New Product Development

Table Of Content

Aim......................................................................................................................................2
Objectives............................................................................................................................3
Executive Summary.............................................................................................................4
Introduction..........................................................................................................................6
Background of the study....................................................................................................11
Review of the Literature....................................................................................................13
Customer Involvement...................................................................................................13
New Product Development............................................................................................15
Integration of Customers with New Product Development...........................................19
Rationale............................................................................................................................25
ANALYSIS........................................................................................................................26
Research Methodology..................................................................................................26
Why Research Method Is Important?............................................................................34
DATA ANALYSIS AND INTERPRETATION...............................................................37
Effective Customer Involvement with New Product Development..................................43
Recommendations..............................................................................................................46
Conclusion.........................................................................................................................47
References..........................................................................................................................48
ANNEXURE 1...................................................................................................................52
ANNEXURE 2...................................................................................................................58
Introduction........................................................................................................................64
Recollection of experiences...............................................................................................66
Group Dynamics................................................................................................................68
Personal Feelings And Learning Experience.....................................................................70
Lessons For Future Projects...............................................................................................71
Conclusion.........................................................................................................................72

Aim
Aim of the paper is to bring forward the effectiveness on the product design and
development when customers are involved in the process. Customers are
regarded as the king of the market. It is very important to understand their need
and demands so that the right kind of product can be designed. Without need, no
product can survive in market.

Objectives

The objective of the paper is to evaluate the importance of the customers in the
designing phase of the new product. The effect of the customer requirement and
demands on the new product development process has to be analyzed deeply
and this is what this paper will try and contribute to. Different literature works on
the field will be put forward for the help of the research and also to bring out
some required and relevant data from each source in brief. Through this paper a
deep study will be performed on the topic with research methodology to gain
maximum information on the effect of customers on the design and development
of new product. Recommendations and conclusion is will be drafted in the end of
the paper for people who are involved in the process.
The quality of the paper involves:
• Knowing the New Product Development Process
• Knowing the PM Methods used during NPD and
• Deriving the time of involvement of PM role i.e., starting and ending
• Comparing the results with that of the earlier one from the literature
reviews
Executive Summary

As a summary of what this paper will entail, there is an introduction section that
gives an outline of what new product development means and how customer
involvement can help in achieving success with their new products from the best
strategies. The background will give the reasons why the researcher thinks this
is an important area for research and why there is need to add to the body of
knowledge when it comes to effective customer involvement with New product
Design and development.

The researcher will also try to examine as many of the available literature of the
topic of interests and all of these information will be found under the literature
review section. These literature sources will be beneficial in further knowledge
on the subject of the paper. These sources can be used for future reference on
the topic. Research presented on this paper would be based on case study
findings which will be analyzed and presented on the findings section. This is a
multi-paradigm research and will therefore make use of the multi-paradigm
principles.

This paper will add to the social environment as an educational source and will
also it will contribute to the organizational environmental and behavioral
practices. The paper aims to bring in some changes that are helpful for the
organization. The organization’s managers, especially product manager will
benefit a lot from this paper. Through this paper they will not only understand
the importance of customers with various stages of product development but
they will also learn how to implement it and how to make their involvement
strategies effective. There are various literature resources that will be discussed
in the paper that will put more light on the customer involvement and new
product development separately and also some of the resources of work on
integration of the both will be discussed. All this is for making the managers and
the organization understand the benefits of the integration process.
Apart from the professionals, this will also act as a useful source of study for the
students who are studying management. Better understanding of the
management and management skills in the field of new product design,
development, management etc. is being put forward through this paper. This
paper will contain all that they will need to have a successful system where the
new product development involves market analysis and will help in attaining the
goals and the objectives through the product.

Management can gain a lot from such a study as it presents the benefits of
using multi-paradigms for effective product management. There is also a
methodology section which will describe how the researcher intends to carry out
this research. The research will be in a systematic manner so that each step is
carefully understood for in depth understanding of significance of the integration
of new product development with customer involvement. The benefits of
exploring both paradigms by the management come as the last section in
concluding this research.

It has been tried best to complete the paper with all perspective so that the aim
and the purpose is solved in best possible way.
Introduction
Relationship marketing with the customers has many phases. It helps in building
long term relationships with the customers and extends interaction and
communication beyond sales, promotion and advertising. It helps in nurturing the
customers with respect to the organization for purpose of sales, clients and
loyalty. (Holmes, 1999) With advancement in technology and websites and other
internet channels, customer relationship marketing has gone to different level.
The interaction and communication because of this channel has not only become
easy but also organizations can now have effective management with some
useful information and suggestions. During the whole process of new product
development, there is involvement of customers and requirement of customer’s
ideas and review at different stages. Adaptation of relationship marketing is very
important here with new product development because at it allows direct
response marketing campaigns that emphasize the retention & satisfaction of
customers rather than dominating the focus on the sales figures and strategies.
There have been arguments by different researchers where some say that
customer involvement will play a fundamental role in generation of ideas for the
development of the new product while others say that it will only lead to ideas
and will bring across suggestions that are unimaginative, impractical and will
result in only imitative products. However, it is clear now that the utility of the
customers for the purpose of generating ideas depends on the maturity and the
characteristics of the targeted customers and also the technology and also the
alignment of the product line along the customer base has some great effect.
(Christensen, 1997; Leonard-Barton, 1995) When all these dimensions are really
high, what we have in the end is a product that has excellent innovation, high
dimensions and good quality. However, if these dimensions are low due to some
reasons, the value of the resources is limited with respect to the customers.
However, it has been seen that when there have been not high, rather only
promising resources, customer involvement has played a passive role and what
is achieved in the end is an acceptable product. Customers rarely give in the
ideas and suggestions for the new product till the organizations approach them
with structured mechanism of inquiry. This helps in rich and frequent contribution
from consume side. Technology is the sector where the customers have
maximum involvement in the new product development. The issues and
problems faced by the users require solutions and these solutions lead to
generation of new product ideas. (Von Hippel, 1988).
Customers can also play a valuable role of co-creators with the new product.
This will involve participation of customers from activities like product design to
product development. Schneider and Bowen (1995) state that promising
incentives for the customers can motivate them to come forward and participate
in the development of new product that has been targeted for the customers with
same mind-set or group. This would further increase control, more opportunities
and discretion in order to make choices and will result in even more product
customization. There are a lot many things a customer can contribute towards
the design of the product. However, it is more practical with industrial products
rather than consumer products.
Customers are important even during product support and testing. Testing of new
products with the customers is nothing that is recent. This has been ever since
the new products innovations have been made. This has been used in all kinds
of industries or sectors that bring out products for customers. This facilitates in
reducing the cost of redesign as customers who are supposed to use it can
easily detect faults. The more the number and type of people involved, more
would the organization be aware of the kind and level of usage by the customers.
This will further deepen the understanding of the product from the side of the
firm. (Nonaka, Takeuchi, 1995)

The tough competition and more open market have resurrected the interest of
practitioners and academic scholars towards new product development that
involves interaction and review from customers at each phase. There has been a
lot of development in both the fields; however, not much is available on the
interaction of the customers during development of new product which would be
helpful in successful development of the project. There are some of the topics
that have to be focused on and they are given below: (Nandler, 1997)
1. intensity of interaction of customer in each phase or stage of development
of new product
2. the characteristics of the customers that are involved

New Product Development is an essential and important thing for all kinds of
businesses as the consumers demand for the Newest and the best things, thus
creating many new projects.
Businesses develop new products all the time but what determines how the
products perform is the involved and demand from the customer side for them.
New product development (NPD) does not just entail creating a new product and
launching it into the market but involves a lot of research as well to identify
whether the consumers will find it useful. (Smith and Blanck, 2002)
The steps should be systematic for effective results. (Ulrich and Eppinger, 2004)

• The generation of the idea is the first phase. The idea has to be
evaluated and analyzed using SWOT analysis and opportunity analysis.
• Idea is screened to eliminate all those ideas that are not practice or
realistic and would waste a lot of resources if one tries to achieve them.
• The market analysis is done with the rough idea of the project. The
market scope, the customer requirement, etc. will define the success of the
product and therefore market study for the acceptance of the product is very
important. Customers and market are the ones that define the growth of any
product.(Mills, 1986)
• The team of people assigned for the design of new product has to then
develop the concept and train the required people for the purpose.
• Next is to evaluate the business and its perspectives. The competition,
price, resources available, etc. have to be analyzed.
• Mock testing of the product with beta and market testing is done prior
the processing of the product to analyze the success rate of the product after
launch.
• The technical implementation of the product is tested and required
planning is done
• After technical implementation comes the turn of commercialization that
is launch, advertisement, etc.
• Competition, alternative products, etc. are evaluated to fix the price of
the product.

