Final Paper Draft: The Development of Beta LED Bulb

America and the world at large have gone through a myriad of challenges, key among them high energy costs, for a long time. This paper describes the introduction of a new product in light of these challenges. Beta Company intends to develop a Perovskite light bulb to replace conventional LED bulbs, fluorescent tubes, and incandescent lamps. The main advantages of PLED bulbs lie in durability, efficiency, and cost-effectiveness. The background expounds on the challenges that have necessitated the development of PLED bulbs. Next is the new product description, which explains details of the product, the technology used, and areas of application. The original product development process explains key business terms such as trademark, market orientation, and patent. The paper identifies the achievement of integrated marketing communication as its central challenge. The strategies that will be adopted include internal and external collaboration, as well as concurrent NPD processes. The management intends to combine psychological and penetration marketing strategies during the NPD process.

Final Paper Draft: The Development of Beta LED Bulb

Introduction 

An LED bulb uses light-emitting diodes in producing light. Compared to incandescent bulbs and fluorescent tubes, LED lamps to consume less energy, last longer, and produce high-quality light in different colors. Therefore, LED technology is preferable compared to conventional techniques currently used in developing bulbs and fluorescent tubes. Although LED bulbs are more durable, they have higher manufacturing costs, which has made them relatively expensive. Beta Company introduces a new light bulb; the Perovskite LED bulb, which will be named Beta LED lamp.

Unlike organic, conventional semiconductors, perovskite semiconductors have higher durability. The technology used is one of its kind yet easy to apply in the development of bulbs. Like OLEDs, PLEDS produce light when electric currents pass through them. Lamps produced from PLEDS have a life span if eight years. By embracing PLED technology, the United States will be able to save more than $2500 within four years. The product shall have a trademark defined by the initials B and L. The two initials will be enclosed in a circle and imprinted on the surface of our products. The new product development process will entail customer participation, market and entrepreneur orientations, and development strategies. The management has chosen psychological and penetration pricing as the most appropriate.

Background 

The US obtains electricity from coal, natural gas, and nuclear power. Studies estimate that the US gets about 40% of energy from coal, while only 7% comes from renewable energy. Coal is an expensive and inefficient source of energy. But the government is unable to lower energy costs because most electronic devices used are energy-intensive, less efficient, and have short lifespans. Companies in the energy sector tried to provide a solution by introducing LED lights. They were able to increase efficiency and durability. However, LED bulbs are expensive, and hence, customers have been unable to embrace them. We, therefore, introduce new LED bulbs that use perovskite semiconductors. Perovskite semiconductors are developed using simple technology, which makes them highly cost-effective. We are hopeful that our product will help in conserving the environment, lower electricity costs, and guarantee value for the money customers spend on buying light bulbs.

New Product Description 

The LED Bulb 

An LED bulb is a light bulb that employs light-emitting diodes (LEDs) to produce light. LEDs are semiconductors that used in generating light by having an electric current pass through them. As current passes through the semiconductor, electrons and electron holes fuse, resulting in the production of energy by way of photons. For versatility, LED semiconductors have an energy gap known as a bandgap, through which electrons must pass. The bandgap is in solid-state, which means particles need the energy to pass through it. The amount of energy required determines the color of light that will be emitted by an LED bulb. These guide manufacturers in deciding their favorite colors, depending on customer preferences (Vin &Khanh, 2014).

Technology 

The technology used in developing LED bulbs is efficient, cost-effective, and promotes sustainable use of natural resources compared to fluorescent tubes and incandescent lamps. LED bulbs also last longer, hence ridding consumers off the burden of frequently replacing their bulbs. However, these bulbs use pathways that never emit photons, which results in losses of energy in forms that are not radioactive. Our product incorporates the latest technology in this field. We intend to introduce perovskite semiconductors to make light bulbs that consume 40% less energy compared to those that currently exist in the market (Baleja et al, 2015).

