Introduction
Cleanse PLC is a major producer of domestic washing powders and other domestic cleaning products, based in Manchester in the United Kingdom. The company have been present in the market since 1901 and produce a wide range of products under well-known domestic brand names. The company has four production plants in the United Kingdom, each specialising in particular products and brands, and to satisfy growing demands for their products across Europe the company also have a production plant in Genoa, Italy. The company have recently acquired an additional production plant located in Istanbul, Turkey. The company have made this move in an attempt to tap into the growing demand for domestic washing products in Turkey and its surrounding countries. The new facility is located close to all of the major transportation routes in and around Turkey.
Cleanse PLC’s Turkish production facility predominantly produces washing powder alongside other Cleanse PLC products. However, the branded washing powder ‘Wonder-Wash’ was not selling well in the Turkish market-place. Despite significant expenditure on press, magazine and television advertising, focusing upon the company’s famous slogan “the powder that gives you Wonder Wash power!” sales of Wonder Wash had been disappointing and the company’s competitors are developing a growing share of the market.
The European Board members of Cleanse PLC are not happy, as they have invested many millions of Euros into the construction and operation of the Turkish production plant. Following recent meetings, the Board have developed a plan and budget to develop a new washing powder product specifically for the Turkish market. This new product is to be manufactured at the Turkish production plant.
The European Board of Cleanse PLC is disappointed that the aforementioned internal review into new product development has not yet been completed. As a marketing consultant with particular expertise in new product development, you have been employed by Cleanse PLC to put forward a series of changes to improve new product development at the company and to encourage the use of creativity and innovation by employees at Cleanse PLC.
During 2012, Cleanse PLC set up an internal review of how the business develops new products, and also how they could encourage creativity and innovation amongst their workforce when developing new products. This internal review is still on-going.
Marketing in Business December 2013 Final NCC Education 2013
Assignment
Task 1 – 40 Marks
Select a suitable model of New Product Development, and assess how this could be implemented and used in the development of the new washing powder product to be made at the Turkish plant.
Task 2 – 20 Marks
Market research conducted for Cleanse PLC shows that Turkish customers expect to be able to conduct a pre-wash, and then a full wash of their laundry, without the need to add more washing powder. At the moment, ‘Wonder Wash’ does not guarantee this, as it is not seen as essential in the UK and European market places in which the product was originally developed.
How important is understanding buyer behaviour as an integral part of the New Product Development process?
Task 3 – 20 Marks
How might you apply Everitt Rogers’ (1962) model of “Diffusion of Innovations” to the new Cleanse PLC washing powder, developed for the Turkish market?
Task 4 – 15 Marks
Define creativity and innovation, and explain how the use of both of these processes may help Cleanse PLC in the future, in terms of developing new cleaning products for the various market-places in which it operates.
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