Part 2: Introduction

Development or improvement of new product is essential to all businesses. They come when change is inevitable and are crucial to businesses growth and profitability (Cooper, 2001). Development processes of the undertaking are risky and need effective planning and organization. Our new development will be ‘event packages’ that will require us to prepare cakes in addition to the products offered by Edible Arrangements.

New Product description

The cakes will be baked according to the event and customers specification. The cake will take the shape and features of the ordered fruit that the customers will specify. It will also be scented with the fruits flavor, and dipped in chocolate to take the exact look of the fruit. Alternatively, the cake can be baked in the shape of a cocktail of different fruits with different colors attractive to customers. The package will be colored similar to the event colors and will be prepared for specific persons or event. The size of the cake will depend on the customer’s needs.

The packages will be specific for events such as; birthdays, weddings, anniversaries, valentines, Christmas, date nights, among others. Combination of the fruits and cakes will be convenient offer for colorful events. The deliveries will be done together saving on the customers cost and waiting time for two deliveries occurring at different times. For the company the cost of delivery will be less similar to that of delivering fruits alone, therefore, increased profit from delivery savings. It will give the company a competitive advantage where lower prices compared to the competitors can be offered for similar products and still maintain similar profit levels.

Product development process

Opportunity identification

The opportunity for making sales for the cakes resulted from the concurrent consumption of the two commodities. Customer’s feedback necessitated the invention of the new product in a package which will suite their events. It is from these responses that the development of the event package showed to be viable for introduction into the ready market.

Idea generation

The idea for introducing the package resulted from feedback from customers and sales channels, direct observation of customer’s needs, product gap, and a thorough market research. There was unmet demand with the existing products and, therefore, the need to introduce cakes in the package. Also, there was a potential market for the new product since many competitors had not already implemented this product.

Initial concept development and screening

Since the two products will be consumed together, the customer base for the existing product will be the target potential customers. The ease of access and convenience for making orders will be a compelling factor for jointly consuming the products. The nature of the events and colorfulness of the products makes them a ‘must order’ package.

Business analysis

The cost of labor and input resources will determine the costing of the package. The number of fruit packages ordered either independent or jointly with the cakes will determine the level of dependency in the consumption of the two products. Concurrent distribution of two products is cheaper since the transportation cost will be maintained. The company is better placed for fair pricing and access to market, since they have a competitive advantage and a ready target market.

Customer testing and concept development

Target market is already segmented into different persons and events depending on the age, nature, and importance. Private test groups will be used to determine adjustments that need to be made to specific products for refining to tastes and preferences of the customers. The recommendations are finally implemented to produce the final product.

Commercialization

At this stage the product will be well established. The progress of the new product will be monitored through comparing the combined sales and sale of lone products. Mass advertising will be used to compel the undecided potential customers to try the new package. The distribution channels at this point should be kept loaded to deny the competitors a chance to fill the deficit in supply (Brands, 2013).

New Product Launch Strategy

When the product is ready for the market, an appropriate strategy needs to be developed and implemented to serve this crucial purpose. The product launch team should be put in place with a team leader with adequate experience and authority in the line of business (www.Scotlandfoodanddrink.org). Edible Arrangements will contact direct briefing to various old customers to help build awareness and commitment to the product prior to launch. Significant orders should be obtained and merchandising be done ahead of the launch date. Press releases will be tailored to target specific audiences aimed at enlightening them and promoting the product.

Live casting of the events where the live package is used should be included as part of the launching event. The package should be made available to important influencers who can be friendly customers, prospects, or bloggers with sizeable online followers. Briefing of the industry analysts is important during this early phase of strategizing the launch. (Cooper, 2001).

Conclusion

Getting a new product into the market successfully begs for several sleepless nights for the manager. Implementing a feasible idea require thorough on the products, customer preferences, and market segmentation. Addition of input resources, labor, and other required production assets will be a necessity. Enough incubation period should be allowed for the product to fetch marker and refinement from customer’s feedback.

References

Types of pricing

· Cost based pricing

· Demand based pricing

· Competition based pricing

· Value based pricing strategy

· Maximizing volume pricing

· Prestige pricing

· Reference pricing

· Bundle pricing

· Multiple-unit pricing

· EDLP pricing

· Odd-Even pricing

· Customary pricing