new product development process

The New Product: Racer Sports Shoes

The new product that will be released to the market will be Racer, a sports shoe brand for ladies, men, and children. Many people have included exercise into their daily routines as a result of altering living patterns, as exercise has become a key component in illness prevention and maintaining a good health status. Because of their ability to absorb stress or pronation, having light weight, and being inexpensive to customers, the new sports shoes that will be presented will be an innovative product ideal for both light and strenuous exercises. To entice buyers, the price of these sports shoes will be kept reasonably low. Since the product will also be new in the market, the low price will also keep the competitors at bay. The shoes will be available in different sizes for women, men, and children and in different colors. In order to attract more customers, the sports shoes will offer the first customers the opportunity to have an engraved personal message at the back of their shoe.

The Process of New Product Development

The process of new product development can be described using seven steps. The first step involves setting out the target and creating a portfolio for the new product. This step involves the collection of new ideas and concepts. The second step is situational analysis where the ideas generated in the first stage are reviewed for their viability. The third step involves analyzing the opportunities for the product in order to understand the structure of the market. The fourth step involves identification of potential new product options in the market and comparing them with the ideas of the product formed (Brody, 1999; Monczka, 2000; Lee & O’Connor, 2003).

The Development of the Product

The fifth step involves the actual development of the product by designing the product and ensuring that all the technical aspects and ideas have been implemented in the development of the product and the product has been refined. The sixth step involves marketing the product and setting the price for the product. The price of a product is one of the key determinants in terms of a buyer’s choice. The price of the product is also essential in determining the profitability or loss of the company. Since the price of the sports shoes will be relatively lower than those of other brands, Racer Sports shoes will be more likely to attract numerous customers. The seventh step involves launching the product to the market (Brody, 1999; Monczka, 2000; Lee & O’Connor, 2003).

The Importance of Launching a New Product

Launching a new product enables companies to maintain consistency and competence. It also promotes growth in companies as a company gets the opportunity to venture into other business sectors. The launching strategy of the Racer Sports shoes will involve testing out of the sports shoes first for fitting and to ensure that all components and advantages of the shoes that will be used as selling strategies are in place and effective. The strategy will include setting goals such the possible revenue that will be generated within a specified period of time after launching the product. The next strategy will be entail understanding the needs of the customers and by interacting with the marketing team. Communication in launching a product will promote the environmental collection of information that may contribute to new ideas on how to improve the product. By understanding the customers, the company will be able to focus on the target audience (Capatina, 2014; Chiu, Chen, Shyu, & Tzeng, 2006).

Marketing and Promotion Strategies

In order to promote purchases, the product launch will use a popular athlete and a gym instructor. Since sports shoes are commonly used in the gym and in athletes, by using an athlete and a gym instructor to launch the product it will attract the attention of many sportspersons. This strategy is also likely to raise the sales of the product. After launching the product, it will be assessed and the reception of the product by the customers will be evaluated in order to promote product sales. During this time, advertisements, offers can help to keep the product in the market and gaining ground (Capatina, 2014).

Pricing Strategy

The price of the Racer sports shoes during the launch is an important element as the price can express a competitive positioning, the quality of the product, and the possible effectiveness in the performance of the product. There are two price strategies that can be implemented by a company; penetrating and skimming. The penetrating strategy involves launching a product at a low price in order to attract customers, In this case, the company relies on the mass production of the product and advertising in order to attract the attention of customers. Skimming pricing, on the other hand, involves setting a high product price for the early adopters and later on reducing the price to attract other customers. This price creates a high-quality image for the product. In the case of this product, the penetrating strategy will be utilized as the sports shoes will be sold at a relatively cheaper price than its competitors. Advertising will also be utilized in marketing the product (Capatina, 2014).

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References

Brody, A. L. (1999). Developing New Food Products for a Changing Marketplace. CRC Press.

Capatina, G. (2014). New Product Launch: A Critical Review and Research Directions. International Journal of Economic Practices and Theories, 4(5), Retrieved from http://www.ijept.org/index.php/ijept%20/article/view/New_Product_Launch_A_Critical_Review_and_Research_Directions/pdf_31.

Chiu, Y.-C., Chen, B., Shyu, J. Z., & Tzeng, G.-H. (2006). An Evaluation Model of New Product Launch Strategy. Technovation, 26(11), 1244-1252. Retrieved from http://www.sciencedirect.com/science/article/pii/S0166497205001185.

Lee, Y., & O’Connor, G. C. (2003). New Product Launch Strategy for Network Effects Products. Journal of the Academy of Marketing Science, Retrieved from https://www.researchgate.net/publication/246926621_New_Product_Launch_Strategy_for_Network_Effects_Products.

Monczka, R. M. (2000). New Product Development: Strategies for Supplier. ASQ Quality Press.