Organisations introduce new and effective products into the marketplace in order to gain competitive advantage. Innovation of new and efficient products is a way in which a company can head off competitors who are also bringing out novel products in the marketplace. These products can also help the company grow market share (Davis, Chelliah & Minter 2014). New product development is the process designed to develop, test and consider the viability of products which are new to the market. This is mainly to ensure the survival of the organisation. There are eight stages of new product development and are captured in the diagram below.
Source: (Introduction n.d.)
Stage 1: Idea Generation
The idea for the new product is generated through various sources which include:
Stage 2: Idea Screening
This process involves going through all the ideas generated in Stage 1 and selecting those that are practical and feasible to develop.
Stage 3: Concept Development and Testing
The organisation has already come up with a feasible idea by now; however, the idea needs to be delivered to the target audience. What do they think about the idea? Will there be any demand for the product? The target audience here is just a concept and not a working prototype.
Stage 4: Marketing Strategy and Development
A proposed marketing strategy laying out the segmentation, targeting and positioning strategy, the marketing mix of the product/service and the expected sales and profit is written.
Stage 5: Business Analysis
This stage deals with the cashflow that the product could generate, what the cost will be and the expected life of the product.
Stage 6: Product Development
Here a prototype is produced and it undergoes a series of tests. This is then presented to some selected people who make up the target market segment in order to see if any changes need to be made.
Stage 7: Test Marketing
In this stage, the product is launched in a particular area and the marketing strategies are monitored and modified if required before the national launch.
Stage 8: Commercialisation
The product is now ready for launch. The following decisions need to be made in regards to the launch:
- Timing of the launch
- Where will the product be launched?
- How will the product be launched?
An example of a new product development is Caroma’s New Toilet Campaign
Caroma’s Cleanflush Toilet Campaign
Bathroom manufacturer and design brand ‘Caroma’ has launched its new rimless toilet, Cleanflush. This new innovative and efficient product was designed so that the consumers can spend less time cleaning and more time doing the things they love. This campaign is a print and online campaign. Houston was given the task of generating public awareness of this new innovative product in bathroom technology. The campaign does not show the image of the product and is built on the strategic platform, ‘A Cleaner Clean‘. This campaign includes a variety of headlines such as, ‘Clean less. Live More’ and ‘It’s time to come clean’.
Source: (Xiao 2014)
This is the first time that Caroma has launched a campaign without showcasing the product. It has instead aimed at highlighting the benefits of the product to the consumers through the different taglines. This has certainly kept the audience guessing as to how the product looks. But more importantly the audiences became aware of the benefits of the product.
Source: (Xiao 2014)
Joanna Lilley, Houston’s General Manager, said that they wanted to build a campaign that will generate a strong connection with the audiences and that they wanted to create something very different than what we normally view bathrooms and toilets in the world. She also added that the campaign will not only generate product awareness but also generate a stronger brand connection among Caroma’s target market. This was achieved by portraying humorous and relatable characters coming clean with their bathroom chimes such as ‘refusing to scrub’ or ‘left the seat up’.
Source: (Xiao 2014)
The work that was undertaken by Houston included development of a brand mark and a new logo for Caroma’s Cleanflush, consumer and professional brochures and print and online advertising.
Cathleya Buchanan, residential and commercial marketing manager added that they are thrilled with the transformative and creative approach from Houston that this campaign has delivered and that they have already received unprecedented demand for this new innovative and efficient product. Also the response from the social media has been very positive with one post of the flush generating more than 220,000 views.
Darryl Felix Denis D’sa
Davis, D, Chelliah, J & Minter, S 2014, ‘ New Product Development Processes in The Australian FMCG Industry’, Contemporary Management Research, vol. 10, no. 1, pp. 4-5, doi:10.7903/cmr.11739
Tilly, R 2016, Houston and Caroma Cleanflush Launch ‘A Cleaner Clean’ Campaign, media release, 2 June, Dave, retrieved 28 August 2016, <http://www.bandt.com.au/media/houston-caroma-cleanflush-launch-cleaner-clean-campaign >
Why Develop New Products for your Business n.d., New Product Developments, Learn Marketing.net, retrieved 28 August 2016, <http://www.learnmarketing.net/whyNPD.htm >
Introduction n.d., New Product Development, Learn Marketing.net, retrieved 27 August 2016, <http://www.learnmarketing.net/npd.htm >
Xiao, A 2016, Houston Launches Caroma Cleanflush Toilet Campaign Without Showing Product, Mumbrella, retrieved 27 August 2016, <https://mumbrella.com.au/houston-launches-caroma-cleanflush-toilet-campaign-without-showing-product-371094 >