Assignment 1

As per Ansoff Matrix we can easily describe how to grow a business. Growing a business is the
way toward improving some proportion of a company’s prosperity. A business can develop as
far as workers, client base, global inclusion, benefits, however development is regularly decided
as far as incomes. There are various methods of growing a business. Igor Ansoff recognized four
procedures for development and summed up them in the alleged Ansoff Matrix. The Ansoff
Matrix (otherwise called the Product/Market Expansion Grid) permits chiefs to rapidly sum up
these potential development techniques and contrast them with the danger related with everyone.
The thought is that each time you move into another quadrant (on a level plane or vertically),
hazard increments. Every quadrant of the Ansoff Matrix will be explained on beneath.

First, we need to know how to develop a new product.

Like in Fashion or Appeal Industry–
In the design business, item advancement normally starts the outdated way: with a hand drawn
sketch, or the computerized equal utilizing a program like Procreate.
A sketch is then formed into an example utilizing an example creator or sewer. During the
prototyping stage, a size set is made, which implies a scope of tests with various estimations for
each size you need to sell. When the size set is settled, it is placed into creation.
Instead of making the item, some style and attire organizations pick print-on-request to create
their dress in the first place. Print-on-request permits you to transfer plans to an outsider
application, that interfaces your store with a stockroom and screen-printing office. At the point
when a request is set on the web, your plan is imprinted on a current supply of shirts, sweaters
and different things on offer, making a completed item without the need to plan the whole piece
of clothing.
Beauty and Cosmetic–
The magnificence and beautifiers industry incorporates a wide scope of items that is continually
extending because of wellbeing and self-care patterns. From cosmetics to shower items and
skincare, numerous magnificence brands are zeroing in on every common fixing and
maintainability, which makes it simpler to model an item on your own utilizing ordinary fixings.
White naming is additionally mainstream in the excellence and beautifying agents’ industry,
which is the way toward finding a current item or maker, at that point bundling and marking the
items they as of now produce. Whichever course you choose to take, mass assembling for beauty
care products is typically done by working with a lab and a physicist to ensure quality remains
steady at scale.
Food and beverage-
Food and drink items are among the most straightforward to begin creating effortlessly and from
the solace of your own home. Making another energy bar can be as basic as purchasing fixings
and tweaking the formula in your own kitchen, as Lara Merriken did when she began Larabar.
So as to move from formula to bundled merchandise you can sell in stores or on the web, you
should locate a business kitchen that is authorized to create food and has passed a wellbeing and
security examination. These kitchens are normally set up with huge stoves and cooking gear to
oblige huge groups, however on the off chance that you are thinking about large scale
manufacturing and bundling, a co-packer or co-maker may be a superior alternative. These are
fabricating offices that represent considerable authority in handling crude materials and
delivering food and refreshment items at scale.

“The reason why I talked about these, is for understanding that the idea of product
development varies from industry to industry.”

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I have come across with lots of real-life examples to make you understand what the factors
are and what imputes. The real-life example of new product development in existing or in
new market is given bellow.
Nissan Motors
Product development: create new products that can be
sold in existing markets

Nissan was the first major automaker to commit to the mass

production of an electric vehicle (EV). In 2008, it made
good on its promise with the launch of the Nissan Leaf.
Industry analysts immediately recognized the significance
of this major move. 
The Economist had this to say:
“Within the industry, the adjective most often used to describe Mr. Ghosn’s plan to make the Renault-
Nissan alliance the first big manufacturer of zero-emission vehicles is “bold”—in other words,
somewhere between very risky and certifiably mad.”

In 2011, industry watchers reported the following:

When announced in 2008, Nissan’s EV [electric vehicle] program was lauded by
environmentalists and derided by the auto industry in equal measure. Nearly three years on it has
precipitated a seismic shift towards EVs in the auto industry, with all the other automakers now
following suit. But will Nissan’s heavy EV investment program deliver the environmental
benefits and market share that it hopes for? It is too early to tell, but it is undeniably exciting.
Eight years after the Nissan Leaf was introduced, it is fair to say that the company’s gamble paid
off. Nissan saw two unmet needs in the market that it sought to address. It recognized that the
zero-emissions Leaf would appeal to the environmentally minded consumer concerned about
climate change. With oil prices on the rise, Nissan saw that their electric vehicle would also
appeal to the cost-conscious consumer who wants to save on fuel expenses.
Today, the Nissan Leaf is the world’s top-selling, highway-legal, plug-in electric car, reaching
global sales of nearly 200,000 vehicles in September 2015. The company’s product development
strategy enabled it to move into a leadership position among EV manufacturers, while
successfully fulfilling unmet needs in its existing markets.

