The Leader In The Mineral Bottle Water Segment Marketing Essay

Abstraction

In this study we did some research about Masafi ; an advanced company in the UAE which is the leader in the mineral bottle H2O section in the UAE. The survey looks at the industry kineticss of technological invention which are the technological beginnings of invention and the relevancy of these beginnings, the types and forms of invention, how the invention could be diffused and improved, the criterions conflicts and design laterality of such invention and besides the timing of entry of an invention. Our research consisted of three parts, a definition and apprehension of the assorted subjects, an interview with the caput of selling in our chosen company, farther research on the usage of engineering to develop chances for invention and besides heighten fight.

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Introduction

This undertaking would be looking at the Industry Dynamics of Technological Innovation and we have chosen the nutrient and drink industry to look at how invention takes topographic point and we have based our research on Masafi ; a taking manufacturer of advanced merchandises. We will be looking at four subjects severally and the first would be the beginnings of invention and how invention takes topographic point, how creativeness is translated into invention, the external and internal beginnings of invention ; linkages with clients, providers, rivals and collaborative inventions. The 2nd subject would be on the assorted types and forms of invention, which includes procedure and merchandise invention, extremist and incremental invention ; architectural and component invention, competency enhancing and competency destroying invention, how an advanced merchandise additions public presentation with the rate of its acceptance and attempt put into the production of the invention, and besides diffusion of the invention. The 3rd subject would be covering the criterions conflicts and design laterality, and this subject would be replying the inquiries like why dominant designs are selected, the learning effects of bring forthing new merchandises, web outwardnesss and other factors that affect the value of an invention. Finally we would be looking at the timing of entry which would explicate farther why some merchandises are introduced into the market subsequently than earlier and besides look at some of the advantages and disadvantages of traveling into a market subsequently or earlier and besides look at some schemes to better timing options.

About Masafi Criminal Investigation Command: image001.gif @ 01CAD749.F30361B0

Masafi is a mineral and bottling H2O company in the UAE, it started as a comparatively little company in 1976 with a capital of about five and a half million dollars and today it is one of the taking manufacturers in the section of the market, and has been a leader in the market for more than 29 old ages now. Masafi holds its place as a market leader due to the concentrated attempt put into the efficiency and effectivity of the advanced selling and fabrication schemes and a uninterrupted reinvestment in them which leads to the production of high quality merchandises. Masafi produces a broad scope of merchandises, runing from mineral bottled H2O, juices, flavoured H2O and facial tissues. Masafi now has a alone trade name and has market leading and popularity in the gulf part due to their advanced merchandises ; the company has received legion awards like the ISO 9001:2000 enfranchisement for its high quality direction system and the HACCP ( Hazard Analysis Critical Control Point ) for its high quality advanced merchandises, and acknowledgment from international organic structures and industry governments and have been given a mark of blessing. Masafi besides invests massively in advanced eco-friendly solutions both in the technological development procedure of their merchandises and besides in the recycling of the bottle bundles, from its eco-friendly PET ( Poly Ethylene Terephatalate ) packaging to the recent debut of biodegradable plastic negligee for its bottles and caps. Masafi ‘s scheme is focused on invention and concern excellence and therefore has a repute of a forward looking company. Masafi is divided into other divisions that specify in the production of other merchandises that aligns with their advanced scheme like Masafi juice which produces the company ‘s juice scope with popular spirits like Orange, Tropical, Mango and Apple, it was launched in May 2006 and has systematically grown with a changeless debut of new extra spirits like Zesty Citrus, Maellow Melon, Soothing Berries, Gracious Apricots, Truly Caribbean and many more. Masafi is besides the industry leader in the usage of new technological procedures in the production of their merchandises ; they were the first to present the hot fill engineering that retains the freshness of the juice for a period of clip.

Masafi has spent over 11 million dollars in production and selling in the Masafi juice division which has given Masafi juice a competitory advantage in a market that has more than 70 rivals. Masafi juice is one of the leaders in the market and as gained 5 % of the market so far and is positioned as one of the top 10 juice trade names in the UAE. The division is spread outing massively into other markets in East Arica and South- East Asia.