These are few phases of development of new product. However, most important
phase is which involves interaction with the potential customers. Various
interviews, market research, documentation has to be done in order to see the
demand and scope of the new product in market. The development is not
brought into practice till the design is approved by the customers. (Jay, Adam,
2000)
Tables below will a better picture of roles of customers in the development of
new product.
Table: Roles of Customers in NPD
Role of the NPD Phase Managerial Challenges/ Key Issues
customer
Resource Ideation  Customers as the source of
useful information for product
development
 Innovation from customers
 Requirement of various
incentives for the customers
 Infrastructure for purpose of
capturing the customer
knowledge and idea
 Different roles of current and
future customers
Co-creator Design &  Involvement with various design
Development and development tasks

 Nature of the product

development context i.e.
consumer or industrial

 Internal NPD team needs tighter

coupling

 Managing the uncertainties

 enhancing knowledge of the

customer in terms of technology
and product with the attendant of
the project

User Product testing  activities are time bound

and support  diversity in customers is must
 activities should be continuous
 infrastructure for supporting
interaction between customers
The table shows the role of the customer in different departments of the new
product development. There are various benefits that integration of the two
departments will help with and this paper will try to educate on them. The
competitive advantage that the customer involvement gives is crucial for the new
product. The commitment and loyalty comes when the product is designed with
customers as innovators. The cost of redesign, innovation team, etc. can be
saved using the customers for the purpose. (Alavi, 2000)The product is being
designed for their use and ease so it is must to know what are their expectations
and demands and where they need services of the product. The literature survey
has been done so that the advantages and significance of the both are further
clear.

Background of the study

What has been the main drive for the researcher to want to study this topic is
the fact that there are little or no literature resources on effective involvement of
customers with new product development phases and especially with regard to
new product design. There is need to link new product management to
customers which many managers have failed to do. The output of such an
approach is however limited although most managers seem to be content with
what they get (Cooper and Edgget, 2008). The disconnection between these
two paradigms even in academic work has contributed to such an approach
being taken by the decision makers. Fixing the lost link between the two is
important but there seems to be less literature on the issue. Some authors have
tried to come up with research but not so close as to the main topic of interest.
(Sproull, Kiesler, 1991)

One important purpose of integrating these two paradigms is improved and

more mature product designs to better meet customer needs, competitive price,
proper timing and minimal disruptive design changes (Kenneth Crow, 1996).
Managing a project well is always a core component of the business strategy
and the NPD should seek to go hand in hand with the business strategy
approach and customer voice and demand. Managers should know that the
products they intend to present into the market will have to pass through the
developing a project plan phase which will include the goals, objectives and
resource requirement such as time and money with targeted audience.
Basically, this is what NPD also entails hence the two cannot be set apart when
coming up with new products. (Morris)

Taking the matter further in depth, NPD and consumers will be working hand in
hand in globalize organizations these days. The development of any new
product is not an easy task. The product has to pass through various
departments and phases. But before its introduction to the market, it has to be
designed and that is a phase that is completely dependent on customers in
market.(Barnard, Wallace, 1998)

When managers take into consideration all the important aspect of product
formation, there is bound to be success of not just the product but the company
as. (Koen, 2004)The study therefore hopes that at the end, the findings will
have made an effort towards trying to fill the gap that has been created over a
long period of time between the two phases.
Review of the Literature

For the purpose of understanding all the areas that the study seeks to examine,
the literature review section will be divided into three parts. For the first part, you
can find all that the researcher considers important for this particular study in
terms of effective customer involvement with the product design and
development. Most of the literature on new product development will be
handled second as a way of introducing the important aspects of the study and
here, the research will try to examine what is the main area of concern for most
authors of this topic. The purpose of this section is to establish whether there is
any research that has been done on integrating the two and what issues have
been covered. Therefore, the last section will be related to the integration of the
customer with the new product development.

 Customer Involvement

A strategy that doesn’t explicitly speak about the customers and competitive
environment should be prepared for the failure as the sustained competitive and
customer conscious is missing in the organization. These are the words said by
Regis McKenna in his book called Relationship Marketing: For Age of the
Customers. The book is old, written in 1970s-1980s. However, the book has all
the essence that will make it survive and useful for today’s market. It was written
during the phase when companies started experimenting with the launch of new
products. Each organization then thrived for recognition and leadership. The
same thing lies in today’s market as well, though leadership is more important
now. The book aptly discusses about the role of customers in rise and fall of the
organization. It has been everywhere said that the market starts with the
customers and each topic has been discussed around the same.

The value of customer relationship management in the marketplace cannot be

underestimated. Most organizations just see CRM as a technological and
business channel. However, according to Fransis Buttle’s Customer
Relationship Management, CRM is the first business strategy for any
organization that is executed using apt business methodologies and
technologies in order to achieve goals of the organization. Gone are those days
when customers were important only for the purpose of testing of the product.
Here is time when customers can direct, sustain, resuscitate and implore the
enterprise. Today, the organizations market the product that the customers
intent to have. Moreover, customers are no longer dependent on one
organization, neither are they dependent on the firm for their product
information. In order to sustain the competition and to gain loyalty, it is important
to involve customers in various paradigms of the organization.

There are few points discussed in the New Economy: Will You Know Were Your
Customers Are? By Eillot Etthenberg that can be helpful for our study for
understanding the significance of the customers for any organization. Firstly it
discusses about the brand equity. It is the customers who make a brand and
then they are also the ones who are responsible for the failure of the same
brand. Customers are not happy till they are not getting what they want and
what they expect. They have power to make or destroy. The life of the
organization can be said to be in hands of the customers. Second, the writers
say that it makes it important to weigh the market and provide customers with
the products and services they demand in best possible way. Third thing is that
customization of the product has to be done in order to help the customers with
the solutions to the various problems. The author is aware of the importance of
the customers and their relation with the organization and the book is compiled
in order to put forward the same.

Some customers seem to be loyal to the brand just because they are habitual in
buying the same one. However this in no way means that they are committed to
the product or services. The day a new competitor comes in market offering
better products and services at lesser price, the customers will shift the loyalty
towards the same. Thus the brand will lose their share in the market. Jannie
Hofmeyr and Butch Rice bring about developed and analyzed research through
their book Commitment-Med Market the keys for the organization that can bring
commitment from the customer’s mind. The first and the foremost thing
discussed here is involvement of the customers. The book supports certain
analysis with graphs and charts that give a better understanding on the level of
involvement of the customer within the organization. It states that customer
satisfaction is not only thing for sailing of the products in the market. The
involvement with them is equally important.

 New Product Development

New product development is undoubtedly one of the most important areas that
management has to handle. It is also a risky process which must be handled
with care. Most of the NPD failures arise from the fact that project managers
might have failed to consider the important processes. New products to some
extend determine the future of the company as a successful product will ensure
company growth. There is useful literature on the NPD processes and although
there have been changes over the years when it comes to the terms being
used; the processes remain practically the same. Developing new product
design strategies is something that cannot be ignored when it comes to
describing the process of NPD. Mario Vellandi’s New Product Design Strategy
identifies five primary design strategies which are the cost advantage, design
prominence, feature leadership, concentrated application and desirable
alternative.

Kenneth Crow’s A Strategic Approach to Product and Process Development

considers that successful product development requires fundamentally
approved approaches which are generally aimed at meeting customer needs
and responding to global competition. Preston G. Smith’s Change: Embrace It,
Don’t Deny It shows how change is inevitable in NPD and insists on the
importance of managers being capable of accommodating changes during the
process as this will help to reduce disruptions as much as possible. This is
because change can result in additional costs, time and sometimes poor
products being developed.

Lean, Rapid and Profitable New Product Development by Robert Cooper and
Scott Edgett teaches seven principles of successful new product development.
These principles are divided for various stages of development of the new
product. First three principles define the methods of gaining advantages in
competitive in initial production stages. Next two principles are for the
development and scope in market. Sixth principle is for maximizing the
productivity of the new product. The seventh and the last principle are dedicated
to the flexibility and adaptation of the new product development.

