Student’s ID: 1500410/1 MDI Critique 1.0 INTRODUCTION Marketing, Design and Innovation (MDI) teaches us how a product or service changes over time impacting on cost and quality. MDI gives a new perspective, showing the benefits and constant technological innovations and improvements within any industry and to satisfy the demands, needs and wants of the consumer. Kotler’s definition of Marketing states “It is a management process responsible for identifying, anticipating and satisfying customer requirements profitably.” The objective of this paper is to demonstrate the evolution of a product over a period of time, the benefits, and cost effectiveness, usefulness to modern lifestyle, durability and implementation of new technology within organizations continuously competing in offensive innovative strategies. Being the first to manufacture a product. 2.0 INFLUENCE Overwhelmed by the speed of innovation in its many forms, products and service, being given this task was not easy to write about, this created some indecision about the product to be utilized for the assignment. After much reflection it was determined that the kettle, would be my choice of topic. “The amazing kettle, my time saver.” Many perceive its sleek shapes, styles and available colors, a convenience taken for granted but used quite frequently. Great! A good product as any to critique, used every single day at least six to eight times daily. Incremental innovation has demonstrated that modern technology has significantly enhanced the lives of modern man, by the continuous improvement of products or services. Student’s ID: 1500410/1 3.0 CRITIQUE 3500 to 2000 years ago a container was used for cooking by the Mesopotamian, which was hung on an iron post over a cooking flame. The concept then came about to add two handles to the sides of the pot as a safety feature when holding it. A spout was also added to control the flow of hot water when pouring, which then became the invention of the kettle. Trott (2012) p. 15 states that invention is the process of converting intellectual thoughts into a tangible new artifact (usually a product or process). Cast Iron Kettle During the 19th Century there was an incremental innovation, Trott (2012) p. 213 states that an incremental innovation will build upon existing knowledge and resources within the firm leading to the enhancement of its competencies, with the development and design of new materials such as copper, steel, iron, silver, aluminum and chrome,which were now used. The design feature being rounded with a flat bottom, allowed this new pot to sit flat. This kettle could now be placed over direct heat. The benefit of using these new materials was that it reduced the heating time of the water. This design helped to keep the temperature because of the enclosed physical appearance. As people became more aware of the usefulness of the kettle, its safety and its quick boiling time, a need was expressed by the consumers based on sales for the product, this need was then fulfilled by the manufacturers. From an idea of a cooking bowl to adding two handles, a spout 2 Student’s ID: 1500410/1 and a lid to a pot, the kettle was invented from metal to fulfill consumer demand, and is clearly demonstrated in the conceptual framework of innovation. Science and Technology base Technological developments Needs of the Market Fig. 1.4. Conceptual Framework of Innovation “The recognition that innovation, according to Trott (2012) pg. 15 is the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product or manufacturing process or equipment, occurs through the interaction of the science based technological development and the needs of the market which was a significant step forward.” (Trott 2012, Pg. 22.) 3 Student’s ID: 1500410/1 Fig. 1.2 The interaction between development of activities and the design environment. The Spectrum of design activities Engineering Product Fashion Mechanical Industrial design Market/societal change Electronics Outward appearance Style Chemical Human factors Consumer expectations Manufacturing Required quality Research, knowledge and experience built up over time will enable the Organisation to inform the three areas below Engineering solutions Form Concept Design trends Functional design Form Fashion Cost effectiveness Color Styling Manufacturing Graphics Emotions Considerations Packaging Packaging Ergonomics Product Development 4 Student’s ID: 1500410/1 In 1891 a Systemic Innovation “which only made sense only in conjunction with other innovations.” Von Stamm (2008) Pg. 426 took place with the introduction of the first electric kettle by the Carpenter Electric Company. This invention is a two part – system, the element being in a separate compartment and not immersed in water, also attached to the kettle was an electrical cord. Research and Development factors revealed that the disadvantage of the electrical kettle, was the non-inclusion of an on and off switch when the water reached its boiling point. The consumer had to monitor and switch off the kettle manually, this was time consuming and also dangerous. If the water burned off, a fire can be caused, a fuse blown or the burning out of the element of the kettle. The customer would then have to purchase a new kettle. Further research and development was conducted to improve this existing product, to satisfy the demand and needs of the consumer, whilst awaiting the manufacture of a new and improved quality product, thereby increasing sales. According to (Murray 2003) “It’s only by understanding what the customer really wants, that we can identify the innovative opportunities and then we can see if technology can bring to bear on the opportunity that exist. Being innovative is relatively easy – the hard part is ensuring that your ideas become commercially viable.” Research and Development Manufacturing Marketing Linear Model of Innovation – Fig. 1.5. P. 22 5 Student’s ID: 1500410/1 In 1922 the Swan Company created an electric kettle, whereby the element was sealed in a metal tube submerged in