Analyzing Tesco's Product Development and Market Launch Strategies

This report analyzes Tesco's new product development process, focusing on the launch of a new healthy drinks product line. It details the stages of the NPD process, including ideation, research, planning, prototyping, and costing. The report applies these processes to Tesco's new product, examining concept development, marketing strategy, and business analysis. It also explores the product life cycle of the new healthy drinks, as well as existing Tesco product lines (clothing and electronics), covering introduction, growth, maturity, and decline stages. Additionally, the report discusses appropriate product line management choices and the design of market testing, product/service launch, and distribution. The report concludes with a reflective statement on creative development, team working, and presentation.

Product and
Services
Development

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Description about each and stage of NPD process for new & improved product development. 4
P2Applicationof these processes to the development of a particular organisational product or
service.........................................................................................................................................6
TASK 2............................................................................................................................................8
P3Analysing life-cycle stage of different products or services ..................................................8
P4: Appropriate product line management choices are required for individual products or
services......................................................................................................................................11
TASK 3..........................................................................................................................................12
P5 Design of a market testing, product/service launch & distribution.....................................12
TASK 4..........................................................................................................................................14
P6 Reflective statement that reflects on creative development, team working & presentation.
...................................................................................................................................................14
CONCLUSON...............................................................................................................................16
REFERNECES..............................................................................................................................17

INTRODUCTION
In the present competitive environment, the main aim of each and every business entity is to
satisfy requirements of customers by offering them high quality products and services. This will
assist them in order to grab opportunities at the competitive marketplace which leads towards the
success of business entity. In this report, according to the given scenario a junior product
manager within the organization Tesco is going to examine different innovative ideas in order to
launch a new product at the competitive market which leads towards ensuring continuous
growth and development of the business organisation. The is the report includes introduction or
overviews about the organisation along with various sort of products & services offered by Tesco
to their customers. This report consist of description about the products portfolio of the chosen
organization along with life cycle phases. Along with this it includes 7Ps strategy as well as
Porter’s five force model. In addition to this, new product development procedure are also going
to be discussed in this report on the basis of which reflection is also included at the end.
TASK 1
Description about each and stage of NPD process for new & improved product development
Overview:
Tesco is a United Kingdom based retail business organisation which provides ample number of
goods and services to their customers across the whole wide world. It has also been said that
Tesco has its presence around various countries such as China, Greece, Thailand, Argentina. In
recent years, it has been identified that Tesco made efforts in order to understand requirements
of the marketplace and then produce goods and services accordingly so that they can satisfy the
requirements of customers. Apart from this, there are large number of rivalry firms available at
the marketplace related to retail industry. Some of these competitors includes Wal-Mart, ASDA,
ALDI and many other retail sector companies. There are various new and innovative products
produced by Tesco which includes in the product portfolio.
Product portfolio
Hair and care
Jewellery
Clothing
Baby toddler
5

Home appliances
Entertainment
Accessories
The present report is based on a new product development procedure which is
introduced by Tesco. The new product launch by Tesco is related to the food and drinks segment
where there is four categories launched by the management team of Tesco after examining the
current market situation. People in the present era become more health conscious and avoid junk
foods. The product launch by Tesco includes healthy drinks made from fresh fruits. Four range
of the product includes sugar free drink, mix fruit juice, protein shakes, chocolate and
strawberry shakes. In the present marketplace, people become more health conscious and avoid
sugar based products, after examining the requirements and demands of people related to the
drinks and juices, Tesco decides to launch their new innovation product range which is healthy
drinks.
New product development process:
It has been said that there are various stages involved in the development of new product
which assist in performing all the activities in an effective and appropriate manner. All these
stages needs to be followed by the management team of Tesco while introducing new product at
the competitive marketplace in order to develop good will at the market and leads towards the
enhancement of profitability and revenue of the company.
1) Ideation: This is the first step where an entrepreneur have to create a new idea in one stroke
so that they can use the opportunity available at the competitive marketplace and develop their
image at marketplace. It has been said that this stage includes brainstorming sessions where
marketing team examine whole market area and determine the needs and requirements of
customers. Idea can be anything where management team can produce whole new product,
introduce new feature to the existing products, developing new segments and many more.
2) Research: After the ideas is generated it becomes essential to examine the current situation of
6

