MKT6304 New Product Development

Running Head: MKT6304
New Product Development – Electric Car

MKT6304
Executive Summary
An electric car is the most effective product within the market to reduce pollution level from the
entire world. Taira is my organization which is producing the product electric car for the benefit
of the customers. The car has been developed from the compact of the electric products that are
being used as the eco-friendly product within the market. This product is also user-friendly and
almost every age people have the authority to drive this car. The primary competitor for my
organization is Chevy Bolt as this also an electric car but the organization is providing
innovative product in an electric car to the market to grab the attention of their customers. This is
one of the best product within the market that is being provided by the company for the benefit
of the people. The packaging is also done with effective employee’s behavior and selling concept
and also the product is launched with effective working function within the market.
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Table of Contents
Introduction.................................................................................................................... 3
Overview.................................................................................................................... 3
Competition................................................................................................................ 3
Problem statement............................................................................................................ 4
Product......................................................................................................................... 4
Description and specification........................................................................................... 4
Idea Generation............................................................................................................ 5
Concept testing............................................................................................................ 5
Business analysis.......................................................................................................... 6
Market Segmentation..................................................................................................... 6
Cost and expected sales.................................................................................................. 7
Market risk and benefits................................................................................................. 8
Customer profile.............................................................................................................. 9
Target market.............................................................................................................. 9
Market statistics......................................................................................................... 10
Key strategic decision.................................................................................................. 10
Test market.................................................................................................................. 10
Brand Strategy.............................................................................................................. 11
Packaging.................................................................................................................... 12
Product launch.............................................................................................................. 13
5W’s....................................................................................................................... 13
Objectives................................................................................................................ 14
Message................................................................................................................... 15
Geographic coverage................................................................................................... 15
Budget..................................................................................................................... 16
Marketing cost........................................................................................................ 16
Financial statement and budget forecast.........................................................................17
Conclusion................................................................................................................... 18
Self-Reflection.............................................................................................................. 19
References................................................................................................................... 20
Appendix..................................................................................................................... 25
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MKT6304
Introduction
The development of new product within the market is the most suitable way to provide
innovative products within the market (Strittmatter, & Lechner, 2017). It is used for the growth
of the company and also to fulfill the requirement of the customers. In this, the innovation
management plays the vital role to introduce effective product within the market. My
organization Taira is going to create the innovative product that is Electric Car for the world and
it is entirely my decision and thinking for the creation of this product. The purpose of the paper
is to understand the product development process and also discuss the launch of the product in
the market. The paper also discusses the specification of the product along with the marketing
and the business strategy and also discuss the target market of the firm for their product.
Overview
In the present world decreases in oil refinery causes a huge damage to the environment as well as
for running vehicle too. For this reason, my company has innovated a new electric car model that
is eco-friendly and thus fulfill the needs of customer also. An electric car is one which is run by
electric motor apart from gasoline (Felekoglu, & Moultrie, 2014). Apart from this, the electric
car stored energy by the rechargeable batteries that are recharged through the common household
power supply. In the today’s world, people are more concern about the global warming process
so instead of using diesel car they are using electric for getting rid of this difficulties. Thus Taira
has introduced a new model of electric car that can fulfill all the needs of the customer with their
innovative designs, color, and innovative business strategy. The organization main aim is to
gives the superior quality of product to the market so they make a huge profit locally and
internationally.
Competition
One of the biggest competit6or for my company and the product that new product is the Chevy
Bolt which is also an electric car. The electric car that is designed by Chevrolet is also eco-
friendly and provide quite a similar offer as that of the Taira model. Similar to Taira they also
offer innovative color of their vehicle and having the 10.2-inch digital color touch screen
(Tukker, & Tischner, 2017). Both of this company offers similar type of car model that means
where Taira electric car goes 22 to 31 miles per charge hour while Chevrolet goes 25 miles
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charge per hour with a charging unit of 240/32-AMP and along with it also gives safety
arrangement pack so it becomes one of the biggest competitors of Taira (Yeniyurt et al., 2014).
Since both of the company has introduced similar kind of electric car model so the new business
strategy of Taira is to introduced new electric car model which gives better feature than that of
the Chevrolet electric car model and hence it also helps to increase the market growth locally and
internationally. Apart from this, the Chevrolet electric car model is not familiar to the customer
because of its high cost and thus the Taira want to introduce a new car model so that their market
growth increases.
Problem statement
The pollution level in the world is exceeding its limit and all this occur due to the rapid growth in
the industry as well as vehicles within the country. It became essential for the world to deal with
this issues within the market and for that new and innovative way of maintaining the pollution
level is being introduced (Leenders, & Dolfsma, 2016). To deal with the issue in the market the
most effective and the suitable way is to use products that do not emit carbon dioxide which will
maintain the pollution level of the world and provide a suitable atmosphere in the market.
Product
Description and specification
The new electric car model of Taira has many innovative features that include not only new
design and color but also have many different specifications that can make the model as one of a
best electric model in the automobile industry. This new electric model offers 260 to 340 miles
of a range and having a speed of 2.2 to 4.1 second at 0-60 mph which can fulfill all the needs of
the customer apart from the older electric car model. In the former electric car model of Taira the
customer had to pay a certain amount of amount for charging purposes but in case of the new
electric car model, the charging procedure will be free and unlimited too (Chung, & Kwon,
2015). Along with this, the former model has battery packs of 50 kWh to 70 kWh power that is
needed for charging the battery of the car while in new model they have introduced a new idea of
incorporating the battery pack in the range from 75 kWh to 100 kWh power.
My company offers three variants of the electric car- 75A, 100A, and S100A. The differences in
between this three variant is that in case of 75A which has a battery pack of 75kWh that goes up
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to 489km having a speed of 225kmph and can complete 1km in just about 4.2 seconds, the next
variant is 100A which has a battery pack of 100kWh and can cover 632km having a speed of
250kmph and can cover 1 km in just 4.2 seconds. Apart from this, the third variant is the S100A
which can cover 613 km with a speed of 250kmph and having a battery pack of 100kWh. This
variant covers 1km in about 2.5 seconds with a speed of 250kmph. So all this model are quite
innovative and hence Taira is introducing this new model in the market.
Idea Generation
The idea of the generation of the new product can originate from various sources since they are
not developed in the market. Actually, the idea of launching a new electric car in the market by
Taira has arisen as they want to fulfill the needs of the customer. The idea of this product mainly
comes because it gives a huge profit to the company as well as the customer as by using this type
of electric car the environment does not get so much polluted (Cherubini et al., 2015). Apart
from this the sources that mainly influences the launching of the electric car includes the external
stakeholders, distributors, competitors and also the environment pollution factor that forces the
company to make an electric car model. Hence with the using of petrol and diesel car in present
world which creates a greater level of pollution in the environment that gives rise to global
warming and also it decreases the resources of oil in the world and for this reason the main
motive of the company is to make new car in the market which is eco-friendly and also it can
fulfill all the needs of the people (Nayum et al., 2016).
Concept testing
Before a product should launch in the market, the ideas of testing the product are the main
function of the company so that any problem related to that product should be eliminated and
hence it does not causes any issue to the customer regarding this product. Concept testing is the
stage where the quality of the new product has been tested before coming to the market. The
stage also includes all the idea that helps the customer to buy the innovative model as well as
from this it can also make their business profitable in the market (Brandstätter et al., 2016). This
is the process where company grabs the fruitful idea which can help their business growth in the
market and eliminate all the new ideas that are destructing their market product. Hence the Taira
company market strategy is to make the electric which to not only decreases the pollution rate
but also makes the people aware of using the petrol or diesel model that can destroy the
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