First, the quantitative methods can help the company to assess the volume of the market and to assess the target customer group. To put it more precisely, the statistical analysis can help to reveal whether customers are interested in the new product or not and whether the market can take its share of the market or probably the market is already saturated. The statistical analysis is very helpful in the assessment of the market potential and the forecast of the product development and its prospects in the market. The company’s marketing strategy will rely heavily on the results of the statistical analysis. Taking into consideration growing environmental and energy concerns of customers, the company manufacturing LED-based lighting systems can count on the stable demand and positive outcomes of the introduction of the new product in the market,
Qualitative methods should be applied to find out the attitude of customers to the new product and to assess its perspectives in the market. In this regard, the company can conduct interviews, questionnaires and focus groups to conduct the in-depth study of the new product and its possible impact on customers. These qualitative methods can help to reveal the attitude of customers to the new product and to find out whether customers perceive the new product adequately or not. In addition, qualitative methods help to assess prospects of the new product in the market.
A new service component and interest of consumers in the product
The introduction of a new service component, such as the customization of LEDs lighting system, may increase the interest of consumers in the product. The customization of LED-based lighting system will include the adaptation of the LED-based lighting systems to customers’ needs and wants (Van Alstyne & Logan, 2007). Basically, the introduction of the new service component may increase the interests of customers in the new product, but the company should consider costs of such new service. In fact, costs of the introduction of the new product may outweigh its benefits.
Possible distribution problems
However, the company may face distribution problems because existing distribution channels may not always be applied to the new product because the new product focuses on the different target customer group and the different segment of the market. Current distribution channels focus on the distribution of conventional LED products, while the introduction of the new product will need changes in marketing policies of distributors or even finding new distributors for the new product. In addition, the company will need to increase cooperation with large retailers to make its new product available to a larger customer group. Large retailers can boost sales of the company because of their large customer group.
Distributors may have difficulties because of the lack of experience of using and selling the new product that may affect the perception of the new product by customers. For instance, if distributors cannot provide adequate and full information on the product, customers may refuse from buying it. Therefore, the company will have to provide distributors with detailed information on its new product to make them capable to explain all advantages and technical nuances of the new product to customers.
Thus, the LED company can introduce the new product successfully but, before introducing the product in the market, the company should conduct the in-depth analysis of the market to assess prospects of the new product.