Product & Service Development

Product and
Services
Development

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Description about each and stage of NPD process for new & improved product development. 4
P2Applicationof these processes to the development of a particular organisational product or
service.........................................................................................................................................6
TASK 2............................................................................................................................................8
P3Analysing life-cycle stage of different products or services ..................................................8
P4: Appropriate product line management choices are required for individual products or
services......................................................................................................................................11
TASK 3..........................................................................................................................................12
P5 Design of a market testing, product/service launch & distribution.....................................12
TASK 4..........................................................................................................................................14
P6 Reflective statement that reflects on creative development, team working & presentation.
...................................................................................................................................................14
CONCLUSON...............................................................................................................................16
REFERNECES..............................................................................................................................17

INTRODUCTION
In the present competitive environment, the main aim of each and every business entity is to
satisfy requirements of customers by offering them high quality products and services. This will
assist them in order to grab opportunities at the competitive marketplace which leads towards the
success of business entity. In this report, according to the given scenario a junior product
manager within the organization Tesco is going to examine different innovative ideas in order to
launch a new product at the competitive market which leads towards ensuring continuous
growth and development of the business organisation. The is the report includes introduction or
overviews about the organisation along with various sort of products & services offered by Tesco
to their customers. This report consist of description about the products portfolio of the chosen
organization along with life cycle phases. Along with this it includes 7Ps strategy as well as
Porter’s five force model. In addition to this, new product development procedure are also going
to be discussed in this report on the basis of which reflection is also included at the end.
TASK 1
Description about each and stage of NPD process for new & improved product development
Overview:
Tesco is a United Kingdom based retail business organisation which provides ample number of
goods and services to their customers across the whole wide world. It has also been said that
Tesco has its presence around various countries such as China, Greece, Thailand, Argentina. In
recent years, it has been identified that Tesco made efforts in order to understand requirements
of the marketplace and then produce goods and services accordingly so that they can satisfy the
requirements of customers. Apart from this, there are large number of rivalry firms available at
the marketplace related to retail industry. Some of these competitors includes Wal-Mart, ASDA,
ALDI and many other retail sector companies. There are various new and innovative products
produced by Tesco which includes in the product portfolio.
Product portfolio
Hair and care
Jewellery
Clothing
Baby toddler
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Home appliances
Entertainment
Accessories
The present report is based on a new product development procedure which is
introduced by Tesco. The new product launch by Tesco is related to the food and drinks segment
where there is four categories launched by the management team of Tesco after examining the
current market situation. People in the present era become more health conscious and avoid junk
foods. The product launch by Tesco includes healthy drinks made from fresh fruits. Four range
of the product includes sugar free drink, mix fruit juice, protein shakes, chocolate and
strawberry shakes. In the present marketplace, people become more health conscious and avoid
sugar based products, after examining the requirements and demands of people related to the
drinks and juices, Tesco decides to launch their new innovation product range which is healthy
drinks.
New product development process:
It has been said that there are various stages involved in the development of new product
which assist in performing all the activities in an effective and appropriate manner. All these
stages needs to be followed by the management team of Tesco while introducing new product at
the competitive marketplace in order to develop good will at the market and leads towards the
enhancement of profitability and revenue of the company.
1) Ideation: This is the first step where an entrepreneur have to create a new idea in one stroke
so that they can use the opportunity available at the competitive marketplace and develop their
image at marketplace. It has been said that this stage includes brainstorming sessions where
marketing team examine whole market area and determine the needs and requirements of
customers. Idea can be anything where management team can produce whole new product,
introduce new feature to the existing products, developing new segments and many more.
2) Research: After the ideas is generated it becomes essential to examine the current situation of
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marketplace. This can be done with the motive of examining demands of customers and
determining whether the ideas suits the market situation and fulfil the requirements of customers.
3) Planning: At the third stage, after examining each and every essential aspects it becomes
necessary to do planning from the beginning so that there might not be any kind of wastage of
related to resources, money, efforts and time.
4) Prototypical: At the fourth stage, main aim of prototyping is to develop sample products
rather than mass production of products and services. This will help in understanding the market
situation and by providing them sample products they will give their feedback related to the
products and services.
6) Costing: It has been said that costing is quite essential which has to be done in order to make
sure that each and every activity will take place in a systematic and smooth manner.
P2Applicationof these processes to the development of a particular organisational product or
service.
1) Idea generation:
It is the first step where an innovative idea will be generated associated with the real products&
needs to be considered by the business entity. In the present context of Tesco once marketing
team of the company examine the needs of the customers related to the healthy drinks. It has
been examined that people prefer healthy and organic food items which are sugar free and
healthy food products.
