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A Project ON New Product Development: Submitted BY
A Project ON New Product Development: Submitted BY
PROJECT
REPORT
ON
NEW PRODUCT
DEVELOPMENT
SUBMITTED
BY
ACHAL
BHUSHAN KHESS
ANSHUL GUPTA
KUMAR MAKRAND BHASKER
NEHA JHA
MEGHA AGARWAL
PRAGYAN DAS
OUR LOGO
be AheAd
Cox
Is
Comfort
Occult
Xtraordinary
ACKNOWLEDGEMENT
We would like to take this opportunity to express our deep
sense of gratitude to Mrs.Rakhi Dutta, Prof.(Marketing),KIIT
School of Management, Bhubaneswar, for her sincere
guidance and help extended to us during the project work .
She as a guide has constantly encouraged and inspired
us by her personal involvement, making the project a
success.
We are also grateful to the library authorities of KSOM for
providing us with the needed information during our
preparation of project work.
Executive summary
we know that a person can be best described with his shoes. we have come
up with a unique and simple product COX SHOES .These days in our hectic
lives, we face a general problem of bad odour from a pair of shoes worn by
us for long duration .People sitting close to us or in our nearby surrounding
start getting irritated as well as they get bad smell that is more than difficult
to bear up.So, to over come this problem we have come up with a solution
for you COX SHOES. Cox shoes avid range of fragrance pad gives the
consumers a varied range to choose from. (the inner part of fragrance pad
is so designed that it will fit only to COX shoes) Cox shoes feature of
acupressure will not only seek to health problems but also dilutes problems
of leg sprains and muscle strains. Additional materials like KELVAR has been
used to enhance the quality. As this is a new product with new additional
features of fragrance pad and acu pressure points in the sports shoes for
the first time, so reasonable Price is set based largely on competitors price,
by comparing quality, and features.Our product is compared with products
in upper middle and lower middle category i.e. with Adidas, Nike, Action,
Reebok etc also As the product has special feature like acupressure points
and fragrance pad it will be characterized by high level of perceived quality
and features with price just high enough but not out of customers
reach.Determinig all these factors
Price range of product: Rs1500.00 to 4000.00 is set. Promotion mix like
Advertising,Sales promotion,Direct marketing and public relation are used to
build a brand image and increase the sales volume.Distribution channels
like zero-level ,1level and 2 level has been selected for the product to
reach all the targeted segment.
Since our pads are replaceable, we are also providing two extra
pads with our shoes free. Each pad can be used regularly for six
months.
Since we are also targeting health and as it is said that health is
wealth so we have come up with and added feature of our shoe
that is there will be accupressure points, so that customer will be
relieved from major health problems which come up due to stress
and over exertion.
Our shoe will also be available with different fragrances (mild &
strong) accordingly.
acupressure point
CRICKET
ATHELET
E
TENNIS
SOCCER
WITH
FRANGANCE
SIZE -6 TO10
WITH
FRANGANCE
PAD & ACU
PRODUCT
PRESSURE
10
11
TARGETING
SEGMENTATION
Geographic
City: More focus on metro cities because people believe in trying
innovative, new and better products.
Demographic:
Age: 14 years and above.
Gender: Male and female both.
Income: earning above Rs 20000 thousand P.M.
Occupation: Students, Athletes.
12
Psychographic:
Socio-economic: Upper-middle.
Lower-middle.
Life-style: Sport-oriented, outdoor oriented.
Behavioral:
Benefits: Quality, service, after sell service.
User status: Non user, potential user, first time user.
TARGETING
13
TARGETING
TARGETING
AWARE
UNAWA
RE
NOT
TRIED
TRIED
14
NEGATIVE
OPINION
NEUTR
AL
POSITI
VE
NOT
YET
REPEAT
REJECTED
LOYAL TO
OTHER
LIGHT
USER
SWITCHER
REGUL
AR
USER
REPEATED
LOYAL TO
BRAND
HEAVY
USER
POSITIONING
Relevance
Feasibility
Distinctiveness
Believability
Communicability
Sustainability
Pricing
Pricing is the process of determining what a company will receive in
exchange for its products. Pricing factors are manufacturing cost, market
place, competition, market condition, Quality of product.
15
Estimating cost
16
The total cost depends on fixed and variable cost. it is important to know
how cost vary with different levels of production ,and accordingly cost are
estimated.
Economies of scale are used to minimize the cost in long run.
1500-4500
NIKE
1700-5000
REEBOK
1300-4000
PRODUCT RANGE
RUNNING,
CASUAL,SOCCER,CYCLE ,
etc.
RUNNING,
TENNIS,TRAINERS,
BASKET BALL, etc.
TRAINERS, FOOTBALL,
RUNNING, GOLF, BASKET
BALL etc
WALKING, AEROBICS,
RUNNING, BAKET BALL,
etc..
17
ACTION
900-2800
CASUAL,SOCCER,CYCLE,R
UNNING,etc
BATA
1000-1700
Soccer,running,casual
etc.
Since the product has added features and enhanced quality so the
product will be perceived similar to product in upper middle and in
lower middle category so the price of the product will be compared
with Adidas, Nike and Reebok.
18
Upper
middle
category
Cost of materials
65%
780.00
2080.00
Cost of labor
15%
180.00
480.00
Other expenses
20%
240.00
640.00
Total cost
100%
1200.00
3200.00
Desired profit
(25% on sales)
300
800.00
Required sale
price
1500.00
4000.00
20
Promotion
Marketing activity used to communicate to consumer about the
organization its product, its activity and directly or indirectly
expenditure.
Promotion mix
Advertising
Sales promotion
Direct marketing public relation
Advertising : A paid form of non personal communication
through media.
We are promoting our shoe as it provides.
-Nice fragrance
-acupressure point that help to control blood pressures.
As our logo & caption we did it which we have taken also
suggest that we have created a product which is beneficial for the
customer ,because no such shoes has been launched yet which
have acupressure point and fragrance paid along with good
quality.
Sales promotion
An activity or material that Offer a direct inducement to purchase .
We can do our sales promotion by:
1. Sport sponsorship
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DISTRIBUTION
Distribution is one of the four elements of marketing mix. An
organization or set of organizations (go-betweens) involved in the
process of making a product or service available for use or
consumption by a consumer or business user.
DISTRIBUTION CHANNEL
Chain of intermediaries, each passing the product down the chain
to the next organization, before it finally reaches the consumer or
end-user. This process is known as the 'distribution chain' or the
'channel.' Each of the elements in these chains will have their own
specific needs, which the producer must take into account, along
with those of the all-important end-user.
CHANNELS
A number of alternate 'channels' of distribution may be available:
CHANNEL LEVELS
Their are four channel levels by which a company can reach to consumers.
1- level channel
2- level channel
But we will be using only first three channel for our product distribution.
1. Zero level channels consist of a manufacturer selling directly to final consumer. we will
be selling our shoes by internet selling(by sending mails, by using sites such as e-bay
,amzon, alibaba.com).We will also sell our shoes directly to various institutes and sports
academy.
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2. 1-level channels, In 1-level channel we use only one intermediary or distributor, who will
supply goods to the retailer and they will also provide feedback to the company about
demand of consumers.
Exclusive showrooms can be used with wide coverage to cover different price points and
target different segment of customers, which will generate sales volume.
3. 2 -level channels contains two intermediaries selling to retailers through wholesaler and
finally to customer inorder to cover the maximum targeted segment .(Here benefits of
influence of distributor is used)
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