The featured product development strategy is based on the introduction of new, improved or modified product. In the case of the criterion range of new product offer perception by the customer and the manufacturer the following strategies are distinguished: modification (improvement) of the product, the introduction of imitation and the introduction of absolute novelty (innovative product).
The strategy of modification is based on changes resulting from the renovation, transformation, or changes related to technology or remodeling of the product. Major decisions concerning the product as the choice of segment, marketing programs, sales solutions remain unchanged. It is important for these changes to be visible through promotional activities. The customer should be informed about the changes and the benefits associated with them. In the markets of industrial goods (in case of this strategy) two varieties are mentioned: technological modification of manufactured product and modernization of the desired.
Strategy of imitation implementation is quite popular, especially for companies that want to follow the trends set by the market leaders. There are often new companies that do not have the budget for research on innovation and “the voice of market.”
It is also a very effective way for companies who want to gain new market or segment. The advantage of this strategy is not only to reduce the costs associated with the introduction of a new product on the market but also to increase its acceptance by customers.
The strategy of absolute novelty implementation is the latest model due to the perception of novelty. Due to the high risk of failure it is often preceded by market research.
Precise positioning of the product increases the chances of market’s success. Marketing programs should be precisely matched to the segmentation of the market. This model is increasingly burdened by a risk due to the reluctance of customers to purchase something unknown.