Critical Analysis of New Product and Service Development Process of Business Firms

Reflection - Critical Analysis of New Product and Service Development Process of Business Firms
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Reflection: Product Strategy & Development
Introduction
The process of product and service development emphasizes the considerable attention to factors deployment and tackling challenges by organizations. The market is dynamic, with customers’ expectation of market share to be managed with new strategies. The business environment is rapidly changing, and businesses stay competitive by offering innovative products to stay one step ahead of competitors (Cooper, 2019). The paper focuses on the opportunity identification ideas in the corporate world, idea concept and generation ideology, concept testing process, sales forecasting, product designing, product use testing, product launch and marketing strategy, and public environment and ethical issues in different organizations worldwide.
Opportunity Identification, Idea Generation, and Screening
Tesla’s Cybertruck
The Tesla Cybertruck is a new innovative product idea of Tesla which emphasizes environmental sustainability. Compared with the traditional means of transportation, this product has lower fuel consumption and long-term economic advantages. Furthermore, it is a product-driven innovation because Tesla Cybertruck is an electric truck developed by Tesla Motors. The product idea was unveiled for the first time in November 2017 at Tesla’s design studio in Hawthorne, California (Szymkowski & Paukert, 2019).
Elon Musk revealed it as the next step in the evolution of sustainable transport. To make this happen most effectively, the company believes in taking advantage of solar energy and wind power and producing renewable fuels from plants and algae, which is a developing trend nowadays. The company has availed of this opportunity as it is interesting to be a product innovator (Okane & Hawkins, 2019). The existing truck’s service does not cater to the sustainability needs of the environment; that is why Tesla introduced this all-electric pickup truck’s frames to design a cheaper and affordable pickup truck.
Kellogg’s
Kellogg’s has recently introduced cereal bars. It is an excellent product introduction for the business as it allows the industry to produce cereal bars in mass quantities. The innovation approach entirely focuses on customers based on their demands. The company has combined all cereal ingredients in one bar, which improves consumers’ judgment on how much cereal to consume per breakfast. It is a product-based innovation idea where the company guides customers on efficient quantifying grain per person. The introduction of Kellogg’s innovation in cereal bars is advantageous considering that they are the only cereal on the market with natural ingredients. As a result, consumers can get full fiber, vitamins, minerals, and other nutrients without getting bored of eating the same thing day after day (Schouten, 2020). Kellogg’s innovation also helps people stay fuller for longer, crucial for maintaining a healthy diet.
Idea and Concept Generation
Tesla’s Cybertruck
The product idea of Tesla’s cybertruck is conceived as a problem with the existing products and services. The current trucks cover huge space and run on expensive fuels and petrol. The trucks offered by other companies are less environmentally sustainable because of fuels and emissions in the environment (Ulrich, 2020). Semi-truck originally has been used to transport bulk materials such as steel and wood, so Tesla Cybertruck for this purpose would be more practical than just transporting one passenger car. The creativity is built because semi-trucks can carry more than one vehicle and transfer materials within various industries and geographical areas. There are no fuels or batteries, so we only need to install charging stations (Deveza, 2019). Since it is possible to recycle the energy sources from discarded batteries and the car’s power grid, businesses need not take them up by mining anymore. Tesla believes that we do not need minerals in this era of sustainable future: unbound mining.
The approach used in the case of Tesla’s cybertruck is the market driving where the company developed a cutting-edge technology to resolve customers’ issues of price and space. The sequence of new product development is that first, the company introduced new technology to create a need. Hence, the cycle of innovation is as follows: Technology →Need →Form. The primary purpose of the Tesla Cybertruck is to be a low-cost and highly efficient means of transportation for people and cargo, having zero approximations (Fitzgerald et al., 2021). Moreover, as this vehicle is developed as an electric vehicle, it might be called a battery truck. This is because electric cars also do not depend on fuel and can operate solely with electricity.
Nestle’s Paper Straw
Nestle has secured its position as one of the best food brands worldwide with this innovative addition to its products. Furthermore, Nestle has launched paper straw to promote sustainable packaging; Nestle aims to remove over 400 million plastic straws from the system in Pakistan. It is believed that the company will make the packaging 100% recyclable by the end of 2025 (Dawn, 2021). The opportunity is exciting because it will play a crucial role in improving existing products and making them recyclable. The approach is market-driven. Based on this, the three components of the new concept developed are presented in the sequence of need →technology →form.
