New Product Launch–No-Sugar Beverage

Section1: Target Customers

The organization is looking to develop a product that can meet the needs of customers. Most of the beverages contain sugar ingredients, which are not good for the health of people. The product development is triggered by the target customers. Understanding the customer demographics is important for the management of the company to drive sales and contribute to a healthy environment. Thus, the intention is to develop a zero-sugar beverage or drinkable. Customers can be prevented by different diseases such as diabetes, obesity, heart disease, and many other chronic conditions. The comprehensive analysis of target customers is as under

Target customers for this product are individuals above the age group of 15. These are teenagers, youth and young adults who like to have drinks in all seasons. Normally, these target customers perceive beverages as refreshments. However, it seems imperative to create awareness regarding different health issues (Lodato, 2008).

Youth, being the main target customers of the company, will support this zero-sugar product through word of mouth. For Instance, Trends of having beverages in different colleges and universities have been increased. These are active customers that can also create hype and make new health trends.

·         Demographics

Age: As mentioned, zero-sugar beverages have been developed for people above the age group of 15. Based on the shift in ages, the company can change ingredients, taste, and design. However, the targeting is triggered by sugar-free drinkable for all ages (Cavanagh, 2012).

Gender: This product has been designed for males and females. Obesity and other health issues are quite visible among all ages.  Thus, the sugar-free drinkable is not gender-specific.

Media Consumption: Of course, the company is looking for the customer on a different media channel. On traditional media channels such as television, radio, and newspapers, the company can target young adults and other senior citizens. However, on modern media channels such as Facebook, twitter and many others, the company can target youth or teenagers (Schöttler, 2013).

Income: The Company wants to target the customers who have low- or moderate-income level. The intention is to create a low-cost beverage, which can also enhance the visibility of targeting.

·         Geographic

Initially, people living in the United States of America will be targeted. Obesity and health awareness have become the main issues in this region, and the company can get better response (Gfs.com, 2014).

·         Behavioral

Another segment of the customer is also in the limelight. For Instance, any customer who is quite conscious about the health is the target customer. People in the United States of America are suffering from obesity, and it looks the best option for them to ensure the health control. In the United States of America, 13.49 million customers are health conscious, and it is a great opportunity to hit this potential market.  It depicts the behavior of customers, as assertiveness of customers is good to drive sales (Gilliland, 2018).

·         Psychographic

Personal values, opinions, and attitudes of people vary or evolve with time. For Instance, people like to depict their addiction to some beverages. For this target market, the design and the taste will hit these psychographic factors.

Section 2: End User Experience

Target customers have to perceive this new product. The most important thing is to make the new product quite relevant in the competitive market to gain better customer experience and make the product successful. A comprehensive analysis of the customer experience and the role of different touch points is as below.

Interestingly, the end user experience can be integrated with the problem and the solution. It has been revealed those customers are suffering from obesity and other chronic diseases due to the usage of sugar ingredients in different beverages. It is a big thing to worry about, and desperately, they need a solution. Adopting the new zero sugar products will increase the customer experience due to new artificial ingredients. It is a fact that people want something new, exciting, delicious and attractive product. The user experience can be increased due to these factors. It has been observed that customers or users are using different beverages on the market. However, the user experience can be enhanced by eliminating redundancies in the process (Tennant, 2002). For Instance, ingredients such as acesulfame potassium, sucralose, and stevia leaf extract are some new additions in the beverage. Interestingly, customers or users will have the same taste and refreshment.  However, it will be a new zero sugar product that can fascinate customers (Maloney & Jargon, 2018). If the customer knows the impact of the product on the health, the assertiveness can be increased. In the case of this new product, customers do not have to worry about sugar ingredients and health problems. The company has provided a solution. It seems the main factor that can increase the user experience. The user will accept this product in the market and refer others who are health conscious (Newswire, 2018).

·         Customer’s Point of View

The customer’s point of view can be interesting. From the perspective of customers, the product, which is delicious, must contain healthy ingredients. From the perspective of health-conscious people, the new product must meet all quality standards. They want the same taste of traditional beverages (Tim, 2018). Now, the most important thing for the firm management is to understand the customer point of view, which can also be highlighted in the research and development and product development process (Yuece, 2012). Another customer’s point of view, which has been streamlined by the company, is to prevent different diseases. Often, customers, which do not take drinks, contain diseases. However, they want a product that keeps things in control and contributes to stabilized health (Cardello, 2018).

The low cost, delicious, healthy and attractive beverages are some factors, which have been derived from the customer’s point of view. Thus, the development of this new product is due to understanding this perspective. This point of view has provided a platform for the company to come up with the customer-focused product development process (Gfs.com, 2014).

