Product Innovation - Nestle - Research Proposal Example

NESTLE: PRODUCT INNOVATION Name: Course: Course Code: Instructor: Date: Product Innovation Chapter One: Introduction For many companies, the situation is that they give much attention towards the research and design of the new products abandoning to integrate market research findings that could assist in the success of the new product. Thereby, market research is highly crucial in the success of a product as in the absence of proper information concerning the product and the target market the enterprise can find itself flying blind in the market. Proper market research identifies the needs, wants of the market, and thereby strives to ensure that the innovative or new product that they are introducing meets these needs. Other aspects that proper market research presents are those of identifying the product features that are desirable to the target market, the pricing, distribution channels to be applied as well the motivation levels of the consumer market to purchase the new products. Background to the Study The development or creation of new products originates from two main areas namely advancements in technology or the presence of a new market opportunity (Eliashberg, Lilien and Rao 1997). However, despite the origins of the new products the fact remains that the consumer market determines the success of the products in the new market (Brown & Eisenhardt 1995). Therefore, this presents that those enterprises or companies desiring to introduce new products into the market the opinions of the consumer market are highly crucial to the ultimate success of the product in the market. Developing new products is identified as being conducted in a matter of different stages in which market research can be conducted. These stages include opportunity identification, development, testing and the launch stages (Urban & Hauser 1993). However, consumer or market research is often found to be carried out in the latter stages that include the development, testing and launch stages. Despite the presence of technology that strives to make various business activities simpler, many companies utilize consumer research to ensure that they can verify the presence of a need or want amongst the consumer market. Opportunity identification, however, remains as one of the most important stages despite the relative importance of the latter stages. Successful market entry of an innovative or new product crucially depends on the ability of an enterprise to recognize an opportunity to meet a need or a want within the market (Cooper 1985). At the opportunity identification stage, the main purpose is that of analyzing the market to identify gaps that mainly entail the presence of unmet needs and wants of the consumer market. At this stage however, the main challenge is that the market research process has no concise mode of approach of relating to the consumer market, to identify those areas where the needs and wants are not being met, since the consumer market is not aware of what they need (Ulwick 2002). However, by conducting a successful research of the market, it then raises the chances of success for an enterprise in gaining a competitive advantage, as the enterprise can then identify the perception held by the consumer market, concerning the already present products in the market. Statement of the Problem Analysts and researchers have argued that many breakfast bowls of cereal found within the market are not healthy for children. The reason for this is that the cereals contain high levels of calories, and thereby they give the children "sugar highs" which impede their ability to learn in the classroom. The company, therefore, identifies the need to introduce a new product in the market that will not only provide a healthy diet for the schoolchildren consumers but will also serve to improve their learning ability. Research Objectives The study strives to attain the following research objectives: i) To identify the concerns that parents have towards their children learning capabilities. ii) To identify those areas that parents feel that their children should learn more. iii) To identify how the cereal products will complement the UK learning curriculum. Significance of the Study The study purposes to recognize the market processes that are ideal for the expansion of an innovative invention, that need to meet the current need of the consumers in the UK, which is that of having their children receiving a healthy diet, as well as improve their learning capabilities. The study is vital, as it will go a long way to highlight the benefits and procedures of conducting a comprehensive market research analysis that will benefit the consumer industry and provide returns for Nestle. Scope of the Study The study will analyze theoretical literature based on the techniques involved in the development of new products suited for the consumer market. The study will make use of the diffusion of innovation theory to highlight the importance of market research in the introduction of new innovative products. Limitations of the Study The study expects to face the following limitations in the conduct of the research: i) The lack of sufficient market information concerning the perception of the consumer market toward breakfast cereals ii) The study expects to encounter a challenge of resources in conducting a comprehensive market analysis. Chapter Two: Literature Review In his book, Rogers proposed that diffusion was a process through which innovations could be channeled among social