Introduction
Science and technology have made the world evolve as people seek to apply these changes in their daily lives. Businesses have not been left behind as more and more business evolves to cater to the needs of their customers. The clothing industry has been affected by these innovative ideas. New products that are unique and modern are launched every day. This paper looks at the Ubras Company of China, which produces and sells lingerie, and its new product launch of nude bras. I assume the role of an innovative consultant, focusing on the latest product launch, the target market, the cost of starting the venture, the business design, ways of commercializing, and how to manage the new business idea.
Objectives
The objectives of starting a new product line are many. As an existing company, there is need to grow and increase revenue. Businesses are profit oriented and venturing into a new business while maintaining the already existing one maximises profits. New products help to build and grow a company’s reputation in the industry. The clothing industry has many companies and launching something new and unique enables a company to be extraordinary thus attract more customers. Another objective is that new products enable a company to find a product-market fit. This ensures many people get to benefit from these products which maybe making a first appearance in a particular market. It adds new customers to those the company had initially, for example, nude bras launch in Africa will capture more customers from Africa who may buy other products from the company, apart from the newly launched products. Finally, it helps to build product awareness in the market and in the industry.
Roles of a Consultant
As an innovation consultant, my work varies as clients have different tasks depending on their requirements. As a consultant for Ubras company, there are different roles that I can play concerning a new product launch. The first is to generate a new product idea and help the company identify markets (Crick and Crick, 2020). A consultant will provide support to ensure this new product is ready to be released. Secondly, help the business in defining its goal for future growth. Growth strategies include determining the company’s purpose for launching the product, how the product will find its place in the market, identifying potential customers as well as developing strategies to make the product more competitive in the market. The company needs growth strategies to map its future success while exploring new ventures.
Another role as a consultant is to improve hiring practices. This is well achieved by hiring talented employees who add value to the company and strengthen its long-term practices. A consultant helps the team create a positive brand image that will attract more qualified candidates (Lee and Lee, 2019). As an innovation consultant, it is my responsibility to improve a company’s innovation capabilities. The aim is to build capacity for innovation so that hiring expertise from outside becomes unnecessary. This is accomplished by hiring and training new staff, changing management structures, and developing an innovation culture-geared company.
After the business gets running, a consultant may continue helping the business and help bring new ideas to the market. They may take on another new picture, aid its design, assist in piloting the product, test it with customers and measure production once it launches.
Industry and Competitor Analysis
Basing on the Porter’s Five Forces, it is clear that competition and the overall industry structure are essential to having efficacious; strategically make decisions, and advancing a powerful competition plan for the future. The above Porter’s strategies include competitive contention, negotiating influence of providers, bargaining control of clients, danger of new participants, as well as the risk of substitute merchandises or services (Helfand, 2019). Industry analysis is a market assessment that assists a businessperson or company understand the market conditions and help to foresee demand and supply, while considering financial profits from the business. It helps to determine competitiveness in the industry and the cost to be incurred while entering and exiting the industry. This is important for the company as we plan the business, assess the industry stage of the product and gage whether the business is going to grow and if there is room to benefit from the trade or not.
In doing the industry and competitor analysis, while applying Porter’s Force of competitive rivalry, the focus is on how many participants are in the industry and what their shares are. A few businesses translate to high competition when selling a similar product. Looking at the political, economic, social, and technological advancement is essential during the analysis. These aspects affect business in terms of policies and regulations, taxes, tariffs, labor laws, political stability, inflation rate, interest rates, exchange rates, capital market conditions, trends in fashion and health, and advancements in how people do businesses.
Bargaining power of suppliers examines how much control business suppliers have and its effect on pricing, either lower or raise prices. Fewer suppliers have more control, hence businesses are placed better where there are many suppliers. The bargaining power of customers analyzes consumer powers and how they affect prices and quality. When customers purchase goods in few numbers and the vendor has a commodity that is not the same as its competitors, the buying power becomes low.
The threat of new entrants examines the ease or difficulty for rivals to explore the market. When the marketplace is too easy to enter then it means constant risk of competitors, if it is difficult then there is little competition translating to a business benefitting for a long time. Threat of substitute products studies how consumers switch from a product to that of a competitor easily. Prices, competitors, and quality determine the customers who in turn determine profits. Competitor analysis helps to know where the business will do well and areas to improve. It will show the pricing of a similar product or one close to it thus determining the pricing of our new commodity.
