Product Innovation

In: Business and Management

Submitted By Mengpei
Words 374
Pages 2
4.1 Product innovation
P&G can further develop and build the company to greater heights by product innovation which are creation of more unique products and improved on previous products. Product innovation can be achieved by product differentiation and diversification. Both product differentiation and diversification is a corporate marketing strategy to increase sales volume from new products and new markets. Example of differentiation is P&G has different brands of laundry detergent such as Tide, Downy and Ariel. Moreover, each brand produced different types of product with various functions to fulfill different needs of consumers. P&G also have several different ranges of products for sale, such as products in beauty and grooming, health and personal care, household care targeting different market and level of consumers.
P&G has built an organization with an innovative culture and it already has diversified portfolio of products and customers. However, due to strong competition from rival firms such as Johnson & Johnson, Unilever, Colgate-Palmolive, this approach of product innovation need to be carried out more effectively to maintain their competitive edge. Some of P&G’s lower sales volume products will become slowly phased out from market due to lower market demands, technology innovation and development driving changes in the product or the products simply mature over time and are replaced by functionally richer technology. P&G can learn from Unilever as the company influence the value of key brands by cross-sectorial brand extensions, thus taking advantage of customer brand recognition and loyalty, and creating marketing efficiencies. The Dove brand is one of the examples of a recognized soap brand being successfully extended into skin and hair care, deodorants, baby care and men’s grooming products (Jemimasutanto, 2013).
P&G can produce cosmetics…...

Similar Documents

Case Study Gillette Product and Marketing Innovation

...Questions: (1) Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain. Gillette had dominated the personal shaving market for quite a long time. They did not focus on product innovation very much, and when it did, it focused on acquiring existing product lines. In 1962, when Wilkinson Sword launched its stainless-steel blade, Gillette finally had competition. Wilkinson Sword could not exploit the niche it had created and Gillette was able to purchase much of their existing blade business. However, the damage was done and the competition dropped their market share to an all-time low. Gillette continued to diversify their product line, but was met with mixed success. It was at that time that Gillette gained even more dominance in its market by their product development. It began continuously attacking its own products. From the Trac II to Atra to Sensor to Mach3 to Fusion, Gillette kept on innovating and attacking it own products. It revolutionized the wet-shaving market throughout the world through continuous evolution in their product line since its inception. In many ways Gillette has been a victim of its own success - when they were being innovative, they were "cannibalizing" their own successful products. While their new inventions drove up their sales, it often took away from the sales of its previous products and did not increase......

Words: 707 - Pages: 3

Product Innovation at Bank of America

...BANKING STRATEGIES Case Study: Product Innovation at Bank of America By Cindy Murray What financial institutions can learn from inventions and innovations in other industries. owhere is innovation more essential to survival than in the banking industry. In the payments domain, for example, nonbank competitors less constrained by bank regulations and therefore more agile are changing the banking industry’s grip on the public perception of banks as the only trusted brand for holding and moving money. However, innovation is challenging for banks. Many products, like payments, are a commodity. A vast number of products and a complex infrastructure require continual upgrades to keep apace with technology advancements and comply with evolving regulations and security requirements. This article describes how Bank of America fosters a culture of innovation. Pivotal to an innovative culture is the direct engagement of clients in the innovation process. We highlight some of the ways that Bank of America achieves this. But first we’ll look at the role of innovation process in building brand loyalty. N Build Brand Equity Through Progressive Transformation Change can occur by redefining a problem or redefining a solution. According to Robert Sternberg, a leading creativity expert,1 creativity is the ability to redefine a problem. Innovation can be viewed as the ability to redefine a solution. Successful innovation is a process over time—one that typically happens in increments......

