Product & Service Development Report: Versace Case Study

This report provides a comprehensive analysis of Versace's product and service development strategies. It begins with an introduction to the importance of new product development in a competitive market, using Versace as a case study. The report details the new product development (NPD) process, including idea generation, screening, concept development, market strategic analysis, business analysis, product development, test marketing, and commercialization. It then applies this process to Versace, specifically focusing on the introduction of ethnic wear. The report includes a reflection on the project, highlighting the knowledge gained, team dynamics, and areas for improvement. Finally, it includes a list of references from books, journals, and online sources used in the research.

Product & Service
Development

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Covered in PPT.......................................................................................................................3
PART B............................................................................................................................................3
Explanation of each process of new product or service development....................................3
Explanation of how NDP ca be used by company.................................................................4
Reflection...............................................................................................................................5
REFERENCES................................................................................................................................8

INTRODUCTION
Businesses in the contemporary competitive marketplace keep on introducing new or
developed products and services so that they can fulfil the changing needs and wants of
customers and continue to exist in market. With the development of products and services the
company can continue to grow and develop profitably in market (Charter and Tischner, 2017).
This report is based on Versace which is an Italian luxury fashion company which was founded
in 1978 and is headquartered in Milan, Italy. The company deals in Italian made apparels and
accessories which are stylish and are innovatively designed having flashy print and bright
colours. In this report the new product development process, life-cycle stage of products and
services, a pitch for a new product which is to be introduced and reflection etc. will be discussed
in detail. This report will help in gaining knowledge on development of new products and
services in market so that companies can grow and expand in market.
PART A
Covered in PPT
PART B
Explanation of each process of new product or service development
It is important that businesses introduce new products and services in market so that the
dynamic demands of customers can be met in an efficient manner which can help the company in
gaining a competitive advantage in market. New product development starts with a conception of
a new or innovative idea which is converted into product which can be introduced in market so
as to reach to customers. Following are the stages of NPD: Idea generation: At this stage the need for developing a new product is identified and a
pool of several potential ideas are generated so that a product which can help the
company in increasing its sales can be developed. The sources of idea generation are
market research, change in customer taste, competitors move etc. Idea screening: At this stage out of the several ideas the best idea is selected which can
help the company in achieving its objectives (Hanski and et. al., 2014).

 Concept development and testing: At this stage the idea which has been selected is
matured into a product concept so that the final product can be developed which can help
the company in achieving its objectives. Market strategic analysis: It is related with identifying the marketing strategy which can
be followed by company so as to increase its sales. This is done by the company through
identifying the target market, determining pricing policy, determining marketing-mix etc.
so tat potential customers can be converted into actual customers of company (Johansson
and Sundin, 2014). Business analysis: It is related with evaluation of the effectiveness and feasibility of
product in market so that the profitability of the product can be determined. Product development: At this stage the innovative idea of generating a new product is
finally converted into the new product so that it can be offered in a workable market
setting which can help in analysing its ability to meet customer requirements. Test marketing: The product which is developed is tested in real market conditions so
that the product can be launched in market by using appropriate marketing strategies like
targeting, segmenting, positioning etc. which can help it in increasing the company sales.
 Commercialisation: It is the final step where the market testing has given required
information regarding the efficient policies which can be used by company so as as to
reach to potential customers (Kans and Ingwald, 2016).
Explanation of how NDP ca be used by company
NDP for Versace for introducing ethnic wear in market: Idea generation:For generating new idea of developing new product Versace conducted
research in organisation so that all the members can come up with new and innovative
ideas. Idea screening: From the various ideas generated the best idea is selected by Versace
that cloths which are organic in nature and are naturally synthesised so that fashion with
health can be given to customers is selected by company (Anand, Aggarwal and Singh,
2019). Concept development and testing: The idea which is selected is tested in market so that it
can be developed in product which can be finally made available to customers. Versace

conducted market research so that the idea of organic cloths can be tested among
customers. Market strategic analysis: After analysing the concept which is developed is then tested
so that a marketing mix can be developed which can help in gaining the attraction of
customers (He, and et. al., 2019). Business analysis:Under this step the costs of introducing new products in market can be
analysed so that the finances which are required can be arranged so that the objectives are
efficiently achieved by company. This can also help Versace in determining the profits
which can generated by introducing the new products in market. The total estimated cost
of introducing organic cotton fabric made fashionable cloths is €3 million. Product development: After analysing the cost and profits of new product development
the company finally develops the new product. Versace in this stage can make a few
samples of such cloths so that they can be tested in a small group of market which will
help in determining its acceptability by customers so that it can be launched in a full
fledged manner. Test marketing: The product which is developed by company is tested in market so that
the demand of such products in market can be analysed. Versace can test its sample of
products by selling them to a limited number of customers to analyse their response
towards the product.
 Commercialisation: After getting a positive response from customers Versace can use
social media, TV advertisement etc. to commercialise its product and reach to a large
number of customers (McCann and Bahl, 2017).
Reflection
While undertaking this project I analysed the processes which are involved in developing
a new product so that a company can gain a competitive advantage in market. While performing
this project I contributed my knowledge regarding the development of new product so that it can
be utilised in completing the project in an efficient manner. The part of pitch which was
presented by me in this project was the product life cycle which helped me in expanding my
knowledge about how products exist in market over a period of time. The product life cycle also
help companies in determining the marketing strategies which can be adopted by them so that the
product can continue to exist in market. The team members were cooperative during the project

