Original Creations: Issues and Recommendations for Product Development

This report discusses the key issues and challenges faced by Original Creations in product development and provides recommendations for improvement. It covers the implications of growth strategies, mainly product development and market development, and their associated risks. The report recommends constructive research and innovation to enhance market potential.

Foundation of business
management
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Executive Summary
The following report discuss the key issues and challenges that are faced by the original
creations. The main findings of the report is the problems that the organisation is facing which
implies lack of staff, inefficiency in sales and digital marketing tactics, insignificant brand
image. This consultancy report analyse the major implications of the growth strategies; mainly
product development and market development. The purpose of this report is to discuss the key
issues covering every detail and in response the suggestions and recommendations for the
organisation are explained to improve the processes executed in implementing product
development. The major recommendation to the organisation is to conduct constructive research
and apply innovation to a great extent.
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Table of Contents
Executive Summary ........................................................................................................................2
Introduction ....................................................................................................................................4
Main body........................................................................................................................................4
Reasons.......................................................................................................................................4
Key Issues present at Original Creations....................................................................................4
Recommendations.......................................................................................................................8
Conclusion ....................................................................................................................................10
References.....................................................................................................................................11
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Introduction
The purpose of this consultancy report is to develop understanding on the original
creations company and it is aimed at the management of the company. This report address how
the organization can develop better new products and it is associated with assessment and
forecasting its market potential. The main objective of this report is to provide the information
on various departments of the company and what is their role in development of new products. It
further pays emphasis on how the sales performance of new products can be improved and what
are the long term implications of the new projects and innovations that the company would
execute. This report will explain the reasons and will present the key issues which is highlighted
in the case study of original creations. At last, it covers recommendations as on how they can
enhance their market potential through constructive development of new products.
Main body
Reasons
The primary motive behind creation of this consultancy report is to understand the issues
that original creations is facing in development of new products. The company is not making
enough and expected progress with the existing market and existing products. In the case study it
has discussed various business options that the company can adopt and what are their
implications and risks associated with them. The main rationale of this report is to acknowledge
issues and address key issues which the company has to consider in order to execute its projects
in constructive manner. There are a range of factors that has been elaborated in the case study
and this report elaborate those factors and discuss their impact in the context of forecasting the
company's market potential (Chabowski and Samiee, 2020). This report will broadly discuss and
elaborate the concepts related with the issues that the original creations is facing. This will
explain the marketing concepts and theories of product development and how the company must
utilise the options ensuring productivity in long run.
Key Issues present at Original Creations
The major issues that the company is facing are discussed below in detail: Lower number of sales: The sales of the organization is very low to make high
profitability margins and thus the company is not able to grow and expand in the market.
The sales are low due to lower quality of products which implies less consumer
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engagement in the goods and services of the company. Consumers tend to expect high
quality in products and they shift their preference as soon as they are handed over the
product with lower value (Weske, 2019). Thus the products of the company are not able
to induce large number of consumers to buy their commodities. Inefficiency in digital marketing: The company is unable to promote its operations
through channels and platforms of digital marketing. It is not able to utilise options and
tactics of the digital media applications and thus lower consumer engagement is one of
the biggest issue in the expansion of organization. Digital marketing is a very effective
promotional strategy and its relatively cheaper which could leads to enhancement of the
company's brand if used correctly. Lack of staff: The company is not able to fulfil its staff requirements which increase the
burden on other employees. Due to lower sales and profitability margins, the company is
not able to provide enough salaries to a large number of employees. Thus there is lack of
staff members and thus operations of company in various areas are inefficient. The
insufficiency of staff leads to less selling promotions and furthermore experienced
personnel is required to execute digital marketing to promote its activities.
 Reputation of the company: Original creations is not renowned and is perceive as a
brand dealing in lower quality of goods. The previous operations of the company and its
interaction with consumers has created a image where it is not appreciated in market. The
organization is of no significance to its consumers as it was unable to promote effective
branding.
Discussing execution of new business options and their key issues
The above stated issues are the main factors which are contributing in insignificant
growth in the market. In the case study, it has been evaluated that what business can do to
enhance their market potential and to devise effective strategies in order to overcome the
challenges (Seyyedamiri and Tajrobehkar, 2019). The company is facing a range of business
issues and to overcome such issues it requires effective growth strategies. For implementation of
growth strategies, it requires a great deal of investment to make so that it could leads to potential
execution of projects. In the case study, the business has discussed strategies explained under
Ansoff growth matrix. The strategies of Ansoff growth matrix and its implications and
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associated risk factors are discussed below in detail to develop understanding of issues that the
company would face in implementation of such options.
