Aeryn Newman
Unit 3 P1 2 M1 D1
Task 1A
Product development is the creation of products new features or modifications of features from
existing products that offer new and different benefits to the consumer. Companies do product
development due to product review and market research and combing the two findings to create a
new and improved product. This can also help the company develop and grow if customers and
consumers prefer the developed products. However, the company can set unrealistic expectations
for the product development, which could mean they think the customers would want one product
but want a different one. The company can also make mistakes with the process whilst making the
product. Therefore, they would have to take the product off the market and be resold once they’ve
changed what consumers and customers didn’t like.
Diversification is a strategy that completes the company’s portfolio by inputting their products,
serveries, location, customers and market. This can help the company go into a new part of a
market, or even go into a market that hasn’t been fully developed yet. The market can’t be one that
the company is already in or linked to. Advantages are that it can help expand the business so it can
satisfy a wider audience. It can also be used for an effective path of growth because they can
increase stock and variety keeping customers and consumers happy.
Ansoff Matrix suggests the growth of a business depending on weather it’s a new or existing market.
The advantages of this is that it can show what products the company prepares to bring in based
around their existing products. This means they can show how they want to improve their business
based around the customer and consumer wants and needs. Also, they can show the growth on the
business and how they’ve gained a profit to develop original products and create new types of
products. However, it is long winded and complexed so it can be time consuming especially when
designing their new concepts. This means the images/ideas may only be rough ideas. Also, for
people who haven’t seen this before may not understand what is going on and can easily get
confused. Therefore, they may not understand what the company is trying to sell.
Relationship marketing is the strategy desired to build strong and long-lasting customer
relationships with the brand. By this, companies would want repetitive sales and more customers
because of keeping good relationships with other customers. Advantages of this is you can get
honest feedback from consumers and customers face to face which means they know personally
from the consumers, customers or potential customers what they think of their products and what
they could do to improve their products. They also get to talk to customers and let them in on some
new products they are doing which makes them prepared to try the new products. Although, it is
time consuming and costly to go into towns and ask people about their opinions. Also, companies
may go out to the place when its mainly older people who may not be interested about that
company.
Brand Extension is the way a company’s launches a new product by using an existing name to
promote a new product in a new section. When a company uses brand extension, they hope to bring
in new customers and keep existing. The advantages of brand extensions are that it can increase the
brand image as it shows the company is capable of adapting to the customers wants and need, also
by this, it increases the profit because you will intrigue new customers. However, the company can
fail if there is no competition for the product it wants to create. It can also get back lash if they don’t
listen to the wants and needs of the customers.
Branding and brand building are the image the consumer gets of a specific product or service by
identifying a logo or slogan. Companies can enhance their brands equity by advertising campaigns.
, Aeryn Newman
Unit 3 P1 2 M1 D1
Also, by sponsoring sports and sports clubs. Advantages of this are the customers will become loyal
as they know to look out for the classic colours or they will see the products and know the slogan
and what they’re about. They also can build a successful branding campaign the more customers and
consumers they have. However, this can be difficult to maintain the brad the company have made as
if you frequently change the ideas or if they are unmemorable. Also, this can be pricey and time
consuming as you have to design the logo and make a slogan and then get at least the image on ever
box and bottle/can.
Positioning is the attempt to change the consumers view of a specific brand or product compared to
their competitors’ brand and product. By doing this they can gain customer loyalty. Advantages of
this is that they can bring in new products keeping the customers in their business and it is
sustainable because they can use the same techniques on different products. However, using this,
you can have high competition because competition can use the same techniques as you, as well,
the consumers may also be using a competitor and may be unwilling to change.
Coca Cola Apple
Growth Product development Product Development
Strategi Coca-Cola did this by making full fat Coca-Cola Firstly, Apple look at all products made under that
es then making Diet Coca-Cola then finally making category, e.g. if they were looking at Macs, they
Coca-Cola zero. The good things about this is would look from the first Mac made in 1984 to the
that it can attract new consumers and most recent in 2015. Then the design team gets
customers due to the wide variety of drinks that separated from the larger company to design the
can be drank whether you don’t mind drinking a product whilst constantly making reports. Whilst
drink full of sugar or would rather be healthy the design process is going on, every Monday the
and keep very little sugar and sweaters. Executives would have a meeting about the
products in the design phase. If they don’t speak
Diversification about one of the products that would be a priority
Coca-Cola did this when they took ownership of to speak about in the next meeting. Once this
Innocent Smoothies and created Fanta. Coca- process is done, the EPM Mafia (Engineering
Cola is mainly known for Coke, however, not Program managers and global supplier mangers) to
many people realise they own multiple different make a prototype. The prototype then gets tested
brands of fizzy drinks, sports drinks and other for 4-6 weeks and reviewed. They remake the
soft drinks. product and that gets tested under high security.
Once the product has passed it gets put on sale.
Ansoff’s Matrix www.interaction-design.org
It could show how Coca-Cola could plan to
develop its own products. Here is an example:
The sale of more and more iPhones in the existing
markets demonstrates the application of this
strategy. The advantages of this is that it can show
what products the company prepares to bring in
based around their existing products.
