Mingle has two options for the company’s growth, which include cost and differentiation. Based on the existing company characteristics, Mingle’s products have a unique feature related to natural ingredients used in the production process. Due to the fact that current competitors in the seasoning market make their products with the help of chemicals or GMO products, it will be difficult to cut the cost since natural products usually have a higher price. Therefore, it is better to decrease the individual company’s production cost rather than compete with competitors’ prices.
Mingle should identify the upper limit of the budget and evaluate ideas based on this financial measure since NPD must meet resource limitations outlined by top managers. Chwastyk and Kolosowski propose that NPD should consider all costs associated with design, implementation, and production processes for further cost decrease. The cost can be allocated or cut from one or other stages based on the outlined financial characteristics. Idea choices should also be made considering an expected financial return, which is generally forecasted by the company’s analytics.
Referring to design concepts, paper, and the paper-based product packaging is one of the possible solutions for Mingle to minimize cost without affecting the main products’ ingredients. In addition, the eco-friendly, recyclable, and light packaging type may attract customers and provide better brand awareness due to the stronger association between green products and green packaging types. This assumption is based on economic and practical reasons for both consumers and producers, including the marketing role of the appearance.
For cost reduction, the company may experiment with production processes, such as using different equipment settings, and different types of raw materials, involving external consultants and internal innovators. A combination of these factors may make it possible to increase capacity on each production line. Another critical issue for a small business like Mingle is the involvement of staff members in the improvement process. Employees may have useful ideas and suggestions on how to improve production and make it more convenient for the company.
The best practices for better developing process and implementation techniques are outlined by Timbadia and Khavekar, including eight activities for successful NPD. Mingle should analyze the environment and market where it operates or where the company plans to launch a new product. The analysis will help identify the problem or gap in the market in order to fulfill this opportunity. It is crucial to include consumers’ behavior and preferences due to further new product identification and design. After a precise analysis, Mingle’s innovation department should search for alternatives and choose the best one depending on pros and cons, risks, and forecasts. The next step is planning and implementation methods that should be later controlled by the company.
