Development of a new product - Essay Example

?CHAPTER I Development of a new product Developing a business case for a new product: Background Information The modern world has witnessed tremendous developments in all fields of life in the wake of fastest technological advancements, which have modified the very scenario of lifestyle in general. The advanced countries are considered to be the beneficiaries of globalisation, though every nation has taken advantage from this process. (Yucel et al., 2009) Although these advancements have brought marvellous comforts in human life, yet work hours have observed a constant increase, and leisure hours are shrinking swiftly. Since the rise of the Information Age, the concept of the office has not been confined to the four walls of the building of work place any more. Rather, people remain busy at work on computer on holidays too at home. As a result, the maintenance of equilibrium between work and life is becoming a dream only, and holidays are also being spent in the completion of professional tasks and assignments. “If workers of the modern times were overworked, those of the post modern times are not only overworked but also over managed, employers appearing eager to try the “flavour of the day” in order to increase the financial performance of their companies” (Ciulla, 2000). Imbalance in lifestyle can be witnessed in the unevenness of diet, which adversely affects the health of the workers. Hence, increase in work hours and decrease of adequate diet is challenging health condition of the individuals at large. At this precarious state of affairs, there is an urgent need for developing and presenting a perfect and hygienic liquid diet that could immediately restore the energy level, which is lost while spending time in different professional, personal and domestic activities at offices, fields, residences and playgrounds. Keeping in mind these challenging factors, Ailasia Inc. has launched a new drink that would be helpful in restoring the energy level of the individuals particularly during their work hours, and would not let them feel tired or exhausted. Hence, the drink, Energy-R, will increase the work proficiency of the industrialists, consultants, workers and managers alike, and will lead them make progress in their business or career. Statement of the Problem The management only hires the services of intelligent, brilliant, healthy and fit personnel and workers, which can pay extra heed to their organisation. If the work force appears to be exhausted and inefficient, it would become almost impossible to meet with the targets and achieve the goals determined by the management of the organisation. Since an overwhelming majority of a population is involved into economic activities in one way or the other, there is an immediate need of an energy boosting supplement for improving their work efficiency. Hence, Energy-R will serve as a wonderful drink for the people working at any place for the recovery of their energy level, and the product will suddenly capture the attention of millions of people even outside the UK. This drink may be an excellent antidote to the problems and changes caused by the Information Age. Research Aims and Objectives It is a fact that is beyond dispute that economic prosperity is always dependent of the diligence and commitment to one’s work, which is only possible provided people are efficient and are able to spend more time at work than others for their individual and collective progress. With the increase of the use of computers at the office and lengthening of the work day, people have less energy to be productive. It follows that one way to increase the amount of economic success stories is through the use of a powerful energy drink. The next section focuses on the objectives of the study followed by a section on literature review. Based on the literature reviewed, the fourth section would analyse the data collected for the present study. The fifth and the final section would consist of a conclusion and suggestions and would point out the appropriate marketing strategy for the product under analysis i.e. Energy-R. Specific Objectives of the Study and Significance Since millions of products are available in the markets, successful launching of a new brand in this age of perfect competition is really hard nut to crack. However, vacuum for quality products at economical price is always there, which is directly dependent of careful research marketing in order to make it a sure success. The research department of Ailaisa Inc. intends to make an in-depth market analysis of the area where the product is going to be launched. At first, London has been selected as the zone for the initial launching of Energy-R, so the universe will certainly be the people living or working in London. Consequently, the research team will gather the data from supermarket customers, workers and students in London. Being a rational and prudent group of professionals, the research marketing team will concentrate upon the market description in order to explore the demands and requirements of the would be consumers in order to present the product keeping in view the demand, need, financial position, taste and liking of the people. Hence, the present study would take into consideration the portrayal of the market that includes the demographics and size, the demand for energy drinks, study the competition, and then develop the right marketing mix and the marketing communication mix for the strategy. It would highlight how the project would be managed through the initial stages of its launch. With this aim, the objectives of the study include: To explore the market potential based on the requirement of an energy drink in the London city, UK. To analyse and estimate the energy drinks market with particular reference to the UK. To take into account the competitors strengths and weaknesses through competitor analysis To develop an appropriate marketing strategy for the new energy drink To suggest the marketing channels for Energy-R To develop apposite measures for managing and supervising monitor the launching and presenting of the product under analysis. Dissertation Structure This dissertation will consist of six chapters. The first chapter will be an introduction to the topic and lay out the research aims and objectives. The second chapter will be a literature reviews. A number of sources will be examined. The third chapter present the theoretical framework. The