put it, product engineering is in its DNA. Since inception of its group operations more than 30 years ago, the company has invested in creating technology products and offering engineering services to its customers. Until recently, its focus was to position itself as a "technology services provider." IDC believes that in order to scale revenue and utilize its assets more productively, the strategy has changed since the past five to six years to include other IT services offering. As a result, engineering and R&D services now contribute to approximately 26% of HCL Technologies' total revenue. IDC has made the following observations: ! It is commendable to note that revenue for R&D/product engineering services has risen by 40%, while head count has risen only by approximately 24%. This indicates that HCL is successfully optimizing the use of its resources. ! Among its various initiatives, its Global Risk Reward Partnership (GRRP) model is unique and does enable it to create differentiation. However, success of this partnership will be determined by analyzing customer adoption over the next 2–3 years. ! HCL Technologies has created a sound and robust ecosystem consisting of partnerships, alliances with educational institutions, and manpower certification. ! It has acquired more than 270 customers and its top 10 customers contribute to approximately 38% of revenue for these services. This...
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...tap into other markets with their product. To add to the challenges of creating new products into new markets, profits are down and the CEO is requesting that all departments except for Sales and marketing cut their budgets by 15%. This summary will help design a plan of action to help AcuScan develop new products and move into new markets which will increase their profit margins and make them a leader in their expertise. Revenue for AcuScan used to be 50/50 when it came to sales and service of existing products. However, today service makes up about 70% of AcuScan’s revenue which is a very low profit margin. To go along with that issue, the CEO is requesting that the majority of departments cut their budget. Chris the VP of of Product Development is overseeing the budget cuts. He hopes and expects that there will be no layoffs associated with the budget cuts. Chris and Pat, the Director of Marketing would like to tap into other markets by utilizing the existing product they already have. Pat, and Chris’ idea is to tap into the retail market by utilizing their security retinal scanning hardware and software. The hopes of providing this to business owners would be able to have the equipment available at their stores for scanning purposes which will provide data about the customer’s needs and wants. The biggest issue that needs to be addressed is that Pat, the marketing Director and Kelly the Senior Engineer for product Development are having a hard time communicating...
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...the last five years, FHE has aggressively introduced new products and has experienced an increase in sales and profits as a result. FHE views aggressive and efficient product development as a means for growth and success. Improving the speed and efficiency of bringing products to market is a critical component of this strategy. As such, the Engineering and Marketing functions are organized into one team which is led by Vice President of Corporate Development and Marketing, Phil Thomas in order to facilitate cooperation during new-product introductions. This new organizational structure has caused overlap and uncertainty around roles and responsibilities in two critical positions within the team, the technical program manager and the product manager. In addition, manufacturing has not been included in the upfront design of the product and is only brought into the process during the testing phase, once the product has been designed and approved. FHE’s Product Development Engineering Manager, Lum Donaldson is reviewing the product development process and looking for opportunities to improve their operations. Currently, the product development process takes 1 year. The process involves Engineering, Marketing and Manufacturing. These three organizations are expected to work closely together during the development process. In his review, Donaldson has seen a bottleneck in the Engineering Services organization where up to 20 new jobs can be in the cue at one time. In addition, Manufacturing...
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...model for NPD: "The New Product Development Cycle" The NPD cycle is a circular arrangement of product development stages that result in the commercialization of new products. The stages for NPD consist of planning, design and prototype, production and pilot production, distribution, sales and marketing, and after sales servicing stages. Although there is a logical progression through the stages, after a product is developed, the cycle is continuous in order to promote improvement. Different phases of the projects rotate through the NPD cycle at the discretion of senior management. Planning Planning stages of NPD project are usually geared toward international business when feasible in order to increase geographical markets and market potential. With an increased market potential, the NPD investment decisions become more salable (Terpstra & Sarathy, 1991). Concept development occurs during the planning stages and includes new product and process ideas from many sources. Inputs from all areas of the organization, customers, noncustomers, suppliers and external research organizations are taken into consideration for new product concepts. The organization constantly expands its knowledge base and access to information to increase the number of new product and process ideas considered for development. Instituting procedures and incentives that encourage innovation and input from all parts of the organization continually increase the number of product concepts considered...
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...speed of take out service. Supportive for take out only interested guests, augmentative for guests who would eat there regardless of take-out option. Offering better packaging. Better take out service can improve the customer volume. 2. Weekend to Las Vegas Facilitating: Flight, taxi, hotel, restaurants, nightlife, entertainment Supporting: First class seat at airplane, distinguished amenities, room service, no cover charge. Augment: accessibility to local attractions, atmosphere of the restaurant/ bar/ casino, interactions with employees or other guests. 3. ARAMARK might believe that attaching a brand like “ Burger King” to their product that they are different themselves from the other competition. By attaching themselves to a hamburger brand, they are ensuring a level of quality in their food. ARAMARK is making itself look like the dominant presence in the market to customer who might not have been familiar with it. Using brand of equity of Burger King will attract the regular customers. 4. Making the process for new product development Idea Generation: create a large range of possible ideas. Idea Screening: sort through all ideas to find the good ones. Concept development: determining market and fits. Marking strategy: molding the concept to the market. Product development: product into a prototype Market testing: test product in realistic setting Commercialization: launching of a product. 5. It does not because new product ideas are created...
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...Innovation: Product innovation is the creation and subsequent introduction of a good or service that is either new, or improved on previous goods or services. Product innovation is defined as: the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products. Systemmatic Innovation of Products includes: * Technology strategy * Design thinking skills * Customer needs analysis * Systematic creativity methods * Market and pricing strategy * Design for environmental sustainability * Design of services * Capturing value from innovation * Development process design * Product and service leadership * R&D organization and teams * Managing complex technical projects * The future of design process and culture The development and market introduction of a new, redesigned or substantially improved good or service. might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of newcomponents, materials or desirable functions into an existing product. Meaning of New Product Development: Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new product development (NPD)...
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