The Need for Product Innovation

Developing new products and launching them in the marketplace can be a difficult, costly and even dangerous business. So why do it? Why not leave well alone and be content with profit from existing products, concentrating effort on expanding sales of these products and finding new markets for them?

One reason is that seizing new opportunities as they emerge is a way to increase profits. (To be first in the field with a successful new product gives one the chance of creaming off large profits before effective competition develops.) But the main reason is that it is dangerous to assume that profits from existing products will continue at present levels for ever. The product life-cycle concept tells us that they will certainly not continue for ever. At different rates, over varying time-scales, all products eventually achieve market saturation and then start to decline. Even while sales volume holds up, profits may well not; and retaining sales volume and profits may call for regular updating of existing products.

For most companies, therefore, a programme of product review and development is essential; and, for all companies, to ignore this area of activity is highly dangerous. A McGraw-Hill study in the United States showed that in 1963 the percentage of sales accounted for by products introduced since 1959 was 28 per cent for transportation, 18 per cent for electrical machinery, and so on, through a whole list of categories. In the consumer goods fields successful new products introduced more recently -include a wide range of increasingly sophisticated computer games, the ‘superglues’ and a whole host of pre-prepared meals for cooking by microwave.

In consumer durables we have seen the successful introduction of video cameras and answering machines, with mobile telephones and fax machines for home use not far behind. Innovative services (intangible products) include direct purchase of insurance by telephone and ‘home banking’.

The most ‘safe’ and inexpensive way to launch a ‘new’ product is modifying an existing product.

New Products from Old

We first need to be clear what is a new product. There are basically three clear kinds of new products:

1. Innovative products which are unique products for which there is a real need, not being met satisfactorily by an existing product. Penicillin when first introduced fell into this category, as did the telephone, the internal combustion engine, and chloroform. We can also describe as innovative those products which, while replacing existing goods that have been satisfying existing markets quite well, offer totally different solutions. Examples would be television partially replacing the cinema and the radio, the zip fastener and later Velcro instead of strings or buttons, and solar power for other energy sources;

2. Adaptive products which offer significantly different variations on existing products: they include such items as instant coffee, freeze-dried foods, self-adhesive wallpaper, and typewriters with a memory. Another kind of variation is represented by package changes, styling modifications, new designs and colours.

3. Imitative products are already being sold by someone else but further sales opportunities exist for an additional brand, with or without minor modifications. The divisions between these categories are obviously very fuzzy. Indeed, some authors have distinguished as many as a dozen different ways in which a product can be ‘new’.

The truly innovative product is rare. Adaptive new products can sometimes necessitate a great deal of new technology and extensive research and development, though a ‘new’ product can often be produced by changes to an existing one. These may range from relatively minor changes, which effectively extend the life-cycle of a product, to much more extensive improvements.

An example quoted by Peter Drucker that covers both is nylon, which was introduced in the U.S.A. by Du Pont and fairly rapidly became the dominant fiber in women’s hosiery. However, once this market was saturated, the growth curve flattened. Du Pont had anticipated this and had developed strategies for providing further increases in sales of nylon stockings by such tactics as the following:

1. Introducing a wider range of colors, leading to an increase in the number of stockings bought by each user and a tendency to wear different colors with different outer garments.

2. Developing new uses, such as stretch stockings and socks. In addition, they moved into other fields such as tyre cord and carpets. In this way nylon sales showed an overlapping series of life-cycle curves, giving a continuing upward trend.

The nylon success story depended both upon changing the product for existing users and making it suitable for whole new markets. Changing products for existing markets can be done in a number of ways, in particular by improvements in quality, features, and/or style.

Two Superior Products of Mitsubishi Cars

If you are looking for the car maker that offer wonderful and trustworthy car in the industry, the answer is The Mitsubishi Group of Companies. Annually, they always try to provide the market and the industry with excellent cars just like other auto makers.

The Mitsubishi has been making a great development in their selling with the production that is increasing of over 12 % since last year. They are still behind the types of Ford and Toyota who take over the car production market. However, with the growth in sales for Middle East, African, North American and Russia markets, two Mitsubishi cars that are the Outlander and the Lancer are giving contribution in gaining valuable ground on their contenders.

Recently, the public is informed that the Mitsubishi Company is ensuring that two of its cars would be well-prepared as a participant for the upcoming model.

The Mitsubishi Lancer 2008 is the model that the company claims as the one of the best selling for sedan model. This car will be holding more features with advanced technology since it has been redesigned by the company. It also has a good and successful record in the rally championship.

It was first produced in 1973 and today has reached the eighth generation that the first production begun in 2007. The Lancer has been amazingly sold for over six million units since the first time it was produced.

The Mitsubishi Outlander 2007 that is known as the type of SUV car is the other outstanding Mitsubishi cars. The sport utility vehicle Outlander has been launched in 2001 and today has reached the second generation that is first produced in 2005.

Mitsubishi has been prepared both of these cars to be ready to reap in sales and profits for the company, particularly when it is launched in the car market of America.

The Mitsubishi cars are now beginning to be more seen on the roads than ever before. The Japanese auto manufacturers always provide vehicles that are equipped with so many high technology features and gadgets for its customers that have not been yet arrived in the western.

The quality of the Mitsubishi cars is now actually beginning to show and the days that Mitsubishi required to solve the fault problem in its cars is long behind them now. The reliability and the reasonable price of the new Mitsubishi cars are the aspects that bring about the interest of the European market to purchase.

Does Dental Insurance Help in Almost Free Dental Care?

Dental care can be very expensive for individuals who do not have dental care insurance. It may require individuals to pay lots of costs or to even start considering options of dental tourism. Dental tourism may involve individuals traveling abroad to get dentist work done for them. Dentistry in other countries may be very cheap as compared to the one you are in. This therefore means that individuals should research on the best country to fly out to to try and get the dental treatment. Insurance from your employer can be very beneficial and will guarantee you cheap dentistry should you need any.

No matter how cheap a dentist visit may be, having insurance is the best option to take. This is because it can guarantee that you receive the best care and individuals can actually get a full check up for almost no cost at all. In this cases your employer will be the one covering your needs although using insurance it will be cheaper than paying for it directly. There are very many insurance companies out there that offer the best dentistry covers. All one needs to do is to ensure that they select the best option from the list. It should be the company that offers a comprehensive cover at the most affordable rate.

Dental insurance can guarantee the best health care system for your oral health. Individuals can always be sure that should anything happen they will definitely have the best treatment available at the right time. Insurance covers all needs and so individuals do not need to fill out the several procedures that individuals who do not have cover have to follow. All individuals need to do is to arrive at the dentists and they will decide what exactly needs fixing as an individual will not be billed for use of the dentist hospital.

Dental insurance guarantees individuals financial health.

Individuals do not necessarily have to wait to save up some cash for dentist system. Financial health in this case is most beneficial because without insurance individuals may have to pay expensive bills that do not even come with discounts. Having to travel long distances may require a lot of planning and in emergency situations it may be unrealistic.

There are very many online sites that can assist individuals to get the best dentist insurance companies. Insurance can be personal or your employer can do the application for you. Individuals can have their best options selected from all the ones that are available online. The companies should however be reliable and have a good reputation before you decide to take a cover with them. Online services can help you see the all the terms and conditions and you can read them out at your own time.