2) Research:
In the second step of new product development process it has been said that it is
necessary to examine the idea which is going to be launch by the business entity Tesco. The idea
is to create healthy drinks with the motive of providing sugar free and fresh fruit juices to the
customers. According to this, I they will be able to decide the target market and categories the
whole segment accordingly. It has been identified that people who goes to gym prefer protein
shakes and sugar free drinks where it becomes advantage for the business organisations to
maintain their brand image at the competitive marketplace.
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3) Concept development:
Third step of product development is to create concept which says that the idea of
producing healthy drink is quite unique and attractive in the present environment where people
became more health conscious. It has been said that managers of Tesco need to produce sample
products with the help of which they can get feedback from their customers related to the
offerings.
4) Marketing strategy development:
According to this stage, it is required to develop marketing strategies so that they can
create awareness and get positive response from the customers by promoting the product in an
effective manner at the market. In this context there are mainly three phase where in the first
stage it is required by the management team to target their customers. In the second phase is
outlining the product, pricing, distribution channel are the effective strategies which needs to be
considered by them. At last stage, long term sustainability need to be considered by marketing
team on the basis of marketing mix strategy.
5) Business analysis:
Once all the above stages will be completed effectively, it becomes necessary for higher
authorities of Tesco to examine the attractiveness of the product going to be launch by them at
the marketplace. This will assist them to examine the impact of new product launch at the
marketplace and its value creation.
6) Product development:
R&D team of Tesco, decides to introduce the product related to healthy drink and juice at
the marketplace. This will help them in order to gather the experience of customer related to the
product which help in developing the final product at the competitive marketplace.
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TASK 2
P3Analysing life-cycle stage of different products or services
Figure 1: Product life cycle stages
Product life cycle of new healthy drink
1) Introduction: It refers to the first stage of product lifecycle where the product is newly
introduces at the marketplace and requires lot of promotion and marketing strategies. In this
context, Tesco is going to launch new healthy drink at the marketplace which is for the users
who are health conscious and fitness freaks. This is the stage where company needs lot of
promotional activities and marketing in order to create awareness about the products and services
at the market area.
2) Growth: Another stage is growth strategy where users know about the products and services
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and face growth at the market. It has also been said that various other organisations try to
compete with the company where they can maintain their sustainability by innovating new
features and benefits in the products and services.
3) Maturity: Third stage is maturity when the first is at the peak and no other organisation can
beat them. In addition to this, pricing of the products are competitive and produce high quality
products by the management team of Tesco.
4) Decline: At last, the decline stage comes when there is no more innovations takes place by the
company and customers get other benefits from rivalry firms. In reference to the Tesco, it is
decided by the managers to launch new product when company faces declines so that they can
offer new product to their customers in order to retain their potential candidates for long term.
These are the stages which needs to be considered by each and every business entity so that
they can maintain their position and brand image at the competitive marketplace for a longer
period of time.
Product life cycle of Tesco clothing
 Introduction – This stage includes introduction of company products to market area. In
this stages Tesco company will launch clothing products in market area in order to
provide its high quality products to targeted customer. Tesco company will conduct
different marketing practices for attracting more customers
 Growth – In growth stage, products sales will increase as more customers will be aware
about the products. Tesco clothing products have moved from the growth stage as
customer are very well aware about the clothing products of Tesco. Maturity – This is the stage in which customers are mostly aware about the products and
increase the sales of manufactured products. Tesco clothing products is in maturity stages
and most of the customers prefer clothing products of Tesco company. Decline – This stage is the last stage and in this sales of products will decrees. Tesco
company needs to reduce the manufacturing of clothing products when they reach to
decline stage.
Product life cycle of Tesco electronic products Introduction – This is the stage in which electronic products of Tesco company is
launched in market area. Tesco company will focus on developing effective strategies
that will lead to increase awareness in market area about the product.
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 Growth – It can be describe as the stage in which Tesco company is focusing on
increasing the sales of products in order to earn more profits. Electronic products of
Tesco company is growth stages and respective company have to invest more in
marketing activities for attracting more customers. Maturity – When company needs less promotional activities for attracting customer and
products has developed its strong customer base it is known as maturity stage. Respective
company electronic products sales will be increase and profits will be enhance. Decline – This is last stage of product life cycle and in this stage company needs to stop
investing in production of electronic products. It is essential for Tesoc company to
introduce innovative products as per market need.
Product life cycle of Tesco furnitures Introduction – Tesco furniture products has launched new design of furnitures products
in market area. Respective company will conduct different marketing and promotional
activities in this stage of product. Growth – Once the product has moved from introduction stage it will be on growth stage.
Furnitures products of Tesco company is in growth stage and organisation have to
perform different business activities that will lead to increase in sales of company
products. Maturity – In maturity stage company will decrees promotional and marketing practices
and customers will be attracted towards the furnitures products of Tesco. When
furnitures products of Tesco company is in maturity stage it will have most of the sales
and provide maximum benefits to company.
