Developing New Products Within An Existing Business – Original Creations Case Study

Identifying Market Needs

Development of new product within an existing business is referred as the process of bringing in new products within the marketplace and the business engages the people by means of forecasting the customer preference, increase rate of competition, incorporating developed technology and investing in new scopes (Roberts and Darler 2017). The aim of the paper is conducting the role of a consultancy member and address how Original Creations can better develop its products and assess as well as forecast their target audience. In the discussion section of the paper, it will identify the technique in which Original Creations can better develop their product and assess the potential market and this will be conducted by applying the technique or stages of developing new products within an existing firm. In the next section of the paper, the key issues will be identified within the organisation due to the development of better products. The paper will conclude with a set of recommendations that will enable Original Creations to change and adjust better development of new products and better access the forecasted market.

Development of new products and services is significant for the growth of Organisational Creations and this is because it has been since 1980 that it providing high-quality artwork within industries. The major production is inclined towards bronze statues, one-of-a-kind sculpture and metal sculptures, along with that many other similar metalworks (Original Creations, Inc. 2022). Therefore, it is necessary for the business firm to bring in a change and offers products that are different firm metal looking and heavy sculptures. The USP of the business firm is its usage of bronze material but at the same time they target the high-end customers only. Considering this factor, the company can adopt the strategy of using material such as wood, ivory and stone which can be offered at a comparatively lower range, thereby targeting the market segment of middle- and lower-income group, enabling to expand their market share, enlarge its customer base and influence the potential market segment.

Therefore, the process in which Original Creations can develop new products and better access and forecast the market potential can be implemented by means of identifying the strategies of developing new products (Gopalakrishnan et al, 2015). The first step that is required by the business is to identify the market needs. In this step Original Creations can develop products and service so that they are able to meet the needs of the customers who are in search of great sculpture but less expensive and are made from various other metal apart from bronze (Cooper 2019). Before the designing and development of the products take places, the business can carry research in identifying the customer need other than the existing products, fulfilling the demands. They can further ask the customers for providing feedback and improve in the areas they are not been able to fulfil and this will help them in improving the performance and market appeal of their own products.

In the second stage the business firm can focus on idea generation, where the research and development team will be able to source idea for developing new products and services. A review assists to identify the products that have already created a great market gesture (Sozo and Ogliari 2019). The research conducted in the market will assist to make provisional forecasts the potential demand as well as revenue for each concept. In accessing the potential cost and development efforts it requires to bring in each idea in the market and compare the cost with the potential revenue incurred. In this situation the business firm can also create a short list which is most suitable for the idea to be incorporated. The next factor that is required by the market is to consider the target market for its new product development. Therefore, the new products that can be aimed to developed are sculptures made with wood, glass and ivory metal, along with that it can also aim to produce cast sculptures, assembled sculptures and additive sculptures (Gobbo Junior and Borsato 2021). Therefore, the target market for this type of products are the people who prefer different artwork and are creative in nature. It should also be noted that the newly product developed carries a higher level of risk because they also have to overcome the barriers to enter new markets. The next step that the business firm should undertake is to analyse the process of product development. This is usually conducted by identifying suitable ideas and then evaluating the market potential as well as the risk of introducing them (Chang 2019). Thus, Original Creations can create a prototype for its new products which will assist the business to offer customers and collect feedback from the same. Hence, a small group of customers can try the product and provide recommendation.

Idea Generation

The method that will be used to forecast the market potential will be via two methods and they are: historic review and secondly, by test market method. As Original Creations is operating since a long time, it treats every customer with significant amount of importance and offers service with a personal touch. The first approach that can be used is the method of forecasting the new product development from the historical review collection method. As the business firm had introduced several new products in the same segment for the past twenty to thirty years it will be easier for the company to collect recommendation, suggestion and review of the previously purchased products (Cook 2016). On the other hand, the second method in which Original Creations can forecast the target market is via means of test market. When the new products are introduced and developed, the actual store sale can be tracked. Often the sale of the products is also survey based and is tracked by the consumer consciousness, trail, procedure and repeat purchase pattern. In some of the instances it can be noted that, the customer diary panel they are using the method of tracking customer trails, their overall assumption and chance of making a repeat purchase.

