Diversification Planning Product Development- By Piyush Tripathi

Diversification Planning Product Development- By Piyush Tripathi

With the global economics going up at a slower rate market research and studies based on end product and productivity issue for the diversification wing has taken a back seat. As an individual researcher, Ideas to share on the market and new generation product launch with brand building database has come to a new height.

Most commonly heard terms and misunderstood is Diversification. Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry which the business is already in. At the corporate level, it is also very interesting entering a promising business outside of the scope of the existing business unit.

Common used product that affects larger volume of individuals is the division where policy and diversification is to be accounted for. We see common day to day products, but share our ideas to non, or rather our ideas are in vain for we don’t know where to collectively put your ideas to make a difference. Source study is most important, its more important to speak at the correct source. With this step and link build up as a researcher, common views are to be highlighted and are to be put up for consideration.

Research on Market Suggestive Developments Industry Specific:

1. Pharmaceutical Industry
Pharmaceutical Industry is the most advanced and improving industry, R & D in Pharma is a constant ask and need. New Drug Delivery Systems are developed and are accounted for. Pharmaceutical industry works on patent and regulatory norms. Common and advanced system recently in development and thought of are as below
- Drug delivery through patches – most common nicotine patch we have heard of but did we ever thought that small kids and people who can not take pills or syrups how can we effectively deliver the medicine to them. Yes the answer is Patches. What form in which drugs these patch can heal is a question. Researches are yet to identify this field as a probable medicines that can be transformed to suit this unique drug delivery system.
- Soluble oral Pills – Better taste common drug, pills in form of chewable drug direct impact specially for cough and cold. Tablets without water like candies best system for kids, easy to carry, and handy easy to target cure.
- Syrup form water or liquid soluble or even soluble tablets. – Required for kids, older people and people with difficulty in swallow. When with sore thought we often complain in gulping with soluble tablets or oral pills drug delivery will be much more easy and cure will be more concentrate.

2. Food Industry
Food Industry is the Largest in the world, every day new products come in market with better packing, attractive offers, this free and an opportunity, all deliver one thing that is taste. The most complex and explored division of industry, understanding Human. The study begins with understanding the product on shelf. Alternate packing and Product launch with success, recent product delivered on shelf, as per our previous study and life cycle examples, were Tomato ketchup in squeeze pack and jams in squeeze pack. What is the market it captured is known to all. Industry is growing day by day, children tooth pastes which can be gulped, is also one product that is really admirable. Now the few new developments pipeline.
- Drinking Powder in Cubes - Most common product that require a change and thought of is dinking powder, i.e. chocolate flavor, banana flavor, strawberry flavor etc. Flavor of milk changes and kid is happy, adults have flavor tea, different verity, and kids have their flavor, but most common problem is to preserve this powder, it gets solidify with wet spoon, hands, some time dip of gentle hands of kids for they want to dig in the product for its flavor, solution is cube of flavor, we buy 3 different boxes of different flavor rather development of a packing which is small, easy to handle and better low cost for soluble cubes for different flavor with a surprise or separate are to be made available.
- Common washing Powder – Cube form of washing powder, washing machine normally of 5.5 kg. or soluble water of 20 ltrs. Washing powder consumption 20-30 gm. For good powders + an additive. If the same product is in cube for 10 ltrs. Of water 1 cube, calculation is easy, preserving the powder is easy large packs storage can be avoided. Product can be easily carried and size of packing reduced due to compressed form.


3. IT Industry
With Cloud computing, and smaller ERP, personalized IT solutions are key focus in today’s life. Business generation from B2B, B2C, Websites, Portals, SEO’S are most common solution from the IT service providers. With the race of web solution provider, promoters, solution and right business source is scare. IT is the core industry on which 60 % of the industries depend on for the promotion of business and research database. Solution from this industry is considered to be user specific and is taken in to account for the results are instant and unbelievable the word world wide web, is truly proving to its meaning connection the entire world with in its web. People are more addicted to be spending time on PC then at home with Family. With hard competition and low margin industry IT solution for smallest of the organization has come to a dream come true project. Many Papers are written on the research in the industry and probable solution. Concentrating more on the need to diversification IT firms compounded the term Cloud Computing. Cloud computing describes computation, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services. Parallels to this concept can be drawn with the electricity grid where end-users consume power resources without any necessary understanding of the component devices in the grid required to provide the service.

Cloud computing is a natural evolution of the widespread adoption of virtualization, service-oriented architecture, autonomic and utility computing. Details are abstracted from end-users, who no longer have need for expertise in, or control over, the technology infrastructure "in the cloud" that supports them.

Identification of the need to developing a system orientation program for small scale industry, Re-defining the cloud concept is essential, service industry B2B market and system configuration, ERP concepts are predefined but are not suitable for the small and medium size firms. Identify the industry and importance of the flow of process orientation programs, tracking system activity base system development. To develop system on Total Cost Management tools like Activity Based Costing (ABC), Activity Based Management (ABM) and Target Costing is required.


We can make a Difference:

Diversification is a form of growth strategy. Growth strategies involve a significant increase in performance objectives (usually sales or market share) beyond past levels of performance. Many organizations pursue one or more types of growth strategies. One of the primary reasons is the view held by many investors and executives that "bigger is better." Growth in sales is often used as a measure of performance. Even if profits remain stable or decline, an increase in sales satisfies many people. The assumption is often made that if sales increase, profits will eventually follow.

Growth may also improve the effectiveness of the organization. Larger companies have a number of advantages over smaller firms operating in more limited markets.
1. Large size or large market share can lead to economies of scale. Marketing or production synergies may result from more efficient use of sales calls, reduced travel time, reduced changeover time, and longer production runs.
2. Learning and experience curve effects may produce lower costs as the firm gains experience in producing and distributing its product or service. Experience and large size may also lead to improved layout, gains in labor efficiency, redesign of products or production processes, or larger and more qualified staff departments (e.g., marketing research or research and development).
3. Lower average unit costs may result from a firm's ability to spread administrative expenses and other overhead costs over a larger unit volume. The more capital intensive a business is, the more important its ability to spread costs across a large volume becomes.
4. Improved linkages with other stages of production can also result from large size. Better links with suppliers may be attained through large orders, which may produce lower costs (quantity discounts), improved delivery, or custom-made products that would be unaffordable for smaller operations. Links with distribution channels may lower costs by better location of warehouses, more efficient advertising, and shipping efficiencies. The size of the organization relative to its customers or suppliers influences its bargaining power and its ability to influence price and services provided.
5. Sharing of information between units of a large firm allows knowledge gained in one business unit to be applied to problems being experienced in another unit. Especially for companies relying heavily on technology, the reduction of R&D costs and the time needed to develop new technology may give larger firms an advantage over smaller, more specialized firms. The more similar the activities are among units, the easier the transfer of information becomes.
6. Taking advantage of geographic differences is possible for large firms. Especially for multinational firms, differences in wage rates, taxes, energy costs, shipping and freight charges, and trade restrictions influence the costs of business. A large firm can sometimes lower its cost of business by placing multiple plants in locations providing the lowest cost. Smaller firms with only one location must operate within the strengths and weaknesses of its single location.