Perovskite Light Emitting Diodes 

The advantage of Perovskite Light Emitting Diodes (PLED) lies in their unique semiconductors. These semiconductors contain nanoscale particles that assemble by themselves to form light films that are extra fine. Manufacturing perovskites costs much lower compared to gallium nitride that has always worked in developing LED. The manufacturing process is also more straightforward as the technology used is not complicated. As is the case for organic LEDs, it takes strict control of electric currents to produce light using PLEDs. The similarity means we will be maximizing efficiency, stability, and durability while maintaining costs at low levels (Kumar et al, 2019).

Application 

LED bulbs are more efficient, durable and produce higher quality light than florescent and incandescent tubes. However, they have not been received well at the market due to their generally high costs. The use of PLED will mean lower manufacturing costs, which means we will be able to lower our product prices relative to existing competitors. While at it, Beta will be able to earn a significant amount of profit from each sale. Perovskites eliminate all energy losses in non-radiative forms by generating many more photons for each group of electrons passing through. The light films have higher stability compared to light generated by conventional LED lamps, which means our products will be durable (Held, 2018).

The purposes for which LED lamps may be used range from general household lighting to specialized roles such as flashlights used by airplanes. Home appliances will include light bulbs and tube lamps that can easily replace fluorescent tubes. The business will also manufacture bright-light lamps that could serve as traffic signals. By using our products across the various forms of application, an economy could save more than $2500 within four years. Due to the durability of PLEDs, our bulbs would have a life span extending up to 8 years, which is double the longevity of conventional LED lamps. Fewer replacement frequencies will help in conserving the environment by reducing the disposal of defunct devices (Cloud, 2018).

Product Development Process 

Trademark 

A trademark is intellectual property with an expression, sign, or design that is recognizable. It distinguishes products made by a specific entity from those developed by other bodies. It may belong to a legal organization, business group, or an individual. Businesses can imprint a trademark on a product or its packaging. Beta Company shall develop our new advanced bulb, which will be named Beta LED bulb. The logo shall bear the letters B and L enclosed in a circle. We intend to liaise with the Trademark Assistance Centre (TAC) to ensure that Beta Company adheres to set guidelines in the development of our trademark. TAC was established to provide support for customers, small and large businesses in developing brands. A logo will help our customers identify our products with much ease at the market (Dinwoodie & Janis, 2016).

Patent 

A patent is a right of production given exclusively to an individual, business group, or organization. An entity can apply for a license to protect an invention relating to its goods and services. An idea pertaining to an activity that provides a solution to an existing problem can also be patented. Firms may apply for a utility, design, or plant patent. Beta Company intends to apply for a design patent that will allow us to develop and market our new advanced bulb. Patenting encourages innovative production by ensuring there is enough space for research and development (Stim, 2017).

Copyright 

A copyright is a form of legal tool that provides the right of publishing, producing, and selling an idea in its original format. Artists, musicians, and other developers of innovative creations may get a patent preventing other entities from using the unique setting of their production to further their innovations. However, a copyright does not prevent anyone from employing another person's idea in their creations. However, an individual, group, or organization is not allowed to incorporate the concept in its original form. Beta Company will continue, therefore, to make improvements on LED bulbs by making improvements to past innovations. Richard H. Friend started in the 1990s when he made an invention that led to the commercialization of LED products (Stim, 2017).

Customer Participation 

The success in the development of a new product depends on the participation of customers on various platforms. A study by Chang and Taylor concluded that the involvement of customers in the ideation and launch stages of a new product development (NPD) process is essential. The collaboration helps significantly in increasing the financial performance of the original product. Therefore, in our NPD process, an online platform will be established to enable the interaction of customers and managers. The crowdsourcing technique will allow customers to propose their favorite designs for incorporation in the development of new bulbs. It will be an open platform that will cover customers throughout our entire market base (Chang &Taylor, 2016).

Once customers have got the chance and given their design proposals, our managers would choose several designs. The selected designs will be posted through the same platform, for all customers to vote and determine which design will win. An examination by Stock concluded that the benefits of customer participation in NPD are not only more significant in small firms but also for technologically turbulent NPD projects. As such, our new product stands a high chance of being received well across all our targeted market regions (Stock, 2014).