For turning the new ideas into profitable services and products, New Product
Development for Dummies can be referred to. The book has been written with
help of scholars in the field. It starts with the basics and deals with every issue
with new product development and has various secret tips for handling the risks
in the field. There are ten helpful ideas in the book that can help in testing the
success of the new product. The book can be useful for not only students but
also big and small organizations.

Ever wondered why some of the products are immensely successful while
others can’t even make it to the mark? This is the question that has been tried
to answer by Marty Cagan in his book Inspired: How to Create product
Consumers love. Some of the other questions that have been answered in the
book that circle around the above question are:
• How is the discussion about the product made and which product
opportunity to pursue?
• How to evaluate that the product that has been innovated and that has been
asked to build will be successful in the market?
• How is the identification about minimum possible new product made?
• How to evaluate and manage demand, rather conflicting demands of market,
customers, sales, engineers, stakeholders, etc.?
• How is the agile method adapted for commercial product environment?
There are hundreds of such common and uncommon questions answered by
Cagan in his book. He uses lessons he learned, practices, experiments, case
studies, techniques etc. that can take the product towards the path of the
success. The ways that the best of the companies adopt so that their products
are successful

Apart from the books, there are other helpful sources of study as well.

New Product Development- Body of Knowledge is a journal written for DRM

Associates and PD Trak solutions. It is one very helpful literature work written
on the topic New Product Development. It contains systematic steps and
process to adopt in order to have a successful and acceptable product in the
market. The development of the product is not an easy process and involves not
only various departments and employees but also there is a need to follow
various processes at different stages of development. This journal deals with
these procedures and provides helpful tips on the various adopted methods. It
starts from the process of discussing the idea of the new product and follows
right till the time when the product has been introduced in the market. If this
journal is used, it can facilitate our paper and provides tips on integration of New
Product Development with customer involvement.

An article by Vadiim Kotelnikov, published as new Product Development-

Driving Growth via Product Innovation contains a lot of useful information on the
topic. It contains the best of the information from various books and other
literature resources written on the topic New Product Development. There is
description about various new product innovation metrics and tools in the article.
Steve Job’s Twelve Rules of Success have been given. All 12 rules are
explained in brief. There are four entrepreneurial strategies for the organizations
that have been appropriately discussed in the article. There are 9 truths about
Art of Innovation that are of special mention. Some of the dos and don’ts have
been given that are useful for any organization and will lead them to the path of
success. Every product has to be launched in market; there are market leaders
for the purpose of introducing the product in the market. The article contains 4
strategies that can be adopted by market leaders for achieving applause after
introduction of the product in market. All the information has been explained
with descriptive graphs and figures.

The firm Tata Consultancy Services has its own journal that has various
methods adopted by them for development of new product and its successful
introduction in the market. There are some steps that Tata Consultancy
Services takes special care of. Ways of meeting challenges, customer
satisfaction, product innovation, design, launch, etc. all have been mentioned in
the journal. Tata Consultancy Services is an international firm that is doing a
very successful business across the world. The guidance from such and
organization is of real help as it contains more practical approach towards the
process.

Another Journal on New Product Development and Introduction by SAP is

devoted to introduction of development of the new product in market. It informs
about the significance of undertaking right methods and procedures while
developing a new product. There are various methods of analysis in the journal
that can help to evaluate the success of the new product to be launched even
before the production is complete.

Learning Marketing is an internet website that is completely committed to

various departments and procedures of marketing. The website is not only
helpful for the students, but many small and big organizations have been using
some of the given information and lessons on the website. One such topic
discussed is New Product Development. According to the website there are 8
stages in new product development vis-à-vis Idea Generation, Idea screening,
concept development and training, market strategy and development, business
analysis, product development, test marketing and finally commercialization. All
these stages have been discussed in detail.

 Integration of Customers with New Product Development

According to T.N. Chhabbra’s Management and Organizational Behavior,
customer services have four major characteristics that can affect the design
of the market and the product in lot many ways: Intangibility, Inseparability,
Variability and Perish ability. Customers form their expectations about the
product on the basis of the messages and claims sent out by the sellers
and other communicating sources. The amount of dissatisfaction will
depend on the difference between the expectation and performance.
Therefore, in order to understand the expectations of the consumers in bets
possible way, it is important for the organization to involve customers in the
designing phase of the new product. Cognitive dissonance theory says that
the amount of dissatisfaction will be less because customer will try to
reduce the dissonance by imputing higher performance. Some
organizations even understand involvement levels so that the customers
will experience higher than expected satisfaction from the product.
Customer behavior is an interdisciplinary field of study that focuses on how
and why customers behave as they do. Its objective is to understand,
explain, and predict customer actions. The study of customer behavior is
the study of now individuals makes decisions to spend their available
resources. This will be further well understood with research involving
customers. It includes the study of what the customers buy, why they buy it
and how often they buy it, where they buy it and how often they buy it
although this text focus on how and why customers make decisions to buy
goods and services, customers make decisions to buy goods and service,
customer's behavior. Research also considers the uses customer make of
the goods they buy and their evaluations of these goods after use. The
study of customer behavior holds great interest for the customers also. The
customers need insight into their own consumption related decisions what
is buy, why to buy and how to buy. Involvement in the designing process
will increase the trust and faith with biasness of the customer towards the
organization. The study of customer behavior makes them aware of that
product or services. It is important for the markets to recognize why and
 how individuals make their consumption decisions so that we make better
strategic decisions. Without doubt, marketers who understand customer
behavior have a great competitive advantage in the market place. The task
of understanding customer buying behavior is enormously complex. It
involves 4 questions:-
1. What are the major factors that can affect the buying decision of the
customer?
2. What are the features customers are looking in the new product?
3. What is the role played by the new product in their life and lifestyle?
4. What is the buying process the buyer will go through when the product is
launched in the market?

Involving customers in new series development by Bo and Anders et al.,

discusses involvement of the customers with new product and series. According
to the writers, customers are co-innovators. It is their ideas that are reframed
and used for the purpose of designing the product. Involving the customers with
the new product designing phase is beneficial as they give innovative ideas to
the organization according to their needs and demands. Customers can think
and give ideas that are not imaginable for the developers. Like in technological
products, the problems faced by the customers ask for rectification and solution,
the developers bring in the solution which gives them the idea of new product
that is free of such problems or errors. Customers are involved in the designing
phase of each organization, be it directly or indirectly. The experiences of the
customers with previous products or demand for certain features are what give
birth to a new one. Thus the writers say that for better understanding it is
important that the customers are involved directly for the same.

Mark Gabbott and Gillian Hogg’s Consumer and Services is a book that has
been completely dedicated to the customers and their involvement with the
organization. There is dedicated chapter in the book about the customer
involvement in the development of the new product. The book says that the
customers are the must thing during the design phase of the new product.
Without involving customers new designs are not possible. It is the customers
who are the inspiration of the new product and without them it cannot be put into
development. Development of new product is possible only when the customers
have requirement or demand for the same and it is difficult analyze the same
without interaction with the consumers.

Involving customers in new series development by Bo and Anders et al.,

discusses involvement of the customers with new product and series. According
to the writers, customers are co-innovators. It is their ideas that are reframed
and used for the purpose of designing the product. Involving the customers with
the new product designing phase is beneficial as they give innovative ideas to
the organization according to their needs and demands.

Know Your Customers by Robert B. Woodruff and Sarah F. Gardial brings in

notice the new approach for customer value and satisfaction. Involving the
customers in the designing phase of developing products and services for them
will give the competitive advantage to the organization. The organization needs
to adopt various strategies for delivery of valuable services from the customers.
Customers open up the opportunities for the new product in market with their
ideas and suggestions. The outcomes of the competitive products or the previous
products from the customer is utmost important to analyze the features that
customers what the organization to service them with. The valuable information
while communicating with the customers helps in achieving their satisfaction and
commitment towards the new product. Customers are also involved in inspiring
business decisions related to the work.

