USE OF POSITIVE PRACTICES OF MULTINATIONALS IN INTRODUCING A NEW PRODUCT TO THE MARKET, ON THE EXAMPLE OF INTRODUCING A PORTABLE WATER PURIFICATION DEVICE

The author of the diploma thesis tackled a rather difficult task in recent times, how to introduce a new product to the global market. As a basis for introducing the new product, he summarised the positive practices of the multinational company Procter & Gamble. This means market observation, searching for a new idea, formulating the project design, preparing the critical path schedule – CPS with all four time milestones. Of course, the story does not end with the introduction to the market itself, as the introduction of the brand must also be appropriately concluded. When we achieve the above, they will be delighted to observe when customers, instead of saying: "let's go buy nappies", will say: "let's go buy Pampers".

Problem

The author of the diploma thesis tackled a rather difficult task in recent times, how to introduce a new product to the global market. As a basis for introducing the new product, he summarised the positive practices of the multinational company Procter & Gamble. In the diploma thesis itself, he presented the introduction or so-called

"launch" of a new product to the markets, namely from the very beginning.

Solution and Method

This means market observation, searching for a new idea, formulating the project design, preparing the critical path schedule – CPS with all four time milestones. He presented the operation of the team of people who ensure the smooth running of the project, the so-called "Delivery team", which is composed of representatives from marketing, sales, finance, logistics (PS – product supply) and representatives for public relations (ER – external relations), who with their participation ensure that all components are on the packaging (artwork) that are necessary for the product to meet the legal requirements of the country in which it will be sold.

In the detailed breakdown of the critical path schedule (CPS), they touched upon the necessary tasks that are required for a successful "launch" of the product, from organising production, requesting the issuance of EAN codes for the product, as well as activating the codes, calculating the necessary quantities for the start of sales, the so-called Pipeline effect (the necessary quantity to fill the shelves in shops), which lasts the first three months after the "launch" of the product and is successful if we deliver all ordered goods in the first three months. Given the fact that he simulated the introduction of a new product to the global market, he also touched upon the basics of brand building.

He briefly tried to present the most important elements that are absolutely necessary for building the brand image, and which are needed for the long life of the brand. He tried to justify their introduction with figures as well, so he prepared a business plan that will also present the long-term perspective of their product. Due to lower complexity, he presented the product introduction in the form of a start-up company.

He hopes that by producing this diploma thesis, he has enabled all potential readers an insight into the operation of multinationals in the field of presenting and introducing new products to markets. On brand building and the culture of multinationals Brand building is a long-term process. It is completely identical to building trust in mutual – interpersonal relationships.

One can try very hard to the best of one's abilities for a very long time, but only a moment of inattention or inconsistency is needed and trust is already wasted. The difference between trust and brand building is that we invest relatively high amounts of money in brand building. Precisely because of this fact, it is necessary to be constantly on guard, to take care of the technological, technical superiority of their product, to take care of appropriate packaging that is pleasant to the eye and also aesthetically attracts us, and appropriate media marketing support, which substantiate the brand as such, give it value and ensure that we have a large number of loyal customers who identify with their product.

The path to an established brand is thorny, it consists of the idea about the product, the idea about the brand for this product and the brand introduction schedule. In the thesis itself, he elaborated in detail the brand introduction schedule, namely from the composition of the expert team to the timely issuance of appropriate documents (key milestones – main milestones) and to the final introduction of the brand and product to the market.

Results

Of course, the story does not end with the introduction to the market itself, as the introduction of the brand must also be appropriately concluded. When we achieve the above, they will be delighted to observe when customers, instead of saying: "let's go buy nappies", will say: "let's go buy Pampers". Of course, such a state, which is the result of a long-term brand building process, also requires in the future completely the same, if not even greater efforts, to maintain the image, to maintain the market share and slowly increase it further.

Using the example of the company Procter & Gamble, they could see in practice how brand building is served, what are the most important elements and which are the mistakes that can most often happen to us. Of course, the methods of brand building differ by industry. Building a brand in the automotive industry is different from the FMCG (companies engaged in the production and sale of products for mass consumption) sector.

What is common to both methods of building is that one major mistake can completely destroy the brand, and a destroyed brand becomes a burden for the company. The situation for the company in this case is worse than if they had a new unbuilt brand, as we use financial resources to defend the image and not to build the brand. About their company and the traps that await us on the business path Using the example of a start-up company, the year is only at the beginning of this process.

Given the results or calculations shown in the business plan, the business idea itself, which is based on good intentions (let's enable all people access to clean drinking water) and the possibility of generating profit, which is confirmed throughout the entire analysis shown in the business plan, justifies the investment in the mentioned production. This is clearly confirmed by all indicators that show a positive result with an appropriate rate of return. There is also a lot of space on the market for this type of production, which can also be seen from the planned expansion to other markets.

This gives the company perspective for development and growth in the future. And precisely from an ecological point of view, we can get confirmation that this idea is correct and, with appropriate implementation, also profitable. Producing a means by which every individual can purify questionable water and turn it into drinking water will slowly become a necessity, as ensuring drinking water for an ever-increasing number of inhabitants of their planet is a more difficult task from day to day.

They believe that many charitable organisations, governments of individual countries and organisations under the auspices of the United Nations organisation will use their product. Regardless of the fact that their company will sell most of its products to end customers, the company will also have to do a lot on the image. Like all other companies, this company will also be forced to invest a lot of money in product development and, of course, in building its own brand.

In today's globalised world, in which we can produce virtually any product anywhere in this world, brands are increasingly important. Companies are valued by their brand portfolio and no longer by the number of "walls owned". Intellectual property has become more valued than physical property, as the year globalisation has devalued it.

In conclusion, he wishes to emphasise once again that brand building is a long, arduous and expensive process, which, if things are done correctly, pays off richly.