New Product Development and Employee Acceptance in Business Management and Marketing

This report discusses the process of new product development and employee acceptance in business management and marketing. It explores the impact of new products on the company environment and the threat of competitors. The report also provides insights into Nestle's launch of a new gym juice product and the strategies it can use to gain a competitive advantage.

BUSINESS MANAGEMENT AND
MARKETING

Business management and marketing:
Contents
Introduction...........................................................................................................................................2
New product development.....................................................................................................................2
Employee accept the proposal of a new product....................................................................................3
New product affecting the company environment.................................................................................5
Threat of Competitors............................................................................................................................6
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

Business management and marketing:
Introduction
Product is the life-blood of the organisation. New product creates new value for
customers, improves the society, and enables continuous existence of the company. To have
successful product launch, an organisation should make strategic plan of how the new
product cope up with internal and external factors. After identifying the available resources, a
strategic plan focuses to exploit the available opportunities (Tantalo, & Priem, 2016). If the
product does not offer new value to customers, the firm will eventually die. Due to new
product development, the customer has wider choice of products available to them. The
existing market does not lack products. However, each time, product offerings are improved
to satisfy customers. In this report, Nestle has been launching a new product, which is a gym
juice in order to increase the market share and overall turnover. The purpose of Nestle is to
establish its brand and meet the demand of large number of customers. The aim of new
product development process is to cater and fulfil the needs and demands of market
segments, which are niche. Employees figure out a way to solve the problems faced by the
customers. Hence, they search for an idea that can meet the needs of customers.
New product development
New product development is the process of introducing and bringing new product in
the marketplace. The need to develop new products can be due to changes in the consumer
preference, increased competition, and new technology. Innovation in business is crucial
because of changing market needs. Numerous new ideas are identified which can fulfil the
demand of the people. Hypothetically, for developing new product and launching it in the
market nestle is choosing gym juice as a product. Development of new product requires
identifying target audience (Thrassou, Vrontis, Chebbi, & Yahiaoui, 2012). Before launching
any product, the organisation undertakes market research for identifying target audience.

Business management and marketing:
Another important research technique is brainstorming where creative thinkers from outside
or inside the organisation helps in product development. Nestle must have analysed various
marketing environment analysis such as SWOT and pestle analysis. When nestle launches its
new product that is a gym juice, Nestle should communicate to chefs, employees who will
assist in the production of new product. The content should be nutrients rich that can attract
the most customers. The chefs may give sample of a unique gym juice consists of high
protein, vitamins, and minerals (Anderson, 2008).
Employee acceptance the proposal of a new product
An employee should have strong product argument that can support every new idea of a
product. The employee should have good communication and presenting skills. The product
idea must solve any problem of the consumers and have the ability to generate maximum
revenue. The product launching should have relevant reason that can meet the demand of the
people. The presentation in the meeting should define the target audience, and develop
marketing campaign methods to reach the target audience. The employees can incorporate a
set plan for a product presentation (Saeidi, Sofian, Saeidi, Saeidi, & Saaeidi, 2015).
Moreover, the managers seek how product launching will benefit them and the company.
Preparing to introduce and launch new product, it is crucial undertaking for any business. The
company has to invest considerably huge time, money, and resources to develop a new
product. A strong internal communication is important for new product launch.
Communicating the product to company employees make them responsible to help the
workers to increase productivity. The presentation can have two sessions-
 First session can outline the market research that inspires new branding strategy
(Rothaermel, 2015). Market research gives critical information and direction. It

Business management and marketing:
focuses on market needs and demands, pricing, distribution channels, and motivate to
buy. Researchers are critical to all decisions. The employees present the current
market share of each product they manufacture. The employee convinces how the
market share of the company will be wider by launching new product. After collecting
the market data, the company identifies nature of different audiences. Therefore, the
company can strategize marketing campaigns accordingly.
 The second session can outline key elements of business strategy. The launching
procedure of the product should assist to accomplish mission and vision strategy of
the organisation. This session includes discussion about new product development
process. Test the new product in the market (Grant, 2016). However, the distributor
and sales organisations can be comfortable selling it. Finally, the organisation need to
promote the product through advertising, promotional literature, samples, website,
seminars, and technical literature. Time, research, and planning assist in increasing
the possibility of success.
Youth is very much fond of gym activities. Youth is advised to take proper diet by their
trainers when exercising. Nevertheless, no single fruit juice contains all the appropriate
contents, which are advised to take during workouts. Therefore, nestle kept identifying the
market needs and finally had an idea to launch the gym juice. The idea generated by the
employee is responsible for idea screening. Employee must have explored various product
ideas. However, employee found to bring the gym juice as a product.
 Creating brand ambassador- Certain managers who plays important role in
corporate communications can represent the new product as a brand ambassador
because the manager have good image on the part of company. These managers
can play a role of brand ambassador because of their diversified personality traits
such as positivity and, enthusiastic supporter.