Hawkins Consumer Behavior says that it is not possible to anticipate and react to
customers’ needs and desires without a complete understanding of consumer
behavior. Discovering customers’ needs is a complex process, but it can often be
accomplished by marketing research. Consumer Behavior is the study of
individuals, groups or organizations and the process they use to select, secure,
use and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society. Market
Analysis requires thorough understanding of the organization’s own capabilities,
the capabilities of current and future competitors, the consumption process of
potential customers, and the economic, physical, and technological environment
in which these elements will interact. A firm must fully understand its own ability
to meet customer needs. This involves evaluating all aspects of the firm,
including its financial condition, general managerial skills, production capabilities,
research and development capabilities, technological sophistication, reputation,
and marketing skills. Failure to adequately understand one’s own strengths can
cause serious problems. The deterioration of the physical environment has
produced not only consumer demand for environmentally sound product but also
government regulations affecting product design and manufacturing. Individuals
develop self-concepts and subsequent lifestyles based on a variety of internal
(mainly psychological and physical) and external (mainly sociological and
demographic) influences. These self-concepts and lifestyles produce needs and
desires, many of which require consumption decisions to satisfy. As individuals
encounter relevant situations, the consumer decision process is activated. This
process and the experiences and acquisitions it produces in turn influence the
consumers’ self- concept and lifestyle by affecting their internal and external
characteristics.

Breakthrough Zone by Roy Langmaid and Mac Andrews educates on the

strategies for harnessing innovations of the customers for business strategies
and development of new products. It takes to a step by step journey to the
readers and employers to the use of innovation by the customers to help and
evolve new products within big organizations. the end results of the product are
met due to these strategies securing the brand name, quality and services. There
are presented various tools in the book that will teach how to draw strategies,
execute them and benefit from them. How to train tem of people for the purpose
of interaction with the customers for specifications and details about the product
can be found in the book. Communication strategies, plan and its implementation
and all similar things can be studied through Breakthrough Zone. It is a complete
book for the purpose of study and research on the concerned topic of the paper,
i.e. the effective involvement of customers in development of new product.

In short, customer market is the ultimate market for which new products are
innovated, it consist of the whole population and it is important for the marketer to
research age distribution, family size, income, education levels, mobility patterns
and tastes. The customer market buys objects that can be classified according to
their tangibility and according to how the customers go about buying them. The
timing of customer purchases it’s influenced by family size, seasonal factors and
economic conditions. Various parties playing various roles influence the
purchase decision (Initiator, Influencer, decider, buyer, and user). Behaviors of
the customer in the market is of great importance to the manufactures,
distributors and small business etc. because it is this customer behavior and his
expenditure pattern helps them to exist and expand their business in the market.
The customers are the backbone of the market. Hence it is necessary to know
how the customers will respond to the different offers made by the producers. For
this the customer’s needs, desires and preference and income and expenditure.
Rationale

The influence of the customers or consumers on the market has increased by

manifolds. All this is because of the cut throat competition. Today, people have n
number of choices for every product available. Moreover, people have become
brand conscious now. The brand promises them quality and service. If something
of same or higher level is not delivered to them, they don’t consider the
organization or product. (Herriot, 2007) Therefore, before designing the product,
it is important that the view of the potential customers is taken. It gives an idea to
people that something of the kind is coming in market. To the researchers and
managers, it tells how much expectations people have from a particular kind of
product. This further helps in development of the product. New additions and
alterations can be made as per the requirement in the market. (Kambil, et. al.
1999)
ANALYSIS
Research Methodology

I. Introduction to marketing research

Marketing research is basically a systematic method of recording or gathering
and then analyzing the data on any issue of concern or study.
Marketing research is important phase of any paper in order to have in-depth
knowledge of the issue of concern. The research methodologies aids in
supporting the research with some kind of substantial data and findings that puts
more weight and effect on study done. (Mc Donald, Dubar, 2004)
Research methodology actually defines the various aspects related to any
research aimed to be performed. It talks about the activity that is required to be
researched, how it is planned to be researched to be the most effective, how it is
required to measure the progress of the research and what is required to achieve
the success.
The major steps involved in a research process are:

• Problem Definition: Identifying the problem that needs to be researched upon

• Development of an Approach to the Problem: which includes the formulation
of objective
• Research Design Formulation: research design is a framework or blueprint
that is designed for conducting the marketing research project.
• Fieldwork or data collection: which involves a field force or staff that operates
either in the field or for personal interviewing, or from office in case of telephonic
interview etc
• Data preparation and analysis: it includes editing, coding, transcription and
verification of data
• Report Preparation and presentation: this is the final step where the report is
prepared and presented to the concerned authority.
II. Defining the market research problem and developing an approach to
solve it:
Problem definition involves stating the general problem and identifying the
specific components of the marketing research problem (Malhotra, 2007).

Research Questions are refined statements related to the specific components of

the problem under study.

Hypothesis (H) is unproven statements or propositions which are about a factor

or phenomenon that is of interest to the researcher.

The purpose of the research is to find how helpful is integration of two

management departments i.e. Customer Relationship Management and New
Product Development. The research is to be made for finding what can be to
spread some more knowledge on the field and contribute to the issues.
Since the market search problem is defined above, now we need to develop a
market research question on the same.
Here the research question can be on the integration of the customers with new
product development.

RQ: How effective is integration of customer relationship management with new

product development?
The organization has to collect a certain set of data that can be used for finding
the demand of the customers pertaining to the new product and how much
amount can a customer spend on the same.

The research was conducted on Harley Davidson pertaining to the issue of our
research and following data was found.
The motorcycle manufacturer Harley Davidson made a notifying comeback in
early 2000s which actually led to a long waiting for the bikes. Looking back and
understanding the existing problem of the customers, Harley’s management was
able to find out that most of the consumers were actually shifting to the small
cars and SUVs instead of going for a bike. Also, the company got to know that
the forecasts were such that the customers were expected to spend lavishly on
the entertainment and lifestyles till the year 2010. As a result, these all findings
helped them to come up with the definition of the management problem and the
market research problem. The problem which was defined as the management
decision problem was: Should the company produce more motorcycles? While
the market research problem was to find out the loyalty of the customers towards
the brand.

Thus the one of the most important research question was designed as:
RQ: Can the motorcycle buyers be segmented based on the psychographic
characteristics?
And the related hypotheses (Hs) were:
H1: There are distinct segments of motorcycle purchasers
H2: each segment is well motivated for having a Harley as per different reasons
H3: Brand loyalty is high among Harley’s customers in all the segments.

This example will facilitate in better understanding of the point that is being put
forward through various steps of the research.

III. Formulation of a research design – this can be done by the various

available ways
This can be done by the various available ways.
Research Design is actually a blueprint which is defined for conducting the
marketing research. The research design specifies all the details which are
related to the research and are useful in implementing that approach. A good
research design is expected to take care that the marketing research project is
conducted efficiently and effectively. The major points expected to be a part of
the research design are: (Mc Quaire, 2006)
1. Designing the exploratory, descriptive and casual phases of the research
2. Defining the information requirements
3. Deciding upon the measurement and scaling procedures
4. Construction and usage of the questionnaire
5. Finalizing the sample size and the process
6. Developing a plan for data analysis

IV. Exploratory Research - The main objective of this research is to explore on

a problem or situation with the aim to provide insights and understandings.
Exploratory research is basically done to seek the insight of the general problem.
Here our problem, as defined above, is that not much of the scholarly work or
substantial data is present on effective involvement of customers with various
stages of new product development. The decision alternative and relevant
variables are chosen to find out substantial information through research on the
subject matter. (Babbie, Earl, 1989)
The exploratory research was excluded with a trends meeting together with the
marketing professionals of the company in order to list down and prioritize the
key consumer requirements. This was then followed up by a technological
session with the engineers of the company in order to get known to the
applicable technologies and the company’s internal competencies. These were
made as the base and then the customer’s were enquired for their requirements
related to the product to finalize and develop the final product. The customers
were involved with the help of the questionnaires, interviews etc.

V. Descriptive research – the major objective of this research is to explain and

describe something, which are generally the market characteristics. It is more
common research method followed to cover large number of dissertations. The
hypothesis exist in descriptive research however, they are speculative and
tentative.
For example: Waterpik Technologies (www.waterpik.com) started operating in
1962 and since then it has been a leading developer, manufacturer and a good
marketer for the health care products. The company aims at retaining its market
position by the introduction of innovative products which satisfy the needs of the
customers.
The company did its first research in 2003 and based on the same it developed
new showerhead product platform concepts which provided the best showering
experience and value.
The research was performed as a unique mix of creative and analytical
marketing research, the consultancy firm hired, helped Waterpik to get the
answers to the research questions and thus finally arise with a new product.