Product Development
In the case study, it has been discussed that original creations has the option to expand its
business operations and profits through launching and introducing a new product having high
value for consumers. The main objective of product development is to engage customers through
offering new and unique products catering to their needs and requirements. In order to
successfully implement the growth strategy of product development, the key factor which
determine its viability is innovation and advertising. Consumers will be attracted towards new
products launched by the company only if it is offering new value to them and it is unique. In
addition to this, increasing awareness regarding introduction of the new product is highly
important as without effective promoting, individuals will remain unfamiliar about the product
(da Luz and et.al., 2018). There are high risks associated with the execution of product
development strategy as the original creations would have to invest on a significant level. The
development of a new product is integrated with high research regarding consumers preferences
and market trends. In addition to this, the company has to find relevant suppliers and
manufacturers for the process of product development and invest hugely in payments to them.
Furthermore, it is associated with effective marketing strategies and how the organization will
increase awareness on the new launching of products. Developing new products and ensuring its
viability in long run is a risky option for the company given that the current situation of the
company is down and lacking commercial potential.
Market development
The strategy of market development is associated with creation of new markets in order
to engage customers and to enhance brand image through establishing effective presence in the
market. The main objective of implementing this strategy for Original Creations is to expand the
range of its operations and base of customers to earn more revenues and attain growth and
development (Hejazi, Bhuiyan and Othman, 2020). The most important factor that is to be
considered while developing new markets is to conduct proper research before deciding the
locations of new markets. The potential of the locations have to be determined and it has to be
accessed that whether the new markets are of commercial value. Thus, the strategy is associated
with risks involved in analysing and evaluating the market potential. Moreover, the organization
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is facing issues of brand reputation and thus is a constant hurdle for the company to attract
enough consumers in their new markets. The constructive development of markets could lead to
effective engagement of consumers with the brand but it is associated with huge costs which is a
constant threat to the organization. Market development is a effective growth strategy but it has
to be planned constructively in order to attain desired results. It involves huge costs in
development of potential markets and proper research is required to be conducted further
increasing cost of the project.
Discussing implications of growth strategies
The problems that the organization will face in product development and market
development are explained below in detail in precise manner. Technical risks: There are high technological risks in the production process of new
product as the company has to experiment the effectiveness and potential of new
techniques in creation of products. Firstly the company would have to invest in
appropriate technology and see the results, and re-invest into new techniques if the results
are undesirable (Salari and Bhuiyan, 2018). Also, there has to be made investment in
techniques used in operations conducted in new markets and if this strategy fails, then the
organization would have to bear massive losses. Performance risks: The viability of the new product in real market conditions is always
unknown and there is always chances that the newly launched product will not be able to
yield sufficient earnings, not even equivalent to invested amount. As for market
development, it cannot be forecasted how much consumer engagement the new markets
can assure. Thus it increase the risk for original creations as it would not be able to
ensure earnings equivalent to costs incurred in construction of markets and procuring
commodities for new markets. Market risks: The business environment is full of uncertainties and the market trends and
inflation rates including demand and supply keeps fluctuating which makes it difficult for
the organization to ascertain and determine the success of the project of developing new
product in the market. The market risks and uncertainties always pose a greater threat to
the strategies of original creations. For instance, the situation of pandemic created a great
deal of disturbance in the market further worsening the situations of planning growth
strategies for the organization.
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 Disruptions in supply chain: For the launch of new product, the company has to fix
suppliers of raw materials and thus any disruptions in suppliers distribution can restrict
and disrupt the flow of production and thus would result in inefficiency in the whole
product development process (Hendler, 2018). Moreover, for the process of market
development the company would rely heavily on suppliers for supplying new
commodities to the market. Thus interruptions in supply chain could cause issues in
effective implementation of both strategies.
 Heavy costs: The implementation of the strategy of product development is highly risky
due to ambiguity in knowing the preferences of consumers. The consumers are not likely
to pay high for the product of brand as it does not have loyal base of consumers and they
are already dissatisfied with the quality of its products. The only option of the company is
to sell its new products at relatively lower price again creating risks of low profitability.
In addition to this, the costs incurred in the market development will be huge as either the
organization has to construct new stores or it would have to occupy a rental space. It is a
costly option for the enterprise and its results cannot be determined.
Determining most appropriate growth strategy
From the case study it can be analysed the detailed planning for the strategy of product
development has been discussed. The organization wants to develop new products in the market
in order to expand and attain significant growth. It will help the organization in expanding its
operations and grab the attention of consumers (Zheng, Liu and Xiao, C., 2018). There are
various risks associated with the option as discussed in the above section. However, the effective
and strategic implementation of product development could leads to various benefits for the
company driving growth and success.