Potential Competitors
Among competitors in this lingerie business are top brands such as Victoria Secret, Gugu Intimates, and Thabooty’s Underwear and Shape wear. However, these brands are found in South Africa alone, meaning that other African countries do not enjoy or benefit from their products. One way of getting through this competition is to focus on the target audience’s needs better than the competitors (Ojala, 2019). Asking open-ended questions is one way to find out what exactly consumers want. Efforts should be concerted to solve customer issues and not just sell the product.
Deciding on competitive pricing is a sure way of beating the competition. The prices have to be affordable as compared to the rivals. To understand and determine the ideal price, one has to have a clear picture of the costs of competitors’ goods. It is practical too, to know which competitor’s give the best value. Comparing this with what we have will determine if what we are giving brings more value and if it needs to be priced higher or not. In penetrating this new market, the following will ensure effective occupation. Keeping the salespeople involved is crucial in product positioning and marketing (Park, 2019). They understand the target clientele, and most have constructed significant customer associations. Sales personnel need to comprehend the rivalry, how to position the product, and the tactics they are employing. Creating a sharing environment will enable these business owners to share their positive and negative familiarities in marketing the novel product.
Potential Market
These nude bras are targeted at the African market among the dark-colored people. The African market is untapped even though it is considered one of the fastest-growing consumer markets in Africa (Brits and Adepoju, 2021). There is an immense shortage of design talent in Africa. Producing nude bras meant for the African skin tone will enhance the style, comfort, and elegance of the African woman. Thus, there is a large market in Africa that requires this product. There is a need to identify pioneer nations for the business as launching this product on the whole continent is not achievable. Potential customers for the pioneering stage are customers from large economies such as South Africa, Nigeria, Egypt, and Morocco.
Potential Market Size
Lingerie is one of the markets in Africa that is expected to expand at an exceedingly quick rate. For example, the sector is estimated to have been worth 2.5 billion dollars in Ethiopia in 2017, 2.2 billion dollars in Nigeria, and 2.1 billion dollars in South Africa in 2017. This is anticipated to widen at a rapid rate of roughly 14% (Brits and Adepoju, 2021). This is expected to expand to 5.5 billion dollars by 2023, driven by the rising need for underwear sets, a rising middle-class demographic, as well as a spike in the proportion of economically independent women.
Market Research
The idea to invest in Africa was informed through a research carried out online and physically in three countries, Ethiopia, Egypt and Nigeria. An online survey was conducted where respondents from these countries gave their feedback about the nude bras venture. Most people were excited about this product as they are mainly found in online stores, sometimes they purchase something that does not fit. Having a physical store where people can purchase whatever they want to buy was a much welcome idea. Part of the staff conducted physical research where they did impromptu open questionnaires.
Research Questions
- What is the primary advantage of utilizing this product?
- For how long have you used the item?
- How frequently are you using the merchandise?
- In general, how contented are you with the service?
- Would you repurchase/use our brand again?
- What factors could cause you to select our product?
- What are the reasons why you would not select our brand?
- What other alternative would you choose if our brand was no longer available?
Research Outcome
Almost all respondents welcomed the idea, gave opinions about any improvements that can be made, and the price range where possible. The African market proved a worthy market for this new product. More markets are getting increased attention from foreign investment firms who consider favorable tax, political stability, access to human and financial capital, and nearness to key markets (Popov and Aksenova, 2019). A country such as Ethiopia, for instance, has one of the highest rates of savings on the continent, with a stable and secure consumer base. This is what informed our business to come up with a product that will be well received on the African continent. It offers security too, and this means well for a new business venture.
Potential Capital Investment, Costs, and Revenue
This business venture will need around 1,200,000 dollars to start the lingerie retail shop. This amount will cover the following costs: rent, sales, price of merchandise sold, gross revenue margin, inventory turnover, level of accounting, wages, racks, hangers, shelving, counters, cash register, point-of-sale system, chairs, computers, and printers, office supplies, licenses and permits, advertising, legal fees, mirrors, cleaning supplies, minimum cash in the bank account, and leasehold improvements. There needs to be enough cash to sustain the initial period where sales are low, which will allow the business to grow and produce adequate capital to support it.
As a new business venture, it ought to have at minimum six months of operational expenditures in reserve. Venturing into a new business looks interesting for many people. Still, it must be approached carefully, evaluating the competition, the startup cost, and a practical assessment of whether or not it will succeed. Lack of adequate finances spells doom for the business as it may fail to follow (Popov and Aksenova, 2019). Plenty of funds at the beginning will be able to promote the company and market it successfully to target customers. Business capital will be obtained through getting venture capital from investors and through loaning from a bank.