fourth chapter will lay out the research methodology that will be used in the course of this study. The fifth chapter will summarize the findings. The sixth chapter will conclude and present recommendations. Hypothesis: The researcher has developed the following hypothesis for the present study: The higher the quality, flavour, effectiveness and presentation of a product, the better the probabilities of its demand by the consumers in the market The reason for developing this hypothesis is the topic of the study, which looks for analysing the demand for a perfect and economical energy drink in the market. Since quality, price and advertising campaigns are the most effective factors to capture the attention of the consumers, the researcher has included them in his hypothesis established for the present study. The main hypothesis has been supported with the following two sub-hypotheses: The better the taste and effectiveness of an energy drink, the higher the graph of its popularity among the consumers The more economical the price of a quality product, the better the level of customers satisfaction The more the energetic and vigorous the workers, employees and staff members of an organisation, the more the probabilities of its growth and stability in the business environment The research aims to select both males and females belonging to the age group from 25 to 55 years and working at various organisation in various positions. The respondents will be taken from various professions in order to give complete representation to different age-groups, genders and social classes. The universe will consist of professionals in London, while the study will select 60 respondents as the sample of the study. The size of the study is all that can be undertaken within the current time period. CHAPTER 4 RESEARCH METHODOLOGY OPERATIONALISATION OF CONCEPTS AND VARIABLES Methodological Factors It is extremely important to decide exactly how to carry out research once a research project is identified by the researcher (Dawson, 2007, Chapter 2). A methodology is the philosophy or the general principle, which guides the research at hand. Generally speaking, qualitative research and quantitative research paradigms are two of the basic philosophies available to researchers. Each has relative strengths. Quantitative research generates statistics by using measurements or surveys to obtain data, while qualitative research explores the results of similar research and takes a more contextual approach. Nevertheless, it can on occasion be hard to quantify or model complex phenomenons. This means that pieces of knowledge must be collected and put together to try to present a reasonable mental model or description that can be further refined. That is what the researcher has attempted to do in this section of the dissertation. CONCEPTS: The following concepts are involved in the present study: i. Quality: “Quality is the customers' perception of the value of the suppliers' work output.” (qualitydigest.com) In simple words, quality refers to the distinction a product maintains in it that makes it superior to its competitors. In the present study, quality refers to the quality and sophistication of the newly launched energy drink Energy-R.   ii. Flavour: “A distinctive yet intangible quality felt to be characteristic of a given thing: What matters in literature . . . is surely the idiosyncratic, the individual, the flavour or colour of a particular human suffering.” (Harold Bloom: quoted in answers.com). In this research flavour means the taste of the energy drink. iii. Sale: The term sale simply refers to the surrendering the ownership of a moveable or immoveable property against some money, services or property etc. Someone has rightly said that everything is engrossed in the odds and ends of life. In this study, sales means the sale of energy drink Energy-R. iv. Innovation: The term innovation refers to the novelty and uniqueness of ideas, views, thoughts, notions, designs and characteristics of products, theories and strategies. In the present study, innovative means newness and inventiveness in the energy drink produced and launched by Ailasia Inc. in the name Energy-R. v. Competency: The term competency simply means “the ability to perform some task; meeting specified qualifications to perform; implicit knowledge of a language’s structure etc.” (googledictionary.com) In the resent study, competency means the efficiency and skills of the management and employees that they apply for the promotion of their organisation. vi. Management: “Management is the process of achieving the objectives of the business organization by bringing together human, physical, and financial resources in an optimum combination and making the best decision for the organization while taking into consideration its operating environment.” (Retrieved from ucs.mun.ca) In the current study, management means the administration of Ailasia Inc. vii. Corporate Organisation: “The firm is a way of organizing the economic activity of many individuals. A basic problem of the firm is how to raise cash. The corporate form of business, that is, organizing the firm as a corporation, is the standard method for solving problems encountered in raising large amounts of cash.” (highered.mcgraw-hill.com/) In simple words, corporate firm or organisation is the corporation that offers services or products or both with profit motive. Ailasia Inc. is also one of the corporate firms of national reputation. viii. Professional: It refers to the individuals having affiliations with some particular career, profession or occupation on the basis of his education, aptitude, qualification, proficiency, skill, dexterity or expertise, and get salary or fees against their services. Business owners, consultants, bankers, managers, executives, writers, lawyers, researchers, journalists, teachers, doctors, engineers, accountants, sales personnel, workers and labourers and others come under the definition of a professional. ix. Proficiency: Proficiency refers to the ability and expertise a man has been gifted, with the help of which he proves himself as a useful member of society. In the present study, proficiency and brilliance stand for the professional talent and skilled exercised by the personnel while rendering their services at an organisation. x. Customers: Customers and consumers refer to the individuals which consume and purchaser the commodities for their personal, domestic, professional