What are the types of new products in terms of newness? explain briefly

 

New products could be categorized into six major categories. These categories are based on the degree of newness of the product as perceived by different entities in the market. For example, a product that is developed as a result of transformational innovation can be new for everyone in the world whereas some products could be new for one customer segment but not the other. Similarly, some products could be perceived as new by the firm or organization based on its previous business operations and some products could be considered to be new because of the approach with which they are viewed and/or the marketing tactics through which they are presented to the customers by the company, brand or business. Let's have a look on each category of these new products one by one.

New to the world: A product is perceived could be really a new one and is developed as a result of transformational innovation by the organization. This new product is perceived to be new by all the customer segments served by business. The product in this category of newness creates new market spaces and customer segments. Example of such product could be taken from when smartphone was first introduced to the iPhone or when Apple launched its iPod for the first time.

New to the firm: The new product could belong to this category of new product if the product is well recognized by the customers and individuals in the market but the experience with the product is new to the firm. In other words, product is not actually new but the company or business could perceive it new for it if it had no experience to deal with such product. Example for such new product could be taken from McDonald launched its salad or coffee menu for the first. Now, salad or coffee is not something new for customers around the world but it was new for McDonald because the brand had no prior experience with such products and customers segments which are targeted through these products.

Addition to current product line: Take an example of Axe (brand of Unilever) to understand this category of new product. Unilever has enormous brands and product lines but let's consider its brand Axe. Suppose Axe body spray used to come in three major perfumes which were famous in the market by the names of Ice, Vice and Crystal. Now, when Axe launched its "Dark Temptation" or chocolate perfume body spray, it was also a new product but the newness of the product was related to the current product line. This is what this category of new products is all about.

Improvement of or addition to current products: This category of new products is related to the minor improvements which make the current product new for the market up to some extent. For example, when McDonald launched its double decker or XXL Big Mac burger with twice the amount of beef or chicken patties in it as compared to what they add in regular Big Mac, it was considered a new product but the newness of the product was limited to minor improvement or addition of something extra to current product.

Newness due to repositioning: This is the category of the product that is not actually new but the way brand or business presents or positions it to the customers makes it new. In other words, the business starts to make the current product perceived as new one by repositioning it in the mind of the target market. For example, Marlboro (a cigarette brand) was perceived to be the cigarettes for women which were then repositioned as cigarettes for men years ago by designing advertising campaigns centered on western men.

Newness in the product due to cost advantages: This category of new product contains the products which are perceived to be new by the customers and firm or business because of their increased effectiveness, usage and cost advantages that product provides to the customers. Example of such new product can again be taken from Axe brand. The brand introduced its signature series of perfume which provided many similar perfumes as provided by existing product lines but gas less body spray plus perfume feature increased the number of times the perfume bottle could be used in terms of number of sprays which led to the cost advantages for the customers. Another example can be taken from energy saving bulbs, instant water heaters etc.