VI. Primary vs. secondary data sources: Primary data are the data originated
by the researcher for the specific purpose of addressing the research problem.
Secondary data are those where the data is collected for some purpose other
than the problem in hand. (Ullman, 2009)

VII. Qualitative and quantitative research

Quantitative research is that method on inquiry which is used in various
academic disciplines and marketing research. Qualitative research is helpful
when one needs to have an in-depth knowledge about the topic or issue of
concern. Apart from what, where and when, qualitative research method also
helps in finding answers to the questions why and how. It uses small focused
samples rater than the usual long samples. (Miles, Huberman, 1994)

Qualitative method is used when information is needed for the case study or
general study and hypothesis. It uses various approaches for the purpose of
finding data like, grounded theory practice, storytelling, narratology, shadowing or
classical ethnography. Qualitative approach is also part of other methodologies
like actor-network theory and action research. The ways of including information
can be many like group discussions, interviews, reflection field notes,
observations, pictures, texts and other similar materials.

It involves categorizing data into various patterns for the purpose of organizing,
reporting results. Various methods of finding information on which qualitative
research relies are Analysis of documents, unstructured interviews, structured
interviews, reflexive journals; field Notes, Non participant Observation and
Participant Observation.

Quantitative Research

Quantitative research involves experimental systematic analysis of the

quantitative data and phenomenon and also the relationship among them. The
main object here is to construct mathematical models, hypothesis or theories that
pertain to the phenomenon. The measurement process in fundamental for the
quantitative research method as it is the central connection between the
mathematical expression and the empirical observation of quantitative datasets.

Quantitative research is more appropriately used in the social sciences like

political science, anthropology, sociology, and mathematical sciences like in
physics. Qualitative methods provide thesis or hypothesis and it is quantitative
method that is used to check the validation of those thesis or hypothesis.
(Hunter, Laura, Erin, 2008)

Quantitative research methods generally undergo following scientific methods:

• Generation of theories, models and hypotheses

• Instruments are developed and measurement methods chosen
• Manipulation and experimental control of data and variables
• Collection of experimental or empirical data
• Analysis and modeling of the data
• Results are evaluated in the final stage
  • Descriptive research design – its survey and the observations
• Questionnaire and form design
• Sampling
• Data collection and analysis
1. Primary Survey
Primary research can be described as the research that's adapted to any
company's exacting requirements. By modifying known-and-true approach —
focus groups, field tests, surveys, interviews or inspections. By this way you can
increase information regarding your objective market. As For example, one can
explore an issue precise to your trade, get feedback regarding your Web site,
evaluate demand for a projected service, measure response to a variety of
packaging options available and discover how greatly consumers can shell out in
favor of a new creation.

Primary research gives more specific outcome as compared to secondary

investigation, which is predominantly important reflection once you're introducing
a new creation or service. In accumulation, primary researches are generally
based on statistical methods that engage sampling as petite as a single percent
of an objective market. This little sample can offer a precise representation of an
exacting market.

a) Personal Interview – Local vendors were interviewed to get first-hand

information about the demand and sales for new products
b) Consumer survey through questionnaires to determine the consumption trend.

2. Secondary Survey
Secondary research puts together the information that has previously been
collected. It is an expensive way to begin a research scheme if probable, as it
identify the relevant data by time and funds are spent on new primary research
that may result in doubling.
There is a vast variety of resources accessible for the secondary researches,
they are
• Published data like census, or housing and public security
• Published texts like theoretical work, minor analyses by field experts and
information
• Media as in documentaries for instance, as a foundation for information
• Personal credentials like diaries

Examining Milestones

Examining the milestones is another important part of the research methodology.

This can be further divided into following subparts:
1. Identification of the customer needs and requirements
This can be done with the help of answering a few below mentioned
questions:
• What are the actual issues and problems the customer has?
• Understanding the requirements of the customers?
• What kind of technology is expected to be used?
• What are the expectations of the customer from the product?

2. Getting the detailed in-depth knowledge of market opportunities

The market needs to be studied and it is required to understand the
available opportunities in the market which can be used.
• Short listing the target customers
• Studying the market and industry ongoing trends
 • Market growth and size
• Vertically present markets
• Available potential partners

3. Entering into the market - we need to understand the various ways and
means that exist by which we can enter and survive into the market and
then choose the best out of it.
• Infrastructure available for doing sales
• Pricing mechanism
• Identifying various required tools in sales process
• Devising strategies for sale process
• Trying to get the support of the consumers
• Developing a well-suited marketing plan

4. Understanding the ways and means for revenue generation

This is a part where we need to have the main aim as generating the
revenue and doing good business in the industry once we have entered
into it. The revenue generation and thereby the profit generation is the
important parts for staying in the market for a long term. The various
important things to be taken care in this regards are:
• Deciding and joining hands with the partners
• Institute channels
• Identifying and recognizing the available sales leads and following
up
• Absolute product rollout

Why Research Method Is Important?

The job of the marketing research is to provide people with reliable, accurate,
valid, current and relevant information. These are important for making decisions
about various aspects the study. The data collected will help in making decisions
about cost and effectiveness of various integration techniques and strategies.
One cannot make decisions on basis of intuitions or gut feelings. Appropriate
data and management techniques have to be adopted which we get from such
research methods. (Marder, Eric, 1997)

Various strategic and tactical decisions have to be taken so that the requirements
can be rightly recognized. The people involved in integration are mangers and
they need to take decisions about potential opportunities, market segmentation,
target market, implementing plans and control of the steps. These decisions
become complicated when mangers need to involve factors like technologies
available, social issues, environmental and economic issues. Public policies,
laws by government, cultural changes etc. further complicate the process of
making decision. Another factor that affects the decision making process is the
complexity of the consumers. Research methods help in linking all these factors
together and take decisions. Sound decisions are only possible if there is
harmony among all the factors like economy, social and environmental.
Research methods help in overcoming or completely removing some of the
uncertainties in the planning or decision making process. Without the relevant
data, the planning done would not be accurate or reliable and not even practical
here. The marketing research gives information about factors that are
controllable and others that are not and thus we can have effective decisions
about management integration of customers with design phase of new product
development.

Mangers can use the DECIDE model of research for having sound management
techniques on integration. The DECIDE model is as follows:

• D: Define the problem of the market

 • E: enumerate the factors of decision that are controllable and those are
not.
• C: Collect accurate and relevant information
• I: Identify the alternatives that seem to be best of all.
• D: Develop the marketing plan and then implement it.
• E: Evaluate the decisions as well as the decision process.

This DECIDE model provides six steps of decision making for the managers. The
process of decision making starts with defining the opportunities or the problems
while setting constraints and objectives. Next, the factors of decision making that
can alter the course of efforts or actions, which are controllable factors, and the
uncertainties, which are uncontrollable factors, have to be enumerated. Then,
accurate and reliable information about the possible outcomes and alternatives
are collected. Next is to select the most suitable alternative on the given criteria
of success. Then, a plan of action is developed in detail and then they are put in
effect. Lastly, the outcome from the process of decision making is evaluated.
 DATA ANALYSIS AND INTERPRETATION
(Questionnaire filled by the consumers)

Implications

In order to involve the customers to the maximum and thereby understanding

their requirements which need to be included into the new product can be studied
by doing an in-depth analysis.

For the matter of doing the research, we have interviewed 100 customers of
different categories and thus have come to the following conclusions.
For doing this analysis, the market is divided into segments where the customers
are divided on basis of various parameters of the research. Let us discuss these
one by one:

1) Demographics
a) Age groups of the customers: the customers are divided according
to their age groups may be, as kids, teenagers, adults and old age
people and thus are asked about the particular requirements from
the product.
Let us take us an example as a manufacturer of biscuits plan to
launch a new biscuit variant, approaches the customers of various
age groups. In such case, the customers will be questioned for the
expectations as in different ages. This includes:
a) 13-18 years- Teenagers
b) 19-26 years- Young Adults
c) 27-35 years- Adults
d) 36 -45 years - Elderly People (Parents)
e) >45 years – Senior Citizens
 40 37
35
30
24
25
19
20 People Interview ed
15 11
9
10
5
0
13-18 19-26 27-35 36-45 45 yrs
yrs yrs yrs yrs
Age ( in years)

Thus, we here see that the majority of the customers interviewed to

fill the questionnaires were young adults lying between the age of
19-26 years.

b) Gender: A female customer might prefer different product as

compared to a male customer. Out of the total respondents
surveyed, there is an equal no of males and females.

