Product and Service Development Unit 22

This report discusses the new product and service development process and its application for developing organic drinks by Mark and Spencer. It also covers the product life cycle stages and appropriate product line management for the product.

PRODUCT AND SERVICE
DEVELOPMENT UNIT 22

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing the process involves in the new product and service development and level of
customer integration.....................................................................................................................3
Applying these steps for developing the organic drinks by the Mark and Spencer.....................5
Life cycle stage of the product or service for the Mark and Spencer organization:...................6
Appropriate product line management for the product:..............................................................8
Design and pitch for the launching of organic drinks in the market............................................9
Reflection...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Product and service development also refer as the new product and service
development. It involves the series of stages which involves the conceptualization,
framing and the marketing aspect of the new product. It plays an important role for
enhancing the productivity of the business. As the main key difference between the
product and service development is that the product is tangible and the service is
considered as the intangible. Creation of the product introduce some different aspect
which can be used to enhance the further growth for the organization (Ahmadi, 2019).
As a junior product manager of the company Mark and Spencer a British Multinational
retailer organization, main headquarter is present in a London, England, United
Kingdom. Company has diversification in their products, they have wide range of
varieties of their product which they deliver to their customer. Company have many
stores across the country in which they sell their different products which ranges as food
and beverages, clothing etc. Report focus on the innovative ideas which the
organisation is looking for improving product and services to launch in the market. It
involves the processes which define the new product and services development for firm
and its application applied for developing a product for company. It further involves the
designing and pitch of product, and reflective statement over the team working.
MAIN BODY
Analysing the process involves in the new product and service development and level of
customer integration
The product development process involves all those steps that are needed to taken for
increasing the market availability of the products. This process involves those steps that
adds glory in the making and promotion of product. Earlier, the companies was using
the concept of making products according to their perceptions and then selling it into
market. But now, the scenario has changed the market is all about the customers.
Consumers are the vital element for the business. (Santos and et.al., 2017). Therefore,
it is important to understand their demand and on the basis of that decision regarding
the product has been taken. This ensures the success to the firm as the consumers
becomes highly satisfied when their demand are completed. The process of product

development adds glory in the product. In order to understand this with clearance, here
are the steps that are involved in the product development process.
Identification- The NPD is the opportunity to grab that is available in the market. The
NPD enable the firm to grab that opportunity that is filled with the demand and
satisfaction of the customers. This is the first step of the product development process
in which the organization identifies the idea of generating the product. The idea is
generated by seeing the current market scenario. The demand and taste of the
customers plays the important role in the idea generation of the product. During this
stage different ideas has been identified by the company in relation of developing new
product.
Idea screening- This involves choosing the best idea among all the ideas. That idea of
product development that ensures the high rate of success has been chosen by the
firm. This stage has been performed by making complete research on each idea. The
total expenses on the product has been calculated. This helps in knowing the profit that
will be earned by the company. (Roberts and Darler, 2017). The SWOT Analysation has
been done by the company in order to know the strengths, weaknesses, opportunities
and threats of the product. And on the basis of that the best idea has been chosen.
Concept development and testing- After the idea is identified the next step is to
developing the concept of the product and testing the product. This has been done in
order to know competition that has to be faced by the firm for launching the product.
The clear presentation in relation to the product has been made. (Sallati and et.al.,
2019.)The presentation involves the benefits and uniqueness of the product that will
attract the customers. The testing of the product is done in order to provide the
assurance in relation of the safe product. Testing element determines that the product is
safe to use and there is no harm from using the product.
Market strategy and business analysation- This step of product development
process involves those strategies that are needed to be taken for reaching the targeted
audience. The market strategies involves all those tools and techniques that helps in
making consumer about the product. The concept of marketing mix has been performed
during this stage. Business analysation involves the risk factors that can come in the
product development.