·         Customer Experience with Problem and Solution

The beverage company wants this new product to be acceptable in the competitive market. This product seems to be a solution for customers to reduce weight and prevent different diseases.  Interestingly, all new ingredients, which have been included in this beverage, contain the same taste. A healthy customer has to take healthy drinks. It can increase the customer experience. He can make positive buying decisions as well. Increasing the rate of diseases in the country is a big issue. Thus, the firm wants to be the first in the competitive market to provide the solution (Newswire, 2018).  Interestingly, the customer experience is triggered by some emotional and sentimental attachments as well. For Instance, good health and disease prevention mean a lot to customers. The new product looks mandatory if they want to stay healthy. The solution is effective, as it causes less resistance from the customer’s side. Enhancing customer experience is possible due to the high-quality production process. The organization wants to hire experienced and qualified employees to take part in the research and development process and develop the pertinent product. The organization intends to make the customer experience memorable and make them loyal in the competitive market for a long run (Schöttler, 2013).

·         Business Tough Points in the Journey

The first and important tough point to position better in the minds of customers is the television ads. The company intends to shape the cognitive behavior of customers through ads and jingles (Walker, 2014). To influence the buying behavior, the management has to select the mainstream media channel and set the time-frequency to run the ads.  It seems a traditional approach to communicate with customers and influence buying behavior. In this contemporary business, there is a need to adopt some modern business tough points to interact with customers in an effective and lucrative manner (Chaturvedi l et al., 2009).

Web, email, direct sales, Smartphone, social media, and sales representatives are some tough points. All these touch points are part of the business journey (Wilburn, 2007). For Instance, after the idea generation, the company may post content about the upcoming health product on websites and social media channels. Similarly, after developing the sugar-free beverage, the company may use traditional media channels such as television to run ads. The most important thing is to let customers know about the business and product. They must have known about the business and products to make the positive buying decision. The customer may visit the website to navigate reviews about the product and visit the retail store. In the store, the sales representative is also a tough point, as he can describe the benefits, features, and workability of this zero-sugar beverage. Before purchase, the tough points are social media, advertising, testimonials, word of mouth and rating and reviews (Shaw et al., 2010). During purchase, tough points are the store, websites, catalog, promotions, sales teams, and Smartphone. After tough sales points are billing, emails support teams and follow-ups (Lodato, 2008).

These are important, tough points for this company to streamline the new sugar-free beverage. Based on the market trends, the company may change some tough points to enhance effective interaction with customers.

Section 3: Demand Ecosystem

The demand ecosystem section is for both primary and secondary customers. For Instance, businesses are the primary customer, and end users are the secondary customer.

Demand Ecosystem Maps

  • Current Demand Ecosystem without Business

The current demand for the no sugar beverage is high in the country. In the United States of America, 24 % of people like to have the diet soda. It seems 78 million people are demanding sugar-free drinks. It is a big demand, and it must be met by the company.

Information flow

Information flow

Product Flow

Product flow

Future demand Ecosystem (Entering Market)

In the future, the demand for the product will increase. It has been revealed that millions of people in different countries, including the United States of America contain the obesity and many other diseases. Thus, according to the demand ecosystems are changed. First, it can be depicted by the product flow.

Information flow

Information flow-1

Product flow

Product flow-1

Cash Flow

Current Years Year 1 Year 2 Year 3 Year 4
No of units to be sold         1,250,000,000    1,312,500,000    1,378,125,000    1,447,031,250    1,519,382,813
Unit Price per Unit  $                       0.19  $                   0.19  $                   0.19  $                   0.19  $                   0.19
Cash Inflow  $        237,500,000  $   249,375,000  $   261,843,750  $   274,935,938  $   288,682,734

 

Cost of Goods Sold 70%
Operating Expenses 11%

 

Year 1 Year 2 Year 3 Year 4 Year 5
No of units to be sold         1,250,000,000    1,312,500,000    1,378,125,000    1,447,031,250    1,519,382,813
Cash Inflow  $        237,500,000  $   249,375,000  $   261,843,750  $   274,935,938  $   288,682,734
Cost of Goods Sold  $        166,250,000  $   174,562,500  $   183,290,625  $   192,455,156  $   202,077,914
Gross Profit  $          71,250,000  $      74,812,500  $      78,553,125  $      82,480,781  $      86,604,820
Operating Expenses  $             7,837,500  $        8,229,375  $        8,640,844  $        9,072,886  $        9,526,530
Net Income  $          63,412,500  $      66,583,125  $      69,912,281  $      73,407,895  $      77,078,290

 

The product flow, information flow and cash flow regarding the current demand are quite different. The company will be using different data sources to drive demand and estimate the unit quantity. Maximum numbers of the unit have been mentioned in the information flow at the end. Currently, the firm is quite capable of developing these units for people or target customers. The current demand map says that 78 million people in the country are targeted customers. Currently, the product flow seems traditional.  For instance, the marketing and tough points are traditional. However, these are to be evolved with the passage of time to meet demand and enhance the interaction.

