Product & Service Development | Assignment

Product & Service
Development

PART - A.........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
P1. Explain the processes involved in the development of products and services and the levels
of customer integration................................................................................................................3
P2. Apply these processes in application to the development of a specific organisational
product or service.........................................................................................................................5
PART 2............................................................................................................................................6
INTRODUCTION...........................................................................................................................6
TASK 2............................................................................................................................................6
P3. Assess the life-cycle stage of the products or services in a company’s portfolio..................6
P4. Evaluate which appropriate product line management choices are required for individual
products or services......................................................................................................................8
P5. Design and pitch a product or service taking in to account market testing, product/service
launch and distribution...............................................................................................................10
TASK 4..........................................................................................................................................12
P6. Complete a reflective statement that critically reflects on team working, creative
development and presentation....................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

PART - A
INTRODUCTION
Modern business world is filled with competitors. Therefore, it has become vital for
companies to develop new products or services with the use of invention or innovative approach.
It is required for firms to understand the renews and measure needs of customers who have been
targeted. This may lead organizations to manufacture the best product or service. In present
report, company which has been chosen i.e. L`Oreal Paris which is a multinational French brand
which was found in the year of 1909. Company planned to re–launch its hair spa kit with
modifications in it (Vasantha and et. al., 2012). Here, they have added some tablets of Vitamin –
B which can help their clients to grow hair much more stronger and smoother in nature at the
same time. Assignment will include process of a new product development (NPD) and
application of it on a product.
TASK 1
P1. Explain the processes involved in the development of products and services and the levels of
customer integration
The process of development of products or services is referred as the stage where
particular company decides to establish and produce their own products or any kind of specific
services. Product and services are two different concept, but service is interlinked with the
product to some extent. Product means any item is being made for available to the sale. It can be
both tangible and intangible. Service can be a product, product cannot be a service. Service is a
kind of transaction when there is no existence of the physical product transferring from the seller
to the purchaser (Lee, Kao and Yang, 2014). The product of product and services is considered
as the cross functional framework which involves marketing, design and production process.
In context of L`Oreal Paris, process of new product development is the step by step
framework. L`Oreal Paris has decided to launch their new brand product (Modified hair spa kit).
It will helpful in strongering and smoothing the hairs of its clients. The foundation of process
starts with idea generation and end at the launch of the outcome or product.
This process is considered as a journey from the creative and innovative idea to actual
product. For L`Oreal Paris, the process of the new product development are as follow:
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Idea generation - This is the primary stage of the new product development of an existing
product of L`Oreal Paris. It starts with an idea generation from various sources such as market
research, SWOT analysis, customer’s feedback etc (Grönroos and Voima, 2013). An idea would
be creative, innovative and a common fact with the wide scope to sustain in the market. An idea
would be specific and creative and innovative etc.
Idea screening - This is the second stage of development of product or service of L`Oreal
Paris. Ideas are many finding the most suitable is the difficult tasks. It involves finding feasible
idea which will most appropriate results. There are many factors such as: competitive advantage,
present trend in the market, company’s strength, price factor, affordability etc.
Concept development & testing - This is the third stage of the product or service development.
An idea when passing the screening stage converts into the product concept for the testing
purpose. In this some target customer are taken into consideration for the testing scope and
reliability of the product (Jacobs, Chase and Lummus, 2014). Customer feedback is very
important for the further improvement and changes in existing hair spa kit. Post evaluation is
very important for the forwarding process of product or service development.
Business strategy analysis & development - In this stage, process of development of
products or services actually comes into the existence, when there is a final confirmation from
the R&D department of the L`Oreal Paris. In this, company decides what all sort of strategies
and marketing move will company follow to make demand of the product higher. It involves the
competition, target market, pricing strategies, advertisements and sales promotion etc.
Product development - Once all other stages and strategies has been approved, it is the stage
when the actual product comes into existence. It would be both tangible and intangible and
tangible products. This stage decides the production process of the actual product when it passes
through the multiple stages of the manufacturing, packaging and logistics (Bertoni, A., Bertoni,
M. and Isaksson, O., 2013).
Test marketing - Now a days, L`Oreal Paris and other organizations are using prototype
strategy instead of the concept theories to take customer feedback and advice by first few sample
products to customer to test and give their feedback, views and opinion etc. The makes the
product ready for the launch and commercialization.
Commercialization - This is the last stage of the product & service development process.
It reveals that actual products is ready for being launch in the market for the purchase. After
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