Managing Products and Service Innovation

Running head: MANAGING PRODUCT AND SERVICE INNOVATION
M A N A G I N G P R O D U C T S A N D S E R V I C E I N N O V A T I O N

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EXECUTIVE SUMMARY
The main aim of this report is to develop the strategies for new product development in Cole’s
supermarket. It is evaluated that BAH model is implemented by the company for developing a
new product. Marketplace Need, Product Benefits, Clear Differentiation, and Effective
Promotion are different factors for success in the new product development. Moreover, Idea
Generation, Screening, Concept Development, Product Development and Commercialization,
and New product development strategy are different new product development practices that are
used by Cole’s supermarket. SWOT analysis is conducted by Cole’s supermarket for developing
a new product. Furthermore, Marketing Research, Pricing Product, Product Life Cycle
Management, and Product Concept, Develop a New Product as a Project, Diversification,
Differentiation and Develop New Products in Teams are different areas in which the company
could improve their new product development practice.

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TABLE OF CONTENTS
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Detailed analysis of the organization’s new product development practices and detail areas of
strength and weakness.....................................................................................................................8
Detailed recommendations for areas in which the company could improve their new product
development practice.....................................................................................................................13
References:....................................................................................................................................17

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INTRODUCTION
This report presents the literature on new product (or service) development models and factors
for success in NPD. It also discusses the detailed analysis of the organization’s new product
development practices and detail areas of strength and weakness. This report also recommended
the areas in which the company could improve their new product development practice.
A LITERATURE ON NEW PRODUCT (OR SERVICE) DEVELOPMENT
MODELS AND FACTORS FOR SUCCESS IN NPD
Literature on new product (or service) development models
The seven process of BAH model is new product strategy, idea generation, screening and
evaluation, business analysis, development, testing, and commercialization.
(Sources: Armstrong, Kotler, Harker, and Brennan, 2015).
Idea Generation
The initial phase of new product development is a generation of the idea. The idea originated
from everywhere, could be any sort and can be numerous. This phase entails origination of high

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amount of idea from different sources such as internal sources, SWOT analysis, market research,
competition, and customers. In this way, it is identified that many corporations give incentives to
their workforces to generate the product ideas. A corporation can review its strength, weakness,
opportunity, and threats to arrive at the feasible idea. In addition, the company may constantly
review the modified needs, trends, and wants in the market. Sometimes feedbacks and reviews
from the customers and their idea could aid the corporation to generate the new product ideas
(Wowak, Craighead, Ketchen, and Hult, 2016). Moreover, competitors SWOT assessment could
also supportive for a corporation to generate the ideas.
Idea Screening
The idea could be several, but good ideas are some. This second process of new product
development entails addressing of good and feasible ideas and removal of infeasible data. There
is certain factor considers within the idea screening such as weakness and strength of the
company, need of customers, affordability, on-going trends and expected ROI (Gopalakrishnan,
Libby, Samuels, and Swenson, 2015).
Concept Development & Testing
The next phase of new product development entails concept development and testing. A concept
is a comprehensive approach and blueprint description of the notion. When an idea is created in
each phase then it should be presentable. It is an alias as a concept. All the notions, which pass
through the screening stages, are transformed into the concept for testing purpose. The concept is
now conveyed to the target marketplace. Some identified customers from the targeted group are
selected to investigate the concept (Marion, Eddleston, Friar, and Deeds, 2015). Information is
offered to the customer to aid them to imagine the product.
Business Strategy Analysis & Development

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The testing result aid the business to make the final concept to develop the products and services.
Business has developed the concept by assessing and choosing the marketing and other business
strategies, which would be implemented. Furthermore, estimated product productivity is
predicted as well as branding strategies and marketing mix is decided for the products and
services (Genç, and Di Benedetto, 2015). In this process, there are certain elements considered
by an organization such as pricing strategy, the rivalry of the product, breakeven point, and cost.
Product Development
The product concept is changed into actual substantial products and services. The outcome of
new product development phase is to build the prototype and limited production replica. In this
phase, all the branding and other strategies are tested earlier and then applied (Fung and Choi,
2018).
Test Marketing
The actual prototype and feedback are developed for the investigation unlike the concept of
testing. Customer feedback is gathered and makes an alteration, if necessary in order to develop
the product. This procedure is significant because it validates the whole notions and develops the
corporation for launching the products (De Massis, Kotlar, Frattini, Chrisman, and Nordqvist,
2016).
Commercialization
The product is ready for marketing. The marketing mix is used at this stage to launch the
product. The final decision is made in this stage for developing the products and services. In this
phase, marketers are decided to launch the product. This phase entails the briefing about distinct
departments regarding the targets and duties. In this stage, each small and major judgment is
developed before final introduction stage of the new product development (Fuller, 2016).