and also each member completed the tasks which were given to them in an efficient manner so
that the team goals can be achieved within time. The communication within the team was
effective which helped in easy and free circulation of information in the team. I was also able to
contribute my role and responsibility in the team in an efficient manner and contributed towards
the project. All the activities like presentation, preparation and delivery were done efficiently and
by using all the skills and knowledge of team members so that a greater knowledge on new
product development could be generated. The team members had efficient communication skills
which helped in effective delivery of presentation so that the idea behind the presentation can be
well understood so that new products and services can be developed. The team were organised
based on the talents and skills of each of the team member so that the task allocated to them
could be finished on time and also accurate information can be gathered regarding the project.
The work was planned by dividing each task based on time which will be required to
finish each of the tasks so that the complete project could be efficiently completed. I also helped
in planning the work so that i could give suggestions regarding making decisions while carrying
out the project. The level of interaction among team members was high which helped in getting
each team member motivated to perform their part efficaciously so that the overall quality of
project can be improved. Group discussions were done while taking decisions so that the ideas
and opinions of each members can be considered. This also helped in innovative ideas coming
out from team members as we tried to take decisions. This made the complete work creative and
fun and also helped in gaining the attention of all team members. The team generally worked
well however sometimes conflicts used to arise due to difference in ideas and ways of doing
work but this was handled by team leaders in an efficient manner by problem solving skills. Also
the communication was effective in team which helped in solving the conflicts within time so
that work can get completed. This resulted in a high quality of presentation as all the team
members worked enthusiastically in completing the project in a desired manner and also by
contributing towards the project in an honest and sincere manner. The results of this project can
be used in developing new products and services and analysing the product life cycle so that
efficient decisions regarding marketing strategy can be made thus will help the companies in
remain highly competitive in market.
The group worked very well during the project by fulfilling all their roles and
responsibilities in a manner that can help in achieving the desired goals. However there are a few

areas which concern me and which can be improved in future projects. Some issues which were
faced during the project were lack of confidence among team members while performing their
roles. Also the tie management was also not efficiently done which also affect the quality of
work done. There was also a problem of managing all the activities within the limited resource
available which affected the way in which team members performed their work. These issues can
be improved in future by the use of proper tools and techniques which can help in making the
work better like use of WBS and Gantt Chart. These tools can help in diving the work within
limited time and also help in utilising the available resources in an efficient manner so that the
project quality can be maintained high and desired results are efficiently achieved.

REFERENCES
Books and Journals
Anand, A., Aggarwal, R. and Singh, O., 2019. Using Weibull Distribution for Modeling Bimodal
Diffusion Curves: A Naive Framework to Study Product Life Cycle. International
Journal of Innovation and Technology Management (IJITM). 16(07). pp.1-17.
Charter, M. and Tischner, U. eds., 2017. Sustainable solutions: developing products and services
for the future. Routledge.
Hanski, J and et. al., 2014. Customer observation as a source of latent customer needs and
radical new ideas for product-service systems. In Engineering asset management
2011 (pp. 395-407). Springer, London.
He, B., and et. al., 2019. Product environmental footprints assessment for product life cycle.
Journal of cleaner production. 233. pp.446-460.
Johansson, G. and Sundin, E., 2014. Lean and green product development: two sides of the same
coin?. Journal of Cleaner Production, 85, pp.104-121.
Kans, M. and Ingwald, A., 2016. Business model development towards service management 4.0.
In Conference on Product-Service Systems across Life Cycle, Bergamo, ITALY, JUN
20-21, 2016 (Vol. 47, pp. 489-494). Elsevier.
McCann, B.T. and Bahl, M., 2017. The influence of competition from informal firms on new
product development. Strategic Management Journal. 38(7). pp.1518-1535.
Schöggl, J.P., Baumgartner, R.J. and Hofer, D., 2017. Improving sustainability performance in
early phases of product design: A checklist for sustainable product development tested
in the automotive industry. Journal of Cleaner Production. 140. pp.1602-1617.
Online
Turnover of the Italian fashion company Gianni Versace from 2011 to 2018 .2018. [Online].
Available through:<https://www.statista.com/statistics/708208/turnover-of-italian-
fashion-company-gianni-versace/>