marketplace. This can be done with the motive of examining demands of customers and
determining whether the ideas suits the market situation and fulfil the requirements of customers.
3) Planning: At the third stage, after examining each and every essential aspects it becomes
necessary to do planning from the beginning so that there might not be any kind of wastage of
related to resources, money, efforts and time.
4) Prototypical: At the fourth stage, main aim of prototyping is to develop sample products
rather than mass production of products and services. This will help in understanding the market
situation and by providing them sample products they will give their feedback related to the
products and services.
6) Costing: It has been said that costing is quite essential which has to be done in order to make
sure that each and every activity will take place in a systematic and smooth manner.
P2Applicationof these processes to the development of a particular organisational product or
service.
1) Idea generation:
It is the first step where an innovative idea will be generated associated with the real products&
needs to be considered by the business entity. In the present context of Tesco once marketing
team of the company examine the needs of the customers related to the healthy drinks. It has
been examined that people prefer healthy and organic food items which are sugar free and
healthy food products.
2) Research:
In the second step of new product development process it has been said that it is
necessary to examine the idea which is going to be launch by the business entity Tesco. The idea
is to create healthy drinks with the motive of providing sugar free and fresh fruit juices to the
customers. According to this, I they will be able to decide the target market and categories the
whole segment accordingly. It has been identified that people who goes to gym prefer protein
shakes and sugar free drinks where it becomes advantage for the business organisations to
maintain their brand image at the competitive marketplace.
7

3) Concept development:
Third step of product development is to create concept which says that the idea of
producing healthy drink is quite unique and attractive in the present environment where people
became more health conscious. It has been said that managers of Tesco need to produce sample
products with the help of which they can get feedback from their customers related to the
offerings.
4) Marketing strategy development:
According to this stage, it is required to develop marketing strategies so that they can
create awareness and get positive response from the customers by promoting the product in an
effective manner at the market. In this context there are mainly three phase where in the first
stage it is required by the management team to target their customers. In the second phase is
outlining the product, pricing, distribution channel are the effective strategies which needs to be
considered by them. At last stage, long term sustainability need to be considered by marketing
team on the basis of marketing mix strategy.
5) Business analysis:
Once all the above stages will be completed effectively, it becomes necessary for higher
authorities of Tesco to examine the attractiveness of the product going to be launch by them at
the marketplace. This will assist them to examine the impact of new product launch at the
marketplace and its value creation.
6) Product development:
R&D team of Tesco, decides to introduce the product related to healthy drink and juice at
the marketplace. This will help them in order to gather the experience of customer related to the
product which help in developing the final product at the competitive marketplace.
8

TASK 2
P3Analysing life-cycle stage of different products or services
Figure 1: Product life cycle stages
Product life cycle of new healthy drink
1) Introduction: It refers to the first stage of product lifecycle where the product is newly
introduces at the marketplace and requires lot of promotion and marketing strategies. In this
context, Tesco is going to launch new healthy drink at the marketplace which is for the users
who are health conscious and fitness freaks. This is the stage where company needs lot of
promotional activities and marketing in order to create awareness about the products and services
at the market area.
2) Growth: Another stage is growth strategy where users know about the products and services
9

