New products are the lifeblood of a business. They fuel growth and stimulate interest for a company and its offerings. The quest for new products often suggests images of massive spending on research and development in the hopes that something truly new to the world can be created. New product development does not have to be that radical to be effective. Starbucks is proving that point, as many new product introductions have done before it.
A "new" breakfast item, oatmeal, has been a hit with Starbucks' customers. In particular, younger customers and women have been key customer segments that have responded favorably the product. Oatmeal is now the number one selling food item at Starbucks, and although food is not a big part of its business, the fact that oatmeal rose to top seller status in one month's time is noteworthy.
In a time when a business must carefully spend every dollar, new product development may not require the massive investment and research that one might think. New products can be something as old as oatmeal that is presented or packaged in a way that creates value for the customer.
Link: AdAge.com - "Starbucks' Surprise Success: Oatmeal"
Labels: New Products