New Product Development - Cadbury - Essay Example

New product development Establish how your chosen company currently produces new products. Ensure you check all the stages of the new product process, some may be very informal. Introduction: Cadbury, an UK based confectionary company, is one of the world’s largest confectionaries. Some of the products of Cadbury include milk chocolates, Dairy Milk, Bourneville, Picnic, Curly Wurly, Crunchie, Brunch bar, etc. Dairy Milk was one of the prized brand name and Cadbury’s foremost chocolate bar by profits. The newly designed product is ‘challenge bar’. The company values on quality, worth for the cash paying and superior promotion. These three things are important in Cadbury’s launch of the new product. Current product development in Cadbury: The introduction of the new bar into the market is targeting the new market worldwide. They have to compete against the other giants like Nestle, Hershey’s, etc. They made the new product’s launch by increasing the promotion strategies worldwide and made a huge impression by initiating in the name of 2012 London Olympics. The product was developed after several researches. To reach the targeted customers, the group has strained on the global marketing of ‘Challenge bar’. The product development was continued initially by studying the market divisions and the current financial situations. The company was looking to other global market also. The analysis of the environment and reflection of circumstantial features of the new product is crucial in the new product development process. They should be aware of the customer’s choice while the product development. If the customers like to buy healthy refreshments than the chocolates, then there will be deprived product expansion which will slow down the returns of the Cadbury. Product development is a method of increasing the marketplace. The Cadbury stays on the product development by watching the transforming lifestyle of customer, their outlooks, and customer’s buying behavior, their flavors and fondness. Cadbury always likes to maintain a novel approach to a variety and to excite curiosity in a particular product to attract the new clients and keeping the faithful customers. The proficiency and understanding required consists of novelty, inspiration, knowledge in food science and machinery familiarity, methodical and logical skills and a good understanding of the marketplace and business. The new product development has been considered as the important stage by Cadbury group. The products development will go through various outlines. This include (1) Manufacturing totally new product (2) Developing an expansion to the current product (3) Redeveloping a current product The new product development is mainly relied on the better squad effort. It takes several ideas to make a thriving product. The accomplishment of the item development at Cadbury relies on good designing comprehension by collecting data about the openings in the market. Cadbury’s new product development that currently practiced by the product development comprises of six stages. Only the good varieties can go ahead of the each stage. 1. Preliminary research: The ideas for the new products can be got from the basic research. They will study the strengths, weakness, opportunities and threats. They will study the competitor strategies and the customer approaching readings. Marketing teams has the task to develop ideas and feedbacks. The collected data and information are brought down to simpler ideas and the results are passed to Science & Technology team. 2. Describing ideas: There will be interviews with targeted customers to find their interests. The findings are then explained to the team of business. Business teams will decide whether the product defined to be taken, by studying the market and they will decide on the product fittings to the Cadbury’s tactics. If this is acknowledged, then the new product development department will carry out the further project. 3. Enhancing the ideas: At this stage, the customer’s choices are collected and different samples are developed. Customer’s likes and dislikes about these models are refined and they are asked to give the feedback on the quality, aroma, etc. These ideas are again refined to pass to subsequent stage. 4. Mounting ideas: The real product development starts in this stage and there will be careful experiments. The products development is based on the analysis of hazard the determining critical control point at each step of the product development. There will be special considerations on the product shelf-life, packaging, components available, machinery needed to manufacture, etc. There will marketing also at this stage, product name are decided and Cadbury usually insists on choosing the unique name for the worldwide usage. 5. Confirming the proposal: At this stage, there will be finalization of the commercial launching. The manufacturing and monitory details and the promotion of the products are decided. The product developed is tested in the market and studies are carried out to find its results. 6. Initiating the proposal: In the last stage of new product development, the finished products are opened to the customers in selected parts of the country to learn the demand. Based on this demand, later market share is increased and the problems arising are recognized and solve. 