A firm can obtain new products in two ways. One is through acquisition which is bybuying a whole company, a patent, or license to produce someone else’s product. The other isthrough the firm’s own new product development efforts. By new product mean originalproducts, product improvements, product modifications, and new brands that the firm developsthrough its own R&D efforts. The need for new product development is simply because customer’s product preferencesand attitudes have changed. Technology improvement for many products has taken place aroundthe world, and there is a growing competition among organizations in the market place toproduce better and improved quality products. In order to produce new product there will be stages need to be follow. This is involves aprocess of developing a plan that can link the new product development process with thecompany’s marketing department and business unit’s objectives. The marketing manager isresponsible in formulating a new product strategy that is a part the firm’s overall marketingstrategies. It serves as general guidelines for marketers in generating, screening and evaluatingnew-product ideas. “Botol” is a angle of 45 degree bottle. It combines with the features that never used inthe market which variety in design. Usually there are many water drinking bottles used by allconsumer. There are many bottles sold at the shop, groceries, and supermarket and even at thevending machines. This bottle has unique features that make it very differ from others bottles inmarket. According to Lamb, there are six categories of new products. New product to the world,new product lines, addition to existing product lines, improvement of existing product,repositioned products and lower priced products. Botol is under improvement of existing productcategory. The first stage starts with the search for new ideas. There were many sources in order togenerate the ideas. There are three main sources which is internal, external and crowdsourcing. Using internal sources, the company can find new ideas through formal R&D. the ideascan be picking the brains of its employees, executives to scientist, engineer and manufacturingstaff to salespeople. Besides that, company also can obtain good new-product ideas from any of a number ofexternal sources. For example, distributors and suppliers can contribute ideas. Usually, supplieris close to the market and can pass along information about consumer problem. Supplier can tellthe company about new product concept, techniques, and materials that can be used to developnew products. Competitor also brings effect to the new product development. Rarely companywill watch their competitor in order to get some clues to the new product. The most important
external sources are customer itself. The company can analyze the customer questions andcomplaint to find new product that better solve consumer problems. This is some example of online complaint received by consumer: “I am the mom of three children. My first child is boy and the youngest one is boy. Thesecond is girl. I often bring them for a walk during weekend. They always ask me to buy themwater with attractive bottles design. The problem is I did not find any suitable design bottle formy kids. Every place I had search for the unique design of bottles and disappoint I could notfound it until now. If there are many variety choices of water’s bottles design.” “What is concept?” a concept is an outline of a product, a service or a process , that isnot the actual product but the framework of what the product in words, drawings, prototypes andbusiness case. So, what is the concept applied in Botol. An attractive idea must be develop into aproduct concept. It is important to distinguish between a product idea, a product concept, and aproduct image. A product idea is an idea for a possible product that the company can see itselfoffering to the market. A product concept is a detailed version of the idea stated in meaningfulconsumers perceives an actual or potential product. Vista Visto Sdn Bhd a bottles manufacture producer has developed a straight bottleswhich flexible uses. It initially introduces the bottles in late last year which is on December2010. The prototype is a flexible to be used in anyplace but in same size which limit the uses.However, in the future, it plans to introduce more flexible sizes, varieties of design that willmake easier to users. The marketer’s task is to develop this new product into alternative product concept tocustomer. There will create many product concepts for angle of 45 degree of water. Concept 1: A colorful, variety design bottles for all, flexible size and eco style bottle. Concept 2: A flexible size of bottles in many background colors for kid and family. Concept 3: An exclusive bottles design for exclusive customer. Concept 4: An environmental bottle with unique features.The main concept for Botol is it comes in varieties design, color and packaging for all, in flexiblesizes and also eco style bottles which will reduce pollution. The other alternative concept will bethe support ideas to the main concept. If there are any unexpected occur, those alternativeconcept will take into consideration. Its depend o the situation. The ideas of the concept isgenerating by the consumer feedback and respond. besides that, others factor need to beimplement to the alternatives.
Once management has decided on its product concept, marketers need to evaluate andcalculate the business attractiveness of the proposal by reviewing the sales, costs and profitprojections to determine whether it can satisfy the company’s objectives.a) Estimating sale. There is a need to determine whether sales of the 45 degree bottle will be high enough to the company. The method that used is by examining sales history of other similar products and surveying the market opinion. U-Lik Sdn Bhd is the close competitor with Vista Visto Sdn Bhd in Malaysia. Marketers will make details research on how the sales of U-Lik Sdn Bhd. U-Lik Sdn Bhd sales for 2010 5 4.5 4 3.5 3 2.5 2 SALES 1.5 1 0.5 0 JANUARY APRIL JULY OCTOBER Figure above is the sales for the last year of U-Lik Sdn Bhd. From the reviewing of bottles sales, the sales, profit and cost can be estimated. As conclusion, Botol sales will be increasingly in constant order when it launch. The unique features and new strategy and concept make the bottle become one trend to the target market.b) Estimating costs and profits. This is usually done after the preparation of sales forecast. The responsible one is R&D, manufacturing, accounting and finance departments will estimate costs. The financial attractiveness will be estimated using breakeven analysis, payout-period analysis and risk and return analysis technique.c) Analyzing the economic trend is also necessary to enable marketers be able to estimate sales especially if the product is easily affected the change in the economic condition.d) Other considerations include the effect of the new product on the current products. How much benefit will customers receive from 45 degree bottle, whether the product can enhance the image of the company’s overall product mix, what reaction of competitor and also the risk of failure the company may be exposed to and the possibility the company will undertake the risk?
Next, where the product concept is now develop into a physical product. The R&Ddepartment will be able to know whether the product idea can be translated technically andcommercially into a feasible product. This will involve high cost.The R&D department will develop one or more physical version of the product concept orprototype. This stage may take days, weeks and months or even years. When the prototypes areready they must be tested. Two tests to be conducted on the target market: a) Functional test: this test is conducted under laboratory and field conditions to ensure the product perform safely and effectively. Usually, the uses of bottles plastic to the environment is very dangerous which it can create the great effect to the pollution. b) Customer test: it means asking customers to test, use the product or rate the product and its attributes. The customer will be chosen randomly. This 45 degree bottles will be promote to the customer and they will comment and critic about the bottles features. After a product has passed the two tests, they will be introduction into a realistic marketsetting. This process is called a test the market. Then the product will be launch into the marketor be commercialized.