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Advertisig Express Magazine:
Diffusion of Product Innovations in the Indian Retail Market : An Application of Communication Theory
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This research study is focused on new product diffusion of consumer lifestyle products in the Indian retail market. Firms in general spread out their innovation through lifestyle communication. In India, new product ideas are mainly gathered from electronic sources, consultants and journals. Indian firms feel that organizational support and resources are not adequate to increase the rate of diffusion. Firms consider consumer adoption of new products. Consumer behavior is found to be kept in mind while planning and evaluating diffusion. The diffusion-innovation theory of communication is applied for efficient market planning and execution.

 
 
 

In the contemporary competitive market, successful lifestyle product planning and development is a challenge to a firm. New product planning and development is a creative function within a business organization. Modern concept of new product planning and development requires the involvement of a multi-disciplinary team. The Indian retail market is getting increasingly competitive in both Fast Moving Lifestyle Consumer Goods (FMLCG) as well as industrial and institutional products. New product failure rate is also found to be increasing. This case is based on a prior research to understand the system followed by the Indian retail firms on the management of the innovation diffusion process.

The research study has been based on a questionnaire survey conducted across a cross-section of consumer lifestyle products. The survey covered 32 new lifestyle product items of 18 firms. The respondents in the survey mainly consisted of 18 line managers and 13 top management people. Weighted Average Index method is adopted while ranking the media channels. Average mean and percentage methods are applied while comparing different variables. Also, the lifestyle indicators such as All in One (AIO) principle is frequently used while analyzing consumer behavior.

 
 
 

Advertising Express Magazine, Indian retail market, Fast Moving Lifestyle Consumer Goods, FMLCG, Consumer Behavior, Weighted Average Index method, Marketing Channels, Marketing Management, Product Management, Research Methodology, Strategic Management.