Research Korner: Product Development

RESEARCH PROPOSAL ON THE RELEVANCE OF MARKETING RESEARCH ON PRODUCT DEVELOPMENT: A CASE STUDY OF NESTLE FOODS

THE RELEVANCE OF MARKETING RESEARCH ON PRODUCT DEVELOPMENT: A CASE STUDY OF NESTLE FOODS   Rationale and Contribution Description of the Topic Product development is an innovative set of activities that is extremely important for long-term business survival and competitiveness, because product development cycles continuously need to become shorter (Wheelwright and Clark, 1992). Product development is typically executed in a project-management approach, and the organizational nucleus is the product development team. A multidisciplinary project team executes most product development projects. Market researchers; sales representatives; technicians from R&D, production, and technical service; and sometimes even potential customers and financial specialists are members of new product development teams. This type of project clearly deals with nonroutine tasks, especially in the first half of the project where the design task is concentrated (Wheelwright and Clark, 1992). On the other hand, Belief in the value of information for enhancing decisions by reducing uncertainty has increasingly led to the consensus that the growth and even survival of today's business entities will depend on their strategies for handling and processing information (Deshpande and Zaltman 1982; Turner 1991; Glazer 1991). This study shall be an addition to the existing literature on the role of research marketing on the product development, particularly that of the Nestle product Milo.   Rationale of the Topic There are basically four steps in the marketing research process: define the problem and research objectives, develop a research plan for collecting information, implement the research plan by collecting and analysing the data, and interpret and report the findings (Justis, 1981). When defining the problem and research objectives, it is important that the research work closely with the decision makers to determine what research is needed and how it will be used. If this step is skipped, the results generally will not address the major problem (Andreasen 1985). In this setting, the research people must work closely with those people in the franchise who handle recruitment of potential franchisees. They must also work with the franchisees themselves to understand the needs of the market. Marketing research is designed to reduce uncertainty and provide knowledge. Thus, marketing research will help determine what is going right and what went wrong. Research can help understand consumers' buying motivations and determine the strengths and weaknesses of the products or services.   Significance of the Study This study will primarily benefit both the youth and the leaders in the business sector particularly those dealing with product development.  The youth, especially those intent on a career in the corporate industry will find out what is expected of them by the industry, what future the business sector has for them, and what they have to do to be competitive career-wise, in this type of industry.  As for the businessmen, this study will show if their expectations and goals can be met by future batches of Business Management graduates.  Through feedback, they would be able to voice out their concerns regarding the quality of graduates and help the universities cope with their demands and the ever-changing needs of the industry.   Statement of the Problem Marketing research is designed to reduce uncertainty and provide knowledge. Thus, marketing research will help determine what is going right and what went wrong. Research can help understand consumers' buying motivations and determine the strengths and weaknesses of the products or services. The three major functional roles in marketing research are descriptive, diagnostic, and predictive (McDaniel and Darden 1987). The study intends to investigate the effects of marketing research to the product development of Nestle Foods, particularly with the product Milo. Specifically, the study intends to answer the following questions: 1.                            What has been the sales trend for the Nestle foods during the last five years? 2.                            What are the consumers' attitudes toward the Nestle product, Milo? 3.                            What are the effects of research in developing Milo as a product? 4.                            How did the market research and product development affect predictability of the market behaviour?   Methodology Research requires an organized data gathering in order to pinpoint the research philosophies and theories that will be included in the research, the methodology of the research and the instruments of data interpretation. In this study, the Research Process “Onion” will be utilized so that the findings of the study can be thoroughly established. The inner part of the onion describes the methodology portion whereas the outer part discusses the strategies that can be utilized in interpreting the results of the findings. The primary source of data is the market researchers of Nestle Foods, particularly those directly involved with the Milo products. The secondary sources of data will come from published articles from business journals, books and related studies on linguistics, reading strategies and institutions dealing with business management and product development.   References Andreasen, Allen R. (1985), "Backward Market Research," Harvard Business Review, May-June, 176-182.   Deshpande, R., and G. Zaltman (1982). "Factors Affecting the Use of Market Research Information: a Path Analysis," Journal of Marketing Research 19 (February), 14-31.   Glazer, R. (1991). "Marketing in an Information Intensive Environment: Strategic Implications of Knowledge as an Asset," Journal of Marketing 55 (October), 1-19.   Justis, Robert (1981). Managing Your Small Business. Englewood Cliffs, N.J.: Prentice-Hall, Inc.   McDaniel, Carl, Jr., and William R. Darden (1987), Marketing, Boston: Allyn and Bacon, Inc.   Turner, P. (1991). "Using Information to Enhance Competitive Advantage - The Marketing Options," European Journal of Marketing 25(6), 55-64.   Wheelwright, S. C., and K. B. Clark. (1992) Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency and Quality New York: Free Press.

RESEARCH PROPOSAL ON THE RELEVANCE OF MARKETING RESEARCH ON PRODUCT DEVELOPMENT: A CASE STUDY OF NESTLE FOODS

THE RELEVANCE OF MARKETING RESEARCH ON PRODUCT DEVELOPMENT: A CASE STUDY OF NESTLE FOODS Rationale and Contribution Description of ...