Market Orientation 

In an NPD process, market orientation (MO) entails working on techniques and concepts that aid market penetration. MO aligns individual efforts to the requirements of projects organized under specific departments in a firm. MO inculcates a working culture in business by organizing product introduction into three areas. These are Competitor orientation, customer orientation, and interdepartmental coordination. Interdepartmental orientation calls for the corporation of all departments within an organization in conducting research and development programs (R&D) to help managers have a better understanding of their environment (Morgan, Anokhin, & et al., 2015).

An organization must focus on customer satisfaction when introducing a new product into the market. The management must evaluate the commitment of its employees in responding to customer requirements. Beta Company will have a competitive advantage by paying more attention to customers than its competitors do. To achieve this, we have established that an annual survey targeting customer tastes towards our PLED bulbs will be required (Singh, 2016).

Entrepreneurial Orientation 

Entrepreneurial orientation (EO) relates to the tendency of an entity to take an entrepreneurial perspective in running their operations. An NPD process requires managers to be willing to risk massive amounts of investments, even on projects whose outcome is full of uncertainties. Managers must be proactive in looking out for emerging technologies and guiding employees in responding to new customer needs. EO requires that a company aggressively engages its competitors by making significant efforts to venture into their markets (Luzzini et al. 2015).

In embracing both MO and EO, Beta Company must beware that this interplay has a dark side that may impact on entrepreneurial tendencies. Research has shown that EO enhances progress in an NPD program by developing a healthy connection between the entrepreneur and their customers. However, as MO increasingly takes shape, an individual may shift focus from studying their customer to developing new products. The latest products may not necessarily capture the desires of most consumers, which may reduce business performance (Luzzini et al. 2015, p. 114).

Business Environments 

The process of undertaking new product development requires extensive knowledge on the role of a given business environment. Two types of situations; dynamic business environment and competitive environment; affect the NPD process. Ever-changing technologies and new social, economic, and political trends, characterize today's world and determine the nature of consumer needs. These result in a dynamic environment, which motivates firms to take innovative measures in improving their products. Innovation increases customer satisfaction, which leads to higher sales revenue and, therefore more exceptional financial performance (Bocken, De Pauw, Bakker, & van der Grinten, 2016).

On the other hand, a competitive environment occurs as a result of an ever-growing number of firms doing business within the same industry. Entities focus on asserting their position not only on the local market but also on an international level. Managers and other business leaders put more investments in process innovation, which hampers product innovation. An adequate understanding of both dynamic and competitive business environments is powerful. We will be able to strike a balance between product innovation and process innovation, hence successfully releasing our new product to the market ( Kaarbøe, Gooderham, & NËrreklit, 2015) 

Risks and Challenges 

The success of a new product development process lies in the strength of its brand name. A brand name creates a strong impression and memories on the minds of customers, which determines whether they buy the product or not. Many industries with established market bases across the world exist within the energy sector. Low cost and efficiency alone may not guarantee that the PLED bulb will be received well. There are chances that the management could focus on enlarging its budget size at the expense of growing the company by building its brand (Barkley, 2016).

An NPD requires integrated marketing communication (IMC), which is often challenging to set up and achieve. Achieving an IMC requires an in-depth analysis of issues ranging from sponsorship to appropriate forms of communication and advertising programs. The current communication technology is dynamic and extremely complex, given the wide variety of mobile and social media platforms that businesses must consider. Additionally, most economic models result in isolation rather than cooperation and prefer competition rather than communication. Companies hardly gain any breakthrough that could enable them to launch products successfully (Moreira & da Silva, 2015).

The process of NPD must conform to the legal frameworks applicable within their countries of operation. The management must address all legal issues; a process that is time-consuming due to the intense paperwork required. We will need to satisfy foreign government agencies on concerns regarding environmental sustainability and how our product will impact on their existing technologies. Luckily, we have a dedicated team of professionals who have come up with a strategy of brand-portfolio that upholds clarity and creates synergy (Annacchino, 2015).