In 2007 Masafi launched its Still Flavoured Water trade name and is the first and merely UAE company in that section of the market, this invention was derived from the purchase of their nucleus competency in the production of the company ‘s flagship mineral H2O trade name. Six month after the launch of the Masafi Still Flavoured Water it achieved 72 % market section portion. And its production farther leverages masafi ‘s competences in its development of advanced quality merchandises. Masafi continuously upgrades its technological equipments and presently produces 34,000 bottles per hr in its PET works.

Masafi leads the mineral H2O class in the UAE due to its advanced schemes. The company generated gross of AED273 million last twelvemonth entirely.

Methodology

Based on our research and the choice of Masafi as our research company, we made the usage of on-line diaries from the Journal of engineering direction and invention for our literature, the web site of Masafi for our primary and secondary informations and we besides we had a guided interview with the Head of Marketing at Masafi Natascha Edelmann. We developed a list of inquiries relevant for our research and chosen subject and this interview was used to look into a spot more on the nature of invention in Masafi and their beginnings and we used this response to further supplement the information we collected through our research to demo how invention gives the company a competitory border in the section of the market.

Main Body

Beginnings of Invention

Invention can be said to be a new to the universe thought which offers an advanced manner of run intoing a demand or the hunt of a new and different solution. Invention can come from anyplace or way but what matters most is how these inventions are managed efficaciously ( Tidd and Bessant 2009, p. 229 ) . It can besides be said to be the procedure of forcing up an thought, revising and reexamining it together to develop a fresh merchandise, procedure or service ( Tidd and Bessant 2009, p. 229 ) . An obvious beginning of invention is the possibilities of the consequences of scientific research, invention can besides happen through the creativeness of a user or the demand to carry through an unmet demand by an person. Before the outgrowth of houses in the 1900 ‘s invention occurred largely through inspiration, accidents and need pull of users which support the statement harmonizing to Chris Freeman that ‘necessity is the female parent of innovation and invention ‘ . But nowadays there are multiple beginnings of invention, from the Research and Development attempts by houses, to the collaborative relationships with clients, providers, and complementors, rivals, higher cognition establishments like universities, private non-profit administrations and authorities funded research. Harmonizing to Mrs. Natashca Edelmann who is the selling director at Masafi, we found out during the interview with her that invention at Masafi comes from their ain R & A ; D section and in-house brainstorming Sessionss. A figure of authors have studied the occasional discovery inventions and the following drawn-out periods of researching and lucubrating this inventions. It is seen as a common form but still does n’t reply the inquiry to where inventions come from.

Sometimes knowledge creative activity sets a push or a creative activity of a new chance which enables possibilities for invention, this could be termed as cognition push of invention but this does n’t vouch the acceptance or success of such invention if they do non run into the demand of the client. That is why the complementary pull to knowledge push is sometimes more likely to take to the result of an invention, as this is creative activity of invention through necessity. Sometimes needs that are non good served or over served could take to the creative activity of a new riotous invention which would offer an advanced solution to such demands, an illustration is the air hose sector where major air hoses focused chiefly on high-end high-cost market and lower cost air travel was ignored. Masafi has a strong communicating with its clients, during the interview the caput of selling said that ‘prior to the launch of any of our offerings, we undertake elaborate, strict and thorough consumer research exercises to find tendencies, penchants and gustatory sensations. We seek the permission of our consumers before we launch any new offering. The regulation is simple: if you give them what they want, they will merely come to you and this has worked good for Masafi ‘ . And this has enabled Masafi to bring forth advanced merchandises that fits precisely with the demands of its clients.

Another major beginning of invention is innovation by users, sometimes lead users of invention get frustrated with the current existing solutions and they refine this with experimentation and paradigms to develop what could finally go mainstream inventions. Users found in this class are largely lead or utmost users, who are active and interested users and are frequently good in front of the market in their invention demands. Some companies work together with such lead users to co-create advanced solutions and this is sometimes a scheme company ‘s usage in pull offing invention. This has resulted in some companies besides utilizing the ‘perpetual beta ‘ thought in the testing and development phases of invention. Harmonizing to Rothwell ( 1983 ) , “ tough client mean good designs ” , thereby coming to a decision that extreme users or environments can be a beginning of invention meeting challenges that can make new chances.

