DIACARE

New Product Development

Time Period and Milestones
• Product Development – 4 months
• Product Testing – 2 months
• Market Testing – 4 months
• Commercialization
Pricing Strategy and Sales Targets
• It can be priced at a premium (Spending is high in the
category)
• 2 times or more initially
• Mainly for increased costs during the initial stages
• Reduce it gradually to increase sales ( Economies of Scale)
• Target first year sales of say 10% of total
• Company value is around Rs. 10Lakhs -> Rs. 1 lakhs
• Target second year sales of Rs. 1.5Lakhs or 50% growth
• Production is limited due to capacity constraints
STP
• The market is predominantly diabetic patients
• Age group 10-40 years less likely to test it out
• Target group is 40+ diabetics
• Although, ‘curious others’ might try out the product - negligible
• The product should be positioned as a one that promises
a quality living for the diabetics
• Worries taken care with no effort of yours
• No pain of injections to maintain insulin level
• Emphasize the quality focus of the company to reassure the
patients
Sales and Distribution
• Sales Representatives can meet various doctors in the city
and ask them to recommend the product
• Conduct diabetic camps and promote the concept
• The product should be made available at all the current
outlets that the firm has
• More the reach -> More the sales
• The outlets should be placed next to hospitals
• Other channels could include Gym equipment stores,
Weight reduction centers, etc. ( Considering the timeframe
that the case has been written these might not be valid )
• Telemarketing can also be used as it is traditionally known
for selling health related products
HR
• The incentives can be relatively high initially to promote
the sales of the product as well as for motivating the sales
force
• Training efforts have to be undertaken as this is model is
new