Therefore, employee from different departments of the Original Creation should take up the responsibility and duty and can play their respective part in product development and improve sale performance of the business. For instances, the Research and Development team of the company can conduct their research n different type of metals that can be used for the sculptures. Secondly, they can also collect information from the artist on the latest demands of the customers and conduct market research for providing the best quality of good Original Creations can offer (Pineda, Morales and Boomsma 2016). On the other hand, the Artist should emphasize on creation of sculptures of wood, glass and ivory and generate ideas that best fit with the preferences of the customers. Therefore, the company can assign artist who can offer with innovative ideas on the recent trend that is going with time and which influences the people of the present culture. Lastly, the stakeholders of the company can make investment in the above-mentioned metals, as they ensure timeless piece which fits the interior and exterior design.

There is more than one reason why the organisations should aim to create new products. The process of developing high quality products consist of having a stronghold on the niche market which is one of the most influential but difficult activity in business (Oztemel and Gursev 2020). Apart from the significant importance of developing new products, the business also faces various challenges during the time they work on developing the products and are majorly faced due to the external organisation environment reason. Some of the major issue that can be related with the creation of new products within the business firm and some of them are as follows:

Market visibility: The process of idea generation and conceptualisation does not always work hand in hand, there are issued faced when these innovative ideas are applied in marketplace. The major reason being lack of financial constraints (Srinivasan and Swink 2018). Thus, it is required by the developing team to review and analyse the product market visibility before they start developing the product. As the market researchers gather information, they should also collect information about the audience and competition which is operating in the same market. Apart from analysing the competition the researchers also require to gather information from the target segment audience. Since these are the people who uses the product and are regraded as the potential audience of the company and they require to collect information on their specified interest and opinion.

Target Market

Workflow management: It is the interaction between the development of quality and speed and collaborative team of final product. Therefore, there are instances when the product manager does not receive any information or no equal contribution so cater out individual duties and responsibility (Tukker and Tischner 2017). It furthermore, involves lack of communication within different department when the members of the organisation are at the same time. There might be instances when the organisation does not resolve conflict within two or more members in the absence of manager or team leader. In this situation the business firm should use workflow management tool which will assist the managers and leaders to organise and operate the surrounding of the new product.

Pricing Policy: As the price of the products sold in Original Creations are of higher range, the company should involve new pricing policy for the new product that will be developed. Therefore, the bronze sculptures are relatively high price and if the business firm continues to do so for its newly developed products, then it will eventually hamper the revenue of the company and at the same time it will be unable to attract the potential market segment (Nagle and Müller 2017). However, if the business firm charges a lower price, then they will create massive loss. So, in this situation they will find a sweeter balance in price of the products and offer the same to the customers.

Trade-offs: as a product manufacturer of sculpture, it is the hardest to justify the decision and manage the trade-offs which is during the embodiment design stage. The factor of trade off within the innovation speed. product quality and development cost in which the business can accelerate innovation and may result in inflating cost and sacrificing quality (Turkelboom et al, 2018). On the other hand, there might be instances where the business can identify a synergy within the rapid innovation which may ultimately lead to decreasing value of improved quality and cost.

Competition: Considering the factors of globalisation within the international market place it can be stated that the global market can be accessed from any place of the world. Therefore, the global competition is one of the largest challenges which the company can face during the process of product development as they are large and create a diversion within the marketplace (Saeidi et al, 2015). The business firm can also start to develop an engineering product which is unaware of the overseas competition and is already halfway through theirs. Thus, there are challenges which can be faced by the business in reference to designing and developing the product has to be launched at the right place and time and from the right price before they are a rival market.