Imitation of watching others is besides another beginning of invention and this has been observed largely in the Asiatic states, where the contrary technology of merchandises and processes leads to the development of imitations and acquiring around patents. This leads to larning from others and could besides be a successful scheme in the sourcing of invention. Recombinant invention is another beginning of invention which is as a consequence of crossing over of thoughts from one universe to another. This could besides be referred to as technological spillovers and involves the transportation or combination of an thought in one universe into another. In a state of affairs whereby accidents or unexpected events takes topographic point during companies development processes it has been found that although this experience is non desirable it has led to the creative activity of inventions. For illustration the ‘post it ‘ notes by 3M were developed from an mistake in the adhesive gum that was supposed to be thicker and besides Fleming ‘s find of penicillin.

Most houses value making most of their R & A ; D in house ( most particularly Masafi ) and holding control over their invention and can maintain back information from others and run in a closed system, nevertheless it is argued that invention comes from many waies and topographic points and it is merely wise to hold an unfastened attack and besides spread outing their cognition and recognizing the importance of external beginnings in the invention procedure while doing their cognition known every bit good. The alteration of scheme by Procter and Gamble can be used as an illustration as the company moved from a closed invention to sourcing 50 % of invention from other concerns, they changed their motto from research and develop to link and develop. A really of import beginning of invention in an administration is the internal cognition connexions of the administration. The ability of an administration to promote the creativeness and coevals of thoughts of employees could be really honoring. Most times ordinary employees have thoughts and experience than specializer in the R & A ; D sections, the ability of the house to capture these thoughts and besides promote internal entrepreneurship or intrapreneurship as it is sometimes called is going popular. This requires employees to hold the free clip and infinite to research their thoughts and sometimes requires a semiformal direction construction. At Masafi the direction believe that the impression of creativeness and invention are no longer fringe tendencies and this is why creativeness and self-expression are sharply nurtured so that they can run in a successful and sustainable mode. Masafi encourages thoughts from each employee and have an effectual employee wages system which acknowledges their creativeness, attempts, teamwork and professionalism. While the most of import beginning of invention acknowledged by the CEO ‘s of many advanced houses is the external beginnings of invention. Most companies ‘ rate coaction with clients, providers, complementors and other concern spouses to exceed their beginnings of new thoughts while their internal R & A ; D ranked lower. As one Chief executive officer of a company put it, ‘If you think you think you have all the replies internally, you are incorrect. ‘

Sometimes companies get to make new markets through the exciting chances created through cross-industry coaction which would n’t hold been perchance without an unfastened attack system. Harmonizing to Sandven ( 1996 ) , houses barely innovate on the footing of their internal resources but they draw on the proficient accomplishments, cognition, resources and methods sourced externally. This is why most advanced houses have a complex web relationship with providers, clients, research institutes and industry association ( Abereijo et al, 2009 ) . No company operates in isolation for most houses are embedded in societal or institutional scene that influences their constructions and scheme ( Klaus et al, 1995 ) .

Types and forms of invention

A Product invention can be said to be the creative activity of a new merchandise or service to run into clients ‘ demands and besides profit the company. Harmonizing to Schilling ( 2008 ) , merchandise inventions are embodied in the end products of an administration either its goods or services. While procedure inventions are the ways a company conducts its concern, such as in the techniques of bring forthing or marketing goods or services. Process innovations most times improve on the efficiency and effectivity of production and both merchandise and procedure inventions frequently occur in tandem. Masafi has a figure of merchandise inventions and besides make usage of procedure inventions to increase the quality in their merchandises. Harmonizing to the caput of selling at Masafi, she stated that, ‘they pride in the fact that they have maintained an border when it comes to quality and invention – quality in footings of merchandises ( natural and pure ) and processes ; and Innovation in footings of communicating and prosecuting with consumers. Their popularity is mostly due to their doctrine to present superior quality merchandises and rigorous attachment to international quality criterions. From being the generic name for bottled mineral H2O in the part over the last three decennaries, they have innovated and evolved into niche classs including flavoured H2O, bulk H2O, juices, epicure etc.

Specific invention in Masafi merchandises includes:

Masafi was the first to present the one-time-use 4-Gallon bottles.

