The new information age has seen an impressive shift to global markets and cross-border competition, resulting in customers increased expectations for higher quality products, competitive prices and better and faster services. Hence, companies aiming at striving success are focussing more and more on generating fast, innovative, and efficient solutions to satisfy customers’ expectations and to create value for shareholder. In view of that, the quest for new products capable to bestow the company with the differential advantage to position itself against its competitors has never been more critical than ever before. However, although innovations are generally seen as the engine of growth, only a small number survive the first year and generate significant value for shareholders. Thus, managers all around the world are keen to identify key factors of success to reduce uncertainty in the new product development process. Yet, history teaches us that product innovation is a complex and dynamic process whose success is difficult to measure, to forecast and which call for talented managers capable to identify and harmonize an array of exogenous, endogenous and consumer perception factors of success simultaneously. Most notably, consumers perception is difficult to map and far more complex to manage. Only new products and innovations that timely offer superior and unique benefits that are perceived as such by customers are marketable and sustainable in the long run and thus generate value for shareholders.
Table of Contents
1 Introduction
1.1 The Purpose of the Study
1.2 Structure of the Thesis
1.3 Methodology
1.3.1 Secondary Data
1.3.2 The Case Study Method
1.3.3 Research Limitations
2 The Concept of Innovativeness
2.1 Definitions of Innovation
2.2 Berlyne’s Theory of Collative Variables
2.3 Newness Perception across Countries
3 The Concept of Success Factors
3.1 Definitions of Success
3.2 Measurements of Success
3.3 Methods for Determining Key Success Factors
3.4 Key Success Factors
3.4.1 Exogenous Key Success Factors
3.4.2 Endogenous Key Success Factors
3.4.3 Consumer Perception Variables
3.4.4 The Model
4 The Innovation Process
4.1 The Idea Generation Process
4.2 Adoption and Diffusion of Innovations
4.3 Determining Key Success Factors of NP
5 Case Study: “Kess & Fit” at Kessler & Comp. GmbH & Co KG
5.1 Background
5.1.1 Company Profile
5.1.2 The Kess & Fit Product Line
5.1.3 Situation Analysis
5.2 Analysis of Key Success Factors
5.2.1 Exogenous factors of success
5.2.1.1 Market Structure
5.2.1.2 Level of Market Development
5.2.1.3 The Political Situation
5.2.1.4 Culture
5.2.2 Endogenous Factors of Success
5.2.2.1 Business strategy
5.2.2.2 Market Intelligence
5.2.2.3 Communication
5.2.2.4 Human Resources
5.2.2.5 Value Innovation
5.2.2.6 Value-based Marketing
5.2.2.7 Financial Resources
5.2.3 Consumer perception variables
5.3 Conclusion and recommendations
6 Conclusion
Objectives & Themes
This thesis aims to identify and explain key success factors for the development of innovative products, specifically focusing on low-calorie food products through a case study of the "Kess & Fit" line at Kessler & Comp. GmbH & Co KG.
- Analysis of the concept of innovativeness and psychological factors in new product perception.
- Evaluation of success factor frameworks, categorizing them into exogenous, endogenous, and consumer perception variables.
- Investigation of the innovation process, including idea generation, adoption, and diffusion theories.
- Detailed case study application assessing the market performance of "Kess & Fit" based on identified success drivers.
- Development of strategic recommendations for KESSKO to improve market penetration and diffusion.
Excerpt from the Book
1.1 The Purpose of the Study
One of the clearest challenges of the 21st century is to develop innovative products that support an economically vibrant and culturally diverse global society. Hence, companies that fail to develop new products are exposing themselves to great risk (Berenson, 1994). Existing products are vulnerable to changing consumer needs, expectations and tastes. Also, new technologies, shortening life cycles, and augmented domestic and foreign competition represent an increased risk. On the other hand, developing exclusively new products is not risk-free either. Moreover, it is difficult to get an accurate figure on new product success rates, as there is no universal definition of success within and between firms (Berenson, 1994). Evidence from research and recurring themes in literature suggest a variety of key factors of success as well as of that ilk doomed to failure. Most notably, the failure to listen to the voice of customers, defective pre-development research, blurry product definitions, insufficient quality of execution of determining new product development (NPD) tasks, and inefficient project teams have been identified as the major causes to flop (Cooper, 1993). However, Apple’s success story teaches us that sometimes, smart companies should ignore all the talk of “user-centric-innovation” in order to pave the way for new trends (The Economist, 2007). For instance, Steven Jobs’ iPod that was heavily ridiculed when it was launched in 2001 is a brilliant example for a successful non-user-centric innovation (The Economist, 2007). Similarly, Akio Morita, Sony’s co-founder, once stated “there was no need for market research. The public does not know what is possible. We do” (as cited in Kotler, 2003, p.85).
