A

PROJECT
REPORT
ON

NEW PRODUCT
DEVELOPMENT
SUBMITTED
BY
ACHAL
BHUSHAN KHESS
ANSHUL GUPTA
KUMAR MAKRAND BHASKER
NEHA JHA
MEGHA AGARWAL
PRAGYAN DAS

(SCHOOL OF MANAGEMENT KIIT UNIVERSITY (09-11 BATCH))

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.

INTRODUCTION OF NEW PRODUCT

COX SHOES
If your feet is in your shoes,You can steer
yourself IN ANY DIRECTION You choose,You are
on your own,and You know what you know,you
are the guy who ll decide where to go.
And as we know that a person can be best described wih 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 overcome this problem we have come up with a
solution for you COX SHOES with a special fragrance oriented
pads ,so as to secrete a pleasing odour all the while schedule
without being embarrassed.
Using this once will make a you a loyal believer of its advantages,
which industry has never witnessed before.

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.

WHY FOOT WEAR MARKET?

The Indian foot wear retail market is expected to grow at a CAGR of over 20% for
the period spanning from 2008 to 2011.
It is expected to increase in about 60% of the total raw materials of foot wear
export by 2011 from over 38% in 2006-2008.
Presently the Indian footwear market is dominated by mens foot wear market that
accounts 58% of the total Indian footwear retail market.
Entry and exit barriers are low.

ABOUT THE PRODUCT

COX shoes behave like an extension of the foot, which is a

complex structure of bone, muscle and fatty tissues.
7

 Cox shoes provide the user with a comfortableness and

uniqueness to the maximum.
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)
The fragrance provided with the shoes will save the user from
embarrassments arising from bad odour .
Cox shoes feature of acupressure will not only seek to health
problems but also dilutes problems of leg sprains and muscle
strains.
Raw Materials used in shoes
To enhance performance, sophisticated shoe structures are
employed which make use of viscous and elastic foam materials
such as ethylene vinyl acetate (EVA) and polyurethane (PU). The
use of viscous plastics in the heel area serves to absorb the
impact forces during the initial ground contact, and provides the
foot with a soft cushioning effect.
Additional materials used:
1. KELVAR (Used to enhance the quality)

The Properties of KEVLAR.

KEVLAR is one of the most important manmade organic fibers ever
developed. Because of its unique combination of properties it is
used today in a wide variety of industrial applications. The fiber
possesses a remarkable combination of properties that has led to
its use in a variety of commercial products since the 1970's
Fibers of KEVLAR consist of long, interconnecting molecular chains
produced from poly-paraphenylene terephthalamide.
8

General Features of KEVLAR:

High Tensile Strength at Low Weight

Low Elongation to Break High Modulus (Structural Rigidity)

Low Electrical Conductivity
High Chemical Resistance
Low Thermal Shrinkage
High Toughness (Work-To-Break)
Excellent Dimensional Stability
High Cut Resistance
Flame Resistant, Self-Extinguishing

2.Material used in making of fragrance pad and

acupressure point

Vegetable tanned sheepskin

Active carbon filter prevents odor
Slightly padded with latex foam
Fragrance
Breathable leather shoe liner protects the inside of shoes from
dampness, bacteria causing odor.
Product attributes
Provides freshness to feet by its pleasant smell.
Acupressure will act as a reliever of pain.
Replacable fragrance and acupressure pad(the inner part of
fragrance pad is so designed that it will fit only to COX
shoes)
Pioneered in comfort
Best for athletes
Provides firmness to feet
Style quotient also maintained
9

Available in varied range of price and size with a warranty of 1

year.

PRODUCT MIX FOR COX SHOES

PRODUCT MIX WIDTH

RUNNIN
G

CRICKET

ATHELET
E

TENNIS

SOCCER

WITH
FRANGANCE

SIZE -6 TO10

WITH
FRANGANCE
PAD & ACU
PRODUCT
PRESSURE

DEPTH =VARIANTS X SIZES

2 X 5 = 10

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

1. Measurable: Size ,purchasing power ,characteristics of the

segments
2. Substantial: A segment should be largest possible homogeneous
groups worth going after with a tailored marketing program
e.g.earning capacity 20,000p.m.
3. Accessible: Reach should be good.
4. Differentiation: People have different perception about different
marketing mix. A business man and a sports person will have
different feel about COX shoes.
5. Actionable: Effective programs can be formulated for attracting
and serving the segments.