The one-time-use mineral H2O bottles are 100 per cent reclaimable – the first-of-its-kind in Middle East.

Masafi Juice was the first in the Middle East to present the ‘hot fill ‘ engineering that enables retaining the juice ‘s distinguishable freshness for the period it is stored.

Masafi Gourmet provides odd invention – the french friess have 65 per cent less concentrated fat content compared to other french friess available in the market

The Oxo Biodegradable shrink-wrap packaging in H2O bottles is the first of its sort in the nutrient and drink sector across the Middle East.

Another cardinal type of invention is incremental and extremist invention. While an incremental invention may affect merely a minor alteration from ( or accommodation to ) bing patterns or working and lucubrating on an invention, a extremist invention is the exact opposite as this is an invention which is new and different from antecedently bing merchandises and procedures and involves an occasional discovery which creates a new flight. For illustration Natascha mentioned that masafi ‘s debut of the PET lid cups is a extremist invention as this is a new merchandise overall. The new PET palpebras offer a host of wellness and environmental benefits as old palpebras were aluminium and hence the cups where non reclaimable as recycling Centres where unable to take the aluminum from the cups. Harmonizing to Tidd ( 2009 ) , the problem is that in an unsure environment the possible to procure and support a competitory place depends on making something different, that is extremist merchandise or process invention instead than imitations and discrepancies of what other are besides offering. Although it is non easy making the two activities of extremist and incremental inventions, but most administrations like Masafi have managed a grade of ambidextrousness through the usage of a combination of attacks across a portfolio. Most of the inventions at Masafi are competence-enhancing as most of their advanced merchandises are built on the engineering underlying old merchandises and these inventions leverage their existing competences thereby doing them more valuable and knowing.

Standards conflicts and design laterality

Timing of entry

Timing has been found to be an of import strategic tool for a company when planning on establishing a new merchandise. There is a general belief that being the first to establish a merchandise in the market is the best manner to capture market section and leading but there are statements to this. The timing of entry of an invention depends a batch on the demand and technological uncertainness of the invention ( Rajshree, 2009 ) . The inquiries that arise are ; is there a market/demand for the merchandise? Are at that place complementary and utility goods for the merchandise? Does it hold the characteristics required by clients? In this instance, Masafi undertakes detailed, strict and thorough consumer research to find tendencies, penchants and gustatory sensations. And seek the permission of the clients before the launch of any new merchandise. This has worked good for Masafi which uses the regulation of ‘if you give them what they want, they will merely come to you ‘ .

When an invention is introduced into a market, it usually takes a spot of clip for the client to familiarize with such invention. That is why it is of extreme importance for companies to present merchandises that are new and easy to utilize at the same clip. The larning curve enables the house to understand and find the life span of the merchandise and besides learn about ways to do the merchandise effectual and efficient. The fact on how much clip it takes rivals to respond and come-up with utility goods is a cardinal component and besides the criterion of the merchandise as a function to play ( Langerak et al, 2009 ) . Open criterions tends to diminish net income appropriation, rival imitate easy, increases purchaser power and provider power due to take down shift costs and possible loss of control and this criterion can besides increase market credence. However, closed criterions be given to bring forth more market portion and therefore, additions gross but Government ordinances might set a barrier toward the growing of the merchandise. This is portion of the grounds why Masafi adopts a closed criterions attack in its developments procedure in order to derive a competitory border in front of others.

When come ining a new market there are ever hazards involved. But the biggest obstructions most companies face while embarking into new markets are called entry barriers. This could be the size of investing, advertisement, control of resources, client trueness, inelastic demand, rational belongings, perpendicular integrating, trade name individuality, distribution channels, graduated table and experience economic sciences and authorities policies. These are some of the points a company should see before establishing a merchandise as the selling program can do all the difference in holding a successful merchandise or non. Harmonizing to Natascha Edelmann she stated that “ Our communications runs are ever permeant, powerful, memorable and straight linked to our gross revenues aims. A smart run reinforces the trade name value, reinvests in the equity of the trade name, drive positive association and concern consequences expeditiously. For us, the promotional tactics are inter-linked with our selling aims ” .

