New Product Innovation Strategies

Product Innovation

It is a process which brings new products and services to the market. It has the potential to create new markets and can transform the industries or completely destroy them. It stresses on the importance of a company to watch its competitors closely so that company can position the strategies most effectively against its competitors. Although the number of new product introductions continues but only a fraction are considered to be highly innovative. Basically product innovation is the key to the economic development of any organization as the technology changes old products decrease in sales but success in innovation is achieved by understanding the process and its payoffs so that little gets left to chance. As a result

The real challenge is how we can speed the development cycle without deteriorating the quality of the product and its price. The new product entry timings is an issue from a competitive strategy prospective.

Product Innovation for Success

New products which meets market needs more closely than the existing one invariably do well in the market. To create this company should understand its consumers, markets and competitors and delivers value. Keen competition has led to increasing market fragmentation so the companies should aim at smaller market segments rather than the mass market which means smaller sales and profit for each product. The product role is to help the company maintain its position as an innovator, defending its market share position or to get a foothold in a future new market. The new product outcomes are so difficult that some companies encouraging and financing many projects hoping to achieve a few

This involves splitting of the customers or the potential customers in different groups or segments where customers have same level of interest in the same or comparable needs satisfied by a distinct marketing position. Coca cola had introduced various packs of different sizes and flavours to meet the shifting and changing needs of the consumers to defend their market share and increasing profits. Competitive pressures, increasing demands of the consumers and short product lifecycle will likely to continue to push company for the innovations worldwide which will also broad the product choice and empowering the bargaining stance of the consumers. This opines that such varieties of the products will mean the company to serve different market segments as such products meets the needs of different consumers. This is because till date company has been dominating in the carbonated soft drink in the market shares.

Product Innovation strategies managed by Coca Cola

Out of stock: Carrying its products in the desired quantities which is three days of the consumers needs

Numeric distribution: it is the number of the outlets in the marketplace who can sell the particular brand divided by the total number of the outlets in the market