New production development - Veggie Burger
The intended business entity will involve the main product as the veggie burger as a hamburger-style being distributed to the consumers from the main organization. The development veggie burger came up as an indeed due to the high need that has developed by the people who live around the organization. Due to the high need of the main product, it is least expected that the organization will have to deal with nay sorts of competition from other organization at its toddler stage, limiting one of the factors that may create a challenging environment for its growth and development (Annacchino, 2007). Therefore, the immediate residence of the organization presents a high need for the product giving it a ready market for sell.
A clear market research and analysis has been conducted on the consumers who are expected to use the main product veggie burger. The market research done has clearly done market segmentation and the specific market segment for the main product selected. The market segment in question for the product has been looked upon as the main consumers who are intended to help with the development of the new product. The market segment will study the consumers due ascertain their flow and patterns of main purchases for the new product in order to develop a plan of the intended product. Planning and budgeting will be done to help the organization to set strategies that will help the product grow at a faster rate in order to accrue more profits within a short period of time (Annacchino, 2007).
Looking at the nature of the product, it will offer something unique to the community that stays around. Therefore, it is expected that the new product will sell the highest compared to other related ones. Marketing will be done through promotion programs that will encourage consumers to use the new product as one of the ways to make them aware of the new development within the organization. It is therefore, expected that the new product will sell highly due to its nature and the surrounding community who have shown passion and offer a ready market for the given product (Brethauer, 2002).
Looking at the investment of the new product, having good ties with the manufacturing process that has minimized all the expenses to the lowest level, a degree of freedom is offered when it comes to the pricing decisions. The decision will allow the organization to make a choice of what could be the price of the product basing on other organizations that could be available to offer competition and the desired profit targets of the organization. The pricing of the new product will allow the company to set a figure that will enable them to hit a certain mark of money making the entity a profitable one. It will enable the organization to consider all the factors for the consumers as part of them (Feldstein, 2001). They will address the issue of profits with a lot of emphasis on the nature of their consumers in order to avoid overpricing of the product, a factor that could lead to the loss of customers from the organization.
There are initial costs that expected to be incurred with the organization of interest. The costs will range from obtaining the specific ingredients that will be expected to create the main product. On the other hand, there will be processing costs in order to bring the ingredients together to develop the final product that will be available to the consumers. The company will begin with a low scale investment to do the preliminary test and determine how the consumers will respond to the given product.
The initial costs of ingredients are expected to start off with $5000 where most of the products will be processed. The number of veggie burger obtained from that and the response of consumers towards the product will be a clear picture of how much to make on a single day. The initial stage will involve outsourcing from external companies in terms of the technology and the machinery that will be needed in the processing of the final product until the time the company will gain enough stability to have their own processing and technological system (In Kahn, In Kay, In Slotegraaf, In Uban, & Product Development & Management Association,, 2013).
Looking at mass production, the company looks at producing more due to the ready market that offers them a platform for continuously conducting business. The number of products that will be produced is expected to grow with respect to the number of consumers who will show interest. Therefore, customer retention moves will be put in place to ensure that all the consumers who visit the organization are retained and more of them attracted, The Company will have specific interest in developing strategic moves for gaining and sustaining competitive advantage.
There are expected costs that will be initially incurred by the company when it comes to its launching, advertising, and distribution. The launching process is expected to cost approximately $5000 an event will be held as part of the promotion activity of the product. The launching process will involve making the immediate community and the potential consumers aware of the kickoff of the business. It will involve the initial campaigns to advocate the product to the people as well as offers that will be made available on the same day (Loch & Kavadias, 2007). The organization will offer a small offer at the beginning to ensure that people are attracted to the product at a faster rate. It will also allow the company to have the initial reactions from the consumers at the earliest convenience and from it make necessary adjustments where there could be complains in order to avoid retraction from clients.
The advertising process is budgeted at around $2000 where the main idea for the organization will be the social media. The social media will be used as the main factor for making public advertisements of the organization so that the gospel is spread at a much faster rate. The business will also have an official web page that will enable people to interact with it online and make the necessary inquiries from there without having to visit the main location. Several distribution methods will be employed to enable the organization capture all clients. Door delivery methods will be included to enable clients to make orders online from their homes for the product to be delivered at their doorstep (Ragatz, Handfield, & Scannell, 1997).
All the UK business licensing requirements will be addressed by the organization. The business license will be obtained and the current UK food legislation standards met by the product to avoid issues with the government (Trott, 2008,). In general, the organization intends to grow its business and make their own processing plant that will enable them to cover a wide range of consumers in the United Kingdom.
References
Annacchino, M. A. 2003. New product development: From initial idea to product management. Amsterdam: Butterworth-Heinemann.
Annacchino, M. A. 2007. The pursuit of new product development: The business development process. Amsterdam: Butterworth-Heinemann.
Brethauer, D. M. 2002. New product development and delivery: Ensuring successful products through integrated process management. New York: AMACOM.
Feldstein, M. 2001. In defense of online learning (and veggie burgers). Elearn. doi:10.1145/566891.566893
In Kahn, K. B., In Kay, S. E., In Slotegraaf, R., In Uban, S., & Product Development & Management Association,. 2013. The PDMA handbook of new product development. Hoboken, NJ: Wiley.
Loch, C., & Kavadias, S. 2007. Handbook of new product development management. Amsterdam: Butterworth-Heinemann.
Ragatz, G. L., Handfield, R. B., & Scannell, T. V. 1997. Success factors for integrating suppliers into new product development. Journal of Product Innovation Management. doi:10.1016/S0737-6782(97)00007-6
Sausage, I., Dip, F., Melt, P., Panang, B., Caesar, S., Bar, R., & Rice, J. (0). Veggie Burgers Veggie Burgers Veggie Burgers Veggie Burgers Veggie Burgers Veggie Burgers Veggie Burgers.
Trott, P. 2008. Innovation management and new product development. Harlow, England: Financial Times/Prentice Hall.
Zirger, B. J., & Maidique, M. A. (1990). A Model of New Product Development: An Empirical Test. Management Science. doi:10.1287/mnsc.36.7.867