It is normally thought that if a company wants to derive market portion it has to be the first to come in the market. The first mover advantage theory provinces that the first company to come in a certain market will derive monolithic market portion. Besides if the company has developed a competitory advantage every bit good, it will besides be able to support its leading place from new entrants and this can give the company the ability to set up client trueness and thereby procure their place in the market. Furthermore, a company can put the criterions of the new market when it is the first one to come in it ( Rall, 2009 ) . However the 2nd mover has the advantage of larning from the errors made by the first mover and being able to execute better, bettering and fulfilling the client ‘s demands. For illustration masafi was non the first to present the flavoured H2O to the Middle Eastern market. It was another trade name called “ H2 OH ” which a diary described as “ If I want a Diet 7Up I ‘ll merely acquire Diet 7Up. What is the point of H2Oh! ? ? “ ( www.360east.com, 2009 ) . This is an facet where Masafi had a 2nd mover advantage.

Decision

Invention is the creative activity of a new merchandise and service, nowadays most industry and markets are fast changing and really competitory. Most advanced companies have a competitory border over companies that are non advanced. Most companies now invest in uninterrupted advanced undertakings in order to make a trade name trueness, a dominant design and sometimes put the industry criterions. Invention can happen from anyplace, any person or squad and there are many types of invention viz. extremist and incremental, merchandise and procedure, architectural and component inventions. To be successful in the market and besides derive a important portion of the market, most companies now perform multiple types of inventions in order to full accrue the benefits and besides explore new chances in the market. Timing of entry can either do or interrupt an invention and besides depends on the new merchandise ‘s development rhythm clip, which is from development phase to when it is ready for debut. A company needs to equilibrate the hazard of early entry and the lost chance of late entry to find the right clip of entry. Therefore a company has to hold the ability to acquire the market clip right of have adept market-entry timing which means neither excessively early nor excessively late.

Data and findings

Most of our informations was gotten from the electronic mail interview we had with Natascha Edelmann, the Marketing Manager at Masafi. Below are a few of the inquiries we asked.

Beginnings of Invention

What are the beginnings of invention at Masafi ( in house R & A ; D or other beginnings ) ? And what are the degrees of importance of these beginnings?

Masafi has ever maintained an border when it comes to innovation in its communicating and battle with its consumers, apart of class our focal point on quality in footings of merchandises ( natural and pure ) and processes.

The beginnings of invention are research, and in-house brainstorming Sessionss.

How does innovation get down at Masafi?

At Masafi, the invention is uninterrupted — we keep developing and looking at chances. As the old expression goes – Continued success merely comes to those that are ne’er satisfied – and we are non.

If you see our merchandise profile and their placement, it is clear that our clients and invention to accommodate their penchants have been the driving force behind all our concern determinations.

Our schemes are advanced and different from other companies, which has helped us stand out and keep our lead for over three decennaries. Our market leading is a combination of our universe category offerings, goaded gross revenues attempts and advanced communications runs.

What are the factors and procedures behind the creativeness of the administration?

As illustrated above, we believe in concentrating our selling scheme based on client penchants, orienting our merchandises to the need-states and demands of our consumers. We strive to accomplish the highest degrees of excellence through changeless invention in our merchandise mix in line with the demands of our discerning clients.

Our communications runs are ever permeant, powerful, memorable and straight linked to our gross revenues aims. A smart run reinforces the trade name value, reinvests in the equity of the trade name, drive positive association and concern consequences expeditiously. For us, the promotional tactics are inter-linked with our selling aims.

How does Masafi magnify single creativeness of employees ( gaining control employee thoughts ) ?

We give a batch of accent on single accomplishment sets ‘ development and acquisition procedure. We conduct a series of workshops and team-building exercisings to nurture creativeness among the employees and tackle the human capital.

Is there an thought aggregation system at Masafi?

The impression of creativeness and invention are no longer fringe tendencies. At Masafi, creativeness and self-expression are sharply nurtured so that we can run in a successful and sustainable manner.A We encourage thoughts from each Masafi employee.

How are the employees at Masafi rewarded for their creativeness ( monetarily or what other benefits ) ?

We have an effectual employee wages system which acknowledges their creativeness, attempts, teamwork and professionalism.

What sort of attack does Masafi hold towards R & A ; D?

