Product and Service Development

This document provides an overview of the process of new product development and its application in Airbnb. It explains each stage of the development process, including idea generation, screening, concept development, market strategy development, production development, test marketing, commercialization, and introduction. The document also includes a reflection on the project and its impact.

PRODUCT AND SERVICE
DEVELOPMENT

Table of Contents
PART A...........................................................................................................................................1
PART B............................................................................................................................................1
Explanation of each process included in new product development..........................................1
2) Applying NPD in Airbnb........................................................................................................3
Reflection....................................................................................................................................4
REFERENCES................................................................................................................................6

PART A
Covered under ppt
PART B
Explanation of each process included in new product development
New product development is the procedure of bringing a new good to market, it is
effective process that takes things from conception to market (Sozo and Ogliari, 2019). New
services and products are meant to fill consumers demand and chance in marketplace. In simple
words, NPD is process of developing an original product idea to current market. The nature of
this process usually differ with products to products across varied sectors.
Idea generation-
This is the first process of new product development, it is procedure of developing,
creating and communication new idea which are visual and concrete. It is iterative step that all
company require figuring out solutions to range of arduous issues, it includes criteria of choosing
the appropriate idea, implementing it into practice and creating strategic plan for same.
Unbeatable method of idea generation starts from internal source. Firm inspire its workers and
communicate with them to generate new and innovative idea (Cooper, 2016). Firm constantly
keep their focus on volatile market to review changing needs.
Idea screening-
This is the another important process of NPD, in which new products or services idea will
evaluated after passing the first stage, to get most promising ones for firm. Not every idea is
good and suitable to company. Thus, through successful idea screening procedure, organization
will choose and focus whole product development with high possibility of achieving success.
During this process, firm focus on target consumers, size and growth forecast of target market
and also focus on question that is it technically or partially possible to produce new goods.
Concept development and testing-
At this stage, firm consider and focus idea to be relevant, but is has to be tested with
target customers. Here new product or services idea is converted into meaningful and valuable
consumers item to right people to known their reactions. This is the crucial process in NPD,
concept development and testing takes place early on in action and help to determine key
perception, wants and user needs associating with services. When the reaction of people chose
for testing purpose is positive, then firm moves to next stage.
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Market strategy development-
After getting success in above process, and successful testing the concept of new
services, marketing department and its manager will develop preliminary marketing strategies for
introducing their new services in market, that help to gain attention of consumers. In context of
marketing strategy, it will highlight the positioning, targetting and segmentation strategy. It is
considered as growth strategy that help firm to determine and develops new market segments for
current or new goods.
Production development-
Once the new idea for services and products is declared economically feasible,
organizations gives its product or service perfect shape (Garina and et.al., 2019). Product
development process in new product development procedure include wide investment to be
made, as compared to the above stage. Physical goods would appear is prepared so that it can be
tested. It encompasses all essential steps needed to take goods from concept to market
accessibility. Firm identifying market need, conceptualizing a solution, researching competitive
landscape and developing product roadmap.
Test marketing-
Test marketing is the main process of new product development in which new services or
products is being tested with specific target market, in order to find out whether it is likeable to
consumers or not. Furthermore, with the help of this process expectations of target market from
service or good is tested here. When it needs some chances and improvement, management will
take care of it and make it done. It helps in pretesting of things and marketing plan, before
product is launched in target market.
Commercialization-
Finally, this stage came after passing all the above phases of new product development.
Successful test marketing will give way to real introduction of new idea in marketplace. Here,
organization and its authority consider certain factors like when to launch good, where and how
it will be launched etc. market entry or product launch timing is very important as it helps to set
positive image in mind of number of people available in market.
Introduction-
After taking finally decision firm launch their new products in market that help to
increase their consumers base and profit margin rather than before. To launch product, they
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chose number of population area where people attention towards item is easily gained as it is
beneficial in term of generating market revenue.
2) Applying NPD in Airbnb
In context of examining the new products and service development the stages are applied in the
innovation are in respect of following aspects such as:
Idea generation: The main reason of bringing this innovation is that usually the companies
provide the causal traveling allowances which are sometimes very high in pricing and also
creates lot of pollution (Schöggl, Baumgartner and Hofer, 2017). Thus, the lot of ideas are
generated regarding resolving this matter and in such manner Airbnb selected the natural
traveling mode's innovation to provide adventure traveling to the travelers.
Idea screening- After verifying the two or three ideas which is recorded under the airbnb, the
screening is to be done regarding examining its advantages or disadvantages of implementing
such ideas.
Concept development and testing- In this the innovation is to be promoted to the customer
through examining their views regarding preferring such services. In this case, they mainly
motivate the customer to take the taste drive of the travelling mode which reduced the impact of