society over a period. The theory he said was not limited to a certain type of discipline but was spread over many disciplines. The theory is reliant upon four main elements namely, the innovation, communication channels used, time and social system. Elements and Characteristics of DIT DIT refers to how new ideas; creations; or things (innovations) are adopted, or accepted (diffused) in time by a specific audience, group and culture (Rogers 1962). The theory lists the five stages that technological innovations pass through before becoming adopted by the intended audience (Rogers 2013). They include: i. Knowledge: refers to the exposure of technology to the public and the understanding of the functions involved. The products introduced into the market ought to be popularized making the products known to the audience targeted. The audience intended to be the recipients of the product need to be aware of the existence of the products in question. For a client to be able to adopt the usage of a certain product, it is important that they first be made aware of the product through the channels of marketing available, such as displaying, use of media and print advertisements, the internet, etc. At this stage of the innovation phase, the individual in the market is exposed to the product or idea, but has no information on the product and is not motivated to look or search for information, pertaining to the product (Rogers 2013). ii. Persuasion: refers to the formation of an attitude towards it. This pertains to the reception accorded towards the product introduced. Cognitive abilities of the targeted audience come into play mainly psychologically. The first impression that the product gives off towards the audience lays the foundation of the potential user towards the future use of that product. According to Rogers (2013), at this stage the individual knows of the idea or product and is active in the quest to identify more about the product. iii. Decision: refers to the commitment towards it prior to adoption. The user then at this point will decide if the product is capable to meet the demands that they may have. If they deem that the product can meet their demands, then they make the decision to use the product. At this point of the stages, the individual is analyzing the advantages and the disadvantages that the product or idea can have for them, according to Rogers, (2013). It is at this point that the individual weighs their options with regards to whether they will use the innovation or not. iv. Implementation is putting the technology to use. After the decision is made and concluded, the user will then set up the product to meet their demands. At this point, the individual is already using the product or idea to their benefit, while still being skeptical about its use. The uses of the innovation are being weighed as to the long-term usage of the innovation, and this involves the quest for more knowledge about the product (Rogers 2013). v. Confirmation is the additional benefit derived from the product based on positive outcomes achieved from its use. During the conduct of usage of the product, additional benefits may arise that ensure the continuity of the use of the product. At this final stage, the decision has been made as to the continued use of the product. At this point, the users determine to whether the producers made the correct decision, pertaining to the use of the product (Rogers 1964). The characteristics of the innovation that may have the capability to influence the adoption and use of the product would need to be researched. Another consideration involves the decision-making process when individuals consider adopting a new product or idea (Eliashberg, Lilien & Rao 1997). This is an important element because it could help identify the thought process involved when one is considering the use of an idea or a product that is new (Eliashberg, Lilien & Rao 1997). Identifying individuals’ characteristics that are using the products by evaluating the benefits received is another important element to consider. To accomplish this, research should consider what would lead them to adopt the product. The other element would be the consequences derived from using the products themselves from a societal view, as well as an individualistic view. Society and human beings are cautious, as they tend to approach innovations and products with concern. A study involving this element would likely provide insight of the perception held by society and the people about the product itself (Roger 2013). The last element would be the communication channels used during the adoption of the product or idea. The channels used to reach the audience are important. Use of a poor choice of medium to make known a product may lead to the failure of the product or idea. A good channel of marketing the product or idea would be helpful, since the people would acknowledge the product’s existence. A product that receives a positive feedback ends up being successful. According to Rogers (1996), the diffusion of innovations requires the use of the elements of mass media and interpersonal communication channels. Using these elements ensures that the people are made aware of the existence of the product as well as be able to perceive if the innovations are useful. Using a well-known model that was presented by Laswell (1948) that broke down communication in five sections known as the S-M-C-R-E, acronym for sender-message-channel-receiver-effect. Rogers (1995) presented that this model closely resembled and fit with the