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Every business has its own priorities depending upon its size means whether it is a small scale business or a large scale business. The resources they have, made them realize what their strengths are and what are their weaknesses. Below are the six key priorities, I consider, for execution of the deliberate innovation for small scale business. (14 Most important Innovation factors, 2009)
- Project definition and Visioning: When we begin any project, we utilize the procedure of visioning to evaluating what we need accomplishment to look like and to get it going. Without visioning, it’s not difficult to be dragged around weights and issues, however with it we are lifted to a more positive vitality. An efficient visioning must be inspirational, deliberately sound, documented and effectively communicated It is very much important that it is very much clear from the beginning that what we are going to do, how it will change the things and what will be the final impact.
Why we need visioning: A clear visioning is required. An image of the win of a plan or an assignment at a specific time in the future should be very clear. It is not strategic planning which tells us where to go. Visioning here actually is the real destination. A clear visioning is a vibrant explanation of what “achievement or success” looks like and how it feels to us. It includes from the development of the product and its functions, product design, quality, functions, and its price and profit ratio to its marketing. Product’s technical specification and technological knowledge is also included. Vision further follows by problem solving techniques is a significant skill for business or personal life. Decision making is an integral part of problem solving which a leader or business man has to consider while visioning his goal. (Weinzweig, 2008)
- Market Segmentation and Targeting:
Market Segmentation includes gathering your different customers into portions that have basic needs or will react comparatively to a showcasing activity. Each one fragment will react to an alternate advertising blend methodology, with each one offering exchange development and benefit opportunities.
Some diverse ways you can fragment your business incorporate has below;
- Demographics which concentrates on the qualities of the client. For instance age, sex, salary section, instruction, employment and social foundation.
- Psychographics which alludes to the client bunch's way of life. For instance, their social class, way of life, identity, presumptions, and disposition.
- Conduct which is focused around client conduct. For instance, online customers, strip mall clients, brand inclination and former buys.
- Land area, for example, landmass, nation, state, region, city or provincial that the client gathering dwells.
Target Marketing includes breaking a business sector into portions and after that focusing your advertising only on those set portions those can be served by your product. The excellence of target market is that it makes the marketing cost and distribution of the product and/or other marketing process easy and less expensive. It gives a center to the majority of your marketing part.
In short it is the selection of group of customers to tap and aim to market their product. The best way to choose the target market is:
- Market drill: It is necessary to find out what people are looking for. What kind of features, advantages they are expecting from a product. It can be done by conducting survey. Once you have the knowledge of what is the need of the customer now you can serve them better and move to next stage of your product development.
- Who else can be benefitted from our product: For example if we are in a food industry and launching takeaway which segment of the population can be benefitted e.g. students, working professionals who don’t have time to cook and rely on takeaways.
- Positioning of the product: It is the showcasing movement and methodology of distinguishing a business opportunity, and creating an answer focused around statistical surveying, division and supporting information. Positioning may allude the position a business has decided to do their advertising and business destinations. Positioning identifies with methodology, in the particular or strategic improvement eliminates of convey a target to accomplish a business' or association's objectives, for example, expanding deals volume, brand distinguishment, or reach in promoting.
In very simple words, positioning of the product is the decision of selecting the best possible way to launch the product in the target market.
Product positioning essentials:
- Positioning puts the most significant impact on a customer's purchasing choice.
- Positioning makes a product a brand and makes a perception in the minds of customers. Individuals don't effectively or eagerly alter their opinions around an item's perception.
- Positioning must first exhibit an item's importance, utilizing supportable, sound, and verifiable terms
- Making the item less demanding to purchase through successful positioning makes the item simpler to offer.
For example: The launch of Green tea in India by Tetley.
