Business Plan for the Introduction of a New Product Essay
In a situation where a large company is in need of launching a new product in the market some primary and secondary research should be done for one to develop a business proposal on how such a business will be conducted.
The Managers Responsibility
In the case of bringing a new product in the market, the manager of the company should be informed on various strategies that will enable the companies’ product enter the market, one of these strategies is the market entry strategy, here we find that the company may be deciding to enter an oversees market where a variety of options that always vary in terms of cost, risk and the degree of control that is to be exercised over then in terms if security are always available for the company. (Dale, 2001)
The manager should ensure that there is a planned organization in the company which will comprise of a structure that will provide a management team, sales force, technical team and the company directors. Whereby the use of a scorecard to control and monitor the company’s performance should be advocated for through which, all factors influencing the organization’s overall performance are taken into account and analysed.
This scorecard will measure across four key areas in the company which are; Financial perspective which will indicate how shareholders perceive the company, Customer perspective showing the customer’s view towards the company, Internal process perspective this indicates the efficiency and effectiveness the processes in the company and lastly it defines the learning and growth perspective of the company.
The other method for marketing is the indirect marketing basically referred to as exporting under this, we find that it involves the marketing of the product being produced in one country to another, where there is no direct manufacturing in the intended country but significant investments in marketing are required. The company management that has the mission of launching a new product in the market should know that this method carries a number of advantages to the business this includes: its production is home based making the business less risky, it also gives an opportunity for the management to learn about markets in a foreign country thus potential risks for the business to operate abroad are minimised.
For the company to enter in a foreign market then its manager should consider the following strategies, the low price strategy which indicates the penetration price which is necessary to bring more products to sell at first but when it catches up, other pricing strategies are adopted. Price Adoption Strategy involves the modifications to the existing products, the availability and security strategy that normally counter for the predicted risks such as the transport risks, technical strategies which demonstrate the superiority of the product. (Dale, 2001)
Most consumers in foreign trades are always sensitive on matters related to currency, quality and quantitative figures of the country from which the product originates from therefore in bringing up the market entry strategy the management team should take care of the following issues; information, infrastructure and other resources should present where the first thing to do is to build other networks that prove to be crucial to the company, the second issue is the government involvement in the business such as licensing, taxing, policies and duty remittances.
In addition, massive start up campaigns is necessary to reach the entire target market within a very short time. Transactional costs are crucial to international marketing because there are language barriers, logistic costs; physical distance and other bargaining costs make initial costs very high. Enforcement of contracts and weak legal integration between countries are other factors that need to be assessed before the final arrangements to start the business are made. (Belanger, 2005)
The manager should consider the corporate responsibility which is the obligations that consider the interests of all customers, employees and shareholders, communities and other ecological considerations in the majority of all their operations in the company. This normally extends beyond the companies legal obligations to factors such as profits and dividends. He should also consider immediate and long-term social, cultural and environmental consequences of their operations. Today’s heightened role of businesses in the society has been enhanced by increased sensitivity and awareness of urgent ethical and environmental issues. (Dale, 2001)
The Researchers’ Responsibility
The other factor that the researcher should consider is that he must carry out the environmental analysis of the product accompanying the growing economy globally this environments include transport and transportation factors, border disputes including the history of the invasions and some other tensions that are said to be making local and international marketing problematic. We also find that many international marketers face culture as a problem in their businesses since it is inherently imprecise and always difficult to understand therefore one should be careful that the norms and cultures of a particular nation are not violated. (David, 2005)
The researcher should also carry out the Opportunity Analysis which is referred to as an invaluable client tool for identifying and prioritizing opportunities that would help to minimize unwarranted variation and inefficiencies. Here the opportunity analysis will automatically help the company understand the market opportunities and act upon them professionally by ensuring the provision of key statistics and some other issues the company will be facing, the company will therefore need to improve the its workforce productivity significantly and expand its business to reach the new markets with complex products, for one to meet this goals.
Then the manager should adopt the new advances in technology such technology may include the internet marketing generation where online marketing is always referred to as E-commerce that focuses on the technology of the internet and the usage of personal computers, the researcher should also indicate that in the earlier days companies producing various products used power full computers to computerise millions of transactions practised every day.
In this case the company is enabled to develop networks through internet branches of the same company through which the management will be able to keep up to date with its business progress and also to improve its service provision to its customers. (Belanger, 2005)
Product branding is a key factor in determining the selling trends of the product and it should also be considered here we find that a good brand name should be; legally protectable, easy to pronounce, easy to remember, easy to recognize and to attract attention. There are different kinds of brands which are Premium brands, Economy brands, fighting brand, licensing brand. Other factors to be considered are pricing and competition that will incorporate the products demand, supply, quality and the company’s economy.
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Belanger S. (2005):-Business & Technical Communication. (An Annotated Guide to
Sources, Skills, and Samples)
Dale, M. (2001): The Art of HRD: Developing Management Skills , Vol. 3, New Delhi
Crest Publishing House
David. J and Dosi.G (2005) “Understanding Industrial & Corporate Change”