On the other hand, the future perspective of the company is quite different. The company is exterminating the high demand as compared to the current demand. 30% of people will demand no sugar drinkables, and obviously, the company has to increase the number of units. It seems necessary for the company to use modern tough points and marketing approaches to engage an immense range of customers.  Digital marketing and tough digital points have to play a role in meeting the demand of customers. Moreover, these digital considerations in future will also increase the demands in an effective manner

Thus, based on these demand maps for both primary and secondary customers, the company has to make some big shifts in the production and marketing process.  The demand is triggered by a healthier environment and customer satisfaction. Thus, the company has to collect the data regarding these factors to make an appropriate strategy. No sugar beverage is an effective product for customers, as multiple benefits can boost the customer loyalty and satisfaction in the future.

Section 4: Touchpoints

Tough Point Television
Cognitive Behavior Ad jingles
Emotional State humorous
Influence Purchase Repetition
Tough Point Social Media
Cognitive Behavior Visualization, video ads
Emotional State Customer engagement, cultural integration
Influence Purchase Celebrity Endorsement, customer feedback
Tough Point Stores
Cognitive Behavior Physical  appearance, environment
Emotional State Health Cautions
Influence Purchase Availability
Tough Point Sales Teams
Cognitive Behavior Information
Emotional State Health Brief, Humorous
Influence Purchase Authentic Information

References

Cardello, H., 2018. Restaurants Have Gotten A Hall Pass On Obesity, And It Must End. [Online] Available at: https://www.forbes.com/sites/hankcardello/2018/08/30/restaurants-have-gotten-a-hall-pass-on-obesity-and-it-must-end/#22112ffe2d51 [Accessed 22 September 2018].

Cavanagh, E., 2012. How to Launch a New Product Faster: 5 Secrets to Tight Project Management, Comprehensive Project Plans, and Effective Change Management. Rockland.

Chaturvedi l, E., Mukesh, C., Aseem, k. & Manmohan, R., 2009. Managing Innovation And New Product Development: Concepts And Cases. PHI Learning Pvt. Ltd.

Gfs.com, 2014. Sugar-Free Beverage Trends in Healthcare. [Online] Available at: https://www.gfs.com/en-us/ideas/sugar-free-beverage-trends-in-healthcare [Accessed 22 September 2018].

Gilliland, N., 2018. What is customer experience? How can it be measured? And who should own it? [Online] Available at: https://econsultancy.com/what-is-customer-experience-how-can-it-be-measured-and-who-should-own-it/ [Accessed 22 September 2018].

Lodato, M.W., 2008. Management of New Product Launches and Other Marketing Projects. Author House.

Maloney, J. & Jargon, J., 2018. Beyond Soda: How and Why Your Beverage Options Are Exploding. [Online] Available at: https://www.wsj.com/articles/beyond-soda-how-and-why-your-beverage-options-are-exploding-1535284800 [Accessed 22 September 2018].

Newswire, 2018. Global Kids’ Food and Beverages Industry. [Online] Available at: https://markets.businessinsider.com/news/stocks/global-kids-food-and-beverages-industry-1027478062 [Accessed 22 September 2018].

Schöttler, J.-S., 2013. Innovation and New Product Development. GRIN Verlag.

Shaw, C., Dibeehi, Q. & Walden, S., 2010. Customer Experience: Future Trends and Insights. Palgrave Macmillan.

Tennant, G., 2002. Design for Six Sigma: Launching New Products and Services Without Failure. Gower Publishing, Ltd.

Tim, 2018. 15 Great Customer Experience Quotes and What They Can Teach You. [Online] Available at: https://www.retently.com/blog/customer-experience-quotes/ [Accessed 22 September 2018].

Walker, J., 2014. Launch: An Internet Millionaire’s Secret Formula To Sell Almost Anything Online, Build A Business You Love, And Live The Life Of Your Dreams. Morgan James Publishing.

Wilburn, M., 2007. Managing the Customer Experience: A Measurement-based Approach. ASQ Quality Press.

Yuece, I., 2012. Impact and Role of Market Research in New Product Launch Process. GRIN Verlag.

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