NPD Strategies 

Concurrent NPD Processes 

Given the risks and challenges that Beta is likely to experience while developing the PLED bulb, the leadership saw the need to collaborate with other stakeholders in coming up with the best strategies. Researchers have found out that most competitors who compete through NPD also undertake concurrent NPD processes. The idea of these processes is to have a uniform product design group to lower either the general or specific goals. Study findings indicate that goals dedicated to specific cost reduction are effective in reducing the production cost while keeping general expenses unchanged. Additionally, concurrent NPD processes help firms to decrease time-to-market and enhance their flexibility (Tajvidi & Karami, 2016).

Internal Collaboration and Supplier Collaboration 

Given the tendency of manufacturing firms to prefer competition over communication, it will be prudent for Beta to focus on collaborating with its stakeholders through internal integration. Rigorous engagements with relevant stakeholders enhance the NPD process. Most of these engagements reiterate on the performance of a business. Supplier collaboration, on the other hand, assists the company in engaging in strategic sourcing and in knowing the purchasing patterns of customers. It goes on to improve firm innovation concerning the purchasing function of the customers. Networks have been known to be dominant in ensuring that the NPD process is successful in the global market (Wlazlak, et al., 2018)

Strategies Formulated by Platform and Pipeline Businesses 

For increased productivity, Beta could also adopt strategies formulated by platform and pipeline businesses. These strategies are deemed to be relevant in supporting new product development by the company. An article by Van Alstyne, Parker, and Choudry, advocates three significant approaches: resource control, internal and external interactions, as well as customer value created by a firm. The adoption of these strategies helps businesses in navigating the current turbulent environment of operation (Van Alstyne, Parker, and Choudry, 2016). 

Resource Control 

The resource control (RC) strategy holds that firms can have a breakthrough by taking control of their capabilities and unique resources. This strategy allows organizations to exploit and maximize gains from their core competencies. Core competencies refer to the unique qualities and skills that make manufacturers outstanding in their industry. A new product development process requires that a firm lowers its focus on opportunities that exist in the outside environment. Adopting the RC strategy will, therefore, compel Beta to focus on utilizing all available resources through innovation (Gopalakrishnan, Libby, Samuels, & Swenson, 2015).

Resource control strategy relies on the idea of Economic Value Added (EVA), which refers to the gains organizations make as a result of employing capital in production. EVA determines a firm’s sustainable competitive advantage, competitive advantage, and presents the only avenue for companies to outperform their competitors. The vision of a company that is at the NPD process stage should be to grow its EVA and not to earn more profits. If a firm’s management focuses on making profits at the expense of EVA, they may end up making investments whose returns are lower than capital cost (Hitt, Ireland, &Hoskisson, 2017). 

In the long term, capability and unique resources drive resilience, sustainability, and consistency of businesses much more than structural characteristics do. Resources include talented and skillful employees, patents, equipment, finance, and capital. Effective control of these resources makes sure that they are integrated and combined synergistically, thereby forming comparative advantage. On the other hand, capability refers to the power of a specific group of resources to execute a productive activity. Continuous employment of skills makes them more company-specific and harder for competitors to exploit. Capabilities should never be easy to imitate, and never too complicated to be used in effectively managing NPD processes (Amine, 2016) 

Internal and External Interactions 

Internal and external interactions refer to the extent to which internal factors affect new process development, compared to the impact of external factors. An entity must have an extensive understanding of the situations prevailing in both its internal and external environments. The main factors that control performance from within an organization include changes in working culture, financial adjustments, the morale of employees, and changes made to the various levels of management. It is difficult for businesses to detect or even control external factors that affect their NPD processes. The external issues include economic changes, the broader industry, regulations by the government, and the political atmosphere. The SWAT analyses these factors (Beaumont, Thuriaux-Alemán, Prasad, & Hatton, 2017).

SWOT Analysis 

Strengths and Weaknesses 

Factors internal to an organization causes strengths and weaknesses. Beta has numerous concentrations that will enhance substantial competitive advantages. The first step for the management was to process applications for our trademark, patent, and copyright. We have an efficient team of tech-savvy employees who will ensure we are ahead of our competitors in the energy sector. However, the initial stages of developing a new product are capital intensive. The organization must find donors, who may be reluctant as this is a new product with many uncertainties going into the future (Dekkers, Koukou, Mitchell, & Sinclair, 2019).

