ok sir thanx.from ur help and after consulting my book.i have given it a final shape to my case and prepared my slides as well as the report.i am here uploading that report u tell me wheather it ius perfect or it needs some changes if it does need changes plz point out and tell me
"aerostructures hamble"
Objective:
To identify the effect of innovation in product development.
Problem
Should companies keep on innovating in new product developments by investing huge in Research & Development?
(Hamble has to adopt the changing atmosphere to maintain its leading position in the aircraft component manufacring industry)
Case summary
Aerostructures hamble, Hampshire (Uk) is a “aircraft component manufactrer”.It has outstanding performance in highly competitive aircraft component industry.
Historical events:
1936: Co. started making aircraft like Midge and Gnat.
1963: Co. was took over by Hawker Siddeley.
1979: It was privatized from “British Aircraft Corporation”.
1989-1990: The company turned into “Aerostructures hamble” when British aerospace decided to make it more profitable with the inroduction of new management and they applied new techniques replacing the old ones (incl. sequential new product developments approach).
New techniques
• They started manufacturing aircraft components.
• On time delivery to speed up the execution of order.
• Increased investment to adopt latest technology.
• Simultaneous approach.
• Kitting
Questions & Answers
• Q: How do firms identify and develop new product opportunities?
Ans: When the taste of customer, technology, competition change the firms get opportunity to develop new product according to these changes. They develop idea in large no. through internal and external sources. Then they do idea screening to select good ones after which test marketing is applied before launching the new product.
• Q: What are the steps involved in developing and commercializing the new products?
Ans: Steps in new product development:
idea generation -> idea screening -> concept developing and testing ->
market strategy -> business analysis -> product developmant ->
test marketing ->commercialization.
a) After business analysis, there is a stage of product development that has 2 steps:
-> Design a prototype.
(original model, sample)
-> Test the product
(gives surity about the product)
b) Commercialization comprises of 2 steps:
-> Decision of introduction timings.so that
it would not eat the sale of your own product.
-> Decision of location where to launch a
product. (single region, national
market,international market)
• Q: Is new product development a risky business? How might firms such as aerstructures hamble minimize these risks?
Ans: Yes, it’s a risky process. Firms like aerostructures who have very few and limited customers as not everyone buys such stuff, they do:
-> Extensive test marketing
-> Standard test marketing
-> Sales history of previous product
• Q: What role does marketing play in new product development?
Ans: Marketing plays very important role in new produst developmeny, it develops strategies how to introduce product in market.
-> Need, Want, Demand.
-> Segmentation, targeting, positioning.
-> Marketing mix (4 P’s)
-> Estimate profit by estimating sales and
loss
-> Long term sales and marketting mix
• Q: Why should the firm invest continually in new product development?
Ans: The amount of investment increases as we move on to next steps of product development, there is a continous need of investment in order to
-> Build product awareness to customers.
-> Make researches and test product to
minimize risks.
-> To produce desired produst
-> Launch a product by advertisements promotions etc
-> Increase product sales
-> Increase market share
-> Increase growth
Suggestions and recommendations:
I recommend that the company’s current policies are very effective in a present changing environment. Therefore they should carryon with the following current policies
->Simultaneous new product development
approach.
->Optimize JIT.
->Innovation.
->Keep an eye on competitor’s 4 P’s.
help me to finalize it.