elements of diffusion theory. In his perspective, this meant that the sender represented the inventors, the message, the idea of the new product, and the communication channels employed. The receivers were the members of the targeted groups, while lastly, the effects are the individual’s adoption of the product. In DIT, time is considered a very important element or factor as it is involved in the stages of innovation. In the innovation stage, time is deemed to apply in the decision process of innovation, the innovativeness as well as in the rate of adoption. For many innovations, the rate of adoption is viewed as being S-shaped. According to research on DIT the variables involved, tend to influence the rate at which, the users adopt products for use, especially when new methods are used such as the internet. New forms of media that are being developed every day tends to be interactive and the more use by the users the more the outreach improves. Mass communication tools, are vital for many users, producers and innovators, since the capability to reach is made easy. The different types of adopters in the process of diffusion in innovativeness are: Innovators- This type of adopters is the one who tend to be the best receiver with a need to try out new products and ideas. Early adopters – These are also close to the innovators. They are respectable. Early Majority- These innovators are the ones who take on a product with the intention as they have identified a use for the product or idea. Late Majority- They are the users who adopt a product with a lot of uncertainties. They take on a product not sure of what to expect from it. Laggards- These are the traditional adopters. They only take on a product because of being influenced by others to do so. Figure 1: Bell shaped curve Figure 2: S- curve Using the S-Shape curve above we determine that innovation spreads over time initially at a slow rate but often than not picks up before shaping out. This describes the rate of adoption amongst users over a period. Rogers (1995), presented that the process of innovative decisions took five main stages notably, knowledge (exposure to the idea or product); attitudes perceived towards the innovation, adoption, implementation and finally the confirmation period when the innovation is compared and evaluated. New Practices in Marketing Marketing has evolved over the years and has become more diversified and applicable in different situations. Traditional methods, as identified in the study, have been overtaken by the present technologies and different approaches that have been developed over the course of recent times. The diffusion of innovation theory plays an important role in the new practices conducted in marketing today. This is viewed through some of the media that are currently being enjoyed by the marketers in today’s marketing world. An example of an innovation that was previously developed for other intentions would be that of the internet (Janet, 1999). This innovation prior to its current use was developed for a different purpose and through it, many other uses have arisen. Some examples of new practices practiced today by marketers include the use of social media and the internet, to raise awareness of new products on the market such as the breakfast cereals to be released by Nestle. The internet has become the favorite marketing hub in recent times for producers and innovators to get their products out to the public (Janet 1999). The internet was initially used as a military tool by the United States before it rolled out to the public (Janet 1999). After the commercialization of the new tool, endless possibilities were achieved with the ease made of instant communication and delivery of messages. The internet then opened up other mediums such as social media, YouTube and the rest, within it that could be additionally used to foster the growth of marketing, as well as other possibilities (Janet 1999). Most marketers today have made the social media their favorite advertising platform. With social sites such as Facebook, Twitter, YouTube among others marketers are heading in this direction in order to market their products and innovations. The reason for this according to Evans, (2010) is that they have become frequent destinations for many within the internet world holding traffic of thousands of people in a day. With this amount of traffic, getting products out there into the market has become much easier. When an individual views an advertisement in social media this creates a presence for the product, and customers tend to act on what they view, Evans, (2010). They will act on feedback by either consuming, curating or collaborating with the product. Social media offers people the opportunity to share ideas and offer information that might help with decision making for potential buyers (Scott 2012). For a marketer, therefore, this creates an opportunity to provide information to potential buyers, offering them the chance to communicate and share opinions and derive decisions about products. The internet offers a range of activities that marketers can employ according to Scott, (2012). They involve participation in online forums where people share ideas on various platforms, photo sharing where product images can be shared with the world, Wiki, which are information-based platforms, which allow one to update or add information pertaining to any product or innovation. Social bookmarking where users suggest content to others and allow the content to be rated (Ulwick 2002). Chapter Three: Methodology