Gender wise division

63 Male
37 Fe male

Thus, the majority was of the males over females.

c) Location: the preferences of the customer will also depend on the

location where the customer resides. The customer of a village
 might have different preferences from a new product while a city
resident might have different preference & expectation. We can see
here that the people residing in the west were interviewed more
than the others.

40
35
30
25
20
Location
15
10
5
0
North East We st South

d) Occupation: A working professional customer will have different

expectations as compared to the housewives. Also, in the working
professionals, a job going consumer will prefer different product
while a businessman’s expectation will differ. Maximum people
included in the sample size of 100 were students, totaling to 34 in
number.
 Retired 7

Businessmen 23

Occupation Servicemen 27 Occupation

Housewives 9

Students 34

0 10 20 30 40

2) Benefits expected from the product, here, it can be the taste, quality,
health benefit and also the pricing benefit.

3) Other Attributes: what will be the different attributes that will affect the
customers buying behaviors for any product? Now from the below
mentioned graph, we can analyze that the brand image and quality are the
two aspects playing major role.
 4) Promotional Strategies: these are the various available promotional
strategies which a customer might prefer over the other for a new product.

Findings:
It is observed that combo offers excite people from all age groups to buy a new
product. In addition to combo offer teens like to buy new product when free gifts
are offered to them.
5) Purchase: these are the various available options that a customer might opt
for purchasing it. The options are hypermarkets, grocery store or any other
available option.
 18 17
16
14 14
12 11 13-19 yrs
10 9 20-26 yrs
8 8 8
7 27-35 yrs
6 6
4 4 44 35-45 yrs
3
2 2 2 45 above
1
0
Hypermarket Grocery Other options
Market

Findings:
It is clear from the chart that people from all age group prefer to buy the products
from either the hypermarkets or the grocery stores. Due to an increase in the
‘mall culture’, the next largest place of purchase is the mall or hypermarket
especially for the young adults.
Effective Customer Involvement with New Product
Development
Globalization has made the Markets to have a wide variety of Products in order
to sustain the Competition. Hence there is an increasing demand for NPD.
There is always a controversy in knowing the role of customer involvement in the
success of any NPD Project.
• Details – the project is about understanding the needs of involving the
customers in the designing and understanding the requirements that a
new product needs to be equipped of. A new product is considered to be
developed when there arises a need of the customers for getting some
special or distinctive features in any product. Therefore, this project has
been focussed on researching and finding out that how important and to
what extent it is important to involve the customers into the new product
development process.
• Aim - this was a research project that was aimed to understand the actual
importance of the customers and their say in the development of any new
product. Any new product development is always planned as such that it
should meet the requirements of the customers. Thus, a research was
conducted for studying the impact of customers and their needs from the
new product under development. Along with it the aim was to provide
some kind of literature resource to the field as there are not many of the
same today.

• Research Method used - Research methods used in this project are a

combination of quantitative as well as qualitative research. We though
have restricted only to the basic quantitative method and have avoided
using any of the available quantitative tools of the research. We therefore
have studied the various product case studies, where the products were
developed understanding the customer’s needs and requirements. By
 following these case studies, we have formulated the questionnaires and
done the literature study.

• Collection of Information – Information for the research is been collected

with the help of personal interviews, questionnaire filling, online surveys,
document reviews and with the help of observing the consumer behaviour
towards the products.

• Procedure – A clear analysis is been done on the research topic together

with the extensive literature review survey. The research was done by
personally interviewing, getting the questionnaires filed up, and online
surveys and also by the extensive in-depth study of the literatures
available related to the management’s problem and the research question.
Initially, the researcher has worked and has tried to find out the whole
process that exists for developing a new product and also understanding
that when and where there arises a need for the customer’s involvement
in the designing process. Then the researcher moved further by analyzing
and observing the various answers given by the customers as well as the
vendors who plan to produce a new product.

• Findings – after doing the extensive research of the primary as well as

the secondary data with the help of the questionnaire and online surveys
and also by the literatures available, we have found that the customers are
the main reason for the development of the new products and the main
aim of these new products under development are to satisfy the
customers only. In case any product fails to meet the customer’s needs, it
is discarded or rebranded by understanding the requirements which is
best possible to be done by involving the customer himself in the
designing process of the product. As from the research we did by
selecting a non-biased sample of 100 individuals, we can derive that the
customers are majorly driven by the young male adults and as the
 technology and advancement happening, there have been developed
many new customer touch-points where the customer is met and the
requirements are taken proper care of. Also these advancements have
lead to an easy way of customer feedbacks and involvement in the new
products under development by the means of online facilities etc.
Moreover, the youth today prefers to go to a shopping mall and touch and
feel the new product before giving any feedback, which can now be done
easily with the help of growing mall culture. Thus, customers are god for
the vendors and because of this, it stands to be very important for the
vendors to involve the customers in the designing of the new product.
• Conclusion – the customers are involved for the betterment of the new
product under development. The customer’s feedback will ensure a good
quality and efficiency of the product once it is developed and will be easily
accepted by the customers as the product will be as per their own
requirements. The best example for this is the tailor-made jeans service
which was started long time back by Levi-s Jeanswear. The tailor-made
service is actually involvement of the customer in the development of a
new product but at a very small scale. If we look at the large scenario, we
can see that the products will be readily accepted once they are meeting
the requirements of the customers which in turn can only be done by
involving the customers. The research method used in this research was
quite effective and the sample size 100 was random sample with no
biasness. If we do the stereotyping, we can easily come to a conclusion
that customers are actually willing to help in the development of a new
product. Thus, the project guidelines and requirements were met.
Recommendations

The above analysis and study shows the importance of the integration of the new
product development with customer relationship management i.e. involving
customers with new product design. The research done presented various data
and answered few questions and that are what are recommended to the people
responsible for effective integration of the two. It is recommended to pay special
attention to the male adult class. The women are more responsible for household
products. However, it is the men above age of 18 who have more hold over
various other fields and sectors. The vendors and their local customers should be
targeted for recommendation as mall culture has not much effect on the sales of
their products. While designing the product, the price has to be controlled till the
quality of the product is superior most in the market. Until and unless there is
something extra in the product, they are not ready to divert from their present
choice. After the launch of the product, promotional schemes and combo offers
attract most number of people. Brand image is most important to the customers
and it comes with quality. Today, brand means the best quality. For the purpose
of collection of the data from customers, it is important that the organizations use
most accessible communication channel and that is television.
The importance of customers in various departments has been analyzed and it
brings out significance of customers in the development of new product. It is
recommended that the mangers responsible for thee same consider the
integration of the two terms sincerely and take necessary steps.
 Conclusion

The process of new product development is a critical process. The customers are
the new innovators. It the customer for whom, the new product is developed.
Therefore, it is must to analyze what are their demands and what sectors or
areas they wish to have products and services that can support them or help
them. The idea of the new product comes from customers, thus it is must that the
idea that took birth in their mind is further nurtured and developed with
specifications. Thus, it becomes necessary to ask questions and understand the
mindset and demands of the customers with details pertaining to the product that
has been innovated. Designing the product around those specifications saves a
lot of work, money and time and gives a better hope of success in the market.
The paper dealt with various literature resources that can be helpful in the study
with some or the other information. The literature review has been done for
further reading on the topic and gives substantial support to the report. The
research methodology gave out various answers to various questions that are
important to understand and choose the customers to target for a specific
product.
The purpose of the paper i.e. to add to the literature resource on the topic and
help the students and managers with the same has been tried to fulfill. This
paper can be used at different levels of the organization and also by the people
and students interested in the study on the topic. The paper has been complied
with the best of the knowledge taking help and guidance from various trustable
sources.
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Nonaka, I., & Takeuchi, H. (1995). The knowledge creating company. New York:
Oxford University Press

Schneider, B., & Bowen, D. E. (1995). Winning the service game. Boston:
Harvard Business School Press.

Smith, Preston G. and Blanck E. L.. (2002) Developing Products in Half the
Time, (2nd ed.), NY: John Wiley and Sons

Sproull, L., & Kiesler, S. (1991). Connections: New ways ol working in the
networked organization. Cambridge, MA: MIT Press.

Ullman, David G. (2009) The Mechanical Design Process(4th ed.), NY: Mc

Graw-Hill

Ulrich, Karl T. and Eppinger, Steven D (2004) Product Design and

Development, (3rd Ed.), NY: McGraw-Hill

von Hippel, E. (1988). The sources o/ innovation. New York: Oxford University
Press.