2) Compare their new product development processes with a range of theoretical models: This NPD process was defined in terms of the state of the product during its development and was characterized on the subject of the organizational function areas that most influences the product at that time. This design is for all intents and purposes made to better detect and face the high-risks on the development of new products, since the higher is the level of characteristic between different NPD well-designed areas with in each stage, the better will be the detection of risks and its assessment. The best factor of differentiation on NPD process from other competitors is the capacity of meeting customer needs. Since the assessment of customer needs are incorporated in this phase, most of the NPD failures can be later associated with this phase. This stage will integrate tremendous multi-functional competences to create, recognize, formulate, and select the market opportunities in accordance with company’s strategies and capabilities. Consumer research and sampling conducted by JRA suggested that 80% of women between the ages of 25 and 45were likely to buy Cadbury Highlights biscuits. 18th century France produced pastilles (tablets) and bars, but it wasn’t until Bristol company Fry & Son made a ‘chocolate delicieux a manger’ in 1847 that the first bar of chocolate as we know it today appeared. It was a mixture of cocoa powder and sugar with a little of the melted cocoa butter that had been extracted from the beans. The result was a bar that could be molded. It might have been coarse and bitter by today’s standards, but it was still a revolution. The victory of product development in Cadbury depends upon combining good artisan (chocolate making) knowledge with knowledge of user opportunity. The theoretical model is based on six dimensions (strategic, organizational, technical, planning, control and operational) included in the levels of structural and operational. It also identifies what the basics that compose the operational dimension are and how the dealings between them might be characterized. This model also emphasizes the need for new studies with a detailed analysis of the interaction and the combination of the fundamentals here existing. As part of the launch of the Spots v Stripes national game, Cadbury is introducing a brand new product. Challenge Bar is a cleverly designed milk chocolate and white chocolate single block to be shared between a Spot player and a Stripe player. The limited publication Challenge Bar has games, such as thumb war and finger football, printed on the inside of the wrapper, which consumers can play against their friends. The bar itself is divided into three sections - one spotty, one stripy, and one chunk in the middle that the Spot and the Stripe must play for. Many of Cadbury’s other brands will also adopt stripy or spotty wrappers. A Stage-Gate system is a conceptual and operational road map for moving a new –product project from idea to launch. Stage- Gate divides the effort into divergent stages separated by management decision gates. Cross-functional teams must successfully absolute an approved set of related cross-functional actions in each step prior to obtaining management approval to proceed to the next stage of product development. There are five different key stages. Discovery Build Business Case Development Testing and validation Launch So in case of ‘Challenge Bar’ of Cadbury, there the company used the normal product developing method than the theoretical method. It becomes the successful part to an extent. 3) Determine the benefits offered by the published models and/or the chosen company’s processes: Cadbury is an emerging worldwide confectionery corporation by means of an exceptional collection of chocolate, chewing gum and candy brands. Cadbury Company in U K possessed their own quality declaration team to check the quality of the product offered. Also at the same time quality declaration team of the Cadbury helps to sell superior quality and better value invention that constantly congregate the requirements and comply by means of local regulatory needs, while incessantly enhancing and exceeding the customers. The product development process in the Cadbury is the most crucial stage. So that this particular process provide various benefits to the society as well as its customer. The first step of the new product development process is the ides generation from this stage itself Cadbury provide various benefits to its customers. It is mainly way of understanding the customer’s exception about the products. Challenge bar is the one of the newest product offered by the Cadbury. The next benefit offered by the new product development in the Cadbury Company is at the time of advertisement. At this stage it will helps to identify the features and characteristics of the Challenge bar by way of offering advertisement through various Medias. Another important thing is that before launching the product is that, the company must be identifying its segment the market, and on the basis of the segment next step is to target the customers and positioning them, this process will help to identify the customer requirements as well as feedback from the customer. “The development of strong brands has always been a feature of the confectionery market. Cadbury set out two objectives for the development of Fuse: 1. to grow the market for chocolate confectionery 2. To increase Cadburys share of the snacking sector The Fuse concept was developed after market research identified the growth of snacking and a definite gap in the market for a more chocolatey snack. A number of ingredients were devised and tested following a survey which questioned consumers about their snacking.” (Cadbury s Marketing Objectives for the Development of Fuse). Physically powerful brands are extremely significant in the chocolate confectionery marketplace. Approximately 80% of chocolate acquires are made on desire. Purchaser normally makes a decision rapidly which confectionery invention to purchase by means of approximately half of buy choices made