Kellogg’s Cereal Bars
The introduction of Kellogg’s innovation in cereal bars is essential to improving quality and taste while also having health benefits. It is believed that these cereal bars identify problems with existing products to resolve customers’ issues of cereal quantification per meal. In addition, these bars tell the accrual quantity and nutrients which need to consume for every breakfast (Open PR, 2021).
The approach of Kellogg’s Cereal Bars is part of a healthy breakfast in America and is market-driven. Compared to soft-baked plain cereals, they are packed with fiber and nutrients, making them the perfect healthy choice for adults and children alike. With over 30 years of experience in breakfast cereal innovation, Kellogg’s has developed the only cereal bars on the market that contain natural ingredients (Fitzgerald et al., 2021). These are also the only cereal bars with added fiber to help people learn better when they eat more slowly or have fullness in their mouths when they chew. Based on this, the three components of the new concept developed are presented in the sequence of need →technology →form.
Concept Testing Process
Tesla
With the development of the new Tesla, Tesla has created a prototype of the product concept of its cybertruck. Tesla is committed to producing “sustainable products” because it is keen on “protecting our planet.” The company has developed a concept statement and says that this is demonstrated by its latest cybertruck prototype, which has a range that exceeds 300 miles on one charge (Stafford, 2020). When powered only by renewables, it can exceed 600 miles. With two motors and four-wheel drive, Tesla assures that this truck’s dynamic performance beats diesel trucks’ during the testing phase.
The company also tells how it developed this product -- they went through five years of research and development to figure out how they could build an affordable electric semi-truck. The product was designed “for those seeking an environmentally responsible alternative to gasoline-powered vehicles.” Tesla claims that its truck has the giant battery pack ever put into a commercial vehicle, and efficiencies make up for the additional weight. In addition, the factory developed this vehicle with “full-scale testing at every step of the way” to ensure it’s safe for drivers and passengers (Consumer Reports, 2021). Not only do materials used in construction meet all standards, but its manufacturing processes are transparent with one key benefit. Tesla says it can build an unlimited number of these trucks with zero emissions.
The feedback was positive because most people say that the truck is innovative, luxurious, and requires less space for accommodating loads and luggage. The most exciting part of feedbacks is that Tesla’s trucks are all-electric! With 25 miles of range per charge, most drivers will not have to carry any gas or diesel on their journey (Mihalascu, 2021). However, some people were not happy with the proposed price as they believed that the product was too expensive. The likely market segment has overall given a 7.5/10 rating at the time of product launch. It allowed the company to further improve the idea before launching it (Consumer Reports, 2021). That is why it is said that cybertruck is established after thorough research and development and feedback from customers.
P&G’s iLab
P&G has recently launched iLab in Singapore to strengthen the innovation ecosystem in Singapore. In the case of P&G, the company asked people for feedback and response on different social media platforms. The people were asked whether they were interested in getting something unique and accessible in their cereal bowl. The strategy was helpful to retain existing customers and attract people for the 3-day virtual innovation festival. The research feedback was positive, and most people suggested that introducing such eco-friendly devices would improve the environment (Cision, 2021). Thus, P&G strengthens its commitment to serve consumers to meet transforming demands and expectations.
Sales Forecasting
Acura TLX
Regardless of size or industry, every company needs a forecasting strategy for gauging the demand for their goods and services. This section provides information on how forecasting impacts Acura TLX. The forecasting technique used in the case of Acura TLX is the jury of executive opinion, where the interpretation of sales is made with caution. The whole forecasting was assumption-based, which leads to people’s purchase intentions, trial, and feedback before launch. The automobile market is expected to grow by 3% every year for the coming ten years (Cain, 2021).
It is observed that the sales forecasting techniques of Acura TLX will be global. The reason is that the company sells its products not in a single country but over 50 countries. Although the company has not made a massive advertisement on the product, the only thing that assists the business in achieving its objectives is its innovation diffusion in the market.
Netflix Subscribers
In 2010, Netflix started offering online streams with the hope of over 50 million subscribers in the next two years. However, the company achieved its 50 million subscribers over five years. The company was too slow in demand until a boom occurred in 2019. Now, Netflix has over 192.95 million paid subscribers. The company analyzed the performance based on trend analysis to grow by 5% per year. However, the company has not achieved the growth percentage; it is going toward the positive side every year (Statista, 2021).
Figure 2: Netflix Subscribers
Statista 2021
Product Design
Toyota’s Prius
During the design process, Prius was driven to improve safety for its fleet of trucks. Toyota wanted a vehicle that would protect human life and reduce the risk of getting hurt during a crash. However, the design ideas behind Prius can also be applied to many other fields and traditional vehicles where the company offered a hybrid nature of designs. By continually pushi...