water unlike previous electric models, which was also slow boiling. This faster design caught on and soon most companies implemented the following strategies. Technical designs were constantly changing to suit the different segments of the market. Evolution of the kettle from the pot on a flame, to an electrical kettle, to a canister and the sun’s energy which can boil water in minutes. This growth and development over a period of time is reflected in the S curve, as shown in the model under-mentioned. Fig. 6.4. Technology life cycles and S-Curves 6 Student’s ID: 1500410/1 As technology evolved, several organizations improved their products, competing for market share, altering the uniqueness of Design using their core competencies, towards ensuring their dynamic capabilities were utilized which would impact on the organizations critical success factors, ensuring customer demands are fulfilled at a competitive price. Strategies used by organizations such as Bonavita, Sunbeam, Hamilton Beach and Proctor Silex are as follows. Offensive This is launching of one’s product into the market before the competition. According to Trott (2005), “This strategy demands a significant research and development activity and is usually accompanied by substantial marketing resources.” Defensive The company is quick to manufacturer, design, develop and market using reverse engineering resulting in a lower cost. “For such strategy the company needs to be agile in manufacturing, design and development, and marketing so as to respond quickly to those companies that are first into the market.” (Trott, 2005) Imitative Using economies of scale, the company is able to manufacture at a lower cost. Trott (2005) maintains, ‘The company requires exceptional skills and capabilities in production and process engineering.” Uniqueness of the Design Elements 7 Student’s ID: 1500410/1 The kettle has transformed over time, using technological trajectory several designs have been developed using modern materials, as discussed below. Glass Kettles According (Trott 2012 p. 201,202) “Technology in itself does not mean success; firms must be able to convert intellect, knowledge and technology into things that customer want. This ability is referred to as a firm’s competencies; the ability to use its assets to perform value- creating activities.” Tthe automatic kettle was unveiled and introduced in 1956, this took time and necessitated the involvement of experiment and people, keeping abreast of technological advancement. In the 19th century the Cordless Electric Kettle with a 360 degree rotation shows a systemic innovation meaning the kettle was designed in two parts, the jug with a heating element and secondly, the cord attached to the base and an electrical cord which can be plugged into a power outlet. “To exploit technological opportunities a firm needs to be on a technological escalator.” (Trott 2012, Pg. 197). Technological trajectory impacted positively on this new invention of the kettle by adding an automatic switch on and off button, which causes the kettle to stop electrical flow through it automatically, preventing the elements from overheating. Changes such as these were made to satisfy customer demands. Other features included were varying colors, sizes, shapes, some even being opaque with measurement markings, to suit the decor of the consumers’ kitchen or office. 8 Student’s ID: 1500410/1 The end result of this new and improved and reengineered product came about because of a series of interdependent steps. “Innovative stimulus capacity and performance using creativity, leadership skills coupled with technology, research and experiment, product and process innovation as described in Fig. 3.5.(Trott 2012} p.91 Innovation stimulus Leadership People Management Knowledge Management Creativity Innovation capacity Innovation Performance Technology Management Product innovation R&D Management Process innovation Management Fig. 3.5. Innovation stimulus, capacity and performance 21st century modern man realizes the need for more sophisticated and energy efficient products which specifically speaks to the customer needs, therefore some customers were looking for heated water, without the use of electricity or flame, particularly consumers who spend lots of time outdoors, such as campers, hikers, and who may live in rural areas with no electricity. How do we create a product to satisfy the needs of this niche market? To be competitive the organization had to develop a new product to suit and satisfy these specific needs and consumer sentiments, Core competencies and dynamic capabilities were the key to success. “Technology push refers to research and development being conducted in new technology, which drives the development of new products.’ (Refer to Fig. 1.5. Linear models of innovation). This is evident with the introduction of the solar kettle which specifically benefitted consumers who spent time outdoors or those who many not have an electrical supply. The progress and development of the solar kettle can be termed as disruptive or radical innovation, which is an innovation that eventually disrupts an existing market, thereby creating new or even a niche 9 Student’s ID: 1500410/1 market, by improving a service or product in an unexpected way, this may cause a price lowering, for previously manufactured products. Fig.1.8. Disruptive Innovation (Trott 2012, Pg. 27) as shown in the diagram below. Disruptive innovation is an innovation that eventually disrupts an existing market, thereby creating a new or niche market, by imposing a service or product in an unexpected way, this may cause lowering of price, for previously manufactured product. Performance Traditional technology Customer’s demand for performance Disruptive innovation Time Fig 1.8 Disruptive Innovations The kettle experienced several incremental innovations over time, at present it has now reached the stage of radical innovation, by the advent of the solar powered kettle. 