Ansoff’s matrix
Market Development:
Apple has continually developing its presence
Related diversification is a product related to globally.
the business in Coca-Cola’s case that could be Product development:
introducing a new product e.g. a new brand of Continued to development new products and
water or a new type of Smart water. services such as iPhone, iPad, Apple Watch, Apple
Unrelated diversification is products not TV, home pod iOS macOS, iCloud. ECT
Unit 3 P1 2 M1 D1
Task 1A
Product development is the creation of products new features or modifications of features from
existing products that offer new and different benefits to the consumer. Companies do product
development due to product review and market research and combing the two findings to create a
new and improved product. This can also help the company develop and grow if customers and
consumers prefer the developed products. However, the company can set unrealistic expectations
for the product development, which could mean they think the customers would want one product
but want a different one. The company can also make mistakes with the process whilst making the
product. Therefore, they would have to take the product off the market and be resold once they’ve
changed what consumers and customers didn’t like.
Diversification is a strategy that completes the company’s portfolio by inputting their products,
serveries, location, customers and market. This can help the company go into a new part of a
market, or even go into a market that hasn’t been fully developed yet. The market can’t be one that
the company is already in or linked to. Advantages are that it can help expand the business so it can
satisfy a wider audience. It can also be used for an effective path of growth because they can
increase stock and variety keeping customers and consumers happy.
Ansoff Matrix suggests the growth of a business depending on weather it’s a new or existing market.
The advantages of this is that it can show what products the company prepares to bring in based
around their existing products. This means they can show how they want to improve their business
based around the customer and consumer wants and needs. Also, they can show the growth on the
business and how they’ve gained a profit to develop original products and create new types of
products. However, it is long winded and complexed so it can be time consuming especially when
designing their new concepts. This means the images/ideas may only be rough ideas. Also, for
people who haven’t seen this before may not understand what is going on and can easily get
confused. Therefore, they may not understand what the company is trying to sell.
Relationship marketing is the strategy desired to build strong and long-lasting customer
relationships with the brand. By this, companies would want repetitive sales and more customers
because of keeping good relationships with other customers. Advantages of this is you can get
honest feedback from consumers and customers face to face which means they know personally
from the consumers, customers or potential customers what they think of their products and what
they could do to improve their products. They also get to talk to customers and let them in on some
new products they are doing which makes them prepared to try the new products. Although, it is
time consuming and costly to go into towns and ask people about their opinions. Also, companies
may go out to the place when its mainly older people who may not be interested about that
company.
Brand Extension is the way a company’s launches a new product by using an existing name to
promote a new product in a new section. When a company uses brand extension, they hope to bring
in new customers and keep existing. The advantages of brand extensions are that it can increase the
brand image as it shows the company is capable of adapting to the customers wants and need, also
by this, it increases the profit because you will intrigue new customers. However, the company can
fail if there is no competition for the product it wants to create. It can also get back lash if they don’t
listen to the wants and needs of the customers.
Branding and brand building are the image the consumer gets of a specific product or service by
identifying a logo or slogan. Companies can enhance their brands equity by advertising campaigns.
, Aeryn Newman
Unit 3 P1 2 M1 D1
Also, by sponsoring sports and sports clubs. Advantages of this are the customers will become loyal
as they know to look out for the classic colours or they will see the products and know the slogan
and what they’re about. They also can build a successful branding campaign the more customers and
consumers they have. However, this can be difficult to maintain the brad the company have made as
if you frequently change the ideas or if they are unmemorable. Also, this can be pricey and time
consuming as you have to design the logo and make a slogan and then get at least the image on ever
box and bottle/can.
Positioning is the attempt to change the consumers view of a specific brand or product compared to
their competitors’ brand and product. By doing this they can gain customer loyalty. Advantages of
this is that they can bring in new products keeping the customers in their business and it is
sustainable because they can use the same techniques on different products. However, using this,
you can have high competition because competition can use the same techniques as you, as well,
the consumers may also be using a competitor and may be unwilling to change.
Coca Cola Apple
Growth Product development Product Development
Strategi Coca-Cola did this by making full fat Coca-Cola Firstly, Apple look at all products made under that
es then making Diet Coca-Cola then finally making category, e.g. if they were looking at Macs, they
Coca-Cola zero. The good things about this is would look from the first Mac made in 1984 to the
that it can attract new consumers and most recent in 2015. Then the design team gets
customers due to the wide variety of drinks that separated from the larger company to design the
can be drank whether you don’t mind drinking a product whilst constantly making reports. Whilst
drink full of sugar or would rather be healthy the design process is going on, every Monday the
and keep very little sugar and sweaters. Executives would have a meeting about the
products in the design phase. If they don’t speak
Diversification about one of the products that would be a priority
Coca-Cola did this when they took ownership of to speak about in the next meeting. Once this
Innocent Smoothies and created Fanta. Coca- process is done, the EPM Mafia (Engineering
Cola is mainly known for Coke, however, not Program managers and global supplier mangers) to
many people realise they own multiple different make a prototype. The prototype then gets tested
brands of fizzy drinks, sports drinks and other for 4-6 weeks and reviewed. They remake the
soft drinks. product and that gets tested under high security.
Once the product has passed it gets put on sale.
Ansoff’s Matrix www.interaction-design.org
It could show how Coca-Cola could plan to
develop its own products. Here is an example:
The sale of more and more iPhones in the existing
markets demonstrates the application of this
strategy. The advantages of this is that it can show
what products the company prepares to bring in
based around their existing products.
Ansoff’s matrix
Market Development:
Apple has continually developing its presence
Related diversification is a product related to globally.
the business in Coca-Cola’s case that could be Product development:
introducing a new product e.g. a new brand of Continued to development new products and
water or a new type of Smart water. services such as iPhone, iPad, Apple Watch, Apple
Unrelated diversification is products not TV, home pod iOS macOS, iCloud. ECT