W.G Morris, Researching the Unanswered Questions of Project Management,

Available at:
http://www.indeco.co.uk/filestore/ResearchingtheUnansweredQuestionsofProjec
tManagement.pdf, Accessed on: August 21, 2010
 ANNEXURE 1
Questionnaire filled in by the consumers

Customer profile:-

Q1. AGE GROUP:

13-19 20-26 27-35 36-50 more than 50

Q2. GENDER:
Male Female

Q3. LOCATION
North East West South

Q4. OCCUPATION:

Student Servicemen Housewives

Businessmen Retired

Q5. Portray the innovative product you can attach product prose or through
drawing, or else photos if needed

----------------------------------------------------------------------------------------------

Q6. What problem you suggest this product solves?

 ----------------------------------------------------------------------------------------------

Q7. What is the process to solve the problem?

----------------------------------------------------------------------------------------------

Q8. How would you rank following attributes while buying a new product?

(On a scale of 1-6, 1 being the highest and 6 being the lowest)

Price

Quality

Taste

Packaging

Brand image

Availability

Q9. What Promotional Strategies offered by the brand excite you the most?

Contest/Lucky Draws

Price Reductions

Combo Offers
 Free Gifts

Q10. From where do you prefer to purchase a new

product?

Grocery shop

Malls/Hypermarket

Any other

Q11. What media of advertisement for a new product

you think is more effective?

Newspaper TV Magazines
 TABLES of answer given by consumers.

SAMPLING FRAME:
Q1. AGE GROUP
13-19 YRS 9
20-26 YRS 37
27-35 YRS 24
36-45 YRS 19
45 & Above 11

Q2. GENDER
MALES 63
FEMALES 37

Q3. LOCATION
NORTH 30
EAST 15
WEST 39
SOUTH 16

Q4. OCCUPATION
STUDENTS 34
HOUSEWIVES 9
SERVICEMEN 27
BUSINESSMEN 23
RETIRED 7
Q8.
The following table is arrived by first ranking the attributes according to the
preference and then giving weightage to each one. (Rank 1- 4, 2-3, 3-2 and 4-1)

ATTRIBUES SUM OF RANKS

Brand Image 366
Quality 352
Packaging 312
Price 276
Adv. 257
Taste 221

Q. 10
PROMOTIONAL 13-19 20-26 27-35 36-45 >45
STRATEGIES
LUCKY DRAWS 1 4 0 1 1
PRICE 5 2 7 4 8
REDUCTIONS
COMBO 6 8 9 12 10
OFFERS
FREE GIFTS 8 6 4 3 1

Q. 11
CAPTION 13-19 20-26 27-35 36-45 >45

Yes 18 20 18 17 16
No 2 0 2 3 4

Q. 12
PURCHASE 13-19 20-26 27-35 36-45 >45
FROM
Grocery 4 14 9 7 8
Hypermarket 3 17 11 8 2
Any other 2 6 4 4 1

Q. 13
MODE OF 13-19 20-26 27-35 36-45 >45
ADV.
Newspaper 1 1 0 0 0
T.V. 8 26 21 32 13
Magazines 0 1 0 0 0
 ANNEXURE 2
Questionnaire filled in by the vendors

Q1. Who are the primary customers and what is your desired market?

-------------------------------------------------------------------------------------------------

Q2. What did you say are the competitive products or the methods currently
available? (Make a note of your consumer’s options, counting “doing nothing” as
substitute to purchasing your product)

------------------------------------------------------------------------------------------------

Q3. Which promotional strategies affects customer the most?

Combo Offers Price reductions

Free gifts Lucky draws

Q4. As compared to the competition what you think are your product’s weakness
and strengths?

--------------------------------------------------------------------------------------------------

Q5. Has the mall culture affected your sales?

Yes

No
Q6. What is your expected manufacturing expenditure?

Q7. How have you accumulated your target selling price?

 TABLES

Q3.

PROMOTIONAL STRATEGIES NO. OF RESPONSES

Combo offers 3
Free gifts 7
Price reductions 0
Lucky draws 0

Q5. Mall Culture

MALL CULTURE NO. OF RESPONSES

Yes 1
No 9

90% of the Vendors feel that mall culture has not affected the sales of their
grocery stores.
 Reflective analysis Report

Table Of Content

Aim......................................................................................................................................2
Objectives............................................................................................................................3
Executive Summary.............................................................................................................4
Introduction..........................................................................................................................6
Background of the study....................................................................................................11
Review of the Literature....................................................................................................13
Customer Involvement...................................................................................................13
New Product Development............................................................................................15
Integration of Customers with New Product Development...........................................19
Rationale............................................................................................................................25
ANALYSIS........................................................................................................................26
Research Methodology..................................................................................................26
Why Research Method Is Important?............................................................................34
DATA ANALYSIS AND INTERPRETATION...............................................................37
Effective Customer Involvement with New Product Development..................................43
Recommendations..............................................................................................................46
Conclusion.........................................................................................................................47
References..........................................................................................................................48
ANNEXURE 1...................................................................................................................52
ANNEXURE 2...................................................................................................................58
Introduction........................................................................................................................64
Recollection of experiences...............................................................................................66
Group Dynamics................................................................................................................68
Personal Feelings And Learning Experience.....................................................................70
Lessons For Future Projects...............................................................................................71
Conclusion.........................................................................................................................72
Introduction

The reflective analysis report has been constructed in order to share the
experience and learning gained through the assignment and also for better
understanding of the same with its benefits put forward. This reflective analysis is
so done that it can provide a detailed view of what has been done during the
process of assignment and what has been helpful wit various learning
experiences. The knowledge gained during the course of the assignment has
been discussed through the report. Basically, it is an effort to bridge the gap
between the skills possessed and what all more is required and yet to learn. This
reflective analysis will guide us about areas of improvement that will help us in
the future.
Another aspect discussed will be difference and learning experience in the group
assignments. There is a lot of compromising and learning promised by
assignments handled in groups, which are missing in individual assignments.

It I a crucial assignment as it puts forward the things taught and knowledge

gained during two semesters of study. Enough time was allotted for thorough
analysis of each part of report and collection of data before compiling it. In-depth
understanding and knowledge of the same is possible within the given time
period the topic given is on global managerial scenario and it reflects the demand
of the competitive market. It is an interesting topic and must have caught
attention of other students as well like us. The interest and practicality of the topic
is what helped in compiling a better report. The groups were formed immediately
on announcement of the assignment. Initially, there were certain drifts and
conflicts within the group however, with better understanding and systematic
approach towards the project the things were settles and after that all the group
member were equally cooperative and lend a helping hand. The regular and
systematic group meeting resulted in quick work and updated information and
data collection. The quick adaptation of each group member towards the
assignment and co-workers helped in smooth function and speed of the work.
The misunderstanding about the members and also the topic of projects were
further cleared with the progress of the assignment.

Cooperation and dedication from each group member resulted in speedy work on
the project. The time given for the completion of the task seemed more than
enough. Thus, there was scope of cross-check and recheck of the work done. It
is not only on better understanding of an aspect of organization that this
assignment has assisted in, but also taught us about group dynamics and
healthy working environment.

The faculty was very supportive and offered guidance at each phase of the
assignment compilation. They offered timely advised and suggestions that has
been really helpful for the successful completion of the project. There have been
times where we have panicked and fallen short of data or understanding, but the
constant boost and support from faculty gave us zeal and knowledge.
Recollection of experiences

There are a number of things that I can recall that have been connected with the
assignment. There was excitement and nervousness for the assignment right
from the beginning as it is one of the important project for the course completion.
The assignment weighs a lot in terms of marks and grade and there are a lot of
expectations from us by our faculty members. Thus, it was important to have a
good and deep understanding of the project before starting it and detailed
planning of the course of the assignment.
The project required us to do a carry out a lot of research work and thus we had
a lot of new and learning experiences which were welcomed and enjoyed. We
tried to make out most from these learning opportunities and tried to do full
justice to the report with our combined efforts and capabilities.

