CREATE AN INFOGRAPHIC (SET INTO 4*4 GRID) FEATURING THE 4 TYPES OF PRODUCTS SHOWN IN THE MINDMAP ABOVE. INCLUDE THE CRITERIA THAT EACH MUST MEET TO BE CONSIDERED IN THAT CATEGORY. (4 PICTURES PER CATEGORY, ALL TO FIT ON A SINGLE SHEET OF PAPER, SO TOTAL GRID SIZE OF 16, 4*4)
--NEW PRODUCT DEVELOPMENT (NPD)--
R&D DEPARTMENT BRAINSTORM IDEAS
WILL YOU USE A EXISTING PRODUCT AND ATTEMPT O IMPROVE UPON IT OR WILL YOU TRY TO THINK OF A BRAND-NEW PRODUCT? WHAT NEED WILL IT SATISFY?, IS THERE A 'GAP IN THE MARKET' FOR THIS PRODUCT?
NOW THAT YOU HAVE ALL THESE SUGGESTIONS, LET'S GET RID OF ('SCREEN'/'FILTER OUT') THOSE IDEAS THAT YOU FEEL WILL BE UNSUCCESSFUL. WHICH IDEA HAS THE GREATEST UNIQUENESS?
NOW THAT YOU HAVE A CHOSEN IDEA(S), START TO DEVELOP EXACTLY HOW IT WILL LOOK?, HOW IT WILL SATISFY THE NEEDS OF THE CUSTOMER?, IS IT TOO EXPENSIVE TO MAKE? WILL IT TURN A PROFIT?
BASED ON THE CONCEPT DEVELOPMENT, LET'S MAKE A TRIAL VERSION OF THE GOOD SO WE CAN GET AN IDEA ABOUT ITS ERGONOMICS, APPEAL ETC... IS IT COMFORTABLE TO HOLD? IS IT TOO BULKY? IS IT VISUALLY APPEALING? DOES IT ACTUALLY WORK? WHAT DOES THE FOCUS GROUP THINK? SHOULD WE GO BACK TO THE DRAWING BOARD?
LET'S LAUNCH THE PRODUCT IN ONE STORE AND SEE HOW IT SELLS BEFORE WE GO NATIONWIDE...
THE TEST LAUNCH WAS A GREAT SUCCESS, LET'S GO NATIONAL, THEN INTERNATIONAL $$$$$$$$$$$$$$$$$$$$$
AFTER WATCHING THE VIDEO, WRITE A SUMMARY REPORT OF THE NPD PROCESS FROM STAGE 1-4 IN THIS EPISODE.
"The teams initially got together then brainstormed ideas about..."
"They then discussed and screened them and finally decided on..."
"Over the episode, they developed the concept in the following ways..."
"Finally they created a prototype in order to..."
New products will likely have a USP (Unique Selling Point) which means the business will be first into the market with the new product, and if it takes off they will be credited with being the market leader, which is great for reputation and brand loyalty.
When the firm diversifies the product range it allows them to spread risk as sales now rely on more products. (E.g. Liverpool's merchandise sales helped them cope with the lost revenue from ticket sales during COVID lockdown in the UK)
If the product is different from the core business then it allows them to expand into new markets, which not only spreads risks but increases their brand awareness in other markets which can lead to sales in the core market. (E.g. When Apple diversified into cellphones I-phone customers will likely buy MacBooks)
If the product is a variation on the core product then it can allow them to expand their market share. by taking customers from their rivals. (E.g. The new Samsung phone takes customers from the current I-phone, and vice versa)
If it is new then the firm can get the product patented and it can't be copied by its rivals meaning that it can reap all the profits for an extended period of time.
Current customers always like to see new products being introduced onto the market. (E.g. The craze around the launch of a newer version of the I-phone)
It can help the firm compete with a rival who has already introduced a new product so they don't lose market share. (E.g. Samsung and IPhone continuously launch new models one after the other)
COSTS:
The costs of carrying out market research and analysing the findings, as well as marketing the new product.
The costs of producing, trial products including, the cost of wasted materials.
Lack of sales if the target market is wrong.
Loss of company image as the lack of expertise in the new product may mean the new product fails to meet customer needs.
Too much diversification may mean your core business will be ignored and suffer.
IMAGINE YOU ARE THE TEAM LEADER OF THE NPD DEPARTMENT, AND YOU ARE PITCHING YOUR IDEA FOR A NEW PRODUCT IN A DIFFERENT MARKET THAN THE COMPANY'S CORE BUSINESS, IN THE HOPE OF SECURING ORDERS TO LAUNCH IT DURING THE COMING MONTHS. USING THE TEMPLATE BELOW CREATE YOUR PITCH.
Dear Directors welcome to today's presentation, I am sure you will be delighted to see what we have produced for you. After some intense brainstorming and screening, we have come up with the following...
This product will be BENEFICIAL because...