Background of the example: India has black tea drinking population and the re-launch of Green tea was a big risk as earlier Tetley a British beverage company whom itself no one knows in India proved to be flopped. But the way they positioned the green tea this time was a successful venture. To make the tea a brand they joined with India’s one of the most loved company “Tata” and launched the tea naming it “Tata’s Tetley Green Tea”. Not only that to get more attention they took Bollywood actress Karina Kapoor as their brand ambassador. (Manve, 2014)
Positioning further includes how we will market our product. Do we also hire a celebrity to launch our product as in our case we are small scale business and can’t afford it. So what else we can do. Either we will advertise on television, radio or both or put posters, banners around the city say at public places like bus stations. The decisions are very much significant because it is very important that people must know our product exists and soon going to be launched in the market. The best example we can see is the Apple’s iPhone. They are best in the style, by making people curious about their new launch and make them buy even before they launch their product by pre-orders and bookings.
- Pre- Development and feasibility: Idea itself cost nothing but an idea in action off course. It is very important to check that our project is feasible. Feasible here means project can be accomplished in the terms of its operations either internal or external, in the terms of its finance, in the terms of its legality or any other way that need to consider accomplishing it. Further it is important to see what clients are looking for. What they are expecting from the innovation. The expectation of the stakeholders and entrepreneur itself are very important and plays a pivotal part in the success of the project. The entrepreneurial style of the entrepreneur, his determination, his own and his team commitment, creativity need to consider and prioritize. It can be further checked by looking in the past, if the same kind of plan or project anyone else has taken and executed. If yes, we can do a case study and best way is to answer the following questions by our own.
- When and where it was taken and executed?
- What was the company’s strength and weakness?
- What marketing strategies did they follow?
- Were they successful?
- Were they achieved what they actually wanted to achieve?
- What were the customer’s reactions?
- Did they welcome the product?
It is very important to learn from the past and anticipate in future.
- Competitors and Innovation: There is no other thought that competition results in innovation. Today is stiff competitive world. This increment in general collection and more centered achievement will make it more worrying for organizations of all sizes to hold clients who can change their suppliers with the click of a mouse. It's a combat of observation, center, and promoting. Entrepreneurs who expert these components and give an incredible client experience will win the deal.
To make a customer happy and satisfied is no doubt is the every company’s goal but competition cannot be ignored at any point. Everyone is in the race to capture the market by their product portfolio. Products come and go depend upon the customer taste and respond to them and businesses continuously make changes to their existing product or come up with new products to retain the customers. We have oodles of examples of competition in the field of innovation. Let’s talk about Apple and Samsung: “The 2 Horse Smart phone race”
Both the companies are facing cut throat completion from each other and known as war of technology giants. How these companies are continuously launching their new smart phones one after another with added features and new functions to tap the market. The latest innovative war is going between the recently launched Apple’s iPhone 6 and Samsung Galaxy S5.
- Culture: No matter how much efforts or cost you are putting in your innovation. No matter how superior the quality of your products. No matter how much different and multiple uses, features your product have. No matter, how much cost effective it is. If it is simply does not suits the culture of your market. It is also very much important to consider the culture while prioritizing your innovation drivers.
Example: Failure of KFC in India before of cultural barriers
Background: Everyone knows Kentucky Fried Chicken (KFC). No doubt they have professionals with them. They have huge investment, strong strategies, business planning but what happened, why still they failed in India, was only and only the cultural factors.
The very first Kentucky Fried Chicken (KFC) store was opened in Bangalore in the mid-1990s. The people were not aware of globalization. The very first hurdle was the locals protested about the brand's itself and about the company to be a transnational origins. At the initial stage it was only the KFC's background which seems too foreign to the locals but the food itself. The chicken and the packaging they offered were too unfamiliar/foreign for Indian flavor. And unfortunately, in just few years, Yum brand has to close all of its KFC restaurants in India. They did not re-enter in the marked with their brand until 2004.
The company has to be very conscious about the culture of the locals and has to be market-savvy. After the research, they re-launched the brand but this time, they came up with a vegetarian menu that comprise of rice food, wraps and side vegetarian dishes. Not only that, they came up with eggless mayonnaise and other sauces. Even their brand name or trade mark dishes were totally given a new and local flavor by giving them a name on Indian spices and Indian cooking recipes.
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