Introducing of New Product by Whole Foods Market Inc - Research Proposal Example

Marketing Research Paper

Introduction

Whole Foods Market Inc is the leading supermarket in the sale of organic and natural food. The mission of the supermarket is to promote the vitality and the well-being of people by supplying them with quality wholesome foods. The company has a vision of becoming an international food brand known for not only provision of wholesome food but also for being the best in food retailing in the communities the supermarket branches are located in. The company is more than a grocery store that is fancy. The global market for natural and organic foods and beverages has continued to grow over the years. This has raised a competition for the Whole Foods Market Inc. It, therefore, necessities Whole Foods Inc. to introduce new products into the market as well as conduct market research for the target market for the new product. This paper seeks to introduce a new product by Whole Foods, develop particular questions regarding the target market for the product, and recommend the market research methods to answer the questions as well as outline the steps from idea generation to commercialization that would be followed using a multi-step product development process.

New product: Cassava

Cassava is the new product to be introduced into the market by Whole Foods. Whole Foods has been ahead of many retail companies regarding its retail curve, recognition and capturing. It purposes to introduce Cassava since it is different from any other type of woody shrub. The crop is produced in most parts of the sub-tropical and tropical regions. It is mostly known for its starchy tuberous root.

Description of the target market

The target market for a particular product refers to a group of consumers whose preferences and needs match the range of the products offered by the company and into which the product is advertised to by the company (Kerin, Hartley, & Rudelius, 2015). The target market for the Cassava s each community into which the Whole Foods supermarket is located. From the previous success of the other products, Whole Foods trust that the existing market would still make the best target market for the Cassava. To conduct research on this market, the company will have to answer the following questions regarding the market:

What is the ethnic origin of the customers?

What is the average annual household income of the customers?

What is the age of the customers?

What is the location of the consumers? Is it in a state, city or country?

What kind of lifestyle do the targeted consumers live? What are their values?

What is the level of loyalty of the customers to Whole Foods products?

Best methods of conducting marketing research

There are many methods of market research that are used by companies. The most used methods include surveys, focus groups, observations, field trials and personal interviews. The type of research method used is determined by the kind of data that a company wants to acquire and the amount of money the company is ready to invest in its research (Kerin, Hartley, & Rudelius, 2015). To answer the above questions, Whole Foods Market Inc. will use surveys and interview methods of research.

Surveys

This is used to answer straightforward and concise questionnaires. The results reliability is determined by the size of the sample. If the sample is large, the sample will be more reliable that if the sample is small. There are different kinds of surveys that can be done for this product. Online surveys are the most common type of surveys that are used. For the Whole Foods Inc., the best survey method is an online survey. The number of people who spend their time in the internet is alarming. It is a simple and cheap method of data collection and gathering of opinions of customers. However, the online surveys have the disadvantages of providing data that is unreliable (Kerin, Hartley, & Rudelius, 2015). The response rates are also unpredictable. The responders from online are volunteers whom the company does not have control over. The mail surveys are another method of data collection. They are a cheap method that can reach a wide audience in a short period. This method is the best to us since it will cover the loyal customers of the supermarket.

Interviews

This is a special kind of a survey. The method involves one on one meetings with the interviewees. The company or the representatives of the company conduct the interviews. This is an easy method of data collection. In this particular study, the customers who are loyal to the company will be interviewed. The respondents will represent the whole market that is targeted. The method is also a cheaper one depending on the number of interviews that will be conducted (Kerin, Hartley, & Rudelius, 2015). Interviews are also good in case of the new product for Whole Foods since it can help generate more ideas that would be incorporated in the marketing of the product.

Steps idea generation to commercialization

Development of a new product is the operation undertaken by the company to bring a new product to the target market. The process cannot be avoided in business as long as the business need to thrive in the market (Kerin, Hartley, & Rudelius, 2015). The existing products could no longer be needed in the market or outdated regarding technology, the need to target a new market or the need to improve an existing product. In Whole Foods, the following steps were followed from idea generation to commercialization.

Idea generation

In this step, Whole Foods Inc. was involved in the basic search of ideas for new product. The company outlined the several products after which the company concentrated in one product idea. The sources of product ideas included competitors, customers, internal sources or special incentive programs put up by the company for idea generations (Kerin, Hartley, & Rudelius, 2015). The new product for the whole Foods originated particularly from listening to the customers.

Idea Screening

Having created a large pool of ideas from the last step, idea screening narrows the ideas into ones that are worth pursuing. The methods used in this step by Whole Foods is committee reviews and formal market research. Each idea was rated based on factors that are needed in the launching of the product in the market. The ideas were also evaluated on how well they could fit the marketing experience and skills of the company.

Concept development and Testing

Once the product idea has been screened out of the many generated ideas, it is developed into a product concept. This is a kind of the idea which is viewed by the company as one that can sell itself to the customers. The product idea is tested with the company’s consumers in either physical or symbolically. After the concept is introduced to the consumers, they are asked to answer the questions that would aid the company in deciding the highest concept that had the strongest appeal. The company then projects the findings to the market at large.

Market Strategy Development

This stage has three steps. The first step involves a description of the target market description, market share and the positioning of the product in the market. The second step involves the price that is planned for the product and the planned budget for the first financial year (Kerin, Hartley, & Rudelius, 2015). The third step involves the planned profit goals, long-run sales, and the marketing mix strategy.

Product Development

This is where the actual product is developed physically. All along, the product was in the form of an intangible idea. This step involved large investment by Whole Foods Market Company. The step showed whether the idea could be developed into a product that is full-fledged (Kerin, Hartley, & Rudelius, 2015). The company could not have started with a prototype since it involves organic and natural food. It was only tested under the laboratory machines to determine its nutrition.

Test Marketing

Test Marketing is the next test after the product has gone through any other test. The Whole Foods Inc. introduced both the market program and the product into a market that is more realistic. It gave the marketing department of Whole Foods an opportunity to investigate the marketing mix before investing into the launching of the product. The amount of test marketing was not much since the customers were already familiar with natural and organic products from Whole Foods.

Commercialization

The step involves the real introduction of the product into the market. Whole Foods invested a lot of money in promoting and advertising the new product. It chooses the seasonality and the location of launching the product. The product is launched in a location where Whole Foods is located. The loyal consumers are expected to be the customers who will help spread the goodness of the cassava. Once, the loyal customers have accepted the cassava; they will help in advertising and promote the cassava to their friends and family.

Conclusion

This paper sought to introduce a new product by Whole Foods, develop particular questions regarding the target market for the product, and recommend the market research methods to answer the questions as well as outline the steps from idea generation to commercialization that would be followed using a multi-step product development process. The product introduced in the Whole Foods is the Cassava. This is a naturally growing woody shrub that is very nutritious and a major source of carbohydrates. The paper is clear that a good research method determines the success of the product in the market. If the market research is not well conducted on the target market for the product, the product might end up not being a success despite it having followed the product development process successfully. For the new product by Whole Foods Market Inc., it will thrive in the market if the above research methods and steps are followed to the latter.