 Decline – The last stage of product life cycle is decline stage and in this company will
face issues of less sales of products in market area. Potential customers are not
interested in purchasing furnitures products of Tesco company.
P4: Appropriate product line management choices are required for individual products or
services
Product line management have several choices which are essentially required for the
individual product as well as services. With reference to TESCO, the respective company
focuses on introducing new healthy drink for its customers who are health conscious and fitness
freak. Tesco product line manager is responsible for developing and managing the product line
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for end to end. Product line manager is responsible for introducing and managing changes in
products or its features in order to increase its sales. There are range of products and services that
is offered by Tesco company and as per the product life cycle manager will determine whether
company needs to adopt innovation, adaption or renovation is the products as per the need of
products.
New healthy drink – This product of company is at introduction stage and it is
recommended to product line manager to use adoption strategy. Tesco company can add new
flavours in its health drink products as this will lead to attract more customers. This adoption will
support in attracting large number of customers.
Tesco clothing – Clothing products of Tesco company is in maturity stage and it
important for product line manager to renovate its current products. It is recommended to
manager to make modification or changes in current clothing products. At maturity stage mostly
customers are aware about company offerings. Renovation in clothing products or design of
product will lead to attract more customers.
Electronic product – This products of company at maturity stage and its is suggested to
the product line manager of Tesco to use new and innovative technology in developing products.
At this stage company is investing in promotion and marketing of electronic products. This type
of product needs update and innovation in order to meet with the needs of customers.
Furnitures products – Furniture products of Tesco company needs renovation in
designing of products. Product line manager of respective company needs to renovate the
furniture products in such a manner that it will provide more comfort to customers.
TASK 3
P5 Design of a market testing, product/service launch & distribution.
Market opportunity for the proposed product or services
There are various marketing opportunity of Tesco company that could be gain by
developing or producing high quality products and services. By offering healthy drink products
to customer respective company will be able to attract large number of customer and increase
more loyal customers. Tesco company will have opportunity for developing strong brand image
and effective relationship with customers. Marketing opportunities that could be capture large
market share as well as gain competitive advantage over other rival companies.
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Marketing Mix
In this regard marketing mix tool have been adopted by the senior management team of the
company which specified as below in detailed manner.
Product: TESCO offers wide category of products and services to the customers which
includes food, electronic items, clothing, financial services and many others. Here, it can be later
said that the expansion of the product line is expanding in each possible way with the motive of
fulfilling needs and requirements of the consumers in best possible manner. For reaching its
customers in best possible manner, the respective entity have adopted online medium too. In
addition to this, it has been later seen that TESCO also provides grocery delivery services of
40,000 products lines. As per the current scenario, TESCO would offer vast range of the organic
healthy drink range for its health conscious customers. These would be best solution for the
people who give huge preferences to healthy drinks for the fit body.
Price: Here, according to the current product TESCO is emphasizing on offering its product
range at affordable prices so that they can easily approach their existing clientele and maximise
their sales performance with the new offering only. This would ultimately maximise sales
performance of the entity in rightful manner.
Place: Products of TESCO are mainly offered at its physical stores in UK and others nations
in the commonly name of Tesco Express, Tesco extra, Tesco homeplus, Tesco compact, Tesco
metro, Tesco superstore etc. Here, new healthy drink would be introduced at TESCO super store.
In addition to this, the respective new product would also be offered to the customers through
online medium via its own websites.
Promotion: In order to promote its existing product range and newly introduced product
marketing team of TESCO generally makes use of several kind of promotional activities’ such as
marketing campaign, TV ads, magazine, social media etc. Among them all the main preferences
is given to the social media which is effective for the company as it allows them to approach
maximum number of customers. Also, social media is cost effective for the same entity.
Physical evidence: Interior of TESCO outlets and effective website designing could be
considered as the core physical evidence for the respective company which is supportive in
attracting maximum number of customers towards them.
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People: TESCO considers its employees and customers as main people. Its management
team places continuous based efforts in order to satisfy the interest of both of them.
Process: The company uses traditional process for introducing the product which includes
initially planning, market research, feedback from employees and loyal customers, usage of
effective marketing method and then finally introducing product.
Porters five force model
In order to analyse external market environment, the respective company makes use of
Porter’s Five Force analysis framework. All five forces of this framework are specified as below:
Bargaining power of buyers: Influence of this force is relatively high for TESCO as the
buyer is the only who makes decision that whether they must go for this product or not. It can be
said that there are several companies at the same marketplace which is offering similar kind of
drink at almost similar price range. Thus, if the customers find the newly introduced healthy
drink in any manner then they might switch to another brand.
Bargaining of suppliers: The magnitude of the supplier is relatively low for the TESCO
as the respective company has huge options in terms of supplier thus if the existing supplier does
not gets agrees to the provided product then the TESCO is having option to move to another
supplier and influence them to get agreed to develop healthy relations with them.