APA –
Learning, L. (n.d.). Principles of Marketing [Deprecated]. Retrieved from Page | 3
https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-product-development-
example/
 Assignment 2
What Is a Value Proposition?
An offer alludes to the worth an organization vows to convey to clients should they decide to
purchase their item. An offer is important for an organization's general promoting methodology.
The incentive gives a presentation of goal or an explanation that acquaints an organization's
image with buyers by mentioning to them what the organization rely on, how it works, and why
it merits their business.
An incentive can be introduced as a business or advertising proclamation that an organization
uses to sum up why a purchaser should purchase an item or utilize an assistance. This
announcement, whenever phrased compellingly, persuades a potential customer that one specific
item or administration the organization offers will include more esteem or better tackle an issue
for them than other comparative contributions will.
An offer stands as a guarantee by an organization to a client or market fragment. The
recommendation is a straightforward motivation behind why a client should purchase an item or
administration from that specific business. An incentive ought to obviously clarify how an item
fills a need, convey the points of interest of its additional advantage, and express the motivation
behind why it is superior to comparable items available. The ideal offer is forthright and bids to a
client's most grounded dynamic drivers.
Organizations utilize this announcement to target clients who will profit most from utilizing the
organization's items, and this keeps up an organization's monetary channel. A financial canal is
an upper hand. The term—begat by super-financial specialist Warren Buffett of Berkshire
Hathaway—expresses that the more extensive the canal, the greater and stronger the firm is to
rivalry.
Your business' incentive is ostensibly the most significant component of your general advertising
informing. An offer explains to possibilities why they ought to work with you as opposed to your
rivals and makes the advantages of your items or administrations completely clear from the start.
The following page I have come up with an Apple company product example which will make
you clear about the Statement what we have given to complete.

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Apple iPhone – The Experience IS the Product
Even in today’s oversaturated consumer electronics marketplace, it is hard to imagine a more
iconic product than the Apple iPhone. It is also difficult to imagine a product with as much
competition as Apple’s flagship mobile device, so what sets the iPhone apart from the (literally)
hundreds of competing devices on the market?

Apple's iPhone value proposition, offering unique experience

As you’d probably expect from Apple, a firm renowned as much for its commitment to sleek,
elegant product design as its actual products, Apple firmly reiterates its value proposition in the
copy about its iPhone range of products – specifically, the design of the device itself, the ease of
use that has been a cornerstone of Apple’s design aesthetic since the launch of OS X, and the
aspirational qualities that an iPhone supposedly offers the user.
This aspirational messaging is Apple’s value proposition.
Look at the copy. Apple states that it believes a phone “should be more than a collection of
features” – yet this is precisely what a smartphone is. We could sit here and poke fun at Apple’s
lofty design aesthetic for days (the #freejonyive hashtag on Twitter, which jokes that Apple’s
lead designer has been trapped in a white room for several years, is a prime example), but it’s a

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remarkably effective approach that has helped Apple remain at the forefront of a brutally
competitive market for almost a decade.
Apple knows how crowded and competitive the smart device market is, so rather than focus on a
specific feature – virtually none of which are unique to the iPhone or iOS – the company instead
opts to focus on the experience of using an iPhone. Most companies could not pull off using
words such as “magical” to describe using a smartphone, but Apple can.
Of course, Apple does not just sit on its proverbial laurels and rely on aspirational messaging to
sell you on its value proposition. The official iPhone site also touches on several of the genuinely
unique features of iPhone and iOS to make its case, including security:

Apple iPhone value proposition, focusing on security

Not only is this a very clever move on Apple’s part (especially in the wake of the disastrous FBI
San Bernardino iPhone unlocking lawsuit), but the copy matches the rest of Apple’s messaging
perfectly and manages to simplify an incredibly complex topic – encryption – into easily
understandable language that most users can grasp and feel good about.
Apple understands that even focusing on the unique features of iPhone would not be enough to
distinguish the device in such a crowded market. By emphasizing the overall experience
of using the device, however, Apple’s value proposition is as unique as its approach to product
design and aesthetics.

