Explanation and Analysis the Aggressive Product Development Strategies with Brand Equity Orientation

Document Type : مقاله مستخرج از پایان نامه

Authors

1 Master of Business Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

2 Professor of Business Management Department, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

3 Professor of Governmental Management Department, School of Management and Accounting, Shahid Beheshti University, Tehran, Iran

Abstract

Introduction. The most valuable assets of organizations are the brands of their products and services. The survival of organizations depends on their ability to introduce new products and services. Introducing a new product to the market is one of the most important and necessary factors for achieving competitive advantage and ensuring the long-term survival of the organization in the market. Brands are a valuable tool for facilitating the product selection and purchase process for customers of organizations, making data and information processing faster. New product development is a vital challenge for managers of manufacturing companies in Iran. The high value of the brand has increased customer trust, leading them to be more willing to purchase the product or service at a higher price. In recent years, the market for household appliances has become increasingly competitive due to the introduction of various new brands. Therefore, considering the importance of brand in home appliances (HA), which relates to the trust and loyalty of customers, domestic brands need to develop suitable products that align with the domestic market's demand for quality and provide proper after-sales services. Accordingly, it is necessary to identify product development strategies and provide a model that can assist in the development of new products. In recent years, Emerson Home Appliances (EHA) has been striving to develop new products and establish brand equity. As a result, researchers have undertaken the task of identifying product development strategies that are aligned with brand equity. Therefore, the main goal of this research is to survey the impact and explain the aggressive strategies of developing new home appliance products based on the unique brand value of the Emrsan Home Appliance Company (EHAC). Methodology. The research utilizes a conceptual model to support the research questions. The structures and their relationships with each other are specified for specific purposes. The model is the result of combining the two views of Cutler and Keller (2016) and Walker and Mullins (2014). In terms of the research objective, the type of research is applied and descriptive-causal, based on the method of data collection. However, in terms of the type of data, it is a combination of quantitative and qualitative research. The sample consists of two groups; the first group includes 384 customers of EHAC. The second sample included 103 industry experts. The tool for data collection is a questionnaire. The questionnaire consisted of two parts. The first part included demographic variables such as gender, age, work experience, and level of education. The second part
consisted of specialized questions regarding product development strategies and new product development, specifically from the perspective of the employees of the appliance company. The questionnaires of Markus et al. (2019), and Fang and Chiu (2014) were used. In the second stage of the research, after testing the conceptual model of the research, in order to answer the question of identifying the product development strategy and its dimensions, an interview was conducted with 103 of the company's experts, in order to determine the type of strategy using the strategic position and action assessment matrix (SPACE). This matrix includes aggressive, conservative, defensive, or competitive strategies.
Results and Discussion. This research has four questions. After analyzing the main question of the research on developing strategies for home appliance products based on brand equity in Emerson Company (EC), the results indicated that brand equity and new product development have a positive and significant impact on Emerson's strategies for home appliance product development. Therefore, by promoting and addressing product development strategies such as commercialization, marketing, and customer orientation, it is possible to enhance and boost brand equity. What strategy is used to develop new products? Based on the formation of the situation evaluation matrix and SPACE strategy action, an aggressive strategy is chosen for EC. The company can adopt an aggressive strategy to capitalize on the available opportunities. In response to the second question about the dimensions of developing home appliance products based on brand equity in EC. The dimensions of product development strategies include 1) commercialization strategy, 2) marketing strategy, and 3) customer orientation strategy. Those strategies are a suitable toolbox for new product development in EHAC. They, with their specialized expertise, can tailor a specific configuration for each new product development project. In addition to meeting the specific needs of the target company, they also provide the necessary tools and processes for new product development in the new configuration. In connection with the answer to the third question about how brand equity affects the development of household products, it was also shown that brand equity has a positive and significant effect on the development of new products in EHAC. The increase in brand equity of Emerson products contributes to the development of the company's products.
Conclusion. The results of the data analysis showed that the product development strategy selected was an aggressive strategy, which encompassed three dimensions: commercialization, marketing, and customer orientation strategies. In addition, three product development strategies have had a positive and significant impact on brand equity and new product development. Furthermore, the unique value of the brand has also demonstrated a positive and significant effect on the development of new products. Considering the strong relationship between customer participation and product development, future researchers could investigate the impact of customer involvement on the development of new products. Similar research may be conducted to investigate the impact of company culture on product development and product innovation.

Keywords

References

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Commercial Strategies
Volume 19, Issue 19
December 2022
Pages 43-61

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