Managing Product Service and Innovation

Running head: MANAGING PRODUCT SERVICE AND INNOVATION
MANAGING PRODUCT SERVICE AND INNOVATION
Name of the Student
Name of the University
Author Note

MANAGING PRODUCT SERVICE AND INNOVATION1
Table of Contents
1. Introduction................................................................................................................2
2. New Product Development........................................................................................2
3. Factors that affect new product development framework..........................................3
4. Product related factors................................................................................................4
4.1 Pricing of the products.........................................................................................4
4.1.1 Factor One related to company.....................................................................5
4.2 Uniqueness of the product....................................................................................6
4.2.1 Uniqueness of new products offered by Coca Cola......................................6
5. Market related factors................................................................................................7
5.1 Concentration of target market.............................................................................7
5.1.1 Target market concentration of Coca Cola...................................................8
5.2 Levels of market competitiveness........................................................................8
5.2.1 Market competitiveness of Coca Cola..........................................................9
6. Critical success factors and issues related to the company........................................9
6.1 Strengths.............................................................................................................10
6.2 Weaknesses........................................................................................................10
7. Recommendations....................................................................................................11
8. Conclusion................................................................................................................11
9. References................................................................................................................12

MANAGING PRODUCT SERVICE AND INNOVATION2
1. Introduction
The analysis that will be made in the report will be based on the ways by which an
organization is able to develop new products with support that is offered by the internal and
the external environment as well. The factors are able to develop opportunities that are
related to the proper growth of the organization with the help of introduction of the new
products (Ayağ, 2016). The organization that has been taken into consideration for analysis is
Coca Cola. The factors that are related to effective development of new products in the
organization will be analysed in the report in detail (Athaide & Stump, 2015).
The Coca Cola Company is a multinational American organization that operates in the
process of manufacturing, retailing and marketing of non-alcoholic beverages, syrups and
concentrates. The organization is known in the industry for the flagship product named Coca
Cola that was invented in the year 1886 by a pharmacist named John Stith Pemberton in
Atlanta, Georgia. The formula related to development of Coca Cola was thereby bought by
the organization in the year 1889 at the cost of 2300 US Dollars. The original drink named
Coca Cola was invented by the pharmacist named John Pemberton in the year 1886. The
company has been successful in maintaining its leadership position in the industry with the
help of the diverse line of products that are offered to the customers.
2. New Product Development
As discussed by Calantone, Di Benedetto and Rubera (2018), new product
development or NPD can be defined as a process that helps the organization to introduce new
products in the market. The business also needs to engage in the process in order to address
the changes that take place in the preferences of consumers. The increase in levels of
competition and the advances in technology have led the organizations to capitalise on the

MANAGING PRODUCT SERVICE AND INNOVATION3
new opportunities. The most important aspect of new product development or NPD is
considered to be the design of the products (Chaudhuri & Boer, 2016).
According to Chuang, Morgan and Robson (2015), the process based on new product
development is able to help the organization in order to transform the opportunities that are
provided by the market. The products that are developed as a part of the process of new
product development can be either tangible or intangible in nature. The method of NPD also
requires high levels of understanding based on the wants and needs of the employees. The
nature of the market or the competitive environment are also able to affect the process that is
implemented for the purpose of developing new products (Cooper, 2019).
As discussed by Cui and Wu (2017), the most significant factors that are a part of the
process based on new product development include, quality, time and cost. The needs of the
customers are driven in an effective manner by the different benefits that are offered to them
by the products and the services (Echeveste, Rozenfeld & Fettermann, 2017). The challenges
and uncertainties that exist in the market have an impact on the ways by which organizations
can aim at developing new products that can be offered to the consumers. The effective
elimination of barriers is considered to be important for the ways by which organizations are
able to develop the products in order to satisfy the needs of consumers in an effective manner
(Durmusoglu, Hirunyawipada & McNally, 2017).
As discussed by Gao and Bernard (2018), the products that are already being provided
to the customers within the industry may be technologically outdated in nature and need to be
changed in order to fulfil the needs of consumers in an effective manner. The organizations
can maintain their positions in the industry in a sustainable manner with the help of new
services and products. The target customers of the organization can be satisfied effectively
with help of new products that can be offered to the customers (Genç & Di Benedetto, 2015).