Developing new products offers the target market with newer variation, variety and the business is able to gain expanded market share. Thus, product development is an integral part of the business process where the market researchers and analysis enable to build a plan and are meant to sell the products to the potential market space. The following are the recommendation based on how company should make change the organisation to better develop new products and assess and forecast their market potential and they are:

Analyzing the Product Development Process

Market visibility: It can be recommended that, Original Creations can work on market visibility when they introduce new products in the market. This can be facilitated by means of social media visibility where the hired person cam professional craft and perform social media strategy which is more than an effective and sporadic posting (Khajavi et al, 2015). It comprises of a lot power in creation of business stand out from the competition. It can furthermore, create campaign which can be based on research and thereby target the market segment the market.

High rate of competition: Secondly, it can be recommended that it is necessary to know the competitors its offering, its strengths and weakness (Akman and Yilmaz 2019). This will assist to identify the areas the business would require to compete and offer them with a platform for differentiating themselves. On the other hand, one must know all the information and allow CRM system to join the sales and marketing records.  

Price strategy: Thirdly, it can be recommended that the pricing strategy that is used by the organisation can be altered from premium pricing strategy to market penetration pricing strategy. This is because penetration pricing approach is offered to the products with lower price than the competitors, in order to drive the sake during the initial period of market entry. the strategy will further allow the business firm to use the brand for the products that has high competition and is relatively new idea (Den Boer 2015). Thus, lower the price its assist the target market to grab attention towards more consumers than a higher cost otherwise would allow the brand to establish a foothold against the competition in early stage. Therefore, the strategy will enable to create advantage of improving brand loyalty during the launch in the market.

Trade-offs: In order to reduce the risk of trade-off, it can be recommended that the business should eliminate confirmation bias (Xu et al, 2018). It should be one of the things which the company can alter and gather more inputs from the stakeholder for resolving the issue faced in the products and thereby, leverage the fact-driven decision making ensured that they go with the right solution of the problem.

Workforce management: As workforce management is increasingly becoming more composite in the recent time, it can be recommended that the business firm can use technology in order to resolve the issue (Sommer et al, 2015). If the company adopts a workforce management software program, then it will assist the company to stay compliant and reduce the risk factor while they improve productivity and efficiency. The software will further assist to reduce in administrative work or during paper work, thereby allowing greater visibility.

 Conclusion 

Hence, it can be concluded that the process of new product development in Original Creations will be an effective approach by the company to launch its new products as it is significant part of small business growth strategy. In the above section it assisted to identify the approach and strategy which the business firm can adopt and bring in new products in its existing product line. This will assist them to diversify and expand its business opportunity, share and gain attention of the potential target audience. With inclusion of risk and additional cost, developing new products enables the business to sell more to the target market and builds opportunity to enter new markets.

Forecasting Market Potential

Reference

Akman, G. and Yilmaz, C., 2019. Innovative capability, innovation strategy and market orientation: an empirical analysis in Turkish software industry. In Managing Innovation: What Do We Know About Innovation Success Factors? (pp. 139-181).

Chang, W., 2019. The joint effects of customer participation in various new product development stages. European Management Journal, 37(3), pp.259-268.

Cook, A.G., 2016. Forecasting for the pharmaceutical industry: models for new product and in-market forecasting and how to use them. Gower.

Cooper, R.G., 2019. The drivers of success in new-product development. Industrial Marketing Management, 76, pp.36-47.

Den Boer, A.V., 2015. Dynamic pricing and learning: historical origins, current research, and new directions. Surveys in operations research and management science, 20(1), pp.1-18.

Gobbo Junior, O. and Borsato, M., 2021. A method to support design for serviceability in the early stages of new product development. International Journal of Computer Integrated Manufacturing, 34(1), pp.41-56.

Gopalakrishnan, M., Libby, T., Samuels, J.A. and Swenson, D., 2015. The effect of cost goal specificity and new product development process on cost reduction performance. Accounting, Organizations and Society, 42, pp.1-11.

