Running head: MANAGING PRODUCT AND SERVICE INNOVATION

MANAGING PRODUCT AND SERVICE INNOVATION

ASSESSMENT ITEM 4
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Table of Contents
Part A: Presentation.........................................................................................................................3
Introduction......................................................................................................................................3
Brief background of company/market.............................................................................................3
Key issues that came out of your critical analysis of an organization’s new product development
practice.............................................................................................................................................4
Strategies involved in the development practice of new products...............................................4
Challenges faced in the process of development of new products..............................................4
Understanding of relevant NPD or NSD theory..............................................................................5
Recommendations for improvement................................................................................................6
Part B: Individual reflection............................................................................................................7
References........................................................................................................................................9
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Part A: Presentation

Introduction
● The assignment aims at identifying and analyzing the key issues arising in the
processes involved in development of new product of the considered organization,
that is, Coca-Cola.
● The theory of New Product Development or New Service Development relevant in
the considered company is to be interpreted.
● Recommendations are to be made for the improvement in the process of development
of new products in the company.
Speaker notes: In this assignment, the key issues found in the process of development of new
products in the Coca-Cola Company will be analyzed. A brief discussion of the company’s
background will be made. The relevant theories of NPD or NSD applicable to the company will
be analyzed and discussed. Recommendations will be made so that the company can improve its
strategies.

Brief background of company/market

● Coca-Cola is one of the leading multinational companies dealing with the manufacture
and marketing of beverages that are non-alcoholic.
● The headquarters of the company is located in the United States.
● The soft drinks manufactured by the company are distributed in more than two hundred
countries of the world.
● Today, Coca-Cola comes out as a strong and renowned brand known by almost all the
people of the world (Renz & Vogel, 2016).
● The company follows the mission of providing the world with refreshment and creating
happy moments in the lives of people.
● The organization concentrates in the manufacture of new beverage products keeping in
mind the changing requirements of the customers of modern market.
Speaker notes: The Company was brought into action in the year 1892 by Asa Griggs Candler in
Atlanta of the United States. Coca-Cola has always used diversified strategies to promote their
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products. The main objective of the company is to enhance the market of the customers. This is
primarily done by the use of long lasting objectives through proper strategies. The company not
only engages itself with big shops or restaurants but also with the clients of street shops, theatres
and small outlets. This has caused the company to expand their business at an increasing rate.

Key issues that came out of your critical analysis of an organization’s new
product development practice

Strategies involved in the development practice of new products

● The company concentrates on the growth of its economy through remarkable profits.
Therefore, the company to engage maximum number of employees in the business and
giving them proper incentives (Renz & Vogel, 2016).
● It makes proper investments in the business that can support the development of new
products.
● It also focuses on the increase in productivity. The company brings in products in
accordance with the changing taste of the customers.

Challenges faced in the process of development of new products

● The other soft drink manufacturing companies provide major challenge to the company.
● There is always a risk factor in bringing new products to market as it cannot be
determined whether the customers will like it or not.
● The market of soft drinks has always faced the threat due to the changing lifestyle and
health habits of the modern people.
Speaker notes: The Company uses certain strategies in the development of new products.
Employees play the most essential role in the development of new products. It is possible to
engage more workers only when the economic conditions of the company are stable.
Investments play a vital role in the smooth running of business. Therefore, the company makes
sure of investing in different brands and portfolios. Apart from investing, the company knows
how to maintain flexibility in financial terms. This helps Coca-Cola to increase the rate of its
productivity. The company also faces a handful of challenges in the process. The industry of soft
drink beverages is competitive. There are many companies which deal with the manufacture of
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soft drinks like Pepsi. These companies also follow same strategies and the products are equally
liked by customers. Some soft drinks may not stick to the taste of customers, thereby leading to a
huge failure in business. Unless and until the new products do not have any negative impact on
the health of consumers, they will not think of buying those.

Understanding of relevant NPD or NSD theory

● The New Service Development theory is based on approaches coming from healthy
environmental factors and the factors related to profit and loss of the company.
● Centrality of the network and channels engaged with the soft drinks of Coca-Cola
becomes one of the core factor to be maintained in the process of development of new
products.
● The maintenance of the relationships with suppliers, distributors and other workers
engaged in the process is of utmost importance (La Rocca, Moscatelli, Perna& Snehota,
2016).
● The workers including the managers and supervisors need to remain salient in their
activities and behavior as well (Ling, 2017).
● There is need to analyze the risks and challenges that can come up with the new products
if they enter into market.
Speaker notes: The theory of New Service Development is considered to be relevant in both the
fields of marketing and practicing. It is significant in the development of strategies for the
development of products and their improvement. The processes involved in innovation are
essentially communicative and informative. Centrality not only calls for coordination and
cooperation inside the organization but also with the stakeholders outside the company. No
business can gain success without the building of trust in relationships. Therefore, it is necessary
for the Coca-Cola Company also to maintain trust within the company for the development of
new products. The strategies need to be explained through proper presentations to all the
members of the company. Analysis of the risks and challenges will provide proper grounds for
bringing in innovations and new products into market. It will also help in safeguarding the
business from failure.
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Recommendations for improvement

