Study Of Product Innovation Strategy Based On Consumer Research

From Made in China to Made by China, many people understand this idea as that weneed to strengthen our technology, especially on core technical capacity.However, to acquire core technology was not as easy as it said, it need hugeinvestment of money, materials, people, time, and, a flash of inspiration. Hereby, we cansee some companies would adopt product innovation strategy as: conservative andfollowing. Entrepreneurs understood that the company definitely would be eliminated ifthey have not new product, they also knew great fortune could be brought by new succeedproducts. Meanwhile, they realized the large investment in new products R&D and it wasnot easy to get success in the market. Innovation, means take advantage, first runner maynot be final winner.We often can see lots of similar products or copy products launched in the market, ifthe new one product with good sells. Such copy format would save large cost of NPD andmarket education, even to some companies, they could rely on their advantages in saleschannel, to get part of market share. Yet, this action also could bring many negativeimpacts, consumers may have bad perception on attributes of innovation to their brand.And these kinds of attributes were quite important factor to the brand to attract consumers,to raise consumer s loyalty.With shortening product life cycle, staffs in R&D department were often very busyfor new products design. From proposing product concepts, designing and making productmodels, doing small tests, middle tests to finalizing products, launching to the market, onesuper characteristic of some companies was “speed”, especial for some local privatecompanies, as soon as the big boss order, everyone would work rapidly, to launch a newproduct in several weeks. In this point, it was quite different with other domesticcompanies and foreign companies, they would spend a long time to launch a new product,they would do several times of discussion, consumer testing, then a new product was born.These two types of innovation strategy were quite different, in terms of consumers acknowledge and using experience, product unique, product perfection, productadvancement. Of course, the gap in rate of new products survivors and market performancewere also big. These two innovation strategy, based on consumer research, was forintensive cultivation, steadily to open new market; copycat strategy, was for keeping ontrends, pursuing market pace.With high-tech was a good selling point for new products, however, the moreimportant factors for the new product to be succeed, were related to how the new productwas good in using experience by consumers, whether it could satisfy consumers emotionaland physical needs, whether it can abidingly attract to consumers. So, mature companiesvery seriously count on consumer research when they doing NPD, they even wouldabandon to launch new product if it was not good enough in the last consumer test.Observe some domestic companies, they were less to use powerful tools of consumerresearch in NPD, the cause could be budget constraint, no enough time, distrust on data,improper to use result, etc.This thesis would analysis the case of innovating MOMCHILOVTSI by Bright Dairy,to discuss how to use product innovation strategy based on consumer research, to helpcompany to do product innovation, to make a strategic new product, to continuously earngreat revenue.