Professional Documents
Culture Documents
New Product Development
New Product Development
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DEPARTMENT OF
BUSINESS MANAGEMENT SCIENCES
A Project of
New Product Development
Submitted To:
Mr. Farhan Aslam
Submitted By:
Ali Zubair
Tosif ur Rehman
Majid Ali
Muhammad Tayyab ur Rehman Khan
Mushahid Mehmood
Hafiz Yasir Nasim
Ali Rafiq
Muhammad Qadeer (Group Moderator)
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Table of Contents
Acknowledgement
Group Introduction
Project Summary
CONCEPT GENERATION
Need
Form
Technology
CONCEPT STATEMENT
CONCEPT EVALUATION
Marketing Test
Technical Test
DEVELOPMENT
Comprehensive Business Analysis
Marketing Plan
Executive Summary
Summary of Situation Analysis
The Industry
Definition of Industry And Company Business
History of Business
Technological Advances
Characteristics of Industry
Typical Promotional Activity
Geographical Characteristics
Profit Pattern
The Company
Brief History
Scope of Business
Strength of competitors
Share of Market
Weaknesses of competitors
Marketing Activities of Competitors
Distribution Strategies
Distribution
Opportunity
Pricing policies
Opportunity/threats relating to pricing
Pricing Threats
Communication strategies
Sales force
Ability and Training
Advertisement Program
Opportunities of Communication
Threats of Communication
Environmental Factors
Economy
Economic Forecast
Political Situations
Societal Concerns
Technological Influences
Corporate Objectives and Strategies
Profitability/ ROI
Partnership equity
Overall Corporate Mission
Potential marketing Opportunities
Marketing Need Objective
Corporate Needs Satisfying objectives
General Marketing Strategy
Positioning Strategy
Service Differentiation Strategy
Launch
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ACKNOWLEDGEMENTS
This project would not have been possible without the countless blessing of Almighty
Allah who gives us the knowledge, power and intelligence to make this project. We are
also grateful to our Beloved Prophet Hazrat Muhammad (S.A.W.S).
We are heartily thankful to our course coordinator, Mr. Farhan Aslam, whose
encouragement, guidance and support from the initial to the final level enabled us to
develop an understanding of the subject.
It is an honor for us to show our gratitude towards our Parents whose prayers were all
time with us. Lastly, we offer our regards and blessings to all of those who supported us
in any respect during the completion of the project.
Roll No. 33
Reg. No. 2008-ag-932
Ali Rafiq
Roll No.
Reg. No. 2008-ag-
PROJECT IN A GLANCE
In this NPD’s project we are going to start a new business of a Retail Book Shop. In
making this project we first generate idea by analyzing the gap in the market. Then we
evaluate the project in the light of PIC. After that we generate concept by observing the
customers and produce concept statement in due consideration of need, form and
technology. After that we evaluate the project on the basis of user needs and technology.
Than we move towards the next phase that is Development. In this we made a
comprehensive business analysis by making projected financial statements that are
Projected Income Summary and Projected Balance Sheet that is showing a ROI of 8.86%.
And after the preparation of marketing plan we launch the business.
Company Name : Be 4 Books
Mission Statement : Our Mission Is To Provide Every Book At One Place and With
Immense Care
Slogan : Road to Bright Future
Animated Character : Mr. Book
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GAP ANALYSIS
Books are the best friends, it is a good saying but these are also the solution of our most
of problems today. Education is the most critical factor for the development of any
nation. Education is the biggest problem for a developing country like Pakistan.
Keeping in view the above importance of the education, we think to provide the
better educational material will be helpful in making a literate nation.
There are so many institutions that are providing educational services to provide
these services those people need educational material. There are so many retail outlets in
our territory that are providing the education material.
But if you look analytically all these retail out outlets are focusing to a particular
class of customers. E.g schools, colleges, universities etc. Here we find that some outlets
are giving or providing only books and some ate providing only stationary.
There are different techniques that can be used to find out the gaps in the market
and position our self to on that gap; one of the techniques is perceptual gap maps. We
also use this technique to find out the gap in the market. For this purpose Determinant
Gap Map is used we used two determinant attributes that are Books Range and Stationary
Range.
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High Range
Stationary
Al-Fateh Gap 4
Stationers Gap 5
Be 4 Books
Gap
3
Low Range
Stationary
If we look at the gap map it provides the information that some retail outlets are either
providing books e.g. (Kitab Markaz) or providing stationary e.g. (Alfateh stationers)
some are providing the combination of books and stationary e.g. (Istaqlal Books). But the
problem is that there is not a single retail book shop that provides both books and
stationary in full range. This gap in the map gives us an idea to position our self on the
full range of books and stationary.