Khajavi, S.H., Partanen, J., Holmström, J. and Tuomi, J., 2015. Risk reduction in new product launch: A hybrid approach combining direct digital and tool-based manufacturing. Computers in Industry, 74, pp.29-42.

Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more profitably. Routledge.

Original Creations, Inc. 2022. Original Creations – Largest Collection of Mining Related Bronze Sculptures. [online] Available at: https://original-creations.com

Oztemel, E. and Gursev, S., 2020. Literature review of Industry 4.0 and related technologies. Journal of Intelligent Manufacturing, 31(1), pp.127-182.

Pineda, S., Morales, J.M. and Boomsma, T.K., 2016. Impact of forecast errors on expansion planning of power systems with a renewables target. European Journal of Operational Research, 248(3), pp.1113-1122.

Roberts, D.L. and Darler, W., 2017. Consumer co-creation: An opportunity to humanise the new product development process. International Journal of Market Research, 59(1), pp.13-33.

Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-350.

Sommer, A.F., Hedegaard, C., Dukovska-Popovska, I. and Steger-Jensen, K., 2015. Improved product development performance through agile/stage-gate hybrids: The next-generation stage-gate process?. Research-Technology Management, 58(1), pp.34-45.

Sozo, V. and Ogliari, A., 2019. Stimulating design team creativity based on emotional values: A study on idea generation in the early stages of new product development processes. International Journal of Industrial Ergonomics, 70, pp.38-50.

Srinivasan, R. and Swink, M., 2018. An investigation of visibility and flexibility as complements to supply chain analytics: An organizational information processing theory perspective. Production and Operations Management, 27(10), pp.1849-1867.

Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service development, competitiveness and sustainability. Routledge.

Turkelboom, F., Leone, M., Jacobs, S., Kelemen, E., García-Llorente, M., Baró, F., Termansen, M., Barton, D.N., Berry, P., Stange, E. and Thoonen, M., 2018. When we cannot have it all: Ecosystem services trade-offs in the context of spatial planning. Ecosystem services, 29, pp.566-578.

Xu, X., Yang, G., Tan, Y., Liu, J. and Hu, H., 2018. Ecosystem services trade-offs and determinants in China’s Yangtze River Economic Belt from 2000 to 2015. Science of the Total Environment, 634, pp.1601-1614.

The following section aims on my personal learning experience which is documented on the journal entries in BREO and is presented in the form of assessment. The discussion section of the paper will emphasize on the skills which has been covered in the module learning of week six to ten (Pataraia et al, 2015). Some of the major skills that will be discussed in the paper are communication skills, numeracy, ICT relating to Microsoft Office programs, problem solving skill and the skills of working with others. However, with the help of Gibbs reflective cycle the entire paper will be evaluated and will include the reflection on learning from the feedback offered in seminars and other previous units.

Conclusion

From my personal learning I can evaluate the skills on the basis of module that has been covered by the lecturers (Adeani, Febriani and Syafryadin 2020). However, the skills that are developed over time are communication skill, both written and verbal, secondly numeracy, ICT, problem solving skills and teamwork skills during group work and presentation. Therefore, I feel that the skill of communication in my learning experience have been utilised effectively both in written and verbal format (Khan et al, 2017). The professors in class have encouraged every individual to work on their communication skill by means of presentation, raising question and queries, solving others doubts, writing down journals and assessments and approaching the professionals in case of need. According to my own personal perception I feel that apart from communication, the skill of using Microsoft Office and problem-solving skill has been developed over time (Hargie, Dickson and Tourish 2017). The skills of using the programs of Microsoft Office have enabled me to not only mage sending emails to my professor but to maintain daily update on my group assignment work and submission of weekly task. Therefore, over the time I have enabled to manage calendar, emails and other task and have maintained myself to conduct organised work and at the same time be productive. Thus, the ICT caters to the evidence of using Microsoft Office programs during the unit and it has assisted me to be a better student and effective employee for future purpose (Wang et al, 2020). The learning program is just beyond the basic function as it has assisted me to increase my productivity and achieve long-term goals.