Business management and marketing:
 Produce sales staff- Before launching the product in the market, the company has
to identify its marketing strategies through which the company can promote its
product across the target audience. The company can offer free samples to the
target market. Their positive feedback will add to product ability to penetrate the
market.
 Marketing and promotion of new gym juice will be critical. The need for
promoting the product is attractive packaging. The company have to opt the
marketing strategies in accordance with the specified customers. The company
can use various modes of marketing such as television, F.M. channel, newspaper,
and radio. The pricing strategy plays an important role in launching new product.
The higher prices of the gym juice may imply a negativity among the consumers
for the juice not to buy it. The company should introduce its product at low price
with best quality. So that, low price can attract maximum audience. To promote
the product internally, the people in the management discuss the objective of the
launch. The company focuses on the strategies to position their product at the
marketplace. The aim of launching a new product is to solve the prevailing
problem of the customers through supplying the particular product. Discussing the
great idea of the product and encourage open discussion involving all the level of
managers. These product strategy meetings are positive and futuristic
conversations.
New product affecting the company environment
The introduction of new product in the internal environment affects the working of
the organisation. The focus of the managers adjusts to all product being manufactured.
Manufacturing new product can either create complexities in the organisation structure or
allow the organisation to ripen the organisation. If there is proper division of labour, it is

Business management and marketing:
possible that each team of labour may efficiently contribute to the organisation`s growth.
There are various effects on the organisation due to new product development-
Value of employees- The strength of employees is an important internal factor. Check
whether workers are excited to work on new product or they are of afraid that their work can
create loss (Nuryakin, Aryanto, & Setiawan, 2018). Check whether employees are motivated
or not. If not, workers will produce better results. For new product, employee and department
collaborate on ideas. Company starts operating new current processes for new products.
Before the processes, the company has to recognise that how far are the processes ethical.
Strength has favourable effect on the business working whereas weaknesses can have harmful
effect on the product (Wagner, & Hollenbeck, 2014).
Company culture- By exploiting the additional internal resources and meeting the
demanding global competition, company creates value for its product. These resources should
create a unique product, which has unique advantages and core competencies. Core
competencies are capabilities that create firm`s competitive advantages over rivals. Core
competencies in new product distinguishes it from the competitor`s product. Core
competencies do not develop over time. Various organisational processes are applied to
deploy different resources and capabilities.
The driving force behind new product development is change and uncertainty. One
problems that organisation faces is how to cope up with the uncertainties and risk evolving
from globalisation, internationalisation, short life cycle of the product, brand and increasing
pressure to innovate. New product development is the best way to manage demand for the
certainty that is caused by innovation, market, seasonality, supply chain management, and
market situations (Zsidisin, Hartley, Bernardes, & Saunders, 2015). These uncertainties
indicate demand the need to be flexible towards the expectations of consumers for reducing

Business management and marketing:
the delivery lead-time and increasing number of introduction of new product. The importance
of new product development has limited to product development process, labour skills, job
design, available technology, and material management. Coordination between these
activities is crucial and critical for developing products. To overcome the coordination
problem, the three main variables has to remain flexible. The variables are- technology,
competences, and development process. For greater success, the key contributors to success
of new product are commitment from senior management, clear division of team to delegate
authority to improve new development strategy and good communication within the internal
stakeholders and across the external stakeholders.
Threat of Competitors
Rivalries among industry players can affect industrial profits because of increased
innovation, increased marketing through advertising, increased product improvements. A
company, who continues operation since last few years will enjoy competitive advantage
over new entrants. Therefore, existing firm enjoys customer trust. A monopoly industry earns
the most profit (Palandeng, Kindangen, Timbel, & Massie, 2018). However, when there is
large number of firms operating in the same industry. Competition level among the industries
is at the peak because of availability of large number of product resource providers. In
addition to existing competition, price competition is more likely create complexities because
products and services can be identical, which encourages price competition to acquire market
share. Especially in fast moving consumer goods, industry where fixed cost is high in
beginning and marginal cost is low (Valuation academy, 2018). This forces competitors to
cut the prices below average costs to regain some of fixed costs. The new product named
gym juice proposed by Nestle Company has many competitors. The various competitors for
gym juice to Nestle are-