We have identified an opportunity by considering an external environment. Now
we will evaluate this opportunity with the help of PIC
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CONCEPT GENERATION
This is just an idea that we will deliver the full range of books and stationary. After
evaluating this opportunity with the help of PIC and this opportunity is worthwhile to
harvest. So for we have an idea but this is not a concept. To convert this idea into concept
we need three things that are Need, Form, and Technology.
Need
There are so many techniques that are used to identify the need, benefit or the
problem of customers. These problem gathering techniques are marketing and Technical
staff pool experience search of services records, sales records, idea files, Scenario
analysis and stakeholders contacts.
The problem gathering technique that we use is Stakeholders or Customers Direct
Observation. If we analyze people while purchasing we find certain points that can be
considered.
Today is the mechanical age and time is money. Everyone is in hurry, he wants
the solution of his problems immediately and under the same roof. The immediate
solution of the problems can be made but solution of all the need and problems under the
same roof is quite difficult but not impossible.
Let’s see how a busy person make purchases of the books and stationary for his a
play group child and for a master level child. This purchasing process for the person is
quite cumbersome.
Students are also facing problems in getting the complete courses at the time
when they need it at one place. Some times they have to travel hundred of miles to get
these books.
Some time people even have to pay more for those books that are not easily
available in the market. Retail outlets make misuse of people’s problem.
Form
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The next thing that is required to complete the concept is form. As we are not
dealing in any kind of self-made product and hence we can’t define in terms of product
specifications .We are in merchandising business and we will deliver books and
stationary in book mall store. We will deliver the books in the form of different sections
that are
Technology
What technology is required that will help us in providing these services. For this
purpose we will use computers, bar-code readers, printer, fax and photo state machines,
security cameras and network connectivity.
We will also use different types of computer aided systems e.g. Inventory control
system, just in time system.
CONCEPT STATEMENT
After defining the three components of the concept that are need, form and
technology, now we can develop concept statement.
“The new book store will provide the books and stationary for all level of
education and people can enjoy café as well. They can get the educational material by
purchasing book, by reading books in the library and they can also enjoy the facility of e-
library. They can get all these services conveniently and at competitive prices”.
CONCEPT EVALUATION
Now we will evaluate the concept means that is this project is going to
fulfill our objectives. We can evaluate the concept on basis of technical and marketing or
both.
Marketing Test
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We will evaluate the concept according to market. Here we analyze the depth and
potential of the market. On analyzing the market it clears that the market has good
potential. Customer have positive attitude towards the books. This type of retail outlet is
the need of the market because there is no existence of such type of outlet.
So we can conclude that according to marketing perspective this project has good
potential.
Technical Test
We will analyze the project on technical basis. The technology that is required for
the retail outlet is easily available, accessible and we also have finance to get the
technology. Our required technology includes computers, bar-code readers, printer, fax
and photo state machines, security cameras and network connectivity.
DEVELOPMENT
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comprehensive Business Analysis
Income Statement Projected Income Statement
B 4 BOOKS
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For the year ended Dec,31 20xx
Sales Revenue Q P Rs. Rs
class(0-10) 22500 175 3937500
class(11-12) 13897 250 3474250
class(13-14) 6749 350 2362150
class(master) 2534 400 1013600
class(ms) 2462 475 1169450
PHD 785 550 431750
Cooking 352 250 88000
Coloring Books 354 125 44250
Magazines 250 250 62500
MBBS 3537 600 2122200
Tea and Coffee 252000
Printer&photcopy 150000
Members Fee 3000000
Library 2500000
Stationary 7000000 27607650
CGS
class(0-10) 22500 125 2812500
class(11-12) 13897 175 2431975
class(13-14) 6749 250 1687250
class(master) 2534 325 823550
class(ms) 2462 400 984800
PHD 785 400 314000
Cooking 352 500 176000
Coloring Books 354 175 61950
Magazines 250 100 25000
MBBS 3537 500 1768500 15585525
Stationary 4500000
less:Expencess
Salary 3000000
Utility bills:
electricity 80000
Gas 60000
Telephone 2500
Internet 6000
Card 5000
NoN Members
Card 7200 160700 3160700
Total Expenses 18746225
Net Income Before Tax 8861425
Projected Balance Sheet
Be 4 Books
For the period ended on 31st, Dec, 20XX
Assets Price Quantity Amount Liabilities Amount
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Cash at Bank 5000000
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Inventory:
375000
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Marketing Plan
Executive Summary
Aiming with the project of new product development we make a gap analysis of the book
and stationary market and chose an idea of making a retail book shop with full range of
books from playgroup to master and PhD level also non educational books e.g. coloring
and cooking books etc, full range of stationary and fully equipped traditional and e-
library with the facility of café.
We made an analysis of the industry to see trends, technologies, forecasting of demands
and profit margin. We also analyzed strengths and weaknesses of our company and our
competitors as well.