● The primary recommendation that can be made for the improvement in the business
strategies and development of new products is that the company should increase its funds
and revenue services.
● It can be recommended that the company should engage and hire experts and qualified
workers who have proper knowledge in the field.
● The company should make sure of maintaining the quality of its existing products before
developing new ones. Measures to check the quality of the new products should be taken
before bringing them into the market (Ling, 2017).
● The company should opt for proper methods of promoting the product such as
advertisements on TV channels and social media as well.
● Recommendations can be made in the grounds of customer satisfaction as well. Proper
ways of getting feedbacks from customers should be followed.
Speaker notes: In order to improvise the business strategies in the development of new products
some recommendations can be made to the Coca-Cola Company. For the innovation of products
the company needs expert ideas. Therefore, increasing the funds will help the company to hire
more number of qualified workers and pay them properly. Technologies to check the quality of
products also call for money. It is essential to maintain the quality of the existing products and
then bring the new ones. Promotion of the new products is also an essential part in business.
Therefore, the company should also indulge in the advertisement of the products. Social media
has become the core mode of entertainment for the people of 21st century. Hence, it is
recommended that the company gives proper demonstration of the product, indicating its quality
and quantity of fat, protein, carbohydrates. This will attract people without any doubt.
Techniques should also be used in taking feedbacks from the customers. This will help the
company to work on complaints of the customers if any.
Conclusion
● The key issues include the strategies adopted by the company in the process and the
challenges faced by it during the process of development of new products.
● The NSD theory can be applied in the process.
● Improvements can be made with the help of the recommendations.
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Speaker notes: The Coca-Cola Company has been critically analyzed so as to analyze and
interpret the key issues associated with the processes involved in the development of new
products.

Part B: Individual reflection

Importance of new product development (NPD)
NPD enables Coca-Cola company to achieve a competitive advantage by ensuring that they meet
the customer's tastes and preferences through new brands that satisfy them. NPD caters for
changing needs of the customers, for example, the coca cola zero sugar was developed to cater to
the need of consumers with diabetes ((Ling, 2017).
Coca-Cola NPD Cycles
Coca-Cola adopts an NPD framework of continuous research in coming up with methodologies
of implementing metrics in every stage of new product development. For example, before
introducing a new product such as Coca-Cola Zero sugar, it first conducts research and makes
testing of a given product to identify potential markets and this enable proper planning for the
company. Competitor analysis is also conducted which help the company in identifying areas of
improvement which help them in outdoing their competitors such as Pepsi (Renz & Vogel,
2016). After an analysis is conducted, a product is introduced to the audience where Coca-Cola
conduct massive advertisements through TVs, social media platforms, newspapers, and other
sites in order to create awareness about their product.
A penetration strategy is used by the company to reach the market share where huge investments
are made to achieve product growth. Their brands mature faster than their competitors due to the
use of differentiation strategy in their products which are similar to those of competitors.
Performance analysis of sales enables Coca-Cola to innovate new elements to enhance
improvements. Coca-Cola NPD cycles have proved superior to provide a competitive edge for
the company (Grünbaum & Stenger, 2018).
Branding and technology related to new product development in the Coca Cola company
One of the strategies applied by Coca-Cola to achieve competitive advantage through their new
product development is their effort towards the brand and also the technology they apply in their
new brands. This company has experienced a lot of mistakes in the future thus they do focus on
their brands to avoid a repeat of such mistakes in the future. In marketing coca cola is known to
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be one of the best-known big brand company that does not only focus on the product but also
focus on brands of that product thus bringing happiness to its customers as they are able to meet
their preferences and differentiated taste (Renz & Vogel, 2016). For example, a Fanta brand
introduced to the market by the company is now rebranded to Fanta with different taste such as
the Fanta passion, Fanta orange, Fanta black current, and Fanta Pineapple.
Coca-Cola in developing new products have utilized technology to achieve success. This
company usually applies technology for innovations to develop competitive products compared
to other similar brands developed by competitors. The company uses technology to advertise
their newly developed products. They use social media such as Facebook, Twitter, and other
platforms to ensure that they create awareness of the brand to its consumers ((Ling, 2017). They
usually stay connected to the internet in order to advertise their product online for example by
the use of their well-developed websites or Google AdWords and also doing market research on
where to launch their newly developed brands. They introduced greener bottles to ensure that
they conserve the environment. Social networking through media platforms is also applied by
coca cola to spread information concerning new products (Renz & Vogel, 2016).
Factors related to NPD
Consumers today are increasingly becoming conscious about their health where they are much
concerned about the diets they consume. Taking this into account, Coca-Cola has come up with
many products with the aim of satisfying the preferences and tastes of various groups in the
market (Samiee, 2019). The avoidance of sugary products and calorie intake has been on the rise
with Coca-Cola responding positively by developing Coca-Cola Zero Sugar product to satisfy
the group which mostly composed of people with diabetes. Coca-Cola can be said to be
concerned with the health of people as it ensures that customers taste and preferences are
satisfied (Coburn & McCafferty, 2016). To enhance this, Coca-Cola has iterated its existing
products mix and its product line so that they can meet customer requirements. Coca-Cola has
incorporated healthier alternatives in their product line including the low-calorie beverages and
non-soda beverages such as Dasani bottled water. The company has maintained competitiveness
by becoming the largest non-alcoholic beverage company in the world.
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