BBCT2023 Product Development – New Product Development Analysis

CLO2: Describe the functions involved in creating new products (C2, PLOZ).

Analysis of Functions Involved in New Product Development

In today’s competitive business environment, companies must continuously develop new products to satisfy customer needs and remain competitive. Successful product development requires the involvement of several business functions such as marketing, research and development (R&D), finance, operations, and human resource management.

For this assignment, students are required to select ONE real company and ONE product introduced by the company. Students must explain and describe the functions involved in the development of the product.

This assignment aims to help students understand how different departments work together during the new product development (ND) process.

You will present your findings through:

• A report writing.
• Assienmcat lastectians
• Students are required to prepare an individual report based on the following guidelines:

Part A: Introduction of Company and Product (10 Marks).

Describe

• Background of the company
• Industry/business nature
• The selected product
• Reasons for selecting the product

Part B: Functions Involved in New Product Development (25 Marks)

Explain the role and contribution of the following functions in creating the selected product.

1. Marketing Function

• Market research
• Customer needs analysis
• Promotion strategy

2. Research and Development (RED) Function

• Product idea generation
• Product design and innovation
• Product testing

3. Operations/Production Function

• Manufacturing process
• Quality control
• Packaging and distribution

4. Finance Function

• Budgeting
• Cost estimation
• Investment decisions

5. Human Resource Function

• Employee skills and training
• Team collaboration
• Recruitment of specialists

Students must provide relevant examples from the selected company.

Part C: Challenges and Recommendations (10 Marks)

Discuss:

• Challenges faced during product development
• Recommendations to improve the product development process

Part D: Conclusion (5 Marks)

Summarise the overall discussion and highlight the importance of cross-Functional collaboration in product development

• The report should he no more than 10 paces long

Experts Answer on Above Questions on Business Management

Company and the product

The company selected for analysing the new product development is Nestlé Malaysia Berhad. It is one of the largest food and beverage companies operating in Malaysia with a large range of products including Milo, Maggi, Nescafe and KitKat. The Industry that the company is serving is the fast moving consumer goods (FMCG) food and beverage industry. The product selected for analysis is Milo ready to drink carton pack, this product is selected for analysis because it is widely consumed in Malaysia, and it requires collaboration across multiple business functions to successfully develop and market this beverage product.

Functions involved in new product development

There are numerous functions involved including marketing, research and development, operations/ production, finance and human resource function.

Marketing Function – The marketing function is responsible for doing market research and customer needs analysis to understand the expectations of Malaysian consumers from a portable energy drink that requires no preparation. It also involved marketing strategy preparation whereby Nestle promoted Milo through school programs, sports sponsorship, and supermarket promotions.

Research & Development Function – The research and development function at Nestle utilises the demand of customers in designing Milo powder, and applies innovation in maintaining Milo taste and nutritional value while extending shelf life. The product also underwent testing, packaging trials and quality assurance check before its final launch in the market.

Operations Function – The operations function plays a significant role in Milo development, as automated manufacturing facilities are utilised in developing standardised production procedures. Quality inspections are also carried out to ensure compliance with food safety standards, and it is packaged using aseptic cartons before distributing to supermarkets, convenience stores and online platforms across Malaysia.

Finance Function – The finance function contributes significantly to the development of Milo, as the finance manager at Nestle makes proper allocation of budget for product development, marketing, manufacturing and distribution. The cost estimates are carried out in order to offer a competitive price and also maintain a budget for the technology and packaging system to improve product efficiency and quality.

Human Resource Function – The implication of human resource management is also significant in the development of Milo, as highly skilled employees in food safety and quality management are entrusted with the responsibility to manage the entire process.

Challenges and recommendations

The major challenges in the product development process are the rising cost of raw materials and packaging, increased level of competition from beverage brands such as isotonic and changes in the consumer taste and preferences for healthier products. It is therefore recommended to introduce low sugar or high protein Milo variants, make use of sustainable packaging materials, and utilise digital marketing platforms to target younger customers.

Want Detailed Answers with References?

The analysis above in respect to Milo ready to drink product clearly shows the importance of collaboration across marketing, R&D, finance and HR functions. To undertake a similar kind of new product development analysis, you can consult our Malaysian assignment helpers ready to assist with all types of management assignments.