Managing Product and Service Innovation

This essay discusses the New Product Development (NPD) theory and how it is implemented in Coles Supermarket for introducing new products and services successfully. It covers the different stages of NPD, including idea generation, screening, concept development, business strategy development, product development, testing and marketing, commercialization, and introduction to the market. The essay also emphasizes the importance of following the NPD procedure for successful product and service innovation.

Running Head: MANAGING PRODUCT AND SERVICE INNOVATION 1
Managing Product and Service Innovation
Name
Institution

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Introduction of a new product or service involves a dictation of a number plans and
procedures. The procedures are summarized in a theory called New Product Development
(NPD). Coles supermarket when intending to form new product or services are confined to this
theory which helps them to introduce successfully a product in the market. Some of the different
explanations that were done in a class, I have compiled them and written down in the essay
below. I included what I learned on the subject majoring on the introduction of new product or
service using the NPD majoring in the Coles supermarket within Australian which deals with
organic products.
The first process in the development of new product or services in the market involves
idea generation. The knowledge of a new product or service can be invoked in diverse ways
which include brainstorming, purposeful discussions, views from skilled people, research on the
market and borrowing or buying of the ideas. Ideas can be generated by brainstorming where
individuals can come up with diverse thoughts which may be part of their experience (Marion,
Eddleston, Friar &Deeds, 2015). The Coles supermarket idea generation came from researches
done in the market and also from stakeholders. Groups’ discussion in a perfect avenue where
ideas can be generated (Wooten & Ulrich, 2015). There exist motivation in meetings which
promote individuals involved to come up with numerous ideas.
Skilled people who had been in the Coles supermarket stand a position to offer good
ideas to the organization on better products and services to implement. Researches which done
on the market gave good reports to the Coles which helped to generate of ideas which aided in
coming up with a new product and service. It formed the best part of idea generation in the
market as the product or service missing in the market were easily identified and implemented.
The Coles borrowed ideas from different individuals or institutions. I learnt that Ideas can be

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borrowed from one nation to the other (Stark, 2015). The ideas gotten from different areas must
be screened or checked into before they are fully implemented. The process checks on the
feasibility of the ideas and how practicability and effectiveness of the ideas. In idea screening,
specific ideas are picked from the pool. The rest of ideas which do not pass the screening are
discarded or placed under investigation. The Coles used this criteria which made the organization
to be successful.
The Coles implemented the NPD’s third level of product development. In this phase, the
idea is laid out which gives room for testing to see the actuality of the concept. The processing of
testing gives answers to question formulated and directed on the idea. The individuals or entities
who came up with the idea must answer the questions raised towards the idea. Failure to do this,
the idea is dropped. The concept of the idea is compiled and it pushes the idea to the next level
after testing. The next step involves business strategy development (Eppinger & Ulrich, 2015).
The idea is brought into the business area and its profitability is calculated. A business
opportunity is approved from the idea. A listing of the markets under which the idea is based is
done. Plans are done on how to launch the idea product or service in the market. The supply of
the product must be equal to the demand in the market. All these factors are check unto before
proceeding to the next level.
Product development is the next level of market strategy. The product or service is fully
defined. It is done the branding which involves giving a name, in the case of the Coles each
organic product was given a specific brand name. A good name communicates a lot and forms
part in suggesting the demand that will be invoked in the market. The ingredients or procedures
are fully defined and the product or the service is actualized (Ernst, Hoyer, Krafft & Soll, 2017).
After development, the product or service is brought to the market for testing. In this stage,

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promotions are done where it is offered freely to the target consumers if it is possible who in turn
give the feedback needed. The statistics are recorded and actual research is done on the success
of the product or service in the market. When the research prove positive it initializes the next
level (Armstrong, Kotler, Harker & Brennan, 2015). Commercialization is the subsequent level
which involves the pricing of the product or service. There is some consideration effected at this
stage, the price of similar goods and services existing already in the market. All the legal
procedures are followed to commercialize the product. The final step involves the introduction
of the product and service to the market.
In summary, as seen in the Coles supermarket an introduction of a new product in a
market the NPD is the best to theory to be implemented. Failure to follow the procedure, the
process may turn out to be unsuccessful. A product and service which followed the entire
procedure was successful in the Coles supermarket. The NPD outlined procedures which include
idea generation and screening, concept development, business strategy development, product
development, testing and marketing, commercialization and eventually introduction to the
market, form the ideal procedure for introduction of a product in the Coles supermarket.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Eppinger, S., & Ulrich, K. (2015). Product design and development. McGraw-Hill Higher
Education.
Ernst, H., Hoyer, W., Krafft, M., & Soll, J. H. (2017). Virtual Co-Creation with Customers in the
Early Stages of New Product Development.
Marion, T. J., Eddleston, K. A., Friar, J. H., & Deeds, D. (2015). The evolution of
interorganizational relationships in emerging ventures: An ethnographic study within the
new product development process. Journal of business Venturing, 30(1), 167-184.
Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (Volume
1) (pp. 1-29). Springer, Cham.
Wooten, J. O., & Ulrich, K. T. (2015). Idea Generation and the Role of Feedback: Evidence
From Field Experiments with Innovation Tournaments. Working Paper.