and recreational use. Consumption of products and commodities is not confined to individuals only; on the contrary, communities, organisations and institutions also serve as the consumers of different products available in the market against money. Here the customers stand for the consumers of energy drinks and soft drinks in the present research. xi. Business Environment: Environment of a business means the external forces influencing the business decisions. They can be forces of economic, social, political and technological factors. These factors are outside the control of the business. The business can do little to change them. (Quoted in cbsenotes.com) In the present study business environment stands for the corporate atmosphere within which Ailasia is exercising its services and products in the state of perfect competition. All of these terms interact in the questionnaire in order to provide the fullest possible picture of the research aims. It is important to define the research's terms in advance. RESEARCH PROCEDURE: The following research procedure has been adopted by the researcher for the present study: Types of Data to be Collected Since the present study has been performed to discover the demands regarding a perfect energy drink for the professionals for the revival of their energy level, and its demand among as well as impact on the professionals, the industrialists, bankers, writers, lawyers, doctors, managers, employees, workers and labourers working at different departments and positions, London will be the universe of the present study. The reason behind selecting multiple professionals is to give complete representation to the persons belonging to different kinds of professional work. The data collected will largely be in the form of questionnaires. Primary Data: Sampling The researcher has applied non probability sampling in order to give complete representation to the managers, executives, consultants and workers belonging to different hierarchical status of London city. Quota/non-probability sampling has been implied to represent different socioeconomic classes and age groups of the society. The research was comprised of both male and female professionals from upper, middle and lower classes from age group 25 to 55 years. When choosing a sample size it is important the size be small enough to generate valuable information and not so large as to dilute the information (Ritchie and Lewis, 2003)The duties and obligations of these professionals were discussed in a free and frank atmosphere. The respondents welcomed the researcher’s efforts in respect of selecting them their universe as well as bringing their problems to the lime-light. Methods of Data Collection - Sample Size and Sampling Procedure Being a vast topic, the researcher applied questionnaire as the tool for the collection of data in order to draw out replies from the respondents. The most important reason behind selecting the questionnaire as the tool for data collection is professional, personal, social and domestic engagements of the respondents (Ruane, 2004). Since the respondents have their commitments with their work, home and society, they must be given proper time for replying the answers given in the questionnaire. The researcher personally visited the offices and requested for some spare time for the explaining the nature of questions and the method of inserting answers to them given in the questionnaire. The questionnaire consisted of three sections and thirty-eight questions. Section I aims to enquire about age, sex, job/business nature and corporate status of the respondents, which carried nine questions. Section II was developed to enquire about the stress and strain faced by the respondents during performing of their professional duties and carried eleven questions in it. The last section aimed to enquire about the characteristics of a complete and energetic drink to recover their energy level and increase their work efficiency. This section contains eighteen questions in it which are included in the appendix. Formal Survey/Field Work 1- Pre-testing: Pre-testing was conducted to find errors and flaws in the questionnaire. At first, five questionnaires were filled by the respondents and slight changes were made in the sequence and wording of the choices of the replies to the questions after the pre-testing. Pre-testing is highly beneficial to avoid faults and mistakes in the questionnaire (Ruane, 2004). 2- Field Experiences: The researcher conducted his research through questionnaires and personally asked the answers of the questions from poorly educated respondents. Moreover, the researcher visited the offices and residences in order to have easy access to the professionals, managers and employees. Most of the respondents were amicable and friendly while making responses to the questions, and only reluctant while giving details of their own mistakes leading towards problems in their careers, while an over-whelming majority remained cordial in providing the details of their professional activities. The researcher had opportunities to learn new things while performing his research work. The questionnaire sessions were not rushed. They took place at the convenience of those being questioned so as to make them as reliable as possible. Names were not included on the questionnaire. This was to ensure anonymity and maintain high ethical standards, an important consideration in an research design (Collis and Hussey, 2009) Data Processing and Analysis The data will be collected in a spreadsheet. Tables and graphs will be generated from the data in order to provide a fuller picture. The analysis will then proceed from these illustrations. Research Time Table The following schedule will be used in order to complete the study. The field work will be done throughout the course of two weeks. It will take time to get out and meet people. Two more weeks will be required to process and analyse the data. Following that four weeks are necessary to write the report and analysis and conduct revisions. The literature review itself should only take a few days. New sources Collis, J. & Hussey, R, 2009. Business Research: A Practical Guide for Undergraduate & Postgraduate Students, 3rd edition, Palgrave Macmillan,USA Ritchie, J. and J. Lewis, 2003. Qualitative research practice: a guide for social science students. SAGE. Ruane, J., 2004. Essentials of research methods: a guide to social research. Wiley-Blackwell Read More