Words: 2981 - Pages: 12

External and Internal Factors Аffеcting the Product and Business Process Innovation

...АFFЕCTING THE PRODUCT AND BUSINESS PROCESS INNOVATION UDC 001.895:658.62 Nebojša Zakić, Ana Jovanović, Milan Stamatović Faculty of Entrepreneurial Business, Union University, Belgrade Abstract. The competitive advantage of a company strongly depends on its possibility to benefit from innovational activities. Understanding the factors that affect product and process innovation and their effects is necessary for deciding on an innovation strategy that is one of the core factors of an innovation success. We research the influence of nine external and internal factors on product and business processes innovation. For the analysis of important relations and conclusions, beside theoretical literature, we use the results of several studies. Key Words: product innovations, business processes innovation, industry maturity, customer needs, demand, technological opportunity, investment attractiveness, company size, export orientation INTRODUCTION Innovations are one of the main sources of a competitive advantage and they are essential for a company growth. Fast technology development, combined with the globalisation and fast changes in customer demand, implies that a competitive advantage of a company can be only temporary. Companies put great effort in beating the competition and improvement in the market game by introducing innovations. On the macro level, innovations have a vital influence on economic development of a country. Thus, it is not a surprise that innovations are......

Words: 7160 - Pages: 29

Innovation, New Product Development and Why Do New Products Fail?

...Innovation: Product innovation is the creation and subsequent introduction of a good or service that is either new, or improved on previous goods or services. Product innovation is defined as: the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products. Systemmatic Innovation of Products includes: * Technology  strategy * Design thinking skills * Customer needs analysis * Systematic creativity methods * Market and pricing strategy * Design for environmental sustainability * Design of services * Capturing value from innovation * Development process design * Product and service leadership * R&D organization and teams * Managing complex technical projects * The future of design process and culture The development and market introduction of a new, redesigned or substantially improved good or service. might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of newcomponents, materials or desirable functions into an existing product. Meaning of New Product Development: Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new......

Words: 3413 - Pages: 14

Case Chevrolet: 100 Years Product Innovation

...Latifah Turney Professor Kulviwat MKT 175 February 11th, 2014 Case # 1- Chevrolet: 100 years Product Innovation 1. Evaluate the diversity of vehicle types and the sizes that are sold under the Chevrolet brand name. What strength ands and weaknesses are evident in Chevy’s product mix? Chevrolet has a broad portfolio of products, which include large trucks, delivery vans, full-size, mid-size, compact, and sub-compact automobiles; sports cars; and even racecars. Chevy’s strengths include as I previously mentioned a broad portfolio, strong brand equity, strong brand loyalty, competitive advantage over many other brands, diversified product mix, and they are innovative (new model each year). The company had many successes but they also had failures two of their vehicles; the Chevy Corvair popular in 1962 failed after it was deemed unsafe due to safety issues with its steering, and the Chevy Vega which failed because of poor quality and product recalls which created negative publicity. 2. How has Chevrolet strategically managed its branding and reputation over the last years? What opportunities and threats will affect Chevy’s branding and reputation in the future? Chevrolet’s brand evolved throughout the years but it maintains many of the same themes that it began with: “a quality vehicle with deep roots in America’s past.” They try to maintain their brand as a key part of American culture, to maintain this brand image they do a number of things such...

Words: 486 - Pages: 2

Product and Process Innovation

...(2013), ‘Threats from competitors or innovation can threaten the status quo of an organization, hence an organization has to be innovative in order to gain competitive advantage over others.’ According to Thomas B et al (2011) Innovation is seen in terms of creativity and the generation of new ideas. Although research tells that a few of these ideas will be commercially viable. Most often a company gains superiority through innovation, innovative products, process or new business models to provide a strong competitive advantage due to first move advantage. Innovation is in different forms, it can be product process and service innovation. Khurana (2013) Process innovation is the implementation of a new or significantly improved production or delivery method. This is done by developing new ways of producing a product, using a newly developed machine. Process innovation can also be in the form of changes in physical movement of the product from the factory floor to the end user. This includes any system that is implemented in improving the delivery of the product to the customer. Cowdrey (2013) On the other hand product innovation involves changes in the specification in the product to be manufactured. This can be changes in the functions, attributes, weight, size, appearance, engineering or technical specifications, constituents or parts of final product. There are two forms of product innovation, these are: New product development New product development describes the......