Product development- When the complete market and business analysation has been
done then the product development cycle starts. The product development cycle
involves al those steps that enables the creation of the product.
Market testing- This involves the testing of product after the making if product. This
determines the quality and performance of the product. In case, any doubt has been
created in relation of the product during this stage then the product is returned to the
company.
Commercialization- All the above steps are performed in order to perform this step.
The commercialization of product refers to making product available in the market and
making customer satisfy. (Wlazlak and et.al., 2018). The brand value has been created
during this step. The new product is finally made available in the market for the
customers by implementing effective supply chain management.
Applying these steps for developing the organic drinks by the Mark and Spencer
Mark and Spencer is one of the leading retailing firm having large number of
consumers in the market. The firm grabs the big share in the market. The firm in
introducing the new product which is “Organic Drinks”. It has been found from various
studies that the firm is highly concerned about the satisfaction level of their customers.
In order develop this product in the market the company has adopted the certain steps.
The company has identified the idea of launching the organic drinks. The company has
chosen this idea among all ideas because the organic drinks provides the effective
combination of health and taste. (Boës and et.al., 2017). In the idea screening step this
idea will be adopted by the company. For the concept development and testing process
it has been found out that the main concept of producing this product is to ensure the
health of the customers. The company is highly concerned about the customers.
Market strategy of the company for the product development involves the
marketing mix. Under this the packaging of the product will be decided on the basis of
customer demand. And along with this, the main factor that is price has been analysed.
In order to set the price, the company will analyse the business environment. This
enables the company to know about the competition in the market. The company
prefers the idea of setting affordable prices. For place mix, the company will target that
areas where the health conscious audience are more and for promotional technique the

firm will chose the online the concept of digital marketing. Afterwards, analysing all the
necessary steps the company will start the process of product development. After the
making of organic drink it will be sent to the labs in order to complete the final testing.
And finally after getting tested. The organic drinks will be introduced in the market. The
company is providing the benefit of health along with the delicious taste this uniqueness
of the product results in attracting the large number of customers.
Life cycle stage of the product or service for the Mark and Spencer organization:
Product life cycle model define as how the product goes through the stages, life
cycle is consider as the existence fact for every product and services. This process is
the main course for the product' life, as it initiate when the product is under to
development phase and finished after it has been detached from the market. It is
beneficial for the Mark and Spencer company to achieve the good position into the
market as well as it increase the revenues for the company. Product life cycle involves
the stages which are as follows:
Introduction:
At the market introduction initially the market size, volume and growth of the sales are
seem as small. Therefore, the product is also subjected as of normal size and with no
competition. The main key purpose of the market introduction phase is to develop a
market for the product and to create a product demand for the customer in the market.
In this stage the sales seem as a slow and increases when the demand rises. Initially
the cost which invest in this stage is higher due to the saturation of the market which is
due to the consumer attract to the different product type. Also in such company invest
more on the marketing process of the product which ultimately rise the expenses for the
new product (Machac, Steiner and Tupa, 2018). As the profit in this stage can be seen
as low as because of the research and marketing, creation cost are very high. As for the
Mark and Spencer company for their new product organic drink, they first need to
research their market. It will help them to build a certain strategy to begin with the
development phase of the product. As the competition also seem low or neither existed
for the new product due to the low demand of the product into the market. As the
company is offering the Sparkling cloudy apple drink which is popular enough to

generate the revenues for the company. They have already developed the market for
this product.
Mark and Spencer company always tries to improve their customer engagement
within their services. For the new product organic drink they can proceed to conduct the
online events to attract the customer towards it. They can begin to provide the vouchers
to their potential customer so that they attend the event, it is the good marketing
strategy which the company can proceed with. Through which they can also able to
collect the feedbacks from the customer. Company can proceed with the rapid
penetration process as to launch the product at low or affordable price along with the
good promotion (Tyulin and Chursin, 2020).
Growth:
In this stage it is seen that product is at stable state and able to attract the customer
towards it, in which the demand of the product grows also have some sort of
development of competition in the market. In this the product of the company is soda
water which is widely sell in the market. Through this stage Mark and Spencer company
can begin to develop the brand loyalty and proceed to enhance their market share. It is
the good point for the organisation to create hype of their product into the market by
providing better marketing approach for it. Company can proceed to use the penetration
pricing strategy which is beneficial to attract the customer towards the product
(Matsumoto and et.al 2017). In which company can begin to provide the less price on
new product at initial stage, it is beneficial for product to penetrate the market. Other
strategies as the intensive distribution, to decrease the sale promotion can also be used
in this Growth stage for enhancing the productivity of the product. For example, as for
the Mediterranean orange soft drink product, company need to promote it through the
influencer so it will grab global recognition, that will maximise their product’s sale.
Maturity:
When the product reach at maturity, and the product begins to compete with its
alternatives products and the pricing for its drops, in this maturation stage it is the initial
stage of market saturation. As many customers in the market have bought the product
and competition also developed. It implies that the branding, pricing and product
differentiation becomes more essential to manage the market share. In this the