Business management and marketing:
 Blueprint- Blueprint is the bestseller of green juice. It provides six pounds of green
leafy in every bottle (Brue, 2013). In every bottle, the staple found at wholesome food
consists of kale, spinach, celery, parsley, lemon, apple, romaine, and ginger. It also
provides three more flavours other than green juice. It also provides cleaner drinks
that assist in proper cleansing of digestive system. The most popular renovation
cleansing drinks are winning the existing market (BluePrint, 2018).
 Pressed juicery- The pressed juicery was started in California, U.S. It provides best
quality cleansers, which assists in, weight loss, and proper digestion. Antioxidants
help to neutralise free radicals in the body that helps to fight diseases and reduce the
risk of cancer. It provides a three-day cleanser, which has positive reviews and
cleaner increases Cyanobacteria and Bacteroidetes after the intake of cleanser. The
product named Greens 3 is a top seller, which contains kale, romaine, parsley,
cucumber, apple, lemon, ginger, and spinach.
 Liquiteria- The liquiteria was the first organisation who introduced cold pressed juice
in New York City that helps in serving health balances to the customers. The cold
pressed juice has vitamins, minerals, and nutrition rich contents. The liquiteria menu
offers a wide range of cold pressed juice, super food smoothies, herbal supplements,
cleansing options to give not only the energetic live but thrive it. Liquiteria provides a
mixture of super foods and herbal blends to enhance the health. Fat burners accelerate
the fat burning process, which decreases sugar cravings (Liquiteria, 2018).
 Juice Press- Juice Press was founded in 2010. The mission of its existence is to create
the wellness brand on the planet. The vision is to bring healthier and transparent lives.
In last 7 years of its existence, it has inaugurated more than 70 retail stores. The
company ensures that transparency, community, and integrity define Juice press. The
company has delicious line-up smoothies. The company claims that their selection

Business management and marketing:
cannot be compared to any other organisation. Therefore, they provide such a high
quality product to customers. The immune boosters are ginger firewall coconut water,
ginger firewall and rehab shot, ginger turmeric tonic and volcano. The content in
these immunity boosters have low calories (Juicepress, 2018).
Nestle will face high competition from the existing manufacturer. Nestle has to build new
strategies so that the new product can have unique advantages. New product should have
competitive advantages over others to win the market share. Companies can make strategic
moves to acquire competitive advantages (Cusumano, Kahl, & Suarez, 2015). A strategy of
leadership in various factors such as quality, innovation, and cost helps to develop
competitive advantage in a new product (Adams, Jeanrenaud, Bessant, Denyer, & Overy,
2016). Any new product can acquire competitive advantage by various strategies-
Cost leadership- As nestle has been one of the largest company in food and beverage
sector since 1866. Reported, Swiss food giant posted 7.2 billion net income of nestle. The
Swiss food giant also reveals that nestle is growing by 2 to 4% in 2018 (Turak, & Bercetche,
2018). The data clearly represents that nestle has covered its fixed cost, attained break-even
point and earns a fat profit. Nestle, by becoming an effective cost producer, the company can
offer a price to customers that the competitors cannot match. A company can make number of
strategic moves to cut costs, that includes either investing in productive technology and
equipment or outsource manufacturing to low cost producer.
Innovation- Innovation, as a strategy gives organisation competitive advantages by
developing new products with a different feature, which distinguishes it from its competitors.
Focus on the product features that can offer exceptional value and unique benefit to
customers (Han, Kwon, Chung, & Son, 2017). Nestle can add more beneficial supplements
such as drinks that meet specific deficiency in human body. A person who suffers from the

Business management and marketing:
deficiency of basic carbohydrate, vitamin C, or sugary fat can be a target for the company.
Nestle can ensure to provide fresh packed juice without adding preservatives (Herrera, 2015).
Customer Experience- Exceptional services provided to the customers add to the
sustainable unique form of competitive advantages. To achieve customer loyalty and trust,
sales channels must provide high level of information and marketing material, which uses
customer information to target certain audience (Cui, & Wu, 2016).
Partnership- A partnership strategy can help to improve the competitive advantage by
working with the partners, which may bring new ideas. Integrating operations with partner in
the supply chain management can enable to innovate operations. Sometimes, Partnership
agreement comes in existence due to lack of resources available. However, Nestle have
enough capital to add a new product in its offerings. However, to acquire new features in the
product, the company can shake hands to incorporate unique feature in the product.
Knowledge- The research undertook by the company to identify the target audience could
build a strong competitive advantage by capturing and sharing the knowledge of experts for
the product (Sørensen, & Jensen, 2015). There are various technology which are operated by
the experts that help the organisation to reduce the overall cost. The researchers also
segments the markets according to its types such as demographic segmentation, geographic
segmentation, distribution and price segmentation which assists the organisation to serve the
niche market.
Conclusion
In today`s era, new product is recognised as the life blood of any organisation because
grabbing new opportunities emerges to give maximum profit. A firm with a successful new
product ripens larger profits which shapes the company`s future. Developing and managing
products is critical to organisation growth. The development of new product focuses on the

Business management and marketing:
target audience. The process of new product development consists of generating idea,
screening the ideas, expanding the ideas to business analysis, market testing, and
commercialisation. The research process helps to ascertain the problems involved in the cost
of developing a new product. Launching activity of new product invites competition of
existing firms. The above study clearly elaborates that competitors who are already enjoying
popular standing in the market are the existing organisation. However, the company should
create competitive advantage in the new product. Competitive advantages such as cost
leadership, innovation, partnership, knowledge and consumer experiences. New product
manipulates the operation of the organisation. The introduction of new product can either
contribute to great earning or create chaos among the employees. Before the introduction of
new product, organisation should divide the labour into different teams. Each team should be
responsible to particular product manufacturing.

Business management and marketing:
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