As one of the taking participants in the industry, R & A ; D is overriding to germinate. We believe in uninterrupted invention and therefore we are ever looking at new chances. It is critical that to introduce in footings of procedures, merchandises and communicating mixes.

Does Masafi hold linkages to other external beginnings of invention ( e.g. universities & A ; authorities labs ) ?

No

How does Masafi use multiple beginnings of invention ( e.g. linkages to clients or possible users, to external web of houses like rivals, complementors and providers ) ?

We have been really originative and advanced in our communications attack. If you see our merchandise profile and their placement, you will detect that client penchants have been the driving force behind our concern determinations and invention has been our philosophy so far.

How much is authorities funded research compared to the industry R & A ; D in the UAE?

Non applicable

Is Masafi involved in any collaborative Research ( transportation of cognition ) ?

NO

Types and forms of invention

Masafi is known for procedure invention ( techniques of bring forthing and marketing goods ) , as we know new procedures leads to new advanced merchandises. What are the merchandise inventions in Masafi?

We pride in the fact that we have maintained an border when it comes to quality and invention – quality in footings of merchandises ( natural and pure ) and processes ; and Innovation in footings of communicating and prosecuting with consumers.

Our popularity is mostly due to our doctrine to present superior quality merchandises and rigorous attachment to international quality criterions. From being the generic name for bottled mineral H2O in the part over the last three decennaries, we have innovated and evolved into niche classs including flavoured H2O, bulk H2O, juices, epicure etc.

Specific invention in our merchandises includes:

Masafi was the first to present the one-time-use 4-Gallon bottles.

The one-time-use mineral H2O bottles are 100 per cent reclaimable – the first-of-its-kind in Middle East.

Masafi Juice was the first in the Middle East to present the ‘hot fill ‘ engineering that enables retaining the juice ‘s distinguishable freshness for the period it is stored.

Masafi Gourmet provides odd invention – the french friess have 65 per cent less concentrated fat content compared to other french friess available in the market

Our Oxo Biodegradable shrink-wrap packaging in H2O bottles is the first of its sort in the nutrient and drink sector across the Middle East.

Could these inventions be termed as extremist or incremental inventions?

Yes, as they are either first in the part or number ones overall such as the PET cup palpebras.

Are they Competence-Enhancing or Competence-Destroying inventions?

Why would anyone establish a competency destructing invention? We are diffident about the inquiry.

Standards conflicts and design laterality

Are there any Government Regulations or criterions for merchandises produced in Masafi?

We abide by all criterions set by the UAE Gov’t for the classs that we manufacture.

Is there an handiness of complementary goods ( extra goods & A ; services that enhance the value of a specific merchandise ) in any Masafi merchandise?

Masafi has ever believed in uninterrupted invention and hence ever germinating and looking at new chances. The company offers a scope of top quality merchandises, packed in the UAE, to run into the single demands of our consumers.

Masafi has ever remained committed to widening value and pick to its clients and stress its repute as a proverb for invention and excellence in the part. As one of the taking bottled mineral H2O company, Masafi has become a generic name in the part and its trade name equity has rubbed on to our other distinguishable product-categories, including flavoured H2O, juices and epicure.

Timing of entry

How does Masafi guarantee that the debut of new merchandises fits or meets with clients demands?

Prior to the launch of any of our offerings, we undertake elaborate, strict and thorough consumer research exercises to find tendencies, penchants and gustatory sensations. We seek the permission of our consumers before we launch any new offering. The regulation is simple: if you give them what they want, they will merely come to you. This has worked good for Masafi.

How high is the menace of competition?

Equally far as competition is concerned, the key to win is to distinguish and seek 1 ‘s ain alone infinite. In comparative factors, it is choice and the communications foregrounding the quality that enables one to stand out in a littered and price-sensitive market. Competing on monetary value is non a long-run solution ; nor is it healthy to develop a trade name.

What strategies does Masafi usage in the timing of the debut of new merchandises?

Basically, our clients and their penchants have been the driving force behind our concern determinations – which in bend thrusts our new merchandise launches. We undertake elaborate, strict and thorough consumer research exercises before presenting any merchandise. This has worked good for Masafi and our success is apparent! ! !