New products can be broadly classified into two groups:
* New products arising out of technological innovations
* New products arising out of marketing-oriented modifications.
The first group includes intrinsically new products having a new functional utility.
The second group includes products that come out of marketing oriented innovations on existing products. These are essentially new versions of existing products; the newness may be due to some modification in the ingredients used, or some changes in design, the addition of a new feature, a change of package etc. The newness may also be due to repositioning of the existing product or finding new use for the existing product or offering the existing product with new sales appeal to a new market segment.
New product development is a major component of the firm’s product policy. It is not enough if existing product lines are appraised properly, products are positioned effectively and the brand decisions taken wisely. For higher levels of growth, a firm has to look beyond its existing products.
In an age of scientific and technological advancements, change is ubiquitous phenomenon — change in food habits, change in comforts and conveniences of life, change in social customs and habits, change in expectations and requirements. Any business has to be vigilant about these changes taking place in its environment.
People always seek better things – better products and services, more convenience in products, more fashion and more value for money. A business firm has to respond to these dynamic requirements and these responses take the shape of new products and new services. Through such responses, the firm updates itself and stays closer to the consumer.
New products become necessary from the profit angle too. Products that are already established often have their limitations in enhancing the profit level of the firm. It thus becomes essential for business firms to bring in new products to replace old, declining and losing products. New products become part and parcel of the growth requirement of the firm and in many cases new profits come only through new products.
You need to be clear about the code of your brand – qualities that it stands for and understand the brand. Once you know your product, you will be able to gauge how successful it will be in the market.
It is very important to know what the consumers are expecting from your product. You need to ensure that the identity of the design falls in line with the demands of the society. Smell what is around while conducting your research and be willing to evolve overtime. India has a culture in fragrances unlike some other Scandinavian or Asian countries.
It is important to understand that packaging plays a very important role in the popularity of a product. 1 Million’s gold packaging not only denotes everything that is majestic, but also looks very attractive. In India, gold is a symbol of respect, so we know that the fragrance is going to click with the consumers here.
If you want to do a good job you can’t execute a project in a hurry, give yourself time. We set ourselves a period of two and a half years to deliver 1 Million. That was enough time to work on their product.
You need to find out how receptive the audience is to your product. Before formally launching the fragrance, they had a presentation where about 600 people from different countries had gathered to review the new perfume. The feedback was great. In fact it was only the feedback that gave us a green signal to launch the product worldwide. Review customer or consumers’ opinions periodically.