Disney's New Product
An example of one of Disney's new product strategies is improvements or revisions of existing products. This strategy is the new and improved version of the product that may be significantly or only slightly changed. Recently Disney announced new itineraries and ports for their cruise line for 2013.This improvement will expand to new destinations such as Venice, Italy and Greece. Also the Disney Cruise Line will utilize a second home port in Florida with Caribbean Sailings in Miami for their first time. With this improvement Disney is now able to to take more families to more destinations around the world.
New Product Strategy links the new product development process with the objectives of the marketing department, the business unit and the corporation.
Disney's New-Product Development Process
This process follows as :1. New Product Strategy
2. Idea generation
3. Idea screening
4. Business analysis
5. Development
6. Test Marketing
7. Commercialization
8. New Product
1. One of Disney's New Product Strategies was to expand their cruise line
2. New Product ideas evolve from many sources including customers, employees, distributors, competitors, vendors, research and development and consultants. The idea of the expansion of the Disney Cruise line has evolved from customers and competitors. In order for customers to reduce air fare costs they have decided to expand their ports and destinations closer to more consumers. Also while adding to their locations they will build stronger brand loyalty against their competitors.
3. Idea screening eliminates ideas that are inconsistent with the organization's new-product strategy or are inappropriate for some other reason. Ideas on Disney's new fantasy ship ranged from appropriate concepts on the boat to the exact designs that emulate scenes from their movies. The Walt Disney Company CEO Bob Iger and his management devise weekly meetings to discuss every aspect of the $1 billion dollar boat.
4. Business Analysis is the stage where preliminary figures for demand, costs, sales and profitability are calculated. In order to estimate the financial numbers for this billion dollar Cruise Disney had to calculate the demand, cost, sales and profitability.
5. Development is the stage in which a prototype is developed and a marketing strategy is outlined.The expansion of more cruise lines will lead to the development and outlined strategy of expanding and modifying the port facility to accommodate for the extension of the dock, enhancements to the terminal building allowing for additional luggage and passenger capacity and a multi level parking structure. Also the development for new entertainment and activities. In order to expand their entertainment Disney has developed the first ever Disney's Pixar Toy Story Musical.
6. Test Marketing is the limited introduction of a product and a marketing program to determine the reactions off potential customers in a market situation. Disney has noted they are continuing to test new markets as part of their growth. By operating in centers such as New York and Texas they are providing a convenient way for residents, testing new markets as to whether they enjoy the Disney Cruise Line Vacation.
7. Commercialization is the decision to market a product. The initial commercialization for the introduction of a product can vary from a few weeks to several years. After Disney has finished their development of the cruise line they introduced the expansion early in January of 2011.
8. New Product is at the end of the cycle bringing the product to the market which Disney has undergone with their Cruise Line
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