advertising cost for the product generally reduce as product is already successful in
creating the demand in the market. Company has product in which there is no added
sugar that is the blackcurrant high juice which is popular among the people who are
health conscious. Mark and Spencer company can also proceed to implement the
competitive pricing strategy for the new product. It is the process in which the company
can begin to consider the competitors price for their similar products (Walter Leyh and
Strahringer, 2017). Also, begin with other differentiation strategy so that it will give the
benefit to the company.
Decline:
In this stage of the product life cycle product comes in this category while the sales or
the profit begins to fall. As the market demand for the product started decreasing also
the market area begins to shrink for the product. It implies that for the company the
revenues and market share decrease at this point. Declining of the product is done due
to the saturation of the market, which means that customers are no longer interested in
the product they want something different. As the company have the product which is
orange high juice, in this declining stage it shows that how the product is avoid by the
customer after some point. It directly affects the sales of the company. In this stage
Company begins to apply sort of different strategy to increase the demand of the
product as to reduce the price on product, started to give discount. For the mark and
Spencer company they can begin to cut the cost on the product as well as to focus on
their target customer to allow them to buy product on special discount (Lacroix, Seifert
and Timonina-Farkas, 2021).
Organisation can also begin to hold the product for making innovation in it or to
decrease the manufacturing cost or to started searching the market. Or to decline the
production process of the product if it totally fails so there is no point to invest money on
fragile products.
Appropriate product line management for the product:
Product line management define as the company's strategies which is used to
concentrate on the programmatic process of the production so that the particular

objectives can be achieved through it. It can be understood as to enhance the
profitability or productivity of the company.
As for the Mark and Spencer company they can begin to adapt the clarity in their
sales and in a marketing strategy. It will be beneficial for their company to proceed with
desirable manufacturing process, in result they will be able to improve their
manufacturing process by understanding the customer's demand. Mark and Spencer
company can begin to the product mix expansion for maintaining the product line
management for their new organic drink product. This will help the company to increase
the product line for the product, it may relate to the present product. Therefore, when
they feel that it is difficult to present in a market with existing product line they can
proceed to expand their product mix (Acimovic and et.al 2019).
Therefore, from the product which is listed in each stage of the product life cycle,
therefore customer in the market demand for the product which is sustainable and
consists of health benefits. Therefore for the company their soda water and orange juice
drink required a innovation. By adding other nutritional properties to the product so it will
create the demand in the market.
Therefore, for the product life cycle process, product has gone through each stages, it
define the complete activity of the product, so that company will be able to track the
stage of the product.
Design and pitch for the launching of organic drinks in the market
Product design and pitch is that concept which focuses on the sailing of the product in
the market. This involves the final looking of the product in the market. This involves
communicating the special benefits of the products to the customers so, more
customers can be attracted in relation of the product. In order to understand this with
clearance here are the design and pitch for the organic drinks in the market:
Targeting the ideal customers- The company will target those customers who are
highly conscious about the health as the organic drinks is providing the benefit of health
to the customers. The market analysation has been done in order to find out the
majority of the customer that are focusing on their health. (Kazimierska and Grębosz-
Krawczyk, 2017) The proper understanding of consumer behaviour will be adopted by