Research methodology outlines the steps in which the researcher will follow in the course of the data collection process. The section is divided into the following subsections: study area, research design, population, data collection method, and data analysis. Study Area The area of study that the research paper will undertake to establish their findings based on will encompass the consumer market located in the United Kingdom. The study will concentrate on obtaining qualitative data with the help of surveys and questionnaires to research on the perceptions that the consumer market in the UK desires to have concerning the breakfast cereals provided. The study will additionally enlist the help of a wide array of literature that will be based on innovation of new products and the needs of the consumer market. This will be for the purposes of relating the findings that the paper may establish. This approach will contribute towards the success of the research paper, as it will aid in establishing the ideal recommendations, as well as findings. Research Design According to Creswell and Clark (2007), research design describes the process through which a researcher will conduct the data collection process. There are various forms of research designs: exploratory, case study, survey, and descriptive research design. This study will employ a mixed form of research design. In particular, the study will employ a descriptive and case study form of research design. The descriptive research design is used when a researcher seek to determine the characteristics of an element (Creswell and Clark 2007). The study will highlight on attaining the ideal features and aspects that the consumer market desires to have in the breakfast cereals offered to schoolchildren. Population The population is the total number of elements or individuals that are under study through a research process (Bryman 2001). The population of this study will encompass the consumer market within the United Kingdom. The target population considered for the research study will comprise of 300 consumer respondents. Data Collection Method The study will use questionnaires and interviews as the data collection instruments for the study. The questionnaires will be semi-structured and will thus comprise of both open and closed ended questions. The distribution of questionnaires will be to the certain selected respondents with the help of research assistants. The researcher will orient the research assistants on what is expected by sending them to the field. By so doing, the assistants will be in a position of overcoming any challenges that they may encounter during the data collection process. Ethical Priorities of the Study In this case, the study will observe the following ethical and legal considerations. First, the researcher will ensure that plagiarism does not take place. In addition, the researcher will ensure that the use of copyrighted materials belonging to other researchers and scholars will be acknowledged (Israel and Iain 2006). This is because the researcher could violate copyright laws by using past research studies without giving credit to individuals or institutions that conducted the research. In order to ensure that the study did not infringe on copyright laws, the study will give credit to all the research studies that have been used. Secondly, the researcher will be seeking for permission from the learning institution before undertaking the research study process. Thirdly, the researcher will ensure that the privacy of the respondents to the questionnaires is well protected by ensuring that the data collected will be purely used for this research. This will be in addition to informing the participants, that any information that they give to the study will be used for only this purpose and not any other. Fourthly, the researcher will ensure that the findings of the study are disseminated and communicated to the learning institution. This way, the findings of the study will be used as empirical literature for future research studies. References Babbie, E., 2008, The basics of social research, New York: Thomson Learning. Brown, S. and Eisenhardt, K., 1995, 'Product development: past research, present findings, and future directions', Academy of Management Review, vol. 20, no. 2, pp. 343-378. Bryman, A., 2001, 'The nature of qualitative research', Social research methods, pp. 365-399. Cooper, R., 1985, 'Selecting winning new product projects; using the NewProd system', Journal of Product Innovation Management, vol. 2, pp. 34-44. Creswell, J. & Clark, V., 20007, Designing and conducting mixed methods research, California,Thousand Oaks: Sage Publications. Eliashberg, J., Lilien, G. & Rao, V., 1997, 'Minimizing technological oversights: a marketing research perspective', in Garud, R.N.R. and Shapira, Z. Technological innovation: oversights and foresights, New York: Cambridge University Press. Israel, M.& Iain, H., 2006, Research ethics for social scientists, California: Sage Publications. Roger, E., 1962, Diffusion of innovations, New York: The Free Press. Rogers, E., 1976, 'New product adoption and diffusion', Journal of consumer research, vol. 2, pp. 290-301. Rogers, E., 1994, A history of communication study: A biographical approach, New York: Free Press. Rogers, E., 1995, Diffusion of Innovations, 4th edition, New York: Free Press. Ulwick, A., 2002, 'Turn customer input into innovation', Havard Business Review, pp. 92-97. Urban, G.& Hauser, J., 1993, Design and marketing of new products, New York: Prentice-Hall. Read More