Reflection 4: Analyzing Chemist Warehouse's New Product Development

This reflection report analyzes the new product development (NPD) strategies of Chemist Warehouse. It explores how the company leverages NPD theory to launch successful brands like My Chemist and My Beauty, focusing on market opportunity and innovation. The report discusses the importance of understanding market demands, competitive advantages, and customer needs. It examines the BAH and Stage-Gate models within the NPD framework, highlighting the challenges and uncertainties in product development. The author emphasizes the significance of market analysis, quality, cost, and time as key variables and the importance of team discussions in refining NPD processes. The reflection also touches upon the Lean Startup movement's potential impact on traditional models, providing a comprehensive overview of Chemist Warehouse's NPD approach.

Running head: REFLECTION
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Name of the student:
Name of University:
Author Note:

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New product development theory refersto thecomplete process which the companies
use to launch a new product in the market. The core process of this type of development is to
design new productswhich is analysedwith other business consideration. Through the product
development process of thebrand namely, Chemist Warehouse, it has been running popular
brands under its name, that are My Chemist, My Beauty and Chemist Warehouse
(Chemistwarehouse.com.au 2018). I feel the company has gained great popularity and huge
market share due to its strategieswhich perfectly apply to the opportunityof the Australian
market. The theory of new product development mainly points out this issue of market
opportunity. The NPD theory can be described widelywhen the company canutilise and
match the market opportunity with thescope of launching new productsin the market
(Olabode Samuel Adeola 2018). From the NPD theory I have learnt that the products of the
companies can be tangible as well as intangible. This particular company has launched new
products with the wide range of their products available in the market already (Ernst et al.
2017). However, the discussion with other team members have disclosed the fact that he
company have only focussed on the product innovation but it needs to have more competency
to improve the service sector.
By understanding the NPD theory properly, I have learnt that this theorysuggests the
companies to improve other businessissues which will be supportive of this innovation and
bring more profit by attracting more customersto the new products. The team discussion
about new product development by the company has revealed that NPD enquires the proper
understating the market otherwise the companies can never capture what the market
demandsand the customers need from the organisations (Wowak et al. 2016). This also
includes proper understanding and foresight of competitive advantage as well as the nature of
the market. The team members have perceived through the NPD theory that the companies
usually judge the chief variables which change the customers’ needs with time. These main

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market variables are quality, cost and time based on which the companiesdevelopvarious
strategies andpractices (Nauyalis 2018). The chief aim of this theory is to make the
companies to understand and analyse these three variables so that the companies can satisfy
their customers in a better way in one hand and increase their market shares through regular
development of the new products as well as modifying their existing products (George 2015).
The team discussion has pointed out the fact that there are many issuesand
uncertaintiesthat the companies face through the process of new product development as
there are many risks regarding acceptability of the new products in the market. Afterthe
launching of product, proper implementation of their product in the market is also vital
(Queensland government 2018). From effective learning of the theory and consulting with
different perspective of the team members I have learnt thatoften the process of visualisation
the customers’effect on the new products can be time consuming. In more intense
understanding of NPD theory incudes various models of which BAH model is
important.Booz, Allen and Hamilton (BAH) Model follows seven steps which are idea
generation,new product strategy, screening and evaluation, business analysis, development,
testing and finally commercialization.
The Stage-Gate model based on NPD theory on the other hand was developed in the
1980s.this particular model was proposed as one of the most important as well as new tool for
the management of the new products development process (Potter, Lawson and Krause
2015). The Stage-Gate model was chiefly applied to consumers’ goods industry. This
modelimproved teamwork, success rates, process of early detection of failure, better
launching method and shorter cycle times.I think, the new Lean Start up movement that has
grown in popularity in last few years can challenge many of the conventions inherent in
Stage-gate model. By discussing these perspectives Chemist Warehouse can make more
credible products in future.

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References:
Chemistwarehouse.com.au (2018). Chemist Warehouse: Australia's Cheapest Online
Pharmacy. [online] Chemistwarehouse.com.au. Available at:
https://www.chemistwarehouse.com.au/ [Accessed 15 May 2018].
Ernst, H., Hoyer, W., Krafft, M. and Soll, J.H., 2017. Virtual Co-Creation with Customers in
the Early Stages of New Product Development.
George, C. (2015). Internet Pharmacies: Global threat requires a global approach to
regulation. Hertfordshire Law Journal, 4(1). Retrieved from
https://www.herts.ac.uk/__data/assets/pdf_file/0008/38663/HLJ_V4I1_George.pdf
Nauyalis, C. (2018). The Innovation Management Maturity Model: How Do You Stack Up? |
Innovation Management. Innovation Management. Retrieved 1 April 2018, from
http://www.innovationmanagement.se/2013/10/28/the-innovation-management-
maturity-model-how-do-you-stack-up/
Olabode Samuel Adeola. (2018). The importance of Strategy & Innovations to an
Organization’s Success | Scholar Practitioner Journals.
Scholarpractitionerjournals.com. Retrieved 1 April 2018, from
http://www.scholarpractitionerjournals.com/article/importance-strategy-innovations-
organization%E2%80%99s-success
Potter, A., Lawson, B. and Krause, D., 2015. Improving Supplier Performance in New
Product Development: The Role of Supplier Development. 0737-6782.
Queensland government. (2018). Types of innovation strategies | Business Queensland.
Business.qld.gov.au. Retrieved 1 April 2018, from

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https://www.business.qld.gov.au/running-business/growing-business/becoming-
innovative/strategy/types
Wowak, K.D., Craighead, C.W., Ketchen, D.J. and Hult, G.T.M., 2016. Toward a
“theoretical toolbox” for the supplier‐enabled fuzzy front end of the new product
development process. Journal of Supply Chain Management, 52(1), pp.66-81.