In the light of these facts, this study attempts to identify and explicate key success factors for a thriving development of innovative products. Based on past researches and studies, the concept of innovation and related key success factors will be reconsidered. Specifically, this research strives to identify key success factors of low-calorie products by analyzing explicitly the “Kess & Fit “ case study at Kessler & Comp. GmbH & Co KG.
Summary of Chapters
1 Introduction: Provides an overview of the study's purpose, the research structure, and the methodology used, specifically justifying the choice of the case study approach.
2 The Concept of Innovativeness: Reviews innovation from economic, socio-cultural, and psychological perspectives, highlighting the importance of consumer perception.
3 The Concept of Success Factors: Defines success and establishes a conceptual framework by categorizing success factors into exogenous, endogenous, and consumer-focused variables.
4 The Innovation Process: Outlines the stages of innovation from idea generation through to adoption and diffusion, linking these to the success factors identified in chapter 3.
5 Case Study: “Kess & Fit” at Kessler & Comp. GmbH & Co KG: Applies the theoretical model to analyze the "Kess & Fit" product line, identifying reasons for its sluggish performance and proposing strategic improvements.
6 Conclusion: Summarizes the key insights gained regarding the interaction of success factors and the necessity for companies to be sensitive to consumer perceptions.
Keywords
Key Success Factors, New Products, Innovations, Idea Generation, Diffusion, Adoption, Collative Variables, Consumer Perception, Success, Kess & Fit, Functional Food, Business Strategy, Market Intelligence, Value Innovation, Value-based Marketing.
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis focuses on identifying the key success factors required for the successful development and launch of innovative new products, using a specific case study of functional food.
What are the central thematic areas?
The work explores three main pillars: the concept of innovativeness, the theoretical framework of success factors (exogenous, endogenous, and consumer perception), and the practical application of the innovation process.
What is the core research question?
The research strives to determine what drives success in new product development and why certain innovations, specifically the "Kess & Fit" line, struggle to gain market traction despite appearing to meet consumer needs.
What scientific method is utilized?
The study uses an exploratory case study method combined with an extensive review of secondary data, including literature on management, innovation theory, and consumer psychology.
What does the main body cover?
The main body moves from theoretical conceptualizations of innovation and success factor models to a concrete analysis of KESSKO’s strategy, human resources, and marketing communication processes.
Which keywords best characterize this research?
The work is best defined by keywords like Key Success Factors, New Product Development, Consumer Perception, and Innovation Diffusion.
How does the author analyze the sluggish sales of "Kess & Fit"?
The author identifies that the product, while functionally sound, suffers from inadequate communication strategies, sales force uncertainty, and a lack of proper end-user market research.
Why are consumer perception variables considered critical?
Because innovations are ultimately filtered through the customer's mind; if the perceived complexity, risk, or image of a product does not match consumer expectations, the product will fail regardless of its technical superiority.
What role does the German confectionery market play in the analysis?
It provides the specific exogenous context (market maturity, regulatory hurdles, and cultural norms) that challenges KESSKO's ability to diffuse new functional food products successfully.
What key recommendation is proposed to KESSKO?
The author recommends shifting from a purely "push" strategy to a "pull" strategy to stimulate end-user demand, potentially involving strategic alliances and segmented pricing models.
- Quote paper
- Raffaele Aledda (Author), 2007, Key Success Factors of New Products / Product Innovations, Munich, GRIN Verlag, https://www.grin.com/document/159652