Threat of substitute: Threat of substitute is higher for TESCO as competition within the
industry is high. Therefore, for maintaining interest of the customers, rivalry introduces
something new each and every time so that they could maximise substitutes within the sector.
Competitive rivalry: Rivalry within the retail sector is relatively high as compared to
other sectors this simply raises influence this force higher for TESCO. The main competitor for
TESCO are Morrison’s Sainsbury and ASDA. For reducing its influence and gain competitive
edge, TESCO must emphasise on providing high quality products to its customers at affordable
prices.
Threat of new entry: There is low threat of new entry because Tesco has a high brand
image and it is very difficult for a new brand to enter the retail industry of Tesco. There is
Requirement to deal with the threat of new entrants by maintaining a very high quality of all the
ingredients used by the manufacturing of the new healthy drink products.
Financial overview
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There are huge financial resources required by company while providing its products and
services to customers. Tesco company will need huge financial budget for collecting raw
material in order to develop new product. In order to successful perform different marketing
operations and practice huge financial need will be required. This company will promote and
advertise its products through different sources.
TASK 4
P6 Reflective statement that reflects on creative development, team working & presentation.
First of all I was so glad to perform such a big activity which is a life time achievement
for me. At the initial stage I was so much excited about the whole process but when I started
working on it I actually feel nervous because it is one of the huge responsibility where a new
product is going to be launch at the marketplace on which the whole performance of organization
stays.
Furthermore, it has also been said that while preparing for the presentation my whole
team consider the team management skill which assist in producing positive outcomes as each
activity is divided on the basis of priority. Apart from this, here are various elements like
ineffective leadership style, lack of coordination and corporation, ineffective communication
which affect the whole performance and outcome in a negative manner. After sometimes when
me and my team members start interacting with each other which develops trust, coordination
and corporation among them. This assist in sharing thoughts, opinion and view on a specific
topic which leads towards the development of innovative ideas.
At the end, I can conclude that my whole experience behind conducting the presentation
was so effective where I learn about different aspects which improves my understanding &
knowledge and assist in grabbing opportunities in my future associated to my professional life.
What were your contributions and which part of the pitch was presented by you?
In the whole presentation project the main contribution by me is to gather the sufficient
information with the help of various sources like questionnaire where it becomes easy to collect
primary information. I have strong communication skills and this the is major reason that is
chose to pitch the introduction part of presentation. This will lead to have positive impact on
audience and help in garbing more attention.
How did the team function?
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My team worked very well and in this this team we are were very supportive to each
other as well as help other in performing task and activities in more significant manner. Effective
and efficient functioning of the team is the major reason for successful completion of all task on
time.
How did the team undertake all necessary activities?
In this team necessary activities is to prepare presentation as well as deliver it to required
audience. While preparing of the presentation we all have divided task among the team member
and provided responsibility for completion of particular task.
How did the team organise and plan their work?
For organizing and managing team activities as well as successfully completing the work
we all have develop a proper plan. In this plan all task and activities that needs to be performed is
mentioned. Team member who is responsible for performing task along with the time duration
that will be needed is also mention. This lead to reduce conflicts and issues among the team.
What was the level of interaction between the team member?
In this team all team member are able to communicate and interact with each other in
better manner. Team have high level of interaction and all team members are able to convey
message in appropriate manner.
Did the group discussion enable creativity within the teamwork?
Yes, group discussion play a major role in enabling creativity in a team. In this team we
had group discussion while taking major decisions. This will lead to provide opportunities to all
team member to say their point of view. It helps in enhancing creativity and innovative ideas in
team.
Did the team work well together or was it dysfunctional? If the latter, How was the
dysfunctionality eventually managed?
Yes at the initial level team members of the group are not very well aware about the
attitude and behaviour of each other, which as a result creates conflicts and disputes among
them. This might affect the whole performance and profitability of the company and produce
negative results rather than positive one. In order to manage dysfunctional team leader has
conducted activity through which team members are able to develop relationship with each
others.
What was the quality of the final presentation?
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The final presentation of the team was up to the mark. Each and every team member has
put their full capabilities to attain desired objective of team. Final presentation of team have high
quality and successful meet objectives.
CONCLUSON
With the assistance of above mentioned report, it has been concluded that every business
entity produce high quality products and services which consist of unique features and quality. It
is also very necessary for every organisation to modify their products as per the requirements of
customers on a regular basis so that they can satisfy their demands and retain them for a longer
period of time. Furthermore, it has also been identified that technology plays very essential role
in order to gain competitive advantages by developing new product at the marketplace. With the
help of marketing mix managers get lot of support related to marketing strategy which leads
towards maximizing the overall profitability in an appropriate manner. At last, using product life
cycle in an effective way support management team in order to reduce risk associated with the
product development among the marketplace.
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REFERNECES
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