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

Positioning through point of difference by presenting and

highlighting the new attributes of cox shoes.

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

Setting the price

As this is a new product with new additional features of fragrance pad and
acu pressure points launching for the first time, so reasonable price should
be set according to the following factor.
1.
2.
3.
4.
5.
6.

Selecting the price objective.

Determine demand.
Estimate cost.
Analyzing competitors cost price and offers.
Selecting price method.
Final price

Selecting the price objective

Product quality leadership
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.

Determining the demand

1. Product is distinctive because of its special feature in it (fragrance pad &
acupressure), which makes it different from others.
2. Buyers less aware of substitute since there is no other player in the
market with such features, so in respect of its features buyers will not get
any substitute.
3. Expenditure is smaller part of the buyers total income .since the price of
footwear is small part of the total income.
4. The product has more quality and exclusiveness. So according to this
market for the product will be fewer prices sensitive and price can be kept a
little higher than other products.

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.

Analyzing competitor cost price and offer

PRICE COMPARISON OF DIFFERENT BRANDS
PRICE
BRANDS
RANGE
Category(uppe
r middle-lower
middle)
PUMA
1500-6500
ADDIDAS

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.

Selecting a price method

GOING RATE PRICING

Our products price is 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

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SELECTING FINAL PRICE

Finally selecting the price additional factors like the impact of
other marketing activities, company pricing policies, gain and risk
sharing pricing are considered.

Raw Materials used in shoes

To enhance performance, sophisticated shoe structures are
employed which make use of viscous and elastic foam materials
19

such as ethylene vinyl acetate (EVA) and polyurethane (PU). The

use of viscous plastics in the heel area serves to absorb the
impact forces during the initial ground contact, and provides the
foot with a soft cushioning effect.
Additional materials used:
1.KELVAR (Used to enhance the quality)
2.Material used in making of fragrance pad and
acupressure point
Vegetable tanned sheepskin
Active carbon filter prevents odor
Slightly padded with latex foam
Fragrance
Breatheable leather shoe liner protects the inside of shoes from
dampness, bacteria causing odor .
Fixed cost +
variable cost

Cost incurred Low middle

in percentage category

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

Price range of product: Rs1500.00 to 4000.00

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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
21

By sponsoring local sports events.

2. Event sponsorship
By sponsoring events like new year eve.
3. Advertisement on wheels
4. Contests
Contest like marathon race can be organized to build brand
image and increase the sales volume.
5. Tying up with core companies having brand name and
involved in making only sports accessories or associating
with brand companies producing health care gadgets to get
the benefits of their brand value and increase the sales
volume .
6. Using print media
Sport magazines
Weekly magazines e.g. india today
Health magazines
Newspaper
7. Electronic media
Adds on TV and internet
Radio
Bill boards.

Direct marketing public relation:

Public relation will be used to explain the benefits of cox shoes
(like benefits of pleasant fragrance and acupressure points in
shoes ).Direct marketing like internet and catalogs will be used
to inform the targeted segments about the feature of the product
and various models of the product.

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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:

Distributor, who sells to retailers

Retailer (also called dealer or reseller), who sells to end
customers
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Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products
alone. They may be just as important for moving a service from
producer to consumer in certain sectors, since both direct and
indirect channels may be used. Hotels, for example, may sell their
services (typically rooms) directly or through travel agents, tour
operators, airlines, tourist boards, centralized reservation systems,
etc.
There have also been some innovations in the distribution of
services. For example, there has been an increase
in franchising and in rental services - the latter offering anything
from televisions through tools. There has also been some evidence
of service integration, with services linking together, particularly in
the travel and tourism sectors.

CHANNEL LEVELS
Their are four channel levels by which a company can reach to consumers.

zero level channel

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.

24

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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