and face growth at the market. It has also been said that various other organisations try to
compete with the company where they can maintain their sustainability by innovating new
features and benefits in the products and services.
3) Maturity: Third stage is maturity when the first is at the peak and no other organisation can
beat them. In addition to this, pricing of the products are competitive and produce high quality
products by the management team of Tesco.
4) Decline: At last, the decline stage comes when there is no more innovations takes place by the
company and customers get other benefits from rivalry firms. In reference to the Tesco, it is
decided by the managers to launch new product when company faces declines so that they can
offer new product to their customers in order to retain their potential candidates for long term.
These are the stages which needs to be considered by each and every business entity so that
they can maintain their position and brand image at the competitive marketplace for a longer
period of time.
Product life cycle of Tesco clothing
 Introduction – This stage includes introduction of company products to market area. In
this stages Tesco company will launch clothing products in market area in order to
provide its high quality products to targeted customer. Tesco company will conduct
different marketing practices for attracting more customers
 Growth – In growth stage, products sales will increase as more customers will be aware
about the products. Tesco clothing products have moved from the growth stage as
customer are very well aware about the clothing products of Tesco. Maturity – This is the stage in which customers are mostly aware about the products and
increase the sales of manufactured products. Tesco clothing products is in maturity stages
and most of the customers prefer clothing products of Tesco company. Decline – This stage is the last stage and in this sales of products will decrees. Tesco
company needs to reduce the manufacturing of clothing products when they reach to
decline stage.
Product life cycle of Tesco electronic products Introduction – This is the stage in which electronic products of Tesco company is
launched in market area. Tesco company will focus on developing effective strategies
that will lead to increase awareness in market area about the product.
10

 Growth – It can be describe as the stage in which Tesco company is focusing on
increasing the sales of products in order to earn more profits. Electronic products of
Tesco company is growth stages and respective company have to invest more in
marketing activities for attracting more customers. Maturity – When company needs less promotional activities for attracting customer and
products has developed its strong customer base it is known as maturity stage. Respective
company electronic products sales will be increase and profits will be enhance. Decline – This is last stage of product life cycle and in this stage company needs to stop
investing in production of electronic products. It is essential for Tesoc company to
introduce innovative products as per market need.
Product life cycle of Tesco furnitures Introduction – Tesco furniture products has launched new design of furnitures products
in market area. Respective company will conduct different marketing and promotional
activities in this stage of product. Growth – Once the product has moved from introduction stage it will be on growth stage.
Furnitures products of Tesco company is in growth stage and organisation have to
perform different business activities that will lead to increase in sales of company
products. Maturity – In maturity stage company will decrees promotional and marketing practices
and customers will be attracted towards the furnitures products of Tesco. When
furnitures products of Tesco company is in maturity stage it will have most of the sales
and provide maximum benefits to company.
 Decline – The last stage of product life cycle is decline stage and in this company will
face issues of less sales of products in market area. Potential customers are not
interested in purchasing furnitures products of Tesco company.
P4: Appropriate product line management choices are required for individual products or
services
Product line management have several choices which are essentially required for the
individual product as well as services. With reference to TESCO, the respective company
focuses on introducing new healthy drink for its customers who are health conscious and fitness
freak. Tesco product line manager is responsible for developing and managing the product line
11

for end to end. Product line manager is responsible for introducing and managing changes in
products or its features in order to increase its sales. There are range of products and services that
is offered by Tesco company and as per the product life cycle manager will determine whether
company needs to adopt innovation, adaption or renovation is the products as per the need of
products.
New healthy drink – This product of company is at introduction stage and it is
recommended to product line manager to use adoption strategy. Tesco company can add new
flavours in its health drink products as this will lead to attract more customers. This adoption will
support in attracting large number of customers.
Tesco clothing – Clothing products of Tesco company is in maturity stage and it
important for product line manager to renovate its current products. It is recommended to
manager to make modification or changes in current clothing products. At maturity stage mostly
customers are aware about company offerings. Renovation in clothing products or design of
product will lead to attract more customers.
Electronic product – This products of company at maturity stage and its is suggested to
the product line manager of Tesco to use new and innovative technology in developing products.
At this stage company is investing in promotion and marketing of electronic products. This type
of product needs update and innovation in order to meet with the needs of customers.
Furnitures products – Furniture products of Tesco company needs renovation in
designing of products. Product line manager of respective company needs to renovate the
furniture products in such a manner that it will provide more comfort to customers.
TASK 3
P5 Design of a market testing, product/service launch & distribution.
Market opportunity for the proposed product or services
There are various marketing opportunity of Tesco company that could be gain by
developing or producing high quality products and services. By offering healthy drink products
to customer respective company will be able to attract large number of customer and increase
more loyal customers. Tesco company will have opportunity for developing strong brand image
and effective relationship with customers. Marketing opportunities that could be capture large
market share as well as gain competitive advantage over other rival companies.
12