New product and process of new product development, international distribution strategies and consideration for developing international distribution strategies

New product

In general, a product that is new to the market is referred to as a new product. Such a product's quality ought to be at least partially new. New products constantly emerge since no kind of product found on the market can last forever. Therefore, the potential for further product development still exists. Customers' requirements and wishes are constantly changing due to new technology and fierce market rivalry. It is important to provide the new product development process continuity. Producing companies or commercial organizations should create new products after researching consumer preferences and the external environment.

According to the philip kotler," New product include original product, improved product, modified product and new brands that the firm develops through its own research and development efforts."

According to the N.J stanton," If buyers considers to significantly different from competitive product in some relevant characteristics then it is indeed a new product."

The term "new product" refers to any product that enters the market first. By enhancing the existing features and qualities of a product, a business or firm can introduce it to the market.

Process of new product development

To create new products and compete with other businesses in the market, research and study must be done to learn about customer preferences and interests. The task of developing a new product shouldn't begin till after that. To create a new product that meets the needs of the target market, some crucial steps must be taken. Below is a presentation of that

• Idea generation: Idea generation is the process of imagining new products. The idea can be used to improve the new product's quality, features, and utility. The process of creating new items begins with concept generation. For any firm, idea generation becomes essential. if it is to be successful in producing ideas for new products. Every scenario should be carefully examined, and if there are several potential solutions, the best one should be chosen. Such differentiation ideas can be gathered from a variety of sources. Two types of sources can be distinguished.
  • Internal sources: Sources that stay under the company's control are referred to as internal sources. Specifically, the planning department, managers, engineers, and broad of directors.
  • External sources: Business organizations might gather concepts from outside sources. Customers, suppliers, universities, and other outside sources are examples. It is equally important to develop ideas by gathering inspiration from outside sources.
• Idea screening:When creating new items, ideas are gathered from a variety of sources. This phase is one of evaluation. The ideas gathered should be assessed in light of the company's goals, technology, capacity, and resources, among other factors. A group of people can be charged with the duty of evaluating and choosing the best suggestion. The concepts can often be divided into three groups by screening. Those are
  • Important concepts: Such concepts should be accurately and carefully assessed because they will become quite essential.
  • Ideas on the margins: These concepts could be beneficial to the business in the future. They should therefore be kept in storage for the future.
  • Ideas should be rejected if they cannot possibly benefit the company. Such concepts should be disregarded.
• Business analysis:The organization needs to gather a lot of data from the market for analysis. Only after conducting thorough investigation and analysis can this be accomplished and valuable business opportunities found. Business analysis refers to this type of analysis. By doing this, it is ensured that a product will be marketable or not. The knowledge of potential future economic gains is also provided by this examination. The following are the main factors that each firm's analyst pays attention to.
  Characteristics of the product
  • The market is competitive.
  • anticipated profitability and return on investment
  • approximate price
• Product development: At this point, the new product's design, features, and sample are ready. The process of choosing the manufacturer of the product places attention on factors like size, shape, weight, materials, performance, etc. Important decisions regarding the brand, name, packaging, model, pricing, promotion mix, distribution, market scenario, etc. should be made while designing a new product. Technical and laboratory testing should be done once the product model has been created to assess whether it is preferable to make the new goods in quality or not.
• Test marketing: Market testing is the process of supplying a new product to a certain market to determine its objectivity. Testing of this kind is carried out specifically for measurement. acquiring clients' unambiguous reactions and having the capacity for understanding. Only a specific set amount should be generated and supplied for this purpose to the designated geographic locations. Test marketing can be used to understand information about the pricing, quality, promotion, distribution channel, and other important issues. Now, a choice might be made on whether to begin. Depending on the need, mass produce or change the product.
• Commercialization: Following test marketing, the new product is distributed throughout several regions. The development of the product has reached this stage. Mass manufacturing is currently being developed, as are marketing plans. The new product is really supplied to various market segments for commercial reasons. At this point, it is important to pay close attention to market competitiveness, product, price, distribution method, sellers' access, etc. While commercialisation companies should focus more on the following.
  • Timing: When making any decision, time should be taken into consideration. According to the nature of the product, new products should be released on the market at the appropriate moment.
  • Place: The best alternative available in the area should be chosen. If the improper location is chosen, distribution costs increase and market competition becomes challenging.
  • Strategy: Studying the market's ability, capacity, and competitiveness is a good way to develop a strategy. To offer new products to the market in accordance with the same plan that can help new products hold the market, appropriate short-term strategy should be developed.

International Distribution Strategies

The locations of the production and sales centers change over time. To supply the clients with the production, distributors are required. Only when they are made available to the consumer does the production of commodities and services become worthwhile. Therefore, distribution refers to the operations carried out to offer the products to the target market as a whole. Distribution develops a product's utility, place utility, and ownership utility. As a result, physical distribution refers to the process of transporting finished commodities to the intended market. This comprises crucial operations like order scanning, warehouse management, stock control, and product management, among others.

A company's worldwide marketing mix, which consists of product, place, price, and promotion mix, must include distribution strategy. The right place is where the product is most in demand or where customers find it most convenient to buy it is the emphasis of the distribution strategy. It focuses on making the product accessible at the lowest possible cost and at the appropriate time and place. The firm's entrance strategy, which may include exporting, licensing, franchising, and other methods, determines how the product is distributed to customers.

Considerations for developing international distribution strategy

• Retail concentration: There are two types of retail systems: concentrated and fragmented. A concentrated retail system has a small number of retailers. However, a fragmented retail system is one that has a lot of retailers. Concentration strategy: A concentrated retail system is appropriate when there are few customers or when customers are localized in a small area. Additionally, a fragmented retail system is appropriate for a fragmented approach if there are many purchasers spread out over a big area.
• Channel length: The number of intermediaries a product passes through before it reaches the final consumer is referred to as the channel length. In contrast to domestic business, the channel is typically longer in foreign business. While concentrated retail systems have narrow channel lengths, fragmented retail systems have long channels of distribution. The length of the channel is also determined by the nature of the commodities. However, in the current environment, the internet has contributed to shorter channel lengths.