I need new Glasses

Research and Innovation are the two key paradigms where every blue chip company is either investing or intending to invest. With consumer-centric market, every company tries to offer maximum value to their consumers. The markets are flooded with several innovative products in a row. 'Roomba' is the iRobot's innovation to provide self vacuuming services; 'Snuggie' rolled in market proposing coziness of blanket with the arms; 'Topsy Turvy Planters' offered an upside down planting pots that absorbs nutrients much faster and several similar innovations were in its row.

 

At the same time, cut-throat competition only allows survival of the fittest. For example, the internet bubble in 2000.How the companies can survive in the herd with several competitors in a row?

The answer is simple - 'New Glasses'. New glasses here refer to a unique idea or strategy or product offering that the company adopts to counter the competition. Or in other words 'Innovation.'  And every innovation is backed by an adequate research.

For example, MillerCoors innovative idea to introduce a coconut water based drink in June 2012 with the alcoholic content of around 4.2% by volume, especially targeting women. The consumers, especially millennials (born between 1977 and 1994) get easily bored with the old rather regular product offerings. The quench for variety necessitate the manufacturer to offer innovative products which is counter followed by their competitors. Another unique offering in UK beverage market claiming nutritional values as being high in fiber, calcium, protein and potassium was 'Terrafertil 100% Goldenberry Juice'. 'Bloody Mary' is one of the kind introduction in Japanease beverage segment with a mocktail of spicy ingradients with tomato Juice and Vodka. Herbal Teas is one more unique offerings in Beverage segment worldwide with  A unique range of 'Herbal Tea' has been introduced in the past year.

Even consumer needs 'New Glasses'. Every new product is introduced with unique prepositions, distinctive offerings, typical claims and with idiosyncratic nutritional values. How a consumer will judge which product offers maximum utility by spending his limited monetary resources?

Here actually applies the concepts of 'Diminishing marginal utility' and 'Irrational Decision making' as well in Behavioral Economics. Consumers may differ in their buying behavior as well depending upon their limits splurging in 'utility' or 'usefulness' which is subjective in nature. For example, 'Audi' in auto industry or 'Zara' in retail would not provide additional utility than 'Suzuki' or 'H&M'.

The disposable income, brand preferences, prices of new product definitely flicks at this juncture. The people with limited disposable income would stick to 'Nokia' that offers long life of mobile phones. The section preferring 'Nestle' brand would not dawdle to try a new Nestle entry.

Conclusively, 'New Glasses' term in this article is used to suggest how companies offer new products and how they are being judged by their consumers. The vogue of research and innovation in current scenario has been exemplified and the climax explained the factors modulating the buying behavior.