Product and Services Development

This report discusses the stages of new product development, including ideation, research, planning, prototyping, costing, and product development. It also analyzes the life cycle stages of different products and services and explores the product line management choices for individual products. The report focuses on Tesco's new healthy drink launch and its marketing strategies.

Product and
Services
Development

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Description about each and stage of NPD process for new & improved product development
................................................................................................................................................1
P2Applicationof these processes to the development of a particular organisational product or
service.....................................................................................................................................3
TASK 2............................................................................................................................................5
P3Analysing life-cycle stage of different products or services..............................................5
P4: Appropriate product line management choices are required for individual products or
services...................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Design of a market testing, product/service launch & distribution...................................7
TASK 4............................................................................................................................................8
P6 Reflective statement that reflects on creative development, team working & presentation.
................................................................................................................................................8
CONCLUSON.................................................................................................................................9
REFERNECES..............................................................................................................................10

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
Home appliances
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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
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.
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. 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
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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.
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.
TASK 3
P5 Design of a market testing, product/service launch & distribution.
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.
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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.
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. In current report, 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. It has also been said that at the first 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.
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
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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.
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
Books & Journals
Bustinza, O.F. and et. al., 2019. Product–service innovation and performance: the role of
collaborative partnerships and R&D intensity. R&D Management, 49(1), pp.33-45.
Kalmykova, Y., Sadagopan, M. and Rosado, L., 2018. Circular economy–From review of
theories and practices to development of implementation tools. Resources, conservation
and recycling, 135, pp.190-201.
Haber, N., Fargnoli, M. and Sakao, T., 2020. Integrating QFD for product-service systems with
the Kano model and fuzzy AHP. Total Quality Management & Business
Excellence, 31(9-10), pp.929-954.
Hernandez, T.R., Kreye, M. and Eppinger, S., 2019. Application of Agile in Product-Service
System Development.
Haber, N., Fargnoli, M. and Sakao, T., 2020. Integrating QFD for product-service systems with
the Kano model and fuzzy AHP. Total Quality Management & Business Excellence, 31(9-10),
pp.929-954.
Bustinza, O.F., Gomes, E., Vendrell‐Herrero, F. and Baines, T., 2019. Product–service
innovation and performance: the role of collaborative partnerships and R&D intensity. R&D
Management, 49(1), pp.33-45.
Cooper, R.G., 2019. The drivers of success in new-product development. Industrial Marketing
Management, 76, pp.36-47.
Miranda, J., Pérez-Rodríguez, R., Borja, V., Wright, P.K. and Molina, A., 2019. Sensing, smart
and sustainable product development (S3 product) reference framework. International Journal of
Production Research, 57(14), pp.4391-4412.
Sherwood, R.M., 2019. Intellectual property and economic development. Routledge.
Haber, N., Fargnoli, M. and Sakao, T., 2020. Integrating QFD for product-service systems with
the Kano model and fuzzy AHP. Total Quality Management & Business Excellence, 31(9-10),
pp.929-954.
Marzi, G., Ciampi, F., Dalli, D. and Dabic, M., 2020. New product development during the last
ten years: the ongoing debate and future avenues. Journal of Product Innovation
Management, 234(6158), pp.289-89.
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