Innovation's Role in Brand Longevity

Introduction

I would like to acknowledge that a brand is the most valuable asset that any organization possesses. It incorporates the tangible and intangible within the firm. A brand’s longevity and sustainability determine the profits and resources of a company. For a company’s brand to continue attracting new and retain existing customers, new products need to be introduced. New products are like the heartbeat of a company; with each pump, the brand is reinforced, and the company remains a going-concern. Establishing new products should not be an optional activity. Companies ought to invest heavily in new products because they are critical for their progress into the foreseeable future.

Every year in the U.S., 16,000 new products get launched, and 95% of them are part of brands which are already existing. Brands are becoming more exposed, more attractive and modernized to customers due to the entry of new products into the market. For example, brands, such as Virgin Atlantic have extended their profitability by launching new products beyond their mainstream businesses. Virgin Atlantic has extended from music production to include products such as airplane services, financial services, cola, vodka, and even jeans. I shall use three different categories of brand management that are key to the progress of a brand to reinforce the argument that effective companies need new products. These categories are innovation, development, and marketing.

Innovation

Innovation allows a company to exploit its current competencies and explore new ones fully. The development of new products is fundamental to a company’s innovation. Innovation is key in giving a company an edge over its competitors, and that is why, despite its complicated nature, it is implanted in an organization’s processes, products, and structure (Sajid, et al., 2015). The journey towards being an effective company begins with the smart implementation of a new product into the company. This necessitates a company’s investment in new product development practices. Apart from being effective, by investing in new products, a company will be conforming to the rapid changes in technology, intense pressure from competitors around the world and the world market shifting patterns (Owens & Davies, 2000). A company’s profit and long term survival in the industry rely on its launching of new products.

Before engaging innovation through launching new products, a company needs to have knowledge about its current position in the product life cycle which ranges from the stages of introduction, growth, maturity to decline (Claessens, 2015). A company at the maturity stage can launch a new product as the sales from the previous product will have started to plummet and also as a precautionary measure, it will have saved itself from drowning into the declining stage of the product life cycle. Also, a company needs to remain one (or even many) steps ahead of its competitors by understanding the trends in the needs of its existing clients. New product development is essential in a company’s international expansion strategies and goals because new products which suit the needs of different customers in different geographical locations is necessary. McDonald's is a good example of the companies which have successfully implemented new product development strategies in different countries by making local flavours using specific ingredients found in the respective regions. McDonald's launched a sandwich of flatbread in Middle East restaurants called Acarbia (Claessens, 2015).

Development

To further a company’s effectiveness, a strong and well-positioned brand helps a new product to acquire new markets. A well-developed brand appeals to the idiosyncrasies and perceptions of consumers (John, et al., 2006, p. 7). Considering that a brand is a perceptual and intangible entity that is present in reality, it reinforces the product development strategy of a company. A product development strategy allows the company to concentrate on locating new markets for the new product. A company capitalizes on the emotional connections it has established with the clients through brand positioning by launching a new product (Lovely Professional University, 2012, p. 199). A new product can be given a new label to make it distinct from others in the market which may be similar or the same in terms of functionality while making it meaningful using the attributes presented by the brand. A developed brand tells customers what a company’s products can do for them, and a new product serves to strengthen the brand. Thus, by launching new products, consumers are given options from which they can make informed decisions and ultimately, tangible benefits in the form of successive periods of sale will be acquired by a company.

Consumers will look forward to buying a new product because they believe in the unique selling proposition (USP) of a company’s brand. A unique selling proposition entails the aspects of the brand’s essence, brand’s promise and brand personality (Lovely Professional University, 2012, p. 201). A company gains effectiveness when it launches a new product which communicates its USP. Implementing the USP through the introduction of a new product requires several prior activities of competitor analysis to be done. Competitive products will be listed, and their propositions studied to result in a selling proposition that is entirely unique. The disadvantage of the USP is that it creates little value to the customer due to its competitor-oriented focus. By deviating from the realm of consumer perceptions and preferences, the competitor-oriented selling proposition could lead to the failure of newly launched products. Therefore, a company’s effectiveness will be acquired when the implementation of the USP using a new product is done at the level where competitor analysis does not jeopardize the value provided to customers.

Marketing

Markets are very dynamic today unlike the past. The changes sprout from the changes in customer needs. Literacy levels are increasing, competition is getting tough, more and more substitute products are becoming available and this presents a broad account of challenges in the markets today. The external forces like market trends, fashion, consumer needs and preferences, habits and behaviour are ever changing and they give marketers little options but to accept them by responding through creating new products (Fhyzics Business Consultants Pvt. Ltd, 2019).

In some cases, the existing products of a market fail to meet the new and changed needs for clients. Therefore new products will be necessary for diversification purposes and provide different varieties to its consumers as a way of minimizing the degree of failure. This is exemplified by McDonald’s, the company whose main products, which have boosted it to success, are fries, burgers and soft drinks. With time, the company had to diversify from its traditional products into providing healthier meals on the menu. This is particularly as a response to the growing base of customers who are becoming ever cautious about the amount of calories present in junk food and opt for healthier alternatives. As a way of preventing the loss of these clients, which would potentially result in loss in the market share of food consumption, the company repositioned itself in the market. It repositioned itself to avoid being associated with its usual fast food products and extended to include yoghurts, deli choice rolls, lean burgers and salads, among others. The repositioning was to create an image that they have a range of meals ranging from the traditional fries and burgers to healthier options. Some of the new products introduced by companies have no intention of reaping profits for the company, instead, they shape its image (Fripp, n.d). Even though they may be profitable, they remain nowhere close to a company’s traditional product style. Therefore, new products are useful in market repositioning which ensures longevity of the company.

Generally, with new products availed at the market, an organization can benefit with increased volumes of sale which, in the long-run, translates to profitability. New products, which may not be the products originally offered by a company from its beginning, drive in new sales to the company. They prevent consumers from keeping the brand out of mind whenever they are faced new needs and preferences (FullTilt, 2016).

Conclusion

To conclude, an effective company needs new products. New products will bolster the innovation, development, and marketing of a company’s brand. A significant proportion of new products are launched under already existing brands. The new products support a brand’s innovation by allowing a company to exploit its resources to the optimum level as well as acquire new resources. The new product will aid in brand development because consumers will be looking forward to buying them on account of a company’s brand unique selling proposition. By creating emotional connections with consumers, the new product will be key in acquiring new markets. Also, companies need to have the notion of adapting to new technology. Failure of innovation and introduction of new products according to changes around the world will place any company up for failure.

Dig deeper into Reflective Assignment Learning Contracts And Action Plan with our selection of articles.

Bibliography

John, D. R., Loken, B., Kim, K. & Monga, A. B., (2006). ‘Brand concept maps: A methodology for identifying brand association networks. Journal of Marketing Research, 43(4), pp. 549-563.

Lovely Professional University, (2012). Product and Brand Management. New Delhi: Excel Books Private Limited.

Owens, J. & Davies, J., (2000). The Importance of a New Product Development (NPD) process: Getting Started. Bled, Slovenia, ResearchGate.

Sajid, M. et al., (2015). Role of Innovation in the Development of New Products for Improvinf Organizational Performance. Journal of Advanced Management Science, 3(3), pp. 261-264.