Analysis of NPD and Marketing Metrics for Sapura Energy Berhad

This report delves into the realm of new product development (NPD) and marketing metrics, focusing on the case of Sapura Energy Berhad, an oil and gas company based in Malaysia. The report begins by exploring the factors influencing product development, including changes in the external environment such as customer preferences, economic fluctuations, and political and environmental considerations. It highlights the importance of adapting products to remain competitive. The report then examines the relationship between various stakeholders in the NPD process, including employees, customers, suppliers, government and regulators, investors, shareholders, and joint venture partners, emphasizing their roles and impact on product success. Finally, the report analyzes several key marketing metrics, such as break-even analysis, market share, and churn rates, as tools to measure and evaluate product performance in the market, providing insights for Sapura Energy Berhad to refine its strategies and adapt to market dynamics, with the ultimate goal of enhancing sales, profits, and market share.

NPD and Marketing
Metrics

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
New product or market...............................................................................................................1
Evaluation of relationship and processes....................................................................................2
Marketing metrics.......................................................................................................................4
CONCLUSION AND RECOMMENDATIONS ...........................................................................6
REFERENCES :..............................................................................................................................8

INTRODUCTION:
Business serves a large number of customers. They provide a variety of products and
services to them according to their needs. Sometimes, business has to develop products and
services due to change in the external environment (Micheli and Beverland, 2015). This is
helpful for them to expand in different markets. Products are always developed by using a
method called new product development. It is a step by step method through which products are
developed and launched in the market. It covers all the aspects starting from design to launch.
This report will throw light on how new products are developed. Also, it will describe the
relationship in between processes in NPD. Moreover, how different marketing metrics tools are
used to measure product performance in the market will be explained. For the present report,
organisation selected is Sapura Energy Berhad. It belongs to oil and gas sector operating in
Malaysia.
MAIN BODY
New product or market
A business is surrounded by various factors that affects its growth and development.
These factors include micro and macro environment (Wu and et..al 2015). Business have to
make frequently make changes in their products with change in external factor so that they can
survive for long term. Furthermore, market condition fluctuates that impact business growth. So
they have to search for new markets to maintain stability in profits. For example – change in
taste and preference of customers is related to social factor. Also, customer demands new
products as their need change. Sometimes, fluctuation in economic factor can be also be a reason
for business to develop product. In oil and gas industry prices of crude oil is rising. This is due to
fluctuation in world economy. Hence, many countries are exploring new markets to generate
more revenue. This has resulted in change in trends as there is high rise in demand of biofuel and
CNG. Besides this, many companies has started providing this energy. They have invested a
huge amount in this. Also, in recent times due to rise in prices of oil, companies are making
efforts to reduce cost. Another factor that can be consider is political. Malaysian political
condition is very stable, so it is beneficial for companies operating there (Ernst and et..al 2017).

Another external factor that has affected the organisation is environmental. This has
affected Sapura Energy Berhad’s sustainability to a high extent. In many countries, government
has now focused on protecting the environment. They have imposed high rate of tax oil products.
Along with this, they are providing subsidy on biofuel products (Fulgoni, Pettit and Lipsman,
2017). This has attracted companies to develop products that will help in protecting the
environment. Also, it has provided a platform for oil companies to grow and develop in other
markets. Furthermore, it will enable in earning more profits and creating a large customer base.
Sapura Energy Berhad is a public company that is engaged in B2B selling of products. It
is having an opportunity to collaborate with organisation to use biofuel and CNG. Firm can
generate customer value by providing them a product at low cost that will save environment as
well. Besides this, Sapura Energy Berhad is having competencies in developing biofuel. They
can develop new markets for this. The countries where need is rising or it is highly populated and
polluted.
Therefore, Sapura Energy Berhad has been forced to develop the product in new market
(Claudy, Peterson and Pagell, 2016). Due to change in external factors, company has modified
their goals and objectives. They have focused in implementing new product development. In this,
company will produce biofuel and CNG that will be provided in new markets. This will provide
them to increase sales and profits. Also, it will enable them to gain market share in new markets.
Moreover, with this, Sapura Energy Berhad can sustain for long term in the market. In
developing biofuel and CNG products, resources required are also limited. Hence, Sapura
Energy Berhad is having enough resources to produce these. It will be able to manage the people
and resources in different markets.
Evaluation of relationship and processes
Business always works with stakeholders. It includes customers, suppliers, agents, etc.
they work together with business. In oil and gas industry there are many stakeholders. They
ensure that products and services are delivered in proper way.
It is very important to involve stakeholders while developing products. It is because they
provide a lot of data and information about market condition. Besides this, they also help in