The project was to be carried out in group and I had a lot to learn during the
combined effort given for the completion of the project. The members of the
group were known people however; I had a little or no working experience with
them. We had different expectations from the project and each had a different
way of understanding and following the project. There were conflicts and
misunderstanding in beginning as each of us wanted to work in style that is
comfortable for us. But as we progressed and found that this way our work is
going to increase and there would be no learning and the project could also be a
failure in the end. We settled out our differences and drafted a plan that was in
agreement of each member of the group. Thus, I understood the importance of
patience, cooperation and listening in the working environment. The adaptation
and absorption of the topic came only after harmonious work within the group.

The group we had by the end was a jolly hilarious group that understood each
member perfectly and was ready to work in a n environment with mix of people
from different backgrounds, cultures, places, etc.

Since it was first such important and long project for all of us, during our initial
meetings we were only jumping from one topic to another without drafted
proposal or substantial data and planning to carry out that topic. We had mixed
reactions towards each topic of discussion and it was difficult to come to a point
and focus. We all had many ideas, but some seemed impractical while others
were illogical. This way we went through various ideas without deep thinking
about them and wasted a lot of time. However, we were given enough time by
the university and we managed it well within the time because after all the wrong
topics and discussion on the same we had a good understanding of what we
were looking for and what we wanted out of the report. Choosing the wrong
topics initially made it possible to understand the right approach and strategy for
the assignment.
We drafted agendas for the meetings to follow and a time chart that would show
the time constraints for completion of the topic or part of research. This way we
were guided through the project and we made sure that nothing was missed out
by the end. However, there were various changes made in the agenda and the
plans were changed after every topic. We still managed collecting and compiling
as we had planned.

The overall experience from the assignment was good enough and taught a lot
many new things. The ways to approach in a group are completely different
followed by an individual solely responsible for the work. The group dynamics
was the most important thing I learned through this project.
Group Dynamics

There are different demands and working conditions when a person has o work
in a group. It was a good experience working in a group as most of the work
done by me was individually. Though, the comfort level and attitude towards the
project changed. It was both good and bad in many ways. We all love the
freedom of working alone with nobody to taunt and push us. Such freedom was
missing in group activity. There were various tasks that were divided according to
the capability of the group member and each person had to make sure that his or
her task is complete in best possible way within the time. The casual attitude
towards the work allotted did no9t work in any way. We could not follow a style
we are used to. Each of us had to follow what was planned and what each one of
the group member agreed to and was comfortable with. It forced us to leave our
comfortable working zone and work out of it. This was a very good learning
experience that would help in real practical world.

The best part of working in group was sharing of experience. Each of us had
worked in different environments before working on this assignment. We came to
learn new things with experiences of each other. Then we were sure that the
pressure of whole project is not on one single person. We were a little less
pressurized as we knew we had people to help and support us while sharing
responsibilities. The topic of study given was very wide and thus it was must that
we think from different mind set and different view points. Thus group work
helped a lot with the same. There was not just one mind, but 8 minds working on
the same topic and that is why we have a well structured and researched project
in hand by the end.

Most of us did not have much or good experience of working in a group and
therefore we all were very excited to see how it would be like to work in this
group and discuss the project with different view points and analyze it with
various angles. The enthusiasm of each group member worked as an asset for
the assignment. A lot of discussion happened through the course of the project
that opened many closed doors of the mind and forced us to think beyond the
restricted level of our thinking. There were many arguments that taught us
various new things and also the importance of calmness and patience while
working with a team.

Each group member shared equal amount of responsibility and gave same
amount of efforts towards the project. The dedicated members of my team
inspired me in many ways and bought out the best in me. As we all understood
each other better and worked out to finish the project we became aware if the
capabilities and abilities of others and thus it became easier to divide tasks and
cooperate with the same. The same understanding was shared by each member
of the group and thus equal contribution came from each side.
Most of us knew each other and had some knowledge about each other but we
never shared working experience with each other and thus this was new for all of
us. We all were unaware of the comfortable working zone and working style of
each other and that is why there were few conflicts and arguments in the
beginning. We all wanted to work with our style and expected others to follow the
same. However, this cant work in a group work and we all understood the same
very soon. It took a little time for all of us to settle with each other as we all came
from different backgrounds, had different styles of communication, and different
temperaments. After we understood each other we worked in a cooperative
manner keeping in mind different constraints with every person.
Another positive point about the group I had a chance to work with was that all
the members understood the requirements of the project in a very god manner.
They had understanding about the global scenario and were flexible in their
thoughts. Further discussions brought out new ideas and we communicated and
discussed each idea in brief and then selected out some of them that were to be
discussed in detail. More minds brought more thoughts and innovative ideas that
were problematic to handle in beginning. Due to time constraint we were not able
to go in deep with each of them. However, these ideas brought us closer to the
main idea and requirement of the assignment. We then further planned our
activities and steps we were supposed to take for the project. We suffered a loss
of few days during our arguments and discussions but planning of the tasks
helped us in covering the loss in effective manner. It also made sure that each
task was effectively covered and each requirement met.

We understood the shortcomings of our group during the course of the project
and worked out to improve on those areas and give substantial results. The
healthy interaction between the members of the groups and patience with
calmness helped in improvement and growth.
Personal Feelings And Learning Experience

The assignment has been of real help with various dimension of life. Not only
with education and learning but in teaching various lessons of life that are
important to learn to step out in a practical world. The group activity was the main
asset that made the project interesting as there was continuous involvement and
contribution from each member towards the project. The health discussions and
sessions of arguments brought new ideas and different perspectives. It
broadened the thinking of my mind and helped me think from different
perspectives. Group activity taught me a lot of things. The first was how to cope
up and understand people who are a part of the same work and how to still work
in harmony.

I also learned the importance of planning and decision making. Planning was
important for the assignment to complete it within given constraint of time. We
changed plans many times, though that should not have been the case. The
plans should be made and strictly followed. This project also taught me how to
focus on the given plan and remember all the constraints and work within them.

Through this project I learned that being a self sufficient and efficient individual s
not enough to have effective results in the team. It is also important to be a good
team member that is possible only with cooperation, contribution and dedication.
It is crucial to have good communication skills so that your view point is clearly
put forward. With clear perspectives, member will understand better and follow
for implementation.

I also learned that each group should have a leader that can guide whole group
through the phases of the assignment. Leader makes the work and plan more
channalized. Leader should be responsible in bringing out the most in whole
group. The group functions in more systematic manner when there is some
guidance and assistance from a leader. However, it is important to choose a
leader with agreement of all the members and leader should listen to suggestions
and make decisions only with accordance to whole group. Here, leader is
basically for direction and control of the plan.

It is important that when it is a group project, all the team members are involved
equally and give their hundred percent to the project with full dedication. It brings
out the uniqueness in each individual which is reflected in the group effort and
the project. While working in group I learned many new things from my team
mates. They shared their experiences that have taught me various lessons of life
as well.

The members of my group have been very helpful and understanding. They
motivated me all during the project phase and understood me well enough and
assisted in bringing out best in me.
Lessons For Future Projects

There are many things that I have learned during the assignment. There were
many things that I understood and learned that would definitely help me with my
future projects and also they have nurtured me as a human being. Some of the
lessons for improvement are discussed below:
 First thing I understood is that planning is very important. The plan that is
once made should be followed so that time constraints can be met. I have
learned that one should stick to the plan.
 Flexibility and open mind is important when you are working in a group. As
an individual also they will help in projects as this helps in thinking with
different perspectives and given assignments broader dimension.
 Cooperation and understanding is a must thing. Dedication and support
comes from other members as well if you are fully involved in the project
and are ready to understand all view points.
 Time is a very important constraint with any project or assignment. This
has to be remembered during all the projects and time has to be
respected.
 Importance of communication skill was clear to me. It is important to keep
your view point clearly so that the members of the team can understand it
and follow the same.
 Leadership qualities are equally important in a group as much as
cooperation. Each group requires direction and guidance which are
provided by a leader.
I will make sure that I take care of all these things in my future projects and
improve with it.
Conclusion

There have been a lot many things that I have learned from this project and while
working in group. Group dynamics has been something new for me this time as
all the members of the group were very cooperative and understanding. Some of
us were from different background with different ideologies, however, each of us
was ready to adopt the working style of each other and give our best to the
assignment. This project has been a real learning experience for me and there is
something that I have learned will help me in improving in future. This will bridge
the gap between what I have and what I should have. I surely had a nice
experience while working with my group mates and collecting data for the project
as they helped me broaden my perspectives and they taught me a lot. I hope that
even I have contributed something to their learning and experience. This
assignment has not only helped me in academics but also with my life and taught
me practicality.