Admittedly, the COSTS include...
However, we are confident that this product will be a success and make you millions.
Thank you for your time.
--BRAND IMAGE--
BRAND IMAGE refers to how customers perceive the product. This can be both POSITIVE and NEGATIVE. It is achieved through the creation of unique NAMES, PACKAGING, FEATURES, DESIGNS, or LOGOS that distinguishes it from other products or businesses.
Gives peace of mind as the seller often knows more about the quality of their product than the buyer (Asymmetric information), therefore customers prefer branded goods as it takes away the risk and uncertainty of purchasing. This includes any claims made in terms of calories, ingredients, ethical sourcing, shelf life, etc...
Branded goods give the consumer an assurance of guaranteed quality and uniformity with every purchase, regardless of location (even overseas)
This trusted quality and uniformity allows the consumer to make quicker buying decisions, saving them considerable time.
Branded products CAN BE PRICED HIGHER THAN UNBRANDED PRODUCTS as they are perceived (rightly or wrongly) as being of better quality.
Effective advertising can enforce their brand image and CREATE STRONG BRAND LOYALTY meaning that their CUSTOMERS KEEP COMING BACK.
See the example below, branded Armani T-shirts are much more expensive than similar (100% cotton) unbranded Amazon Essential equivalents.
REFERRING BACK TO THE PRODUCT YOU DEVELOPED ABOVE, CREATE A LOGO, (YOU CAN HAND DRAW IT THEN UPLOAD THE PHOTO) TO GO WITH YOUR PITCH AND ADD A PARAGRAPH EXPLAINING WHY HAVING A BRAND IS IMPORTANT, BE SURE TO INCLUDE THE POINTS MENTIONED ABOVE IN CONTEXT (SO NO COPY-PASTE).
--THE ROLE OF PACKAGING--
"You tell me!! HIT or MISS?"
Packaging needs to catch the customer’s eye, and stand out from the rest on the shelf, therefore unique colors and shapes can be used. Sometimes it's the least colourful brand that catches people's eye amongst a sea of colour...
Products which are marketing themselves as premium and luxury often package their products in luxurious-looking containers, often in a gold colour.
In order to distinguish themselves from the higher-priced items, and promote themselves as a basic yet clean-image alternative 'Own brand' items will use simple and basic colours.
Packaging has to give protection to the product to prevent it from being broken/smashed.
Packaging must prevent the product from spoiling after it is opened.
Packaging must be durable for transporting the product from the factory to the shops.
Packaging should allow for easy stacking and space-saving during storage.
The labels on products sometimes have to carry vital information about the product. such as how to store or use ic and what ingredients it contains.
Packaging must allow the product to be used easily as well as stored for later use.
BRING IN A REAL-LIFE EXAMPLE OF PACKAGING USED EG, OREA PACKET, CAN OF COKE ETC, MAKE SURE IT IS CLEANED AND WITH ENGLISH LABELS. WE ARE GOING TO MAKE A DISPLAY TO SHOW THE FEATURES OF EACH STYLE OF PACKAGING.
TAKE AN EXISTING PRODUCT AND CREATE A POSTER/DISPLAY FEATURING THE REAL-LIFE PACKAGING. NEXT, WRITE A COMMENT EXPLAINING HOW THE PACKAGING HAS ATTEMPTED TO DO MEET THE 'ROLES OF PACKAGING' LISTED ABOVE USING THE TEMPLATE BELOW. THEN PRINT OUT THE TEMPLATE AND
Design the packaging for an OFS takeaway using the dieline below. The goal is to make yours
Each of your packaging will be judged on the following criteria...
https://www.diecuttemplates.com/free-dielines
https://issuu.com/designpackaging/docs/packaging-dielines-free-book-design
--THE PRODUCT LIFE CYCLE--
Products do not last forever, A typical cycle for a product is as follows.
First, a product will be developed. The prototype will be tested and market research carried out before the product is launched onto the market. There will be no sales at this time.
It is then introduced or launched on to the market. Sales will grow slowly at first because most consumers will not be aware of its existence. Informative advertising is used until the product becomes known. Price skimming may be used if the product is a new development and there are no competitors. No profits are made at this point as development costs have not yet been covered.
Sales start to grow rapidly. The advertising is changed to persuasive advertising to encourage brand loyalty. Prices are reduced a little as new competitors enter the market and try to take some of your customers. Profits start to be made as the development costs are covered.
Sales now increase only slowly. Competition becomes intense and pricing strategies are now competitive or promotional pricing. A lot of advertising is used to maintain sales growth. Profits are approaching their most mature (highest).
Sales have reached saturation point and stabilise at their highest point. Competition is high but there are no new competitors. Competitive pricing is used. A high and stable level of advertising, is used, but profits start to fall as sales are static and prices have to be reduced to be competitive.