promoting products in the market (Reid, Marion and Barczak, 2016). The stakeholders are the
key element of organisation. They create a positive image of company. In oil and gas industry
there are many stakeholders. They help in delivering right product in right time.
Employees - they are the people who work in Sapura Energy Berhad. They are responsible for
making changes in products and perform their roles and task. Employees have a very strong
relation with process as they are directly involved in NPD. They are engaged in designing to
launching of products. Sapura Energy Berhad is developing biofuel and CNG. Alongside this,
they are providing new services to companies in oil and gas industry. If employees perform their
task in effective way and achieve goals in time then NPD will be successful. Otherwise it will
lead to increase in expenses and time thus resulting in failure.
Customers – They are the stakeholders who buy companies new products. Also, goods are
developed on the basis of needs of people (Mintz and Lenk, 2016). They are directly linked to
company as success of firm depends on customers. In NPD they help in promoting products in
the market. If their needs are satisfied they will automatically become loyal to business. Sapura
Energy Berhad deals with countries who are their customers.
Suppliers – These stakeholders act as agents or intermediaries that are responsible for delivering
products in right time and place. Generally, companies create a long term agreement with them
in different markets. In NPD suppliers are also engaged as they provide useful information about
market condition (Foroutan and Baski-Reeves, 2017). Also, they help in creating awareness by
promoting it. Sapura Energy Berhad is having many suppliers in different countries. So suppliers
will help in developing biofuel and CNG.
Government and regulators – Government is the most crucial stakeholder for business. It is
because they control and monitor business operations. In oil and gas industry it is very important
to involve them in NPD. It is because a little mistake in NPD can lead to serious consequences.
This is because they help in promoting products. Besides this, they set standards that have to be
followed by business. Government also ensures the quality of oil products before introducing it.
In Sapura Energy Berhad Malaysian and other country government can help in promoting
biofuel and CNG. They can import them from Malaysia.

Investors – they play a vital role in NPD. They provide funds to company so that NPD can be
carried out. Investors invest a lot of amount in business so that they can be benefited. In NPD
investors are engaged so that they know about what product is being developed and how it will
be beneficial for them as well as Sapura Energy Berhad (Hempelmann and Engelen, 2015) Then
according to plan they provide funds. However, if sufficient funds are not available it will impact
the quality of product or service. As Sapura Energy Berhad is public company, they have to
share information with people. It helps them to know about what new product is coming.
Shareholders- they include board of directors and shareholders of company. In NPD they are
involved so that it can be decided that why product is developed, what countries it will be
exported, why it will be beneficial, etc. Also, in this the consent of all board member are taken so
that further step can be initiated. Sapura Energy Berhad broad of members can help in providing
suggestions. They can take the consent of other members and also develop strategy on how to
promote it in other countries. Sapura Energy Berhad operates in 20 countries. So shareholder can
help in expanding business.
Joint venture partners - They are the partners with whom business is done. Usually, partners
are involved to business in other countries. It is because they help in promoting business and
gaining market share (Antons, Kleer and Salge, 2016). Also, they are aware about business
financial situation and its overall strategy. These partners works for long term with company.
Sapura Energy Berhad also works with partners in various countries. So in NPD partner are
involve so that they can provide information about market situation. They can help in advertising
products by working with small business.
Sapura Energy Berhad can develop an effective communication channel that can help to
market biofuel and CNG. For this they can connect partner and suppliers. It will help company to
promote product in specific market. Also, different strategies can be developed for different
markets. This will make it easy for Sapura Energy Berhad to effectively promote product.
Marketing metrics
It is very important that new product launched in the market must be successful. This will
help company to earn huge profits and attract large number of people. Also, it is necessary to

