Market Trendz: Product Development Strategies for Doughnut Business

This report, titled "Market Trendz," analyzes the product development strategies for a new doughnut product within a fast-food restaurant setting. The report begins by highlighting the importance of technical skills and market demand, followed by an examination of the restaurant's operational context...Read More

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Market Trendz
Name:
Course
Professor’s name
University name
City, State
Date of submission

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Part A
Product Development Strategies
.There are three important elements for a successful new product development, apart from
having the right product idea. So for us to successfully introduce this new product into the
market, it is important to have a guy who has the technical skills to create the right look and
taske that is very essential.
Examining the organization
Our company is a restaurant that is located in the City Centre, the organization has ten
employees who work in shifts since this is a fast food eatery where there are walk in customers
24 hours, 7 days a week. The restaurant has been operational for the last 5 years, and the
management has seen the need to introduce a new product (doughnut).This is because there is a
market demand that is not met for the demand. The organizational culture has enabled bosses and
their collaborators to work in an environment that ensures that the workforce potential in terms
of productivity is realized. The key to success has been the interaction of employee and the
management (Kono and Lynn, 2007). The restaurant has introduced new products before which
have received well.
Data required
The city has been growing, and therefore fast foods have been doing great. The data required for
a new product development can be categorized into five:
 First there is data that enables the company to identify is target market

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 Second, the company would also need data that will enable analysts to identify the
strengths and weaknesses of competitors.
 Third, there is data that would be required to determine the pricing strategy of the
doughnut.
 The next type of data required would provide more information on similar products in the
market.
 Finally, the company would require data on the best location and placement for selling
the new product.
Market trends
The industry of fast food continues to grow and rake in billions of dollars because people are
so busy that they want food that is easy and fast to assess (Kono and Lynn, 2007). In this
market, we have realized that there is a high demand of coffee and doughnuts in the early and
mid morning. The demand is also evident in the evening, that is why an idea of introducing a
new exciting doughnut with better taste and flavor is very viable.
Part B
Marketing needs
new products development strategy
Analysis process of the new product

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Companies are constantly analyzing their portfolio of products or services to evolve in their
objectives in an effective way and in accordance with the strategies that have raised in their
marketing plan.
The decision on the launch of new products, or their renewal and adaptation to current
circumstances, should be based on the analysis of markets, sectors, competition, technology and
many other factors that determine these decisions.
One of the analysis models is based on the CVP (Product Life Cycle) that follows the evolution
of the products throughout the period in which it is active in the market, and helps to guide the
marketing strategies of the companies And the efforts they devote based on the most relevant in
each phase (Ries and Ries, 2004).
With the objective of knowing the evolution that the products undergo throughout its existence,
there are 4 phases + 1 during its entire journey.If we analyze in more detail the phases of the life
cycle of a product (the stages that runs from the beginning of its commercialization until it is
decided to withdraw or change), we could summarize them in the following phases:
Launch Phase: It is the stage in which the product launches to the market and the sales are very
reduced, probably only the most innovative customers will be those who buy this product.
Production is always limited until the acceptance of the product is validated and it is the stage at
which the investments in making it known are higher.
Turbulence Phase: Once the product has been launched, turbulence may occur in its path due to
the pressures it receives. It must be analyzed, controlled, measured and modified in case of need.

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Growth Phase: It is one in which the product already introduced and accepted by the customer
begins its increase in sales. In this phase is when competitors appear and communication efforts
are pursuing increases in demand.
Phase of maturity: It is the one that generates a stagnation of the sales. By optimizing costs, the
benefits would increase (Ries and Ries, 2004). The strategies go through the innovation that
allows to stay in the market without losing quota. Communication efforts seek to maintain stable
estimated demand.
Part C
RECOMMENDATIONS AND CONCLUSION
A company dedicated to food production and intend to bring its product(doughnut) in to the
market, take some precautions so that it is successful. This are the recommendations before
launching the new product.
1. Study the market before venturing and pay attention to the requirements
Before making plans, it is important to study the market to which you wants to go, whether to
enter directly to the place and visit the possible outlets in which they can sell to the customers.
Another option is to hire some reliable company that does a study of prices and market.

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Its important to investigate what requirements the product must meet before the Food and Drug
inorder to enter the market..
Within that market study you should ask yourself the following: who will be my competition?
How does my product compare to other similar products? Is the price of my product the most
fair, is it the most appropriate?If you notice that there are already many products similar to yours
and that it will be difficult to compete, try to introduce those goods that are novel and unique.
2. Start with a specific market
.Identify opportunities in small markets, which will facilitate the introduction of the product.
3. Study logistics and distributor
One of the most important aspects is how the product will reach supermarkets. To improve on
sales, the company can also use distributors and other outlets such as the supermarkets.
On the other hand, the direct dealer sells the product to the point of sale.The distributor also
represents the product, buys the product, stores it and distributes it from store to store every day,
and has street vendors pushing the product, in exchange for earning their commission.
The management has to plan well in advance and have a good idea of where the good will be
positioned.

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If it is a new product or is to be placed in a reduced section, boxes with a few units should be
handled: with a maximum of 12, hopefully less, as there are supermarkets that are not interested
in buying a product that has too many Units.
5. Marketing your product effectively
To keep your product alive, you must invest in the brand. It's not about making television
commercials, which will cost you dearly. Make promotions and offer product tastings.
Establish a promotional calendar, which will plan how the promotions will be throughout the
year. A supermarket is interested in a product that is well promoted, as it is a guarantee that it
will be sold more easily. If a product does not size, it is likely that the supermarket will remove
it.
6. Be patient.
Supermarkets manage calendars, depending on the type of product, to carry out their
codification. For example, in the case of fruit, the income of the product is codified in a given
month.
If your product is introduced after that month, you probably have to wait a whole year for it to be
coded, so it is relevant to manage those calendars and have the Advising an agent or a distributor
(Kono and Lynn, 2007). In conclusion, the management must be patient and knowing that they may

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have to wait at least six months for their product to be coded and enter the market and make a
mark..

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References
Kono, T. and Lynn, L. (2007). Strategic new product development for the global economy.
Basingstoke: Palgrave Macmillan.
Ries, A. and Ries, L. (2004). The origin of brands. New York, NY: HarperBusiness.