the company in order to know the different aspect that is affecting the purchasing power
of the consumers.
Creating a unique value- This stage involves designing the unique value of the product
so, the customers can be attracted in fast manner. The unique value proposition adds
glory in the product. This is one of the important aspect that has to be kept focus on
while launching the product in the market. The uniqueness of the product keeps the
product apart from the competitor's product. The M&S is developing the organic drinks.
It has been found from various research that now days the customers want that
products which is ensuring their health and getting such drink that is healthy and tasty is
the biggest benefit that can enjoyed by the customers. The company is launching the
product in different taste as well. This is creating more uniqueness in the product.
Distribution- This involves the distribution of the products in the market. The channel of
distribution plays the major role in sailing of the products as this process is accountable
for making products available to the customers. (Canuto da Silva and Kaminski, 2017).
The M&S is using the direct and indirect channel of distribution for distribution of the
product.
Evaluation of competition- While designing the new product in the market it is
important to consider the competition in the market. This helps in making the effective
strategy in relation of the developing and launching the product. For organic drinks
those companies has been proven as competitor that are producing the healthy drinks.
But, the distinct feature of the organic drinks that is health along with taste is keeping
M&S apart from other companies.
Determine the personality of the brand- Expressing the brand is direct-way of
expressing the product to the customers. Creating brand value in market always leads
to attracting the large number of customers. M&S is already an established firm in the
market and therefore, the company has gain a big brand value. (Mauerhoefer, Strese,
and Brettel, 2017). By introducing the unique product in the market the company is
promising the effective health to the customers this will result in gaining more
confidence of the customer in the favour of the firm.
Designing the price- It is the crucial element that attracts the large number of
customers and distracts them as well. The pricing of the product plays the important role

in the sailing of the product. The M&S adopts the affordable price policy for launching
the product so the product can easily accessible by all customers.
(The remaining part along with this part has been covered in the presentation for
designing the pitch of organic drinks)
Reflection
During this project I made a learning that, Team work skills are the refers to those skills
that enables the people to make an effective group effort in relation of completing the
task. I have analysed that when all the members of the team actively participates in the
team then it results in the better achievement of the task. The presentation of team
working has been proven highly effective as it contains the skills and creativity of all the
members. In my class I have seen that those task which has been given me in the team
has always leads to the effective result. And along with this it also helps in learning the
new skills. The skills that are requires for the team work are effective communication,
coordination, time management and leadership. (Varela, and Mead, 2018). It is not
important that every individual possess these skills collectively. Therefore, the team
work has been proven as effective as in the team there are more members and all of
them are concerned with some type of skill.
The group work enables all the members to show their skills and collectively
creates the bunch of skills. I have effective communication and critical analysing
thinking. This skill has helped me in my group task in my university. The group task was
allotted to me and my mates in relation of critically analysing the book of an author. One
of my mate have the effective skill of leadership. And another mate has the skill of
cooperating with each member and one of the mate was effective in managing the task
in time. All of these skills of my group members along with the skills I have resulted in
completion of the task in effective manner. I have learned many things in the group task.
During performing the group task I found out that I am not enough able to
cooperate with my group members and it was due to because I wanted to do things
according to my own perception. But at the end my thoughts has been changed and I
realise that the cooperation plays an important role in the team work. I am focusing on
improving my this weakness. The cooperation element enables the individual in order to
perform effective in team. I will focus on improving this factor my taking more part in the

team work. This will provide me opportunities for improving my ability of cooperation
with the team members.
CONCLUSION
From the above report it is concluded that for the product or service launch organisation
need to implement certain processes which could help to rise the demand of the new
product into the market. This report illustrated the Process which describes the making
of the new product. Also it includes the product life cycle model for the product which
describes its activity in every stage. It further discussed the appropriate product line
management for the product, which define the product mix expansion strategy to
manage the product line of the product. It also covers the designing and pitch for the
product which involves the market testing and the launch of the new product for the
organisation along with its distribution. It lastly concluded with the reflection statement
which defines the team working and creative development approach.

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