Original Creations: Issues in Introducing New Products in Market
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The report has highlighted the specific business reasons, key issues faced by Original Creations and provided recommendations to solve the issues. The recommendations include effective customer feedback system, focus on digitalization, effective HR strategies, quality assurance and product development strategies.
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Foundations of Business Management BBS0131
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Specific business reasons.............................................................................................................3 Key issues that Original creation company is facing..................................................................4 Recommendations for Original Creations..................................................................................6 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION The current study revolves around the Original creations. The firm is facing large number of issues in relation of producing new product in market. Case study has highlighted the numerous issues that are associated with the failure of new products. Introducing new product in market plays vital role in increasing the profitability for the firm. Furthermore, consumers are highly satisfied from those firms who keep introducing innovation in their products and services (Cooper, 2019).In similar manner, Original creations has tried their large number of efforts in order to perform innovation. However, the firm has failed numerous times. There are different reasons that are creating the failure for the organization. Thus, analysing the major issues behind the failure can lead to solve the major problems of the firm. This report will highlight the specific business reasons in relation of the case. Furthermore, the report will describe the present issues of the company. Lastly, the report will shed a light over the assuring recommendations to the organization. MAIN BODY Specific business reasons The specific business reason in order to conduct the issue analysation of Original creations are concerned with: New product development-The company will get the major idea that are requires in term of developing new products in the market. As the company is facing failure in terms of making innovations. Thus, the company can get the idea in relation of the things that needs to be done and that should not. Market expansion-The company can get the major idea in relation of increasing the market strategies. In context of this business reason, the firm becomes enable to adopt the strategies that can help them to attract the potential base of customers (Marzi and et.al., 2020).As the marketing strategies of the firm are highly in-effective. Diversification-The company can get the idea to develop the innovation in new market. Thus, it will increase the sales of the company and creates larger profit for the firm. Often, the competition threat can be known by the company within this attribute (Chauhan and et.al., 2018). Thus, this business reason is associated with capturing the interest of consumer and on the basis of that, the decision can be made.
Internalstructuremanagement-Thefirmcanassureeffectivefocusovertheirinternal management of the company as the management is concerned with inexperience staff. Thus, this is one of the specific business reason. The above explained business reason are associated with the major attributes that assures firm to capture new market with their products and services. Key issues that Original creation company is facing In regard to case of original creation, it is found that the founder of this company, Marry Shelley is disappointed because employees of this company are unable to market new innovative products in market. It is found that this company market number of innovative and original lifestyle product by using direct mail brochure and internet as well. Examples of its innovative products include: rainwear for dogs and cats, automatic air freshener, garden lights in the shape of garden flowers (Dana and et.al., 2021). It is found that this company design product and give ideas but does not manufacture those innovative products. It has number of manufacturers in UK as well as abroad. Number of manufacturers are in China and due to cultural differences, it faces problems regarding language and others. Mary found that recent 10 new products of this company has become failed in market and it is one of the main issue that it is facing. It has withdrawn its extended new product toenail clipper and there are number of reasons of its withdrawn. One of the main reasons is decreasing sales and it is taking extra valuable place in warehouse. Customers are complaining that quality of toenail is not up to the mark and some customers complained that they received damaged toenail clipper. New ideas come from in house team but Mary Shelley is the one who select the best one out of number of ideas. Continuous failure of products is one of the main problem and decreasing sales is also increasing pressure on this company. Return on sales is also decreasing. This failure of products is affecting its image in the market and it can create barriers in taking competitive advantages (Jagtap and Duong, 2019). On the basis of this problem, it can be said that it may face problems in attracting new customers. This company is striving hard for being in the competition and regaining image in the market. For this reason, it needs to identify reasons as why its products are becoming fail in the market. In addition, it is found that it markets its products and services via brochure. Now it is using its website that is maintained well. There has been little investment in digital marketing and it can be one of the main reason of business problem that this company is facing. Mary believes that the best test of products that are being
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manufactured by others can be checked by its success. This company contact directly to customers after launching its new products and regarding services’ efficiency, it asks questions from them and on the basis of their answers, it take better decision. It makes changes in existing products as per the needs of customers and when customers get modified products as per their needs then it makes them feel valued and they believe that company takes care of their views. It is found that this company has hired experienced and skilled directors from technical background. HE manager is responsible for running a small group with inexperienced and young HR staff. Warehouse manager runs a group of temporary staff who are recruited via employment agencies. After finding this problem and withdrawn from toenail clipper product, Mary called for a management meeting and ask project team regarding reasons as why company is facing this problem and what might be reasons that are creating problem of failure of new product launching (Lo and et.al., 2019). So, in this regard, it can be said that lack of focus and investment in digital media marketing can be one of the main reason. Nowadays, people get number of information via internet and via social media platforms. But it contacts customers face to face and due to busy schedule, customers do not tend to meet with marketers and they do not show interest. It can be one of the main reason of its products launching and marketing failure. Other main reason that is creating problems for this company is: only designing products by their own and getting products manufactured by other companies. It is found that companies to which it gives its products design for manufacturing already produces such products and sometimes they copy their products design and by improving quality they launch products in the market. It can be said that manufactures can snatch ideas of this company and can take undue advantages. It can also be one of the main reason and it needs to focus on this. In addition, it is also found that it has unexperienced HR and other staff and unskilled employees can also affect quality of products. For getting number of new innovative ideas, there is requirement of skilled employees (Beglaryan and Shakhmuradyan, 2020). So, on the basis of this, it can be said that this company needs to invest in recruitment and selection process and by hiring skilled employees, it can solve problems and by getting innovative ideas, it can launch new products in the market with effectiveness. It is found that this company has 40/50 people in total in which only 3 people or employees are in media team and 2 people are in customer service department. Having lack of skilled employees is other main problem and it can cause number of other business problem that include: poor productivity, decreasing sales, poor
