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Developing a new product or service

Contents
Summary1
1.Introduction2
2.Idea generation and screening2
2.1 Idea generation2
2.2 Idea screening3
3.Product attributes and service4
4.Target Market5
5.Concept Testing7
6.Business Analysis8
7.Product Positioning9
7.1 Branding11
8.Product fit12
9.Competitor analysis and comparison12
9.1 The Failure of Nestle----LC1 Go!13
10.Commercialization14
10.1 Market Testing14
10.2 Lunching Time14
10.3 Promotion15
10.4 Price and Predicted sales16
11.Resource Requirements16
12. Potential problem areas17
13.Conclusion18
Reference19
Appendix21

Tables and Figures
Table 1 Features and Benefits of the New Yakult4
Table 2 SWOT Analysis of Yakult9
Table 3: Three brands in the UK retail value sales of drinking yogurts, 2008-201013
Figure 1: The Total Product Concept5
Figure 2: Trends in purchase of food and drink with added benefits6
Figure3: The Ansoff Matrix8
Figure 4: Product Positioning of Yakult10
Figure5: The designed Logo for New Product11

Summary
This assignment concentrates on the development of new flavour Yakult in the UK market. As a probiotic drink, Yakult is well-recognised by consumers. However, when competing with competitors, such as Actimel and Vitality, the weakness of the company is that the product line is relatively weak. After carefully screening the new product ideas, fruit flavours Yakult can be the most profitable product to develop. The new product not only can improve digestive system, but can also improve the vitamins intake because the fruit element. In addition, the Yakult lady system, which is free delivery service, can be developed to improve brand reputation and communicate with consumer directly. The new Yakult should be positioned as a tasty health-enhancing drink, which can attract more potential consumers, and increase sales volumes. In addition, the target consumers are woman between 25-49 years old, who pay more attention health diet and also are the main family shoppers. Market testing is an important step for new product development; the drink can be sold in certain cities before entire launching to collect consumers’ opinions. The best launching time is summer, and the company should pay more attention to promotion and advertising.

1. Introduction
The functional drink market is growing rapidly in recent years. More and more companies try to introduce new kind of product to enlarge market share. Yakult, which is the first manufacturer to sell probiotic drink, face fierce competition in the UK market. This report will focuson the new product development for Yakult. After choosing the most profitable idea, the new product attributes and positioning will be analysed. Then, the business analysis of new product can be implemented, including competitor analysis and sales prediction.

2. Idea generation and screening
New product development is an innovation activity to bring the new products to the market. Moreover, idea generation and idea screening arethe key stone of the new product development process (Ulrich and Eppinger, 2008). 2.1 Idea generation

Idea generation is a continuous systematic search for new product opportunities whichinvolves generatingsources of new ideas and methods(Brooke and Mills, 2003). Ideas for new products can be obtained from basic research by understanding consumer trends and analyzingcompetitors.

Yakult dominated the functional drinkmarket for the first few years, but other similar brands are coming up fast frombehind. Huge spending and more aggressive and more consumer-oriented competitors(e.g. Actimel from Danone and Vitality from Muller) havepushed Yakult into thethird place. According to figures from market research company Euromonitor, Actimel took 40% in 2005; Muller took 14.5% and Yakult 10%of the value ofthe UK functional drinkmarket (Marketing, 2010).Yakult comes in...
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