Words: 392 - Pages: 2

Product Innovation Part 3

...Contents PIC and target market summary 3 Chartering for Ideation 4 Top 5 Ideas 4 Concept Ideation process 7 Controlled Convergence 8 Positioning statement 10 Product concept 11 Competitive comparison 11 Perceptual map 12 Product design 13 Pricing Strategy 16 Costs 16 Sales Forecast 16 Sales Forecast 17 Profit and Loss Statement 17 Table: Profit and Loss Statement 18 Sensitivity Analysis 18 Margins 18 Break-even Analysis 19 Payback Period 19 Net Present Value of Future Cash Flows 19 Unique selling proposition 20 Launch 20 Fitbit advertisements 20 YouTube Viral video 20 Reebok: Crossfit Games 21 In store/ on ground- gym facilities and sporting events 21 Digital social media 21 Website traffic 21 Google Ad words 22 Feedback 22 Media schedule and messaging 22 Electronic direct mail 22 Stock sale and monitoring 22 Sales statistics 22 Gant media schedule 23 Potholes 24 Call to Action 24 Appendices 1 26 Brainstorming Method 26 The Worst Idea Method 26 Relationship Analysis Method - Multi-dimensional / morphological matrix 27 Problem based approach using Voice of Customer through product reviews 27 Highs 28 Lows 28 Highs 31 Lows 31 Market based ideation 32 Problem Analysis of workout market 32 Attribute ideation Method 33 Appendices 2 34 Appendices 3 36 Executive Summary PIC and target market summary Health is opening up a new revolutionary advances within the industry of......

Words: 7194 - Pages: 29

An Approach to Incremental Innovation Theories and Its Methods in Industrial Product Development

...INTERNATIONAL CONFERENCE ON ENGINEERING DESIGN, ICED’07 28 - 31 AUGUST 2007, CITÉ DES SCIENCES ET DE L'INDUSTRIE, PARIS, FRANCE AN APPROACH TO INCREMENTAL INNOVATION THEORIES AND ITS METHODS IN INDUSTRIAL PRODUCT DEVELOPMENT Hannu Oja Tampere University of Technology ABSTRACT A quest for powerful tools to support creation of innovative solutions exists in industry. Majority of development efforts aims for incremental development of products, either by means of improved performance in use or during manufacturing process. New concepts or solutions on product’s functionality and behaviour (behaviour meaning how the functionality is delivered, response) are needed to bring benefits. Generic product development theories, models and methods are applicable for new product development, as their approach is linear and founded on functional requirements and means to execute them. However, in industry the product development activities preferably start from existing product or concept with pre-determined goals rather than from scratch. Creativity techniques and multidisciplinary workgroups have been referred in literature as means for creating innovations. However, these methods lack context of technical system and are general in nature and could be used for any problem with assistance of experienced moderator and a group of individuals. These techniques and methods are not included in this study. An approach from retrospective case study is presented. It was found that the mental......

Words: 4589 - Pages: 19

Case Study Gillette Product and Marketing Innovation

...Questions: (1) Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain. Gillette had dominated the personal shaving market for quite a long time. They did not focus on product innovation very much, and when it did, it focused on acquiring existing product lines. In 1962, when Wilkinson Sword launched its stainless-steel blade, Gillette finally had competition. Wilkinson Sword could not exploit the niche it had created and Gillette was able to purchase much of their existing blade business. However, the damage was done and the competition dropped their market share to an all-time low. Gillette continued to diversify their product line, but was met with mixed success. It was at that time that Gillette gained even more dominance in its market by their product development. It began continuously attacking its own products. From the Trac II to Atra to Sensor to Mach3 to Fusion, Gillette kept on innovating and attacking it own products. It revolutionized the wet-shaving market throughout the world through continuous evolution in their product line since its inception. In many ways Gillette has been a victim of its own success - when they were being innovative, they were "cannibalizing" their own successful products. While their new inventions drove up their sales, it often took away from the sales of its previous products and did not......