Theories and Models of Innovation
Creativity, ingenuity, as well as transformation are all factors that influence how a company operates. Scholars believe that by focusing on these three areas, an organization may solve the majority of its issues. Furthermore, when invention, originality, and development are used effectively, the company’s productivity rises dramatically. In regards to team and organizational management positions, theoretical approaches of inventiveness, innovation, as well as creative thinking are frequently linked to other aspects such as group dynamic, employees, governance, and managerial practices. When employees are recognized for their ingenuity and uniqueness, their morale improves. As a result, it is simpler for these staff to develop their talents. Some academics believe that innovative ideas can enhance individuals’ mental well-being (Kravchenko, 2020). In regard to the above, Ubras will aim at building a culture of innovation. This is because creativity has helped the business to conceive many ideas, among them, the launching of nude bras in Africa. Therefore, through innovation this company will maintain competition in an industry that is ever embracing new technology.
The Radical Humanist Theory suggests that innovation processes are linked to self-realization. This notion holds that an individual’s perception is influenced by organizational conceptions and outputs. As a result, the idea either enhances or diminishes an entity’s potential to be original or inventive. Furthermore, the characteristics and other connections associated with the business may have an impact on innovativeness. As per supporters of this notion, for efficient creativity, one’s mind must be free of any dominance from institutional or other cognitive representations (Witt, 2019). Thus, in order to develop the nude bras industry, the corporation will use ingenuity because it understands the value of innovation in reaching out to the core demographic. Moreover, creative thinking will help the company to grow by ensuring that the intended audience recognizes and is drawn to the brand.
The Interpretative Theory advocates that invention and creativity are based on one’s perceptions and judgements. For example, in regards to the above hypothesis, Ubras company’s ideas may be seen differently by its competitors. The above various interpretations are the principal cause why creativity is regarded as subjective (Schwepker, 2019). Similarly, interpretative theorists regard inventiveness as a sense-making process. This implies that features are changed to appear more “relevant” so as to persuade more users. However, integrating new technologies into current activities without compromising core operations is a difficult part of innovation for most businesses. To counter the above scenario, Ubras has an idea and is ready to put it into action. The organization has ensured that the appropriate teams have the necessary expertise to complete the intended work. This indicates that the firm recognizes the necessity of modernization and has assembled teams to produce creative ideas and products.
Creativity is frequently motivated by a variety of causes including inconsistencies that a business may meet in the course of their activities. When workers seek to tackle these difficulties, they develop psychological as well as behavioral capabilities. Other researchers feel that unfavorable impressions that pervade the workplace inspire innovation (Schwepker, 2019). This inventiveness is typically a coping method that benefits both the individual and the firm. Some thinkers have underestimated the importance of creativity and innovation. Nonetheless, significant study has shown that the effects of creativity and invention have sometimes altered people’s perceptions and views (Schwepker, 2019). As a result, once Ubras has presented its product to the market, it will interact with consumers to learn about their experiences.
Client input will aid in the maintenance and improvement of the item, as well as a better understanding of the demands of different customer segments. Furthermore, the organization will strive to strike a balance between innovation projects, change efforts, and routines while minimizing resources, uncertainties, and return on investment (Witt, 2019). The above technique will help determine how this new project will fit together across borders. The corporation will be able to focus the nude bra industry to all of its desired audiences by balancing creative initiatives.
Implementation of Innovation Theory
Firstly, one of the most effective methods the company will use to innovate is to take an idea that has worked elsewhere and adapt it. Secondly, the corporation will introduce new helpful features to its goods or make the merchandise less costly, simpler to use, as well as present them in a variety of designs and colors. Thirdly, if consumers have problems with any element of utilizing the items or have other concerns, the corporation will eradicate the present problems and implement modifications to address the issues. Fourthly, because workers are engaged with consumers on a daily basis and can identify prospects for creativity, the company will continuously inspire its staff to develop new and improved ways to operate and increase customer satisfaction. As a result, the organization will promote exceptional ideas to be presented.
Fifthly, management will regularly conduct brainstorming sessions in order to produce a huge number of fresh prospects. Sixth, the business will monitor tendencies and pose queries on social media channels such as Twitter as well as Facebook. In addition, it will inquire about what customers need in subsequent items or their ideas regarding broader new concepts. Most new buyers are engaged in social networking circles and can gladly offer advice.