10 Student’s ID: 1500410/1 Design of the solar kettle, a radical innovation aspect, is a thermal vacuum tube which absorbs the sun rays and converts it to energy or heat. Fold out reflectors opens out to generate solar power, creating boiling water, (technical aspect). These kettles were specifically designed to be portable, containing at least three cups of water, creating the look and feel of a regular thermos. As demonstrated by (Trott 2012 Fig. 1.3. Pg. 122) tells us “The object of the design is to meet the needs and expectations of the customer, good design therefore starts and end with the customer”. 11 Student’s ID: 1500410/1 High 3 Applications Engineering 1 Exploratory Research 4 Combining Market opportunities with technical capabilities 2 Development Engineering Uncertainty about outpu Low Low Uncertainty about process High Figure 3.2 Pearson’s uncertainty map Source: A.W. Pearson (1991) ‘ Managing innovation: an uncertainty reduction process’, in Managing Innovation, J. Henry and D. Walker (eds), Sage/OU. 12 Student’s ID: 1500410/1 MARKETING Marketing is the management process where one can identify the needs and wants of the consumer, based on research and development estimating or predicting future demands and the buying behavior of the consumer, ensuring satisfaction through customer relationship and management ensuring and creating loyalty thereby identifying it’s success factors, BRANDS DIFFERENTIATION Bonavita Precise goose neck sprout Sunbeam Varying temperature adjustments Hamilton Beach Variety colors and sizes Proctor Silex Variety sizes ,cordless This can now be further explained using the 7P’s of marketing. Usefulness of the design and quality as revealed by the swot analysis. Product, The design of the heating element distinguishes the rate or speed of boiling for the different types of kettles, thereby automatically shutting off when boiling point is reached, or simmering as some brands are equipped with different types of settings or adjustments. The Price is based on the target market, their socio economic status, which can be derived so as to maximize profits. The product should then be placed strategically as defined by market 13 Student’s ID: 1500410/1 research so as to capture the target market for specific features such as varying temperature control. The promotion element can be achieved through advertising, brand awareness, so as to ensure, the product maintains a competitive edge within the market. The introduction of new technology dictates that the process of manufacturing leans towards quality, and added features. Physical evidence can be seen based on the variety of colors, shapes, styles. It is also important to consider the general attitudes of people as it relates to their needs and wants as expressed by the evolving consumer. Target Marketing. BRANDS TARGET MARKET Bonavita High Income earners Sunbeam High income earners Hamilton Beach Upper Middle class Proctor Silex Middle class The innovation cycle of kettles, has evolved based on the above characteristics. Consumer pattern refers to the degree of change required in the thinking and behavior of the consumer in purchasing a product (Trott, Pg 62), this evaluates how people buy, what they buy, when they buy and why they buy. 14 Student’s ID: 1500410/1 BRAND APPEAL In today’s market, with the many brands and variety of kettles and their constant technological innovations, it is increasingly competitive and difficult to select one over the other causing the consumer to purchase your product. A successful brand combines an effective product, a distinctive identity and added value as perceived by customers. The goose neck Bonavita kettle is the authors choice of a superior product, as would be outlined by the use of Kotler Brand 6 Levels of meaning. The Goose neck Bonavita has indeed proven itself to have exceptional quality and deliver superior performance, as a result of good engineering. The goose neck Bonavita derives benefits of savings, as a result of new innovative strategies, making it energy efficient. It is also produced with additional safety features when compared to its competitors. The Goose neck Bonavita kettle carries with its organizational values as defined by the prestige allocated to the product, by being in the market for a long time. Organizations culture is also enhanced as the product is differentiated to suit the various consumer types. The writer has indeed evolved with the creativity and efficiency demonstrated by the commitment of the producer maintaining its organizational culture towards the development of the kettle.The Goose neck Bonavita by virtue of it’s known brand defines the individual personality of the consumer who chooses it. The author can be defined as a tea connoisseur , who uses the product for personal satisfaction. 15 Student’s ID: 1500410/1 High Quality High Price Low Price Low Quality 5.0 PATENTS 16 Student’s ID: 1500410/1 A patent is a set of exclusive rights, given to an inventor for a limited period of time. Patents have advantages and disadvantages. Morris Russel William patented the first electric kettle on April 11 1960. 17 Student’s ID: 1500410/1 6.0 CONCLUSION Embarking upon this task was welcomed, as confidence was achieved allowing and enabling myself to overcome limitations within the organization, acknowledging Marketing Design and Innovation has been essentially linked to consumer buying behavior and a key element in its venture of maintaining a competitive advantage. Organizations should implement continuous technological innovation harnessing the organizations core competencies and dynamic capabilities as this is the key to satisfying consumer demand, whereby increasing the organization’s profitability, engaging and influencing innovation. The author refers to the Pearson’s Model of uncertainty which gives me the platform to evaluate risks, within the organization. Being a student of MDI has transformed me into a conduit of information, bridging my practical experience with the now attained theoretical knowledge, enabling the organization to chart a new way forward. 18