Analyzing Tesco's Product Development and its Impact on Growth

This essay examines the crucial role of product development within Tesco, highlighting its significance for business growth and customer value. It discusses Tesco's launch of new plant-based vegan products as an example of successful product development, emphasizing the benefits such as providing new value to customers, increased organizational growth, and societal improvement through innovation. The essay further elaborates on how product development contributes to continuous growth, competitive advantage, cost reduction, and customer acquisition. It also touches upon the importance of adapting to the dynamic market and leveraging existing organizational capacity to drive innovation and achieve higher market share and profitability. The essay concludes that product development is essential for retaining customers, understanding their responses, and attracting new customer segments, ultimately leading to sustained success for Tesco.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................4
Main Body.......................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERNCES...................................................................................................................................7

INTRODUCTION
There is always requirement of some resources in order to ensure new product
development for a organisation and it is one of the most important steps that set the basis for new
product development (Ahmed, Ptaszek,. and Basu, 2017). Present report is based on essay
writing with consideration to a retail organisation Tesco and the importance of product
development.
Main Body
Product development is the life blood of many organisations it can be related to
development of physical products like smartphone, auto mobile or can be related with
developing a new manufacturing process or a new IT solution. In case of Tesco there has been a
launch of new plant based vegan products & ready meals as a alternative to traditional British
meals like cottage pie and battered fish (Jang, Kim, and von Zedtwitz, 2017). It includes new
products like mushrooms pizza, butternut cauliflower mac & cheese. There are many benefits of
the process of new product development like it helps in providing new value to customers, it
helps in proving increased value to organisation as they are on their growing phase. If a
organisations is not able Product Development important to a business organisation is helpful in
providing increased value to customers (The Importance of Product Development, 2019).
Illustration 1: Significance of new product
development

It helps in having a improved society as there is a incremental improvement from
previous version of a product and there is addition of some new features. These products are
further sustain by creation of higher value that leads to generation of more revenue. In Tesco,
there is description of their new plant based food as “Biggest culinary of decade”. This has been
one of strongest moves of Tesco as they have already sold four million meals from this range in
33 weeks period. Development of new product is also very important for having a continuous
growth & existence in society. These new products provided organisations a mechanism, for
their growth & overall improvement (Tesco launches new own-brand plant-based range, 2019).
New product development is also very helpful in ensuring growth of a organisation as it
helps in increasing the suitability by offering of high value to customers that leads to addition of
new features. It is a strategy that can be adopted for successful development of any new product
or making any changes in existing product (Suwonsichon, 2019). It helps in providing a
framework that leads to improvement in quality of product. It also leads to generation of a
competitive advantage like having control over products (WHY IS PRODUCT DEVELOPMENT
IMPORTANT, 2018).
It also helps in reducing of cost, always there is huge cost involved in creation of a new product
but as the execution takes place here is decrease takes place in the cost of product development.
It is also very helpful in improving the value so that there can be acquisition of more new
customers and sustain the present base of existing customers. New products are very helpful in
Illu
stration 2: Importance of developing new products
for a organisation

having a incremental innovation for previous section of predict with addition of new features and
helps in having a faster performance (Lifshitz-Assaf, Lebovitz, and Zalmanson, 2018). External
market is very dynamic and is changing very fast it becomes very important to ensure that a
organisation is able to move with the changing technology and for this there is a need to take
high risk and utilise the existing capacity of a organisation, it also helps in building up of reputed
goodwill. It also helps in conversion of prospective customers in customer by providing them a
reality based solutions so that there can be attainment of higher market share, more profitability
and enhancement of sales.

CONCLUSION
From the above made discussion it can be said that product development is very helpful
in retaining of customers and then understanding their responses by making new innovations. It
leads to generation of more new options for existing customers and also helps in attracting &
approaching of a different and a new segment of customers.

REFERNCES
Books & Journal
The Importance of Breaking Instead of Compressing Time in Accelerated Innovation: A Study
of Makeathons’ New Product Development Process. Available at SSRN 3280219.
The importance of sensory lexicons for research and development of food products. Foods, 8(1),
p.27.
The importance of spatial agglomeration in product innovation: A microgeography
perspective. Journal of Business Research, 78, pp.143-154.
c. Food Rheology: Scientific Development and Importance to Food Industry. In Advances in
Food Rheology and Its Applications (pp. 1-4). Woodhead Publishing.
Online
Tesco launches new own-brand plant-based range, 2019 [online]. Available
through<https://www.retailgazette.co.uk/blog/2019/09/tesco-plant-based-meals-range-
vegan-vegetarian-launch-traditional/>
The Importance of Product Development, 2019, [online]. Available
through<https://connect.informs.org/blogs/james-mellor/2019/09/03/the-important>
WHY IS PRODUCT DEVELOPMENT IMPORTANT, 2018, [online]. Available through<
https://www.tekshapers.com/blog/Why-is-Product-Development-Important>