The Company’s Commercial Canvas
Deciding a business model canvas is another theory that entails description, design, challenge, and pivoting a business model and testing new business models. This allows a business person to see potential obstacles that need to be overcome, gaps in the market, and can provide a clear overview of an offer better than traditional business cases (Schwepker, 2019). It is helpful in the initial stages when one needs to look at the overall picture and ways of a business model fitting together, thus, below is Ubras business canvas.
Purpose of Design, Manufacture, and Distribution
Purpose of design is an artistic strategy in that we create something intentionally and simultaneously considering purpose, functions, socio-cultural factors, economics, and aesthetics. This is achieved by observing hoe people interact with the environment and applies a hands-on approach to create innovative solutions. It looks at way through which consumers engage with a product and find a way to keep improving the product for better consumer experience. This will create a long lasting value for customers leading to more innovative solutions. Employing a good design is crucial for growth and returns of a given company. In this business the target market is some African countries. For the success of this product, it has to be unique, durable, good, and affordable (Samidi, Hakim, and Nurfadilah, 2019). Affordability will make many people be willing to buy the product thereby widening the consumer market (Wrigley, 2018). The product will have to be properly packaged using wonderful colours and designs so as to be appealing.
There will be a small group of people from the target group that will test the product first before it reaches the audience. These will be members from the target market who are working with the company or anyone willing to participate. As a purpose of design, consumer needs are prioritised over everything else. This group will then be invited to review the product, highlighting what they like or dislike about the product. These reviews are important for further improvements to the product.
As good design makes a strong first impression, the company will invest in a well-made logo. This will help people to make people understand that the company aims to address the customers’ demands. The logo should reflect values of the target market, in this case the African people. It should blend with the peoples’ culture so as to be well received. Good design attracts customers who mainly end up buying the product. Logo should be put on the online product as well as the physical product. Good designing builds better customer-seller relationships as customers often become emotionally attached. It will attract customers and make them stay thereby sustaining the business. Designing appeals to the eyes as messages travel faster from what we see (Vinokurova and Kapoor, 2020). A good design is one created with the customer’s preference in mind rather than one which reflects owner’s identity and taste.
Distribution channels for this new product will include selling the product directly to the customers via website. This website will be launched alongside the product. For those who cannot access the website, there will be physical stores where the product will be retailing. This retail stores will only be in places with large market base, in this case, cities. Another way is giving these products to distributors or whole sellers. They will in turn distribute to retail shops across the identified places and customers will be able to buy from those retail shops outside the city.
How to Commercialize
Launching a new business idea into the market is a significant achievement in the business. It is the final and vital step toward the new product development process. When, where and how to introduce the product determines its initial effect on the marketplace. The promotion approach should be clearly defined, realistic, and have measurable objectives for the business (Straker, 2021). The above plan will influence the launching of the merchandise and assist the product, and the company gets exposure. Some of the approaches I will consider in the new product marketing include adopting direct marketing methods such as sending direct mails to target consumers and using social media to reach the target market. Social media, including face book, Twitter, and Instagram, helps achieve a bigger audience, increasing product exposure (Parkman and Malkewitz, 2019). Social media is a perfect way to create brand awareness and maintain contact with customers. It ensures people learn more about the product, services, deals, and promotions.
Another marketing strategy is creating an advertising plan for the product. It is important to analyze where the target customers are and where they get information. Advertisements push business sales growth, creating much interest among consumers (Nusem, 2020). Advertising will educate customers, making shopping easier and persuading them to buy more. As people become aware of a company’s product and its services, they will more likely buy. Advertisements entice people to try a product and experience it for themselves.
Creating communication materials that speak directly to the target market will support the product launch. Creating brochures as well as posters will attract attention to the new item (Bae, 2018). The message should affect the target audience. Through communication, the company defines product benefits and responds to customer needs and feedback, leading to increased sales for the business. Ensuring that the message sent to the market is the intended communication is essential. There will be different communication channels used for each kind of message. Additionally, marketing will include developing a public relations and news media strategy used to our product’s advantage. Public relations credibility the business as the content is deemed authentic and informative. It attracts the target market because it allows a more straightforward approach to attracting and retaining a target market (Mobhe, 2020). Mainstream media can effectively communicate key ideas and move the product closer to achieving company goals. Public relations add value to the company and product through building strong relationships, managing product reputation, personalizing the brand, and assisting with sales.
