New Products is something that is new to the world, the market, the producer, the seller, or some combination of these. The important of new products is that they sustain growth, increase revenues and profits, and replace obsolete items. TRESemmé is involved with this definition because they have their own sets of new-product strategies. They have their own product lines in which they have their own shampoos, conditioners, hairsprays, gels, etc. This gives their customers a variety of choices in what they would like to buy from their products, if they were limited to one choice such as shampoo only, then TRESemmé's customers would be disappointed since there are no variety of choices to make because what if the customer doesn't want the shampoo but wants a different type of product that does the same thing? It will turn down the customer immediately and they will go ahead and look for something else from a different company that sells more than just shampoos. Sometimes, TRESemmé may include something new such as a new ingredient in their shampoos. This is one example:
It basically says that it has new and advanced technology than it had before. This type of method is know as improvements or revisions of existing products. TRESemmé's products are also known as lower-priced products because they are cheaper than other brand-selling shampoos out there in the hair product market.
In order for TRESemmé to maintain a New-Product Development Process, they must make long-term commitment needed to support innovation, use company-specific approach, capitalize on experience to achiever and maintain competitive advantage, and establish an environment for support. The New-Product Strategy is basically a list of things TRESemmé needs to do to achieve this goal. TRESemmé must have an Idea Generation which is the thinking of what product to create to influence customers. This idea comes from many sources, including customers (wants and needs), employees (analyze and involved), distributors (well-trained sales), competitors (comparison), vendors (partnerships), research and development (product development and modification), and consultants (examine business and recommended product ideas). Idea Screening is used after TRESemmé's new ideas have been generated and need to pass through the first filter in the product development process. It determines if the product idea is good enough to be passed on. Business Analysis is when TRESemmé's product idea gets calculated on demand, cost, sales, and profitability. Depending on the nature of the product and the TRESemmé, this process may be simple or complex. Development occurs when TRESemmé starts sketching a marketing strategy. The marketing department of TRESemmé should decide on the product's packaging, branding, labeling, and so forth. Test Marketing is when TRESemmé's product goes through a limited introduction to determine the reactions of potential customers in a market situation. The final stage is Commercialization, this determines the decision to actually market TRESemmé's product for sure. TRESemmé is part of globalization, therefore their global issues in new-product development allows them to have more sales marketable worldwide.
Managers have a better chance of successfully marketing products if they understand how consumers learn about and adopt products. This is how TRESemmé's products can spread throughout the world by just having an innovation. The product life cycle is one of the most familiar concepts in marketing. A product category is where TRESemmé's product is determined to satisfy a particular type of need. In order for TRESemmé's product to be in a good product life cycle, they must follow the introductory stage (full-scale launch of new product into marketplace), growth stage (sales typically grow at an increasing rate and many competitors enter the market), maturity stage (a period which sales increase at a decreasing rate), and last but not least, the decline stage (a long-run drop in sales). When dealing with selling new products, TRESemmé must know how to be smart and be able to sell their items for a reasonable price to their consumers. This will help the company grow more fast worldwide as it will be passed on.
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