New product development and consumer behavior
The case of ice cream desserts
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New products consist one of the greatest parts of corporate strategy planning. With new products, companies seek to address the problem of declining sales on one hand, and grow their market shares on the other. Emerging consumer needs and trends, competition launches, as well as products reaching the end of their life cycle drive companies' decisions towards new products in the market, either as innovations or line extensions. But how do consumers react to the introduction of new products? Which factors are important in deciding whether to adopt an innovation or not? Which steps do companies f...
New products consist one of the greatest parts of corporate strategy planning. With new products, companies seek to address the problem of declining sales on one hand, and grow their market shares on the other. Emerging consumer needs and trends, competition launches, as well as products reaching the end of their life cycle drive companies' decisions towards new products in the market, either as innovations or line extensions. But how do consumers react to the introduction of new products? Which factors are important in deciding whether to adopt an innovation or not? Which steps do companies follow in order to invest behind a new idea? Find answers to these questions in this study, by exploring companies' actions from the moment an idea about a new product is generated, to the point where this product is introduced in the market. Desk study combined with consumer survey and senior management interviews on a real life example, provide a solid basis for one to understand the differences and points of convergence between real life and theory. Will the new product, ice cream desserts, be successful?
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