in 10 seconds of entering at the confectionery in the store. The significance of emerging challenge bar brand so very apparent by means customers with brands and packaging to distinguish goods rapidly and decrease perceived dangers when purchasing a recently opened brand For Cadbury, modernism remains one most important that will helps to develop the success of the Cadbury company. So by way of new product development process it will helps to benefits of the company in many ways. An another important benefit is that the published model of the new product development process is start with after the consideration of the various essential aspects. So that it will provide various opportunities to grow in the marker place. And also there are vast differences in between the various published model as well as the new product development process of the Cadbury. The product life of the product helps to recognize the profit of the product in each stages of the product life cycle. 4) Propose new product development processes for your chosen company: The new product development is the process which contributes much for the success of the organization and to achieve the competitive advantage in the market arena. The new product development is considered as the risky process where the large numbers of the new product fail in the market due to the unacceptance in the market. The new product development in Cadburys undergo certain step by step process, The various steps involved ion the new product development are: Idea Generation Screening of Ideas Analysis Prototype development Test market Commercialization and manufacture. Idea generation: The Cadburys co has the research and the development wing who continuously investigate on the marketing opportunity and they continuously operate on the innovative ideas and the creativity.The idea generation in the company is as the result of the brainstorming of the ideas within the organization and specially that of the research and development people in the organization. The screening of ideas: The idea generated b y the research and the development department are transferred to the business analysts; and they are passed on and the analysis is been conducted and the viability is checked restricted to the constraints like the success, price, promotion and the acceptance criteria. Business Analysis: The business analysis is the analysis of the product which we have manufactured with the different other product which fall under the same category and the analysis is mainly based on the product acceptance in the market and the availability of the customers and the market are to be analysed. The various data are been gathered to check the need and how the qualitative and the quantitative data are to be considered and how they contribute for the success of the product in the market. The business analysis plays a vital role in the analyzing the viability of the new product in the market. Prototype development: The development of the prototype is to check the pre launch of the product, this development mainly deals with the manufacture of the miniature model in testing the success of the product and the acceptance of the product. The Cadburys mainly deal with the manufacturing the samples and being offered as the sample pack to know how the product is been received by the customers in the market. Test market: The test market is conducted as a launch of the product by the prototypes manufactured, The prototypes are been into the market and the test marketing is conducted, the test market gives a picture of the actual sales that can be incurred and the profit earned on the product in the market and how much return are obtained on the product in the first year of the production. Commercialization and manufacture: The commercialization and the manufacture is the final stage in the development of the new product, The commercialization is met after the analysis and the observation of the test marketing, if the product seems to be 50% acceptable in the market, the Cadburys are at the hope of making much publicity and the returns on the same as through the various modes of promotion. The Cadburys being the most reputed and the brand in the market with much years of experience the acceptance by the public is at a higher rate. 5. Recommendations: Cadbury has a big market share in UK. It is recommended to promote the brands aiming at the expansion of its market. Cadbury is one of the official sponsors of the 2012 London Olympics. Through that if they are promoting the brand of ‘Challenge Bar’, there will be huge returns. It will become successful like Dairy Milk, as it is a variation of the Dairy Milk. The product, Challenge Bar, comes in three milk and white chocolate segments, one marked with white chocolate spots, one with stripes and the middle section with stars. It consists of a Dairy Milk base, and the white chocolate that tops it is sweet and creamy. Through the Spots vs. stripes campaign, they have started the promotion ahead of London Olympics. The market growth can be further developed by improving the supply chain. As it is targeting on the loyal customers, the product should be with high quality. If they are developing more products with the product development process, the customers will be satisfied with the varieties they offered. Cadbury has to strengthen their position in the US market; currently it is weak there and has to target the world’s largest consumer market. The advertising has to expand through the social networking sites like Facebook, Twitter, YouTube, etc. There should be proper marketing research to expand its growth. Works Cited Cadbury s Marketing Objectives for the Development of Fuse. Course work. Info. 2006. Web. 22 Aug. 2010. . Read More