Chapter 12 - Introducing New market Offerings

 


Innovation/new product offerings are essentially creating the future of the organization. Timely innovations sometimes lead the industry to a new era by making that innovation a trend in the market. For any kind of an organization these innovations are significant in creating future business opportunities in the global market. The most important factor is, these innovations should be done at the correct time, otherwise the effort will be useless if the innovation fails in the market. Some of the failed companies in innovating are:

  • Nokia
  • Motorola
  • IBM
  • Blackberry
  • Kodak etc.

 

Categories of new products

  • New to the world
  • New product line
  • Additions
  • Improvements
  • Repositioning
  • Cost reductions

 

Innovation is not just creating a new product, but it can be a value addition to an existing product and that will deliver a new experience for the customers. Sometimes the company may focus on improving the quality level of the product by changing the raw material, production process, adding new technology etc. If a product failed in the past due to some reason, the company may re-introduce it by changing the physical appearance of the product, technology used, quality, product line etc. and trying to re-position the brand in the customers’ mind in a different way. Any company can be successful by doing any kind of innovation as above to make a difference in the market.

 

Few examples of successful companies in innovating

  • Apple
  • Samsung
  • Amazon
  • Microsoft
  • Toyota

 

Why do innovations fail?

Innovations are not to be done at any given time anywhere. Because an innovation is a new concept or new business idea that did not exist earlier. That innovation can create lots of impacts to society either positively or negatively. And the customers will have different perceptions of those impacts, and they will react differently when accepting or rejecting the innovation. There are a few reasons that fail the innovations. They are:

  • Fragmented markets
  • Poor launch timing
  • Social, economic, and governmental constrains
  • Shorter product lifecycle
  • Cost of development
  • Lack of organizational support
  • Capital shortages
  • Shorter required development time

 

The most common reason for failure is the poor launching time and fragmented markets. Because most of the companies who failed in innovation have done their innovations at the wrong time to a large customer base. If a company is planning to innovate something to the market, first they must introduce it for a smaller customer base as a test drive to see any issues or comments on the innovation before introducing it to the market. Because if the company introduces the innovation to the whole market without having a test drive, if something goes wrong, the whole reputation of the company and the brand will be destroyed, and they will lose their valuable customers. Hence, it is crucial that marketers and other relevant authorities in an organization must do a market analysis and then decide when to innovate and when to introduce it to the market.


How to develop new business ideas?

There are many ways an organization follows in developing new business ideas. It is not just one way to do that. Organizations can gather new ideas by using multiple methods and do the innovation at the right time. The Organization can use the following methods to gather new business ideas to implement.

  • Venture teams
  • Skunk work
  • Communities of practice
  • Crowd sourcing
  • Stage gate system
  • Drawing ideas from customers

 

Among these methods, “drawing ideas from customers” is significant because customers are the final users in the transactions, and they have the experience of using a new product. Hence if the company wishes to gather business ideas, it is recommended to use “drawing ideas from customers” method, to get the latest information and suggested ideas to re-develop the product. Customers will explain what is to be added, what is to be removed and what is their dream product.

 

What happened to NOKIA?



As we all know, NOKIA is a world-renowned brand for mobile phones. They had a wide variety of analog phones which had many features same as a touch-screen phone and everyone had an experience of having a NOKIA phone in their hands. With the time being they introduce a smart phone which is a touch screen type called “NOKIA Lumia”. I also have experience of using that mobile phone. It is a handy looking mobile with five different colors, nice design and looked very attractive. But they could not admit fixing the bugs that customers experienced. Most of the customers, including me faced different issues when using the phone after few months of purchases. When issues came continuously, they could not give proper solution for their customers. Finally, Microsoft company bought NOKIA for billions. And then they re-introduced the phone under the name of “Microsoft”. At that time, customers’ minds were changed already.




According to my understanding, NOKIA company did this innovation at the wrong time because during that time, other giants in mobile phone industry introduced lot of smart phones with attractive features except NOKIA. If they introduced this phone to a distinct customer segment as a test drive they would come across these issues at the early stage, and if so, they would come up with an improved product for the market. But it was an unfortunate to disappear the brand in the market because people loved using their analog phones which were highly durable.  

 

 

References

1.      1. Avgeropoulos, I. (n.d.). Marketing Planning: Introducing New Market Offerings (PPT) Chapter 12 - Introducing New Market Offerings.pptx (sharepoint.com)

 

 

 

 

  

 

 


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