Sales of the product will decline as new products come along or because the product has lost its appeal. The product will usually be withdrawn from the market when sales become so low and prices have been reduced so far that it becomes unprofitable to produce the product. Advertising is reduced and then stopped.
Increase product awareness
Maintain brand loyalty
Reduction in number of retailers willing to sell the product
Offer one version
Falling
Add new versions
Offer a full product range
Keep best sellers and scrap the rest
At a peak
Build, brand loyalty and compete effectively
Price low to create sales
Price competitively to build market share as competition increases
Defend market share and profits from competitors
Increase places to buy
Product or business survival
Expand methods and places of sale to their maximum
Use informative advertising to build awareness
Rising
Use persuasive advertising to build. Brand loyalty
Remind consumers of product qualities
Reduce to a minimum or introduce an extension strategy
Low
Adjust prices to stay profitable
Use limited outlets
PAST-PAPER 12-MARKER TASK: CREATE A PRODUCT LIFE CYCLE FOR (CHOOSE YOUR OWN PRODUCT, OR USE TES AS YOUR EXAMPLE), FEATURING EACH STAGE IN CONTEXT AS WELL AS THE PRICING AND PROMOTIONAL TYPES (YES, DO SOME RESEARCH). MAKE IT COLOURFUL AND INCLUDE S LOGO FOR DISPLAY.
As we have seen, when the product's life reaches the maturity stage, sales will start to decline thereafter, therefore producers often attempt to extend the life cycle of a product by utilising various extension strategies aimed at returning to the growth phase.
--INTRODUCE NEW VARIATIONS--
This invoves 'EXPANDING THE RANGE' availaible
--REBRAND FOR NEW TARGET MKT--
--REPACKAGING TO LOOK NEW--
--SELL IN NEW MARKETS--
Imagine sales are falling @ [your choice of business]. suggest 4 POSSIBLE EXTENSION STRATEGIES [ATL: THINKING SKILLS] that they could do to maintain/grow sales. WRITE AN EMAIL to your shareholders titled 'Extension strategies to deal with falling sales' using the template below and explain in detail the type of strategy and how each will result in greater sales and profits in the future, use REAL-WORLD EXAMPLES [ATL: RESEARCH SKILLS] to illustrate how successful it can be. After completion RECORD YOUR EMAIL as an AUDIO FILE. Email both files to me. [ATL: COMMUNICATION SKILLS]
--EXTENSION STRATEGIES TO DEAL WITH FALLING SALES--
"Dear Shareholders, you may have noticed from our latest sales figures that we have reached the maturity stage of the product life cycle of our product as such we will be implementing the following 4 extension strategies with the aim of entering a new life cycle...."
Knowing the stage of the life cycle that a product is in can help a business with
pricing and promotion decisions. Prices are likely to be higher in the growth stage
than in the saturation or decline stage , when the business will wam to u y to stop
sales declining. Spending on promotion will be higher at the introduction stage than
in other stages as the business has to inform consumers of the product , establish a
brand identity and encourage rapid increases in sales. Advertising would probably be
reduced in larerstages.
The types of pricing and promotion types used by firms at each stage of the cycle differ. Research the types listed below and decide which one is appropriate for each stage of the cycle, and justify.
Informative advertising
Price skimming
Psychological pricing
Dynamic pricing
Persuasive advertising
Promotional pricing
Cost-plus pricing
Competitive pricing
Reduced pricing
Penetration pricing
2-MARKERS
4-MARKERS
LBM Identify and explain two problems for LBM of having a wide range of products available to customers.
PCB Identify and explain two advantages to PCB of increasing the range of products it sells.
6-MARKERS
GGB Identify and explain two benefits to GGB of developing new products.
TXE Do you think TXE should sell a wider range of products? Justify your answer.
EDGE Identify and explain two advantages to EDGE of developing new products.
EDGE Explain two extension strategies that EDGE could use for product Z. Recommend which one they should choose. Justify.
YOGO Identify and explain two reasons why packaging is important for YOGO’s products.
GRIMSHAW Identify and explain two advantages to Grimshaw of developing new products.
WSS Identify and explain one advantage and one disadvantage to WSS of changing its brand image.
GDC Identify and explain two reasons why a good reputation might be important to GDC.
BBT Do you think BBT should stop selling product A? Justify your answer.
8-MARKERS
(WA) Identify and explain one advantage and one disadvantage to WA of developing new products.
(MF) Identify and explain one benefit and one cost to MF of developing the new product.
(HH) Identify and explain two ways HH could create a brand image.
(CC) Fizz Bomm is in the development stage of the life cycle. Identify + explain 4 other stages of Fizz Bomm’s life cycle
(DD) Identify and explain four factors DD should consider when packaging cakes if they are exported.
12-MARKERS
(SA) Consider the following three roles of packaging for SA’s new products (Protection, Brand image, Info about the product. Which is the most important role for the successful launch of these new products? Justify your answer.