Words: 328 - Pages: 2

Secondary Market Research to Support a New Product Innovation

...Secondary Market Research to Support a New Product Innovation The Product The Energy Bar is a mountable wall unit for households that enables them to track their energy usage by providing numbers for electric, heat, and water consumption. The Energy Bar provides a visual to let you know how much you are using, how much you should be using, and how much you could be saving! It also compares your usage for the current month to that of the month prior to help homeowners improve the energy efficiency of their homes, while also saving money. As you see the numbers go up and down, you will intuitively know where you can reduce your consumption and utilities costs, and act on it immediately. Place it near your alarm system and it becomes easy to check before you, and the rest of your family, leave the house. This way, no unnecessary lights will be left on, heat will be kept to a minimum when you are away from the home, and no faucets will be left running by accident. This unique device addresses the energy shortages and water management problems that we should all be concerned about. Install an Energy Bar to ensure your future and your wallet! The Evidence In a poll conducted by Ipsos for Procter and Gamble, respondents chose “saving money” (64%) and “preserving resources” (56%) as the most important reasons for taking environmentally-friendly measures. When reporting the reasons that prevented people from leading a more environmentally-friendly......

Words: 790 - Pages: 4

Chevrolet: 100 Years of Product Innovation

...was arrested and interrogated by the Gestapo, so Freud moved to London with his wife and youngest daughter Anna.” (Cherry, Kendra). The events of WW1 shaped the views of Freud’s last book Civilization and its Discontents, and likely changed his views on the world forever which would influence his groundbreaking theories. His theories on the Unconscious and psychoanalysis would completely revolutionize psychology and the way modern societies look at the human mind. “Psychologists generally accept that motivation for human behavior are often unconscious, and that past experience can shape present attitudes and actions. Both ideas come from Freud. Simply the concept of talking with a therapist as a way to work through problems is a Freudian innovation.” (Reef, Catherine). This quote from a modern day psychologist explains that we still today use Freudian theories on a regular basis. Like Freud, WW1 also impacted and changed the future of western societies forever. “World War one probably had more far-reaching consequences than any other preceding war. Politically it resulted in the downfall of four monarchies. Russia in 1917, Austria-Hungary and Germany in 1918, and Turkey in 1922. It contributed to the Bolshevik rise to power in Russia in 1917 and the triumph of fascism in Italy in 1922.” (Mintz, Steven). This quote explains the repercussions of WW1 and what it gave rise to in the near future. During the war Europe’s economic progress was severely slowed down, this let other......

Words: 1823 - Pages: 8

Innovation in Product

...Group 16 Innovation in Product Submission #2 Anant Jain B15131 Ankit Goel B15132 Anshul Jain B15134 2015 1. Introduction Innovation is refinement in a product, process, method, or a part thereof. Innovation has become a buzz-word in recent years, with increasing relevance of ‘innovation-centred business models’, and ‘innovation-led-entrepreneurism’. In fact, the success stories of Industrial America, technological Silicon Valley, American financial market, etc., are tales of constant innovations. ‘Digitization’ has shifted access to knowledge and information from a privilege to convenience: anyone who is willing and able to pay, has an access. Also, sharing of information and flow of payments and tenders through internet has changes businesses like never before. 1.1 What is Product Innovation? Product Innovation can be defined as creating a new product, or making changes in the existing product, or creating a differentiation in terms of utility or features of the product. Light Bulb, telephone, microprocessors, digital displays were great innovation in terms of making of new products, i-pods, cell phone, integrated circuits were innovations in terms of modification in existing products. Not all product innovations are technological breakthroughs- take a safety pin for example. Even candle, fountain pen, and scissors are examples of path-breaking revolution, that didn’t require significant technology, or invention capabilities. On the......