 Thus, I feel that the skills of problem solving is one of the most significant skills which every student should include within themselves and direct others to do the same. The skill of problem solving is derived from the evidence of unit learning, by example of information gathering and analysis during the unit and submission of assignment. With the assistance of problem-solving skill, I was able to take up challenges from a different perspective and thus, took up more calculative risk (Jackson 2015). For instances, during the time of working in group assignment I was allocated with the part of conducting market analysis. This is one of the areas that I am not confident of and it is more of a time-consuming task for me to review, analyse and describe. However, this time I took this up as a challenge and have worked efficiently towards it and now I am gained confidence in conduct market analysis.

However, from the module learning it can be evaluated that the approach of learning on theories, has been an overall positive learning approach for me. It enabled me to take up calculative risk and practicing problem solving is consistent and they develop greater situation and social awareness. On the other hand, with reference to the theories that are covered in the module learning such as Tuckman and Belbine theory (Eybers and Hattingh 2018). With the help of Tuckman theory, it offered me with a simple and useful way of thinking and how the humans interact in this situation. Thus, it is normal for the team to illustrate that it is normal for the ream to go through every stage as they develop. Therefore, on highlighting the needs it can manage the different aspects of team behaviour at every stage of that development.
Similarly, with the help of Belbine theory and Tuckman theory of teamwork, it enabled me create a culture of respect and trust (Romanova 2018). It is more of developed strategies which assist them to become more productive and successful. Similarly gained insights while working and managing teams. Therefore, these skills that have been developed and used in the initial learning in the unit.

Therefore, it can be analysed that the skills during my class session I faced major drawbacks in obtaining numeracy skills. However, I overcame this problem and during the time I was working on statistics in seminar activities. Numeracy has been a significant part for me because it enabled me to gain logical thinking skills and reasoned the strategies in everyday activities (Zippert and Rittle-Johnson 2020). This skill is essentially required for to solve problem and make sense of pattern, time and shaping the activities like cooking, reading receipts and even playing sports. On the other hand, it can be concluded that, the skills of working with other was an overall experience for me while working in teams during the unit learning. Similarly, the skill of communication trained me with social skill and active listening and effective speaking. While working as a team, I have also learned how to listen to my leader and coached myself and others in perform our individual role.

 Action Plan (SMART Objective)

 Reference 

Adeani, I.S., Febriani, R.B. and Syafryadin, S., 2020. USING GIBBS’REFLECTIVE CYCLE IN MAKING REFLECTIONS OF LITERARY ANALYSIS. Indonesian EFL Journal, 6(2), pp.139-148.

Eybers, S. and Hattingh, M.J., 2018, June. The last straw: teaching project team dynamics to third-year students. In Annual Conference of the Southern African Computer Lecturers’ Association (pp. 237-252). Springer, Cham.

Hargie, O., Dickson, D. and Tourish, D., 2017. Communication skills for effective management. Macmillan International Higher Education.

Jackson, D., 2015. Employability skill development in work-integrated learning: Barriers and best practice. Studies in higher education, 40(2), pp.350-367.

Khan, A., Khan, S., Zia-Ul-Islam, S. and Khan, M., 2017. Communication Skills of a Teacher and Its Role in the Development of the Students’ Academic Success. Journal of Education and Practice, 8(1), pp.18-21.

Pataraia, N., Margaryan, A., Falconer, I. and Littlejohn, A., 2015. How and what do academics learn through their personal networks. Journal of Further and Higher Education, 39(3), pp.336-357.

Romanova, A., 2018. Personal Belbin types and MBTI preferences combination in group work assuring success.

Wang, K., Shen, Z., Huang, C., Wu, C.H., Dong, Y. and Kanakia, A., 2020. Microsoft academic graph: When experts are not enough. Quantitative Science Studies, 1(1), pp.396-413.

Zippert, E.L. and Rittle-Johnson, B., 2020. The home math environment: More than numeracy. Early Childhood Research Quarterly, 50, pp.4-15.

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