performance and poor customer services. Other problem that has been found from the case of original creation is communication. It is found that number of manufacturers of this company are in China and due to different languages and cultures, it finds difficulties in communicating with their manufacturers (Chaturvedi, Thakkar and Shankar, 2018). Having clear communication between companies is important otherwise, miscommunication can lead number of problems. In regard to this, it can be said that it might possible as manufacturers of China could have misinterpreted whatever has been asked by this company regarding manufacturing products. As customers complained that they did not receive products with high quality and some products were damaged. So, on the basis of this, it can clearly be said that Manufacturers of China did not manufactured its products including toenail clipper in an effective manner as they did not use quality measurement and it has happened because of communicational barrier. So, on the basis of this, it can be said that company needs to hire employees of China and people who understand Chinese language and can easily communicate with manufacturer of China. by doing so, it can solve problems of failure of new products launching and it can regain its image in the market. In addition, it can also be said that there is requirement of providing training to employees so that they can communicate with customers and manufacturers. Training can solve all problems and can make this company able in launching its new innovative products in the market. Also, it needs to get signed by manufacturers as they would not copy its products design otherwise, they will be filed lawsuit. Overall, it can be said that continuous failure of launching of new and innovative products in the market is the main problem that Original creation is facing. Number of causing factors have also been identified from this case. On the basis of identified problems, it can develop solutions and strategies by which it can launch products in a successful manner and it can help this company out in increasing sales and productivity as well (faiz Abozaid and et.al., 2019). By developing strategies accordingly, it can take competitive advantages and can become the market leader as well. Recommendations for Original Creations On the basis of analysing the current issues of Original creation in context of developing new product in market it has been found that, there are numerous attributes that are affecting the growth and causing failure for the firm. Here are the major recommendation to the organization that can lead to solve the issues of the firm:
Effective analysation of needs & wants of customers-The company needs to assure focus over analysing the needs and wants of the customers as it is one of the major reason that is contributing in the failure of innovation. If the focus is made over the desires of the customers and on the basis of that, the operations has been performed that it helps in increasing the sales for the firm. In similar manner, Original creation needs to analyse the market in effective manner where the needs and wants of the customers can be analysed (Kaaranen, 2018).Also, the product development idea should be based on the needs and wants of the customer rather than the ideas of the in-house team. Quality assurance-This refers to assuring effective quality in the products that can maintains the utility of customers in effective manner. The case study has highlighted the issue in relation of thequality damage of the products and this is because the operational practices of firm has not been performed in effective manner. Thus, the focus needs to be ensured over the quality management of the products and this can only be done by within adopting the concept of six- sigma or TQM in the operational practices. As a result, the quality of the products can be increase on a higher note and sales can be increase. Effective HR strategies-The internal scenario of the firm defines the external scenario of the company. In similar manner, Original creations has experienced the same. The firm has inexperience staff members in the company. Thus, this is creating the failure for the firm. As no amount of experience leads to perform the ineffective operational practices. Often, the strategies that are needed to manage employees become less effective due to this. Therefore, effective HR strategies needs to be adopted by the firm so, experience and skilled staff can be included in the firm. Product development strategies-Company needs to be assured focus over manufacturing their own products regarding designing the products as it is creating the issue for the firm in regards of having similar products by the competitors (Salnikova, Baglione and Stanton, 2021).Thus, the company needs to adopt the effective strategies of product development that is entitled with new development strategies. Also, effective analysation over the competitive strategies are needed so, the threat of the competitors can be reduces. Focus on Digitalization-Ascase study highlighted that, media manager is only putting brochure in terms of performing marketing. Thus, this is also one of the major issue of product failure. Currently, the consumers needs to make aware in relation of the products and services.
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Therefore, the company needs to be more digitalized and needs to increase the interaction with the customers so, the customers can become aware about the products and its benefits (Hagberg and Kjellberg, 2020). Therefore, Original creations must increase interaction with customers within adopting the social media platform and other digitalized platform that can impact the choices of the customers and helps in attracting the customers towards the organization. Customer feedback system-Organization needs to assure effective focus over adopting the effective customer feedback system so the feedbacks and opinions of the consumers can be reviewed. As the customer service system of the company is not highly effective and that is impactingtherelationofthecustomerswiththecompany(Mourtzisandet.al.,2018). Furthermore, CFS helps in knowing about the level of utility experience by the customers. On the basis of that, the decision needs to be taken in the firm. The above explained points are associated with increasing the market share and customer interaction for the Original creation along with solving the failure of the new products in market. Thus, this leads to solve the issues of the firm. CONCLUSION The above report has concluded that, it is highly important to analyse the certain aspects in market before developing introducing any kind of innovation. The major aspect should revolve around understanding the needs and demands of the consumers. So, the innovation can ensure satisfaction to them. Moreover, effective marketing strategies needs to be adopted by the firm as it is entitled with capturing the market and attracting the new customers along with sustaining old customers. The report has analysed the major issues that has been facing by Original creation in terms of developing new product in the market. Also, it has been analysed that the customers are not satisfied with the quality of the products and it is impacting the sales of the organization. Furthermore, it has been found that,internal issues of firm such as, inexperience staff are generating the external issues of the organization. Moreover, the report has highlighted the recommendations that can be use by firm in order to resolve their issues.
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Salnikova, E., Baglione, S.L. and Stanton, J.L., 2021. New product introduction success for privatelabelproductscomparedtobrandedbyproductcategory.Journalof International Food & Agribusiness Marketing,33(3), pp.290-304.