Rationale of the new product development
Continuous Development and expansion is an important aspect from the viewpoint of an organization and no organization can increase the financial belongings accordingly without having development and expansion in their operations. The core mantra of every bit of organization is to increase the shareholder’s equity and launching of products which will bring effectiveness for the consumers in particular.
The current environment and competition are extremely high and organizations are required to compete with different organizations operating in the same line of business with the help of effective strategies and among these strategies, the name of expanding the network with new product development (NPD) is one of them. The company has come up with the idea of NPD because it is now becoming the requirement of the market in particular in order to become economically prosperous and strategically fit. There are a number of models which will be used for the NPD and among them; the model of Baker and Hart is one of them (Kahn, 2006, pp. 32-36). According to the model of Baker and Hart, there are certain aspects that deem important for an organization as far as launching a new product in the market. The model described by Baker and Hart is mentioned below
The model evident that there are certain tests which have to be taken by an organization in order to successfully enter in a new region with a new product or stay in the same market with a new product
The product which has been chosen for the same analysis is I-Phone-6. The product is new, hence there is no modification is possible along with no-Abandon. Screening testing and concept testing is important as well to make sure that the company has enough capability to launch a new product in a market.
The market of Smart Phone is increasing heavily in all over the world as the people are consuming this particular product more and more in different regions of the world (Cooper, 2001, pp. 12-19). According to the research, it is found that nearly 80% of the population of the world now have a mobile phone and the estimated amount of mobile phones in the world is 5 billion in which 1.08 billion are the smart-phones, representing around 21.6% in the world (Helena, 2013). In the Smart Phone industry, Samsung is leading the market followed by Apple and Huawei on 2nd and 3rd position respectively. The proportion of the market share of smart phone companies is mentioned below
The consumption of Smart Phones is increasing heavily in all over the world which is a positive sign from the standpoint of the companies which are trying to capture this particular market. Apple which is on the second position of the Smart Phone market is trying to launch I-Phone 6. With the help of the above mentioned analysis, it is found that the idea of the new product development would certainly bring positivity for the company in their financial and would make the company strategically fit (Gartner, 2013).
New Product Development (NPD) usually includes commercialization as well, in which number of elements would have been categorized which particularly are
- Product Launch
- Distribution Strategy
- Communication Strategy
The essences of products are extremely important and significant for an organization as it is a key to success for them from almost every standpoint. As mentioned earlier that product launching and development is extremely important from the viewpoint of an organization and organizations will take certain measures to launch their product in the market.
In terms of launching the products, it is more than important for an organization to have certain effectiveness from which they will get maximum recognition from the end users. I-Phone 6 is a well renowned and recognized product whose Goodwill is already extremely high; therefore the company doesn’t need any sort of hard marketing. The product strategy which the company should adopt to make the things effective and attractive for them in the future should be “ANALYZER”, in which the company would analyze the presence of similar products in the market. With the help of this particular strategy, the company may become able to change and spill over on their current product by comparing their products with the products already available in the market (Lodato, 2008, pp. 23-27).
Pricing is the most important aspect from the viewpoint of an organization. Pricing is the only thing through which the customers of an organization attract towards a certain product. It is found from the analysis that pricing strategies should be set on a lower level by the companies in order to bring effectiveness in their establishment.
There are a number of pricing strategies from which organizations can choose from and Apple Inc also has to adopt a perfect pricing strategy in order to launch the product in an effective manner in the market. The pricing strategy which the company is using in different products is PREMIUM Pricing, but now the scenario has been changed as Samsung is influencing on the market, hence the company should come up with the Competitive Pricing Marketing Strategy. With the help of this particular strategy, the company would certainly become able to launch the product accordingly and effectively at the same time to gain a certain market and competitive advance.
Distribution strategy is an alternative name of Place strategy, in which companies would come up with such strategies from which they can reach to the end users effectively and without any sort of problems. The distribution strategy which the company should use is OFFLINE AND ONLINE both, in which the consumers can have the facility to buy the products from the respective stores and can also book their orders on the internet. This particular aspect is extremely important for the sake of the company as far as increasing their net worth is concerned.
Communication strategy which also known as promotional strategy is one of the most important aspects from the viewpoint of an organization and it is equally applied on the launching of I-Phone 6 as well. The strategy from which the company can communicate about their new products is comprised on both electronic and paper mediums. I-Phone 6 is an expensive product, and it is required to have an electronic communication and promotional strategy from which they can bring effectiveness in their services. Apart from that, the company can also increase their financial belongings by promoting its new product on the social media network or even in the paper medium, as well (Schneider and Yocum, 2004, pp. 16-21). This particular aspect could be extremely vital for the company to launch the new I-Phone 6 in the market.
Designing and Managing Processes
Apple Inc is a big company and it has a large network in all over the world. The designing and management of the products of the company is perfect which is more than essential to process their products in an effective manner. The design of the new I-Phone 6 is perfect as some of the best engineers of the world are being hired by the company to make and design their products. The process of designing and managing the product would start by launching a demo version and then gets the feedback for modification from the customers, as it is the best strategy to get apprehensions from the customers.
The consideration of an organization to become economically prosper is only become possible, when it competes with other organizations operating in the same line of business. For competition, organizations always need to come up with new development of products. From this particular analysis, it is found that the launching of new product which is I-Phone 6 in the market would certainly betterment for the company in terms of enhancing their product portfolio and increasing their financial belongings, as well. Different models have been applied in the analysis and found that the development of the new I-Phone 6 would be effective for the company to gain competitiveness in the market.
Cooper, R. (2001). Winning at new products. 1st ed. Cambridge, Mass.: Perseus Pub.
Gartner, (2013). How Many People use Smartphones in the World. [online] Onbile.com. Available at: http://www.onbile.com/info/how-many-people-use-smartphones-in-the-world/ [Accessed 16 May. 2014].
Helena, (2013). How Many People use Smartphones in the World. [online] Onbile.com. Available at: http://www.onbile.com/info/how-many-people-use-smartphones-in-the-world/ [Accessed 16 May. 2014].
Kahn, K. (2006). New product forecasting. 1st ed. Armonk, N.Y.: M.E. Sharpe, Inc.
Lodato, M. (2008). Management of new product launches and other marketing projects. 1st ed. Bloomington, IN: AuthorHouse.
Schneider, J. and Yocum, J. (2004). New product launch. 1st ed. Deerfield, Ill.: Stagnito Communications.