Words: 6719 - Pages: 27

The Role of Product Lifecycle Management Systems in Organizational Innovation

...The Role of Product Lifecycle Management Systems in Organizational Innovation Hamzeh K. Bani Milhim, Xiaoguang Deng, Andrea Schiffauerova, and Yong Zeng* Concordia Institute for Information Systems Engineering, Faculty of Engineering and Computer Science, Concordia University, 1455 Maisonneuve West, Montreal, Quebec, Canada, H3G 1M8 yong.zeng@concordia.ca Abstract. Innovation is a critical ingredient of today’s organizations. Innovativeness helps organizations to maintain their success and position in the market. Numerous research studies examine the factors that impact successful organizational innovation, for example organizational learning capability, organizational structure, etc. Product Lifecycle Management (PLM) systems have been widely implemented to support organizational innovation as well. In this paper, we will discuss the role of PLM systems in fostering the organizational innovation success. Moreover, future trends based on the current PLM systems that would provide further support to the organizational innovativeness will be explained. Keywords: organizational innovation, PLM systems, fostering innovation. 1 Introduction Innovation is considered as the major engine of organizational success. Organizations need to adopt and develop new products and services, and to improve their processes in order to maintain their goals such as profit, growth and continuous development. In addition, they are constantly required to increase their......

Words: 4378 - Pages: 18

Product Innovation

...Introduction Nintendo was founded in 1889. It developed into a video game company almost a century later after failing at several other ventures. It’s first video game console worth mentioning was the Family Computer abbreviated as Famicom in Japan otherwise known as the Nintendo entertainment system (NES). It was replaced by the super Famicom/ Super Nintendo entertainment system(SNES) after a while. Then in 1996 they released a Nintendo 64 the first console we remember playing on. After the success of the Nintendo 64 then came the Nintendo game cube in 2001 then finally, came the Nintendo Wii. The project shows the innovation and technological enhancements in the products throughout the brief history mentioned above. The product – Nintendo Wii It was released in november2006 and it was an instant success as it was much awaited as unlike its competitors the Xbox 360 by Microsoft and the PlayStation 3 by Sony as it had virtual reality based game play. It is the smallest home console ever. Its controllers are the Wii Remote and nunchuk .The Wii remote uses accelerometers and infrared detection to allow for motion sensing. It has arrow keys and a button on the bottom which is useful as a trigger in shooting games. They are not always used in synchronisation as not all games require the nunchuk, but if required it is added to the Wii remote through a wire and shares batteries with it but to connect with the main console they use wireless technology. Situation......

Words: 1290 - Pages: 6

Creativity Innovation & New Product Development

...comparative products at a lower price. Many companies make waterproof membranes now, and some have advanced past Gore-Tex in terms of durability and function. Gore no longer has the ability to protect the make-up of The Gore-Tex brand so competitors have flooded their once exclusive market with “generic” versions (knock-offs). These competitors are many and diverse so there is no single company that competes with them in every area. To maintain the advantage of having a superior product, companies can also ensure their packaging and labeling is kept to strict standards that identify them in an unmistakable fashion. Gore-Tex labels all products that carry its brand name with exclusive hangtags so there is no doubt they are Gore-Tex Brand waterproof membrane. Most boots with Gore-Tex have highly visible labels sewn in. Firms with expired patents can develop new ones, and diversify operations to support their existing products and markets. Gore did this by establishing of venture partnerships in Japan, opening European divisions, and developing next generation materials in medicine and science. They have also divided their products into four different divisions: Medical, Fabrics, Electronics, and Industrial. 2. List some of the wide range of products where the Gore-Tex fabric has been applied. - Electronic products: special cables and cable assemblies for the aviation, aerospace, automation, telecommunication, medical, and IT industries - Medical......

Words: 1477 - Pages: 6