Dormentor Inc. produces, converts, and markets packaging products including boxboard, container board, and numerous other specialty packaging products. To increase its organic growth, the company decides to introduce new products. It asks the managers and employees to send in ideas for new products. (A) Why are employees are good sources for new ideas? (B) Before launching new products (conceived based on employee inputs), what are the stages that the company must go through and why?

Solution and Explanation:

Before launching the new product to increase the organizations organic growth, it has to go through following stages:

a. Screening : When the various ideas are received from the managers and employees it goes through screening stage where the best and relevant ideas are shortlisted among the others that are received.

b. Concept testing : Ideas that are shortlisted during the screening test goes through concept testing that is evaluation so as to know the customer acceptance to the final product.

c. Product development : The ideas which pass the concept testing are screened out and placed for product development where the development, design, marketing etc are carried out.

d. Test marketing : Here the final product is put for test marketing to evaluate the consumer reaction from the actual stores and real life consumers, when the product passes this stage product is launched in the market.