pollution and also provide the adventure rides to the customer (Gutierrez-Gutierrez, Barrales-
Molina and Kaynak, 2018).
Market strategy development- In this strategy is to be enhanced by the Airbnb regarding
targeting the segment of the market such as adults and senior citizen. As senior citizen are
mainly attracted through such innovation which results in getting more positive reviews from
them and also they promote such innovation in the market. Thus, the Airbnb is getting the
mouth-to-mouth promotion which resulting in getting longer term growth.
Production development- In this development is to be undertaken through improving the
products once they get reviews from the customer regarding facing any such issues after availing
such services. Usully, Airbnb initiate this procedure after getting the response from the customer
or conducting the testing of the services and collecting the reviews which they gained after
promoting the innovation in market.
Test marketing- This is mainly referred to the experiences which is gained to Airbnb after
examining the real life experiences which is attained by customer (Fuller, 2016). As this is one of
the services which is stable if the customer enjoy the travelling, or they feel their money is
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properly invested in this area. In thus marketing mix is useful for Airbnb to examine whether
such innovation is successful or not.
Commercialization- This is mainly based on getting the profits in financial terms. As Airbnb
company not deal in purchasing the property, they mainly rent the property on the commission
bases (Baxter, 2018). Thus, it indicates that by providing this innovative ideas results in gaining
major advantages and also lot of customer are ready to pay the amount which is fixed for the
particular travelling mode.
Introduction- After gathering all the information which is needed in respect of sustaining the
innovation, it is stated that the report from the market are in positive way and also customer are
liking the innovation in better way. After verifying all the details, the services are to be launched
in market through its positive reviews gathered from the customer during the testing procedure.
Reflection
It was very interesting for me to carry out the specific project with all my team members.
It has helped me gain knowledge related with the natural traveling experience and this also
helped me to broaden my knowledge. It was one of the most interesting concept upon which I
have carried out the specific presentation. I have worked as team leader and I have effectively
scheduled and manged all the business activities in an accurate and reliable manner. It was a
great experience to work with the innovation team which helped me greater and wider insight on
the related subject matter. The management of the team was very good. The team tends to
function in a coordinated manner where all the individuals in turn focus on expressing the ideas
and communicate with all individuals in a coordinated manner. All the team members used to
work in a coordinated manner and also used to express their ideas. All the team members within
the group in turn carry out all necessary activities which mainly comprise of presentation,
preparation and delivery of the specific group project on a timely and reliable manner. The team
has organized and planned all the work by preparing a Gantt chart and time plan. This in turn has
helped us to manage all the business activities. The management of the team was fantastic.
Preparation of time plan in turn has helped me to assign time to complete each task within
stipulated time frame. I have examined the fact that, all the team members in turn has interacted
well with each other. This helped in building new ideas and also in turn focus on effectively
developing friendly work environment. This has helped us to complete the task without any
conflict. Each member of the group has interacted with each other. I largely agree with the fact
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that, group discussion in turn largely enables creativity within the team. I have analyzed that,
each individual is creative in its own way. Engaging and motivating each individual in creative
decision making. This in turn helps in effectively managing various business functions. I have
examined that, the team members within the group who in turn tends to work together. All the
team members has respected the viewpoints and ideas of each individual and has made
appropriate judgment in order to choose the right and relevant innovative and creative business
idea. I have also examined that, the quality of final presentation was accurate. The management
of the team was highly recommendable. The quality to carry out the specific project was in turn
highly recommendable. The presentation was free from error and is structured in an accurate and
proper manner. Proper layout and structure of the report was selected. This in turn has helped me
and my group members to deliver the quality presentation on a timely manner. I have also
investigated that, while carrying out the presentation, the key concerns our group faced was
related with not optimally utilizing the time. This in turn results lack of time management. I have
developed a proper time line in order to carry out the activities within the stipulated time frame.
It was difficult for us to take appropriate decision because of various innovative ideas. It was
difficult to select the best idea in order to attain the best quality results. It has been
recommended that, group leader in the teamwork must take all the decisions in order to avoid
any conflict. Full and proper participation of the members in turn helps in completing all the task
with efficacy.
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REFERENCES
Books and journals:
Baxter, M., 2018. Product design. CRC Press.
Cooper, R.G., 2016. Agile–Stage-Gate Hybrids: The Next Stage for Product Development
Blending Agile and Stage-Gate methods can provide flexibility, speed, and improved
communication in new-product development. Research-Technology
Management. 59(1). pp.21-29.
Fuller, G.W., 2016. New food product development: from concept to marketplace. CRC Press.
Garina, E.P and et.al., 2019. Modeling of Approaches of Product Development and Production
Processes: Existing Problems and Proposed Solutions. In Ubiquitous Computing and
the Internet of Things: Prerequisites for the Development of ICT (pp. 1115-1127).
Springer, Cham.
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human
resource-related quality management practices in new product development. International
Journal of Operations & Production Management.
Schöggl, J.P., Baumgartner, R.J. and Hofer, D., 2017. Improving sustainability performance in
early phases of product design: A checklist for sustainable product development tested in
the automotive industry. Journal of Cleaner Production. 140. pp.1602-1617.
Sozo, V. and Ogliari, A., 2019. Stimulating design team creativity based on emotional values: A
study on idea generation in the early stages of new product development
processes. International Journal of Industrial Ergonomics. 70. pp.38-50.
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