Developing a sales strategy custom-made for the new merchandise contributes significantly to marketing. It helps one define approaches for the ultimate clients and set healthy, accurate sales targets. Through gathering data and analyzing trends, sales plans can assess the current situation and outline strategies focusing on historical data (Branstad and Solem, 2020). These plans can identify obstacles and build on the strengths of the program. Good sales planning outlines company sales targets, including the interests of the consumer and the business. Sales planning will take advantage of the new product launch to create awareness.
Pricing is an essential component of marketing as prices determine the success or failure of a business. Having a pricing strategy is important when launching a new product. Choosing the correct prices for a product helps maximize profits and capital value while considering consumers and market demands. Competitor prices, economic trends, consumer demand, overall market, brand positioning, and product attributes determine prices. I will select the best pricing to maximize profit and revenue (Lim, 2018).Lastly, in commercializing the product, I will contact several distributors. The producing company will not sell directly to the consumers; instead, we will use intermediaries as our distributors. Suppliers will be given prior notice of the new product to be launched. There has to be a modest number for a start so as to meet the anticipated initial sales volume. Distributors have to be distinctly positioned so that the product can reach more clients.
Managing the Idea
After conceiving the idea and working hard to get the business going, the company must be well managed so that it grows. This business will employ the following ideas to enable it to grow and become stable. First is knowing and understanding the business and what it entails (Hendriana, Anjani, Dennison, and Subhan, 2022). As a successful businessperson, knowing the industry in which the business is operating, both as it is starting and where it is going, and our competition is essential. Learning to attract customers and knowing the best suppliers and distributors will grow the business. There is a need to understand how technology will affect the business.
Having an appropriate attitude is core to keeping the business circulating. As the owner of the firm, it becomes a part of you. It takes much commitment and time to transform an idea into a business venture. It requires passion and the same responsibility for the business to work. Believing in the corporation and working hard for the firm is vital to successfully managing this business. Attitude affects staff, potential customers, investors, suppliers, and any other people we encounter. The proper perspective will enable the company to run smoothly and maintain any stakeholders (Hutt and Speh, 2021).As indicated above, much money is required to start and run a business. No matter how brilliant the idea is, how best the marketing is or how good management is, running out of cash can doom a business. So as the business starts running, it is good to plan for the long term and work closely with investors and lenders to ensure sufficient funds to sustain the organization from the start to the expansion phase.
I will keep employing money management skills to manage funds for the business effectively. Money will be needed to pay other bills and pay staff. It will be crucial to pay much attention to funds that come in. It will need cost control, collecting money owed to the business, and generally gathering the financial information required to run it effectively (Giacomin, 2017).Apart from money management, effective time management is key to maintaining a business. As a new business owner, one may be required to work extra hours a week to meet targets. However, much as the corporation needs to develop, having non-work life ensures balance (Eriksson, 2022). This will require giving up some control and delegating to others. Developing money management skills and learning how to let others do the work will create good working conditions.
A business will succeed based on the staff hired to run the business. Knowing how to manage people is essential for the company to grow. It is crucial that we hire, keep, and manage good people to run the business. Business growth will depend solely on employees, therefore, there has to be a positive working relationship with them, train them properly to handle the business, and motivate this staff to provide quality goods and services. The workers will, in some ways, influence the target market as they sell the image of the business to outside people (Aryana, 2020). If well-handled and motivated, they bring in more customers, which is good for business growth.
Customer satisfaction is important in enabling the business to grow. There are many impressive ways of attracting customers, but only providing quality goods or services will make them stay. I will commit myself to satisfying customer demands and, where possible, exceeding these needs. Conducting customer satisfaction campaigns will enable management to gauge satisfaction levels and know if it is all good or if there is a need to improve and which areas to improve. Knowing and understanding the competition around is a sure way of keeping a business. One should monitor competitors and be ready to react to any changes in the marketplace (Zhao and Thompson, 2019). There is a requirement to outshine competitors in quality, offer lower prices, and compete in the target market. Additionally, one should consider branding to connect better with customers, focus on quality service delivery, and compete in the best location where the target market lives or works.
Development for the Future
Business development entails matching products and services offered by the company to a set of unmet human needs. As a business consultant, one should be open minded and learn how to adapt to changes in the business world. As any other relationship, business development is relationship development which needs to be nurtured. There is need to be good to people, learn to understand customer needs, have the power of persuasion, and put customers first.
Conclusion
Launching a new product requires so much, from when the idea is conceived to when it is laid to work and how the business will be managed. Business managers and marketers must be aware of the many different ways to compete favorably and succeed in the marketplace. The company will grow if the management knows what it does well and focuses on taking advantage of that to remain competitive.
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