APA –
7 of the best value proposition examples we have ever seen. (2016, April 27). WordStream: Online
Advertising Made Easy. https://www.wordstream.com/blog/ws/2016/04/27/value-proposition-
examples Page | 6
 Why do new product fail?
I read an interesting statistic recently that suggested that most new products and services
launched onto the market fail to deliver the expected results and there seems to be a lot of debate
as to the reasons why. The failure rate seems to vary depending on whom you speak to. Harvard
Professor Clayton Christensen was attributed with saying that the failure rate is very high i.e.
80% – 90% (which he disputes) whereas others think it is closer to 40%. But no matter who you
believe one thing is true – launching a new product (or service) is a high-risk strategy. I thought
it would be interesting to see if there is any consensus as to the reasons why! My 5 reasons why
new products fail looks something like this.
1. A lack of independent and unbiased research into the market and target audience
One of the characteristics of a successful entrepreneur is that they are determined, let nothing
stand in their way and have a unique feel for what the customer wants. Steve Jobs for example,
was not a fan of market research. He famously said “You can’t just ask customers what they
want then try to give that to them. By the time you get it built, they’ll want something new.”
Great entrepreneurs might succeed because they are passionate and determined to do so and
because they do not take no for an answer, but that’s not without having done their due diligence
first!
2. The product falls short of claims made and suffers bad reviews
Companies often make extravagant claims about their products and consumers lose interest,
which is a particular problem in this technological age when one person can spread bad news to
thousands. Microsoft reportedly poured no less than $500 million into the launch of Windows
Vista for which it had high expectations, with a “Wow Starts Now” advertising campaign.
But the software had so many compatibility and performance problems that even Microsoft’s
most loyal customers revolted. Vista was a flop, with Apple heavily criticizing it in an ad
campaign (“I’m a Mac”), causing many consumers to believe that Vista had significantly more
problems than it did.
3. The product defines a new category and requires substantial consumer education—
but they do not understand it.
Many new products demonstrate classic “Red ocean thinking” and break new ground by
offering consumers a different product to the competition. This is a key reason why new products
fail as if the consumer doesn’t understand the point of difference or if they don’t understand what
makes the product unique, they will simply stay with what they are used to. For its biggest
launch since Diet Coke, Coca-Cola identified a potential new market: 20- to 40-year-old men
who liked the taste of Coke (but not its calories and carbs) and liked the no-calorie aspect of Diet
Coke (but not its taste or feminine image). C2 was introduced in 2004 with a $50 million
advertising campaign but failed dismally as their target audience could not see the need for the
new product, so they stuck with what they were familiar with.

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 4. Simple margin rules make bad pricing policy.
Price is the important element of the marketing mix as it is the only thing that brings in revenue –
everything else is a cost. Too often though firms have a plan for all products achieving a hurdle
margin or better and while having an overarching margin target might seem wise, it causes
issues. Firms tend to either underprice some offerings, leaving money on the table, or overprice
others and not allowing the money to reach the table in first place. Instead, companies need to
understand the value of the benefits their offering delivers to customers compared to alternatives,
and then price according to that value.
5. Weak launch or a poorly executed launch
Most new products require a reasonable degree of promotional support to build brand awareness
and to access distribution channels and retailers. A limited launch budget or a poorly executed
launch is another reason why new product fail. Combine this with adverse media attention (or
negative consumer sentiment on social media) usually related to deficiencies in the product
design, price level, or early use problems experienced by consumers and you have a recipe for
failure. The launch of the BlackBerry Q10 was a classic – launched too late with no demand for
the product. (Who is Blackberry I hear you ask!)

APA –
5 Reasons Why New Products Fail. (2018, June 24). Oxford College of Marketing Blog. Page | 8
https://blog.oxfordcollegeofmarketing.com/2017/03/06/5-reasons-why-new-products-fail/