Opportunities and Threats 

Opportunities and threats occur depending on the prevalence of factors that are external to an entity. We are lucky to have a collaborating partnership with our partners and suppliers. Additionally, the market for LED bulbs and lamps is expected to have a 25% compound annual growth rate by 2022. Beta has an opportunity to grow, given that our products are cost-effective and efficient. However, the tense political environment currently prevailing may discourage potential foreign investors who would have been willing to sponsor our project. Political instability is a threat, given that the NPD process is capital intensive (Prajogo, 2016).

Customer Value 

Customer value refers to the benefits that customers acquire by consuming goods and services manufactured by a given entity compared to the cost of these products. The benefits include being successful as a result of using a service. Promoting customer value requires managers to differentiate between consumers, customers, and non-customers. Customers buy products or services, while non-customers are people who have the potential to obtain an organization’s products but choose to purchase from other manufacturers. A consumer may not buy a good but still uses it (Leenders & Dolfsma, 2016).

The creation of a customer indicates an entity’s willingness to uphold ethics, honesty, trust, morals, and integrity. Beta understood that customers value environmental sustainability. The increasing growth of the LED bulb market indicates that customers are moving away from defective bulbs to efficient, cost-effective, and durable bulbs. An 8-year life span will help in environmental conservation by reducing the frequency of replacing faulty devices. WE guarantee lower prices for the highest quality yet. Beta shall have an online platform where customers can make orders at the comfort of their homes, school, or even workplaces. 

We also have plans that will create a positive image for Beta Company across all market regions. Partnering with our dealers in research and development will give hopes by indicating that we intend to develop even more efficient products for better performance in the future. An eighth of the proceeds from the sale of each PLED light bulb will go towards helping vulnerable children from low-income families by paying fees for their education. Such efforts will portray Beta as a trust-worthy, ethical entity, hence building our brand (Cui & Wu, 2017).

Pricing Strategy 

Before coming up with a pricing strategy, managers must analyze the 4Ps marketing mix. The first P stands for the product. Our product is a PLED bulb that produces high-quality light and consumes significantly low power. The second P represents a place, which is the platform through which customers can access our product. Our online platform is convenient, reliable, and easy to use. For Promotion, Beta will again conduct rigorous public relations exercises and create social media accounts where customers can give reviews. The last P stands for price. Given the efficiency, reliability, and cost-effectiveness of our product, we believe our items will provide customers with great value for their money (Feurer, Schuhmacher, & Kuester, 2019).

Penetration Pricing 

We are introducing a new improvement to LED technology. Our prices should be set lower to help in capturing the attention of consumers, customers, and non-customers. The penetration pricing will be appropriate for this purpose. It allows for an artificial lowering of prices at the initial stages of introduction. France Telecom penetrated the market by selling telephones at discounted rates, and only raised their prices after they gained a significant market share. We intend to follow in their footsteps as we enter the new product development process (Hanna & Dodge, 2017). 

Psychological Pricing 

The management intends to combine both penetration and psychological pricing. Psychological pricing pays more attention to the emotions of consumers rather than their rationality. When a customer has to choose one item from a group of unfamiliar products, they are most likely going to rely on prices in making decisions. Instead of setting an item’s price at $50, psychological pricing lowers it to $49. This pricing strategy is advantageous in cases where a new product is entering the market. We are confident of realizing a breakthrough if Beta pays attention to customer emotions during the NPD process (Schindler, 2015). 

Conclusion 

A PLED bulb uses perovskite semiconductors in emitting higher quality light compared to organic LED bulbs. Beta Company will be responsible for developing the new product, which will be named Beta bulb. The NPD process will employ the latest technology to deliver an efficient and durable at low cost. We expect to experience challenges in setting up integrated marketing communication. Furthermore, meeting regulations and requirements that exist across economies is a daunting task. The prevailing political atmosphere may increase the risk of Beta failing to get a sponsor. Our NPD process will opt for penetration and psychological marketing strategies. 

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