Recommendations
The process of product development is a constructive strategy and for successful
implementation, the original creations has to consider important factors. The recommendations
for the effective execution of the product development and its detailed steps are discussed below: Generation of the idea: It is the most important step in the process as it will clear
implications on the long term viability of the project. In order to offer high value and
uniqueness in the new commodity, the skilled personnel of the organisation would have
to research and discover ideas and innovations applicable in the product. Under this stage
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it is also crucial to take assistance of outside experts so that gaps in knowledge can be
filled and queries regarding manufacturing process can be solved. Effective Idea screening: The organisation is recommended to follow this process before
the product development as it will help the enterprise in evaluating the commercial
significance of uniquely defined product. Under this stage, the organisation will make
calculations of future costs and all the relevant costs involved in the process. The
company is recommended to analyse whether the product would be able to realise costs
and attain the profits higher than costs incurred on the overall project. Constructive development and testing: It is one of the most important step in the product
development and the organisation is recommended to carefully execute this process. The
company is suggested to first create few samples of its new product which is to be tested
with a sample of audience, the target market of the company (Prasad, 2020). It is best to
dismiss the idea if sample product is unable to create value among sample of consumers.
Under this stage, the company is recommended to perform functional prototyping to test
the effectiveness and commercial potential of the product. Effective development of Marketing strategy: The organisation is not popular due to its
less focus on digital marketing and thus it has to seriously consider how to market its new
product in a manner so that it can attract maximum customers. The organisation is
suggested to develop digital marketing tactics and social media marketing with attractive
content creation. The company is suggested to establish its influence on audience through
maintaining proper social media accounts on Instagram, Facebook, Twitter etc. along
with its official website and LinkedIn as well. The organisation is suggested to promote
its new product on stories, posts, reels etc. it must make effective use of content creating
applications to post attractive content on social media. In addition to this, it must engage
in paid promotions through Instagram which is also relatively cheaper than conventional
methods of advertising. Ensuring optimum utilisation of resources: The process of product development must
be integrated with maximum utilisation of available resources to ensure minimum costs
and efficient results (Beirau, 2020). It is recommended for the organisation to make
effective use of it's personnel expertise and the product development must be the
integrated results of contribution of skilled employees with the assistance of outside
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experts. It is suggested for the organisation to seek advice of its manufacturers and
suppliers on costs and utility of the new product.
 Creating online marketplace: The organisation is suggested to create online marketplace
to showcase and display its new product while using constructive online marketing
tactics as well. Original creations can build its online marketplace with cost effective
techniques and it would be relatively less expensive for the company. The organisation
could either deal in online selling through Instagram, but showcasing its new product on
well established online markets would generate more revenues as consumers are highly
engaged in usage of such platforms.
Conclusion
From the above report, it has been concluded that the original creations is suffering from
a range of issues and it is required to construct effective strategies in order to improve its
performance. The company is facing major issues in its operations including lower sales, lack of
personnel, lack of brand reputation etc. Due to various issues, the organisation is not able to
induce its customer base and make it a popular brand appreciated in the market. From this report,
the problems that are facing by the organisation are discussed in detail reflecting upon its poor
performance. Valid strategies and effective tactics are analysed and recommended for the
purpose of constructive implementation of the projects that the organisation is considering in the
case study.
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References
Beirau, D., 2020. Theoretical Foundation. In Which Customers Pay? (pp. 9-48). Springer Gabler,
Wiesbaden.
Chabowski, B.R. and Samiee, S., 2020. The Internet and the International Management
Literature: Its development and intellectual foundation. Journal of International
Management, 26(1), p.100741.
da Luz, L.M., and et.al., 2018. Integrating life cycle assessment in the product development
process: A methodological approach. Journal of Cleaner Production, 193, pp.28-42.
Hejazi, A., Bhuiyan, N. and Othman, M., 2020. Performance measurement of a lean product
development process. Concurrent Engineering, 28(3), pp.198-209.
Hendler, S., 2018. Digital-physical product development: a qualitative analysis. European
Journal of Innovation Management.
Prasad, B., 2020. Product development process for IoT-ready products. Concurrent
Engineering, 28(2), pp.87-88.
Salari, M. and Bhuiyan, N., 2018. A new model of sustainable product development process for
making trade-offs. The International Journal of Advanced Manufacturing
Technology, 94(1), pp.1-11.
Seyyedamiri, N. and Tajrobehkar, L., 2019. Social content marketing, social media and product
development process effectiveness in high-tech companies. International Journal of
Emerging Markets.
Weske, M., 2019. Business process modelling foundation. In Business Process Management (pp.
71-122). Springer, Berlin, Heidelberg.
Zheng, H., Liu, W. and Xiao, C., 2018. An activity-based defect management framework for
product development. Computers & Industrial Engineering, 118, pp.202-209.
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