evaluate the effectiveness of new product so that changes can made. This can be done with the
help of marketing metrics. They help in measuring the overall performance of product in the
market. In this some standards are set and measured with product features. Sapura Energy
Berhad can also take the help of metrics (Romero and Yagüe, 2015). With this they can modify
it according to change in external factor. Marketing metrics are measures that are taken to
evaluate product performance. Sapura Energy Berhad can use some metrics that is as follows :-
Break even – It is related to financial aspect that will help in identifying profit or loss gained by
product in different markets. It is the most easy and simple metric and is used by mostly used
marketing metrics. It is completely mathematical based concept. If break even point is reached it
means that there is no profit no loss. But if profit is earned then it means that NPD is successful.
Sapura Energy Berhad can use this metric to measure the break even of new products for a
particular time period. With this it they can collect data from different markets and can compare
with set standards. By doing this company will be able to identify the future projections that can
be gained.
Market share- it is another metric in which the effectiveness of marketing campaigns is
evaluated. It helps in finding out how much market share competitors are having and accordingly
return on investment can be obtained (Smyth and Lecoeuvre, 2015). In this several elements are
included that is CRM programs, advertising and branding campaigns, etc. Sapura Energy Berhad
can use this to measure the market share in different countries of new product. This will enable
them to give an insight on how well their product is able to capture market share. So then
accordingly weak areas can be identified and improvements can be done accordingly. With this
Sapura Energy Berhad can forecast plans for the future. They can apply this in different market
to get an insight of each market.
Churn rates- it is a metric that can be used to measure the success of product developed by
Sapura Energy Berhad. It is related to customers and describes the percentage of customers who
cancelled their subscriptions in specific time period. The churn rate is calculated for specific time
period by calculating the total number of customers acquired with churned rate. Sapura Energy
Berhad can use this to identify how many customers have used their product. It will help in

taking effective measures to change the marketing strategy in the future. Company can also use
this to identify the percentage of market share gained. The organisation can apply this in B2B
selling concept. It will show them how many businesses have they acquired successfully with
their new product.
Therefore, by using this Sapura Energy Berhad will be able to identify the success of
developing biofuel and CNG . Also, it will enable them to make changes in strategies by finding
out weak areas. By using this business can easily measure objectives. They can apply this in
different market to get an insight of each market. Besides this, organisation can evaluate whether
NPD is successful or not and then take decision of continuing the process. Sapura Energy Berhad
can implement the market share metric. This is because as it operated in different markets it will
be easy for them to collect data (Micheli and Beverland, 2015). With this they can develop
marketing strategies accordingly. Also, it will be easy for them to measure targets that is set. The
other metrics are not appropriate as they do not provide specific precise data and also it is
difficult to measure product performance.
CONCLUSION AND RECOMMENDATIONS
This report concludes that Sapura Energy Berhad has engaged in developing new product
or market. This is because of change in external environment. Business have to make frequently
make changes in their products with change in external factor. Business always works with
stakeholders. It includes customers, suppliers, agents, etc. they work together with business. It is
very important that new product launched in the market must be successful. This will help
company to earn huge profits and attract large number of people. Sapura Energy Berhad will be
able to identify the success of developing biofuel and CNG . Also, it will enable them to make
changes in strategies by finding out weak areas.
Recommendations :
Sapura Energy Berhad can follows certain recommendations that will help them to
promote products more effectively. Also, it will help in maintaining the progress of NPD. It is as
follows :-

 Rather than focusing on reducing the price Sapura Energy Berhad can focus on building
strong relationship with clients. It will help in seeking new opportunities in relevant
areas.
 They can implement advance technology that will help in reducing the cost of biofuel and
CNG. In this way profit margin can increase.
 Sapura Energy Berhad can implement additional strategy like proactive capita
management, E & P, etc. that will help them to sustain in the industry.

REFERENCES :
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