We determined the prices of company according to markup bases special discounts are
given to our member customers. Then we see the return on the investment by making a
comprehensive analysis.
We will provide these services in a retail outlet and in future, we will convert it into chain
retail outlet, having a network in all the big cities of Pakistan.
Competitors in the industry were identified and a comprehensive analysis was conducted
to see their communication strategies, positioning strategies and share of market.
Then on communication strategies were developed which include advertisements through
electronic and print media.
Marketing objectives will be to satisfy customer’s need of easy location of books and
corporative objectives will include the security and better return on partner’s capital.
Share of market is intended to achieve upto thirty to forty percent for first year.
We will monitor all our strategies and control the processes in order to achieve the
desired corporate objectives.
Summary of Situation Analysis
The Industry
Book industry includes all the book retail stores that are providing books, stationary and
books related services.
Our company is newly formed and we are providing all type of books from playgroup to
PhDs and providing services like library, e-books, internet search, printing, faxes and
pleasant sitting environment. We are offering memberships. Members can obtain benefits
like discount on books purchased and also can get the concession on the library and café
rates. Customer can get the membership at very reasonable rates.
Our non members customer can have all the library facilities but at standard rates. That
rate will be higher than the rate we offer to non members.
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b. History of Business
In the early time of independence there were very small numbers of the books store in the
city. And these retail book shops were unable to provide the books which were the
requirement of people. People often have to travel one place to another.
As the trend of education start developing the requirements of these books increased and
so the number of book store also increased. They began to carry more books to meet the
requirements of the people.
Technological Advances
Education sector has revolutionized. More and more people start read and write and
hence their needs for books and stationary also increased. This results in more number of
the books shop.
With the passage of time book stores owner began to advertise their stores at universities
and schools by using the brochures. Then they start advertisement campaign on Radio,
T.V, and now internet is at its full pace.
Now the purchase of the books started online. Online book reading is also available
providing books for reading. Some of them require membership.
We have the e-book which are sold in CD’s or can get via internet after paying certain
amount of money.
C. Characteristics of Industry
Pakistan’s book industry use following promotional instruments e.g. brochures, bill
boards, radio and banners.
Geographical Characteristics
In Faisalabad there are some major books markets that are Amin Pur Bazar, D.Ground
and Punjab Medical College’s own book store. Although these markets have so many
retailers but not a single retailer is capable of providing all types of books.
Islamabad, National Book Foundation is the retail book store of Alama Iqbal
University. It has its own printing press and has biggest retail store that has the potential
to provide books for all types of discipline.
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Other cities also have such type of retail stores that are providing the services of
book selling like Lahore’s Urdu Bazar.
Profit Pattern
There is no fixed profit pattern, it is random. for example; different retail outlets
charge different prices for the same book. This difference in their prices is because of
some certain reasons e.g. Size of shop, existence in the market etc.
The Company
Brief History
Scope of Business
a. Current size
Currently we are offering books for all disciplines, library, e-library, membership and
café facility. Our member customers can get benefits like discount on purchases and
library facilities.
b. Growth
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We will expand our online library and provide our member the access to
our online library form there own house. Member can use internet and we will provide
login to access the library. We will obtain the book publishing rights in the future. We
will also add book printing press and can target different organizations.
We are going to provide the home delivery services only to the major
customer like schools, colleges and universities within the Faisalabad.
c. Profitability
As we are providing books for all discipline at discount rates. This will
result in increase sales which will increase our revenue and decrease our fixed expenses
per unit. Hence we will result in more profitable business.
Reputation
Strengths
We have strengths in
Weaknesses
Product / Services
Quality Factors
We are offering quality service in providing books, e-books, library, e-library, internet
facilities and café.
Design Consideration
It’s a service related business and in service related business design is related to
how to deliver the services and what will be the interior of the retail outlet. We will
deliver services with the help of human and computer aided systems. Interior is designed
in such a way that it gives a friendly environment that make people feel like home.
Goods Classification
These are both consumer and industrial goods in such sense that if books are purchased
by an individual then it is a consumer good and when these books are sold to schools,
colleges and universities then these are industrial goods.
Again this is combination of durable and nondurable goods and services. When we are
providing café and library facility then it is nondurable services. And when we are
providing books and stationary these are durable goods.
we are providing convenience goods in such sense that these are those goods that
are purchased with out any special consideration of books brand names etc. people get
these product and services conveniently.
Packaging
As we are not providing any kind of a single product but books and these books don’t
have packaging and we are providing shopping bags for carrying books
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Price Structure
There are so many pricing methods that are used to set prices e.g market skimming
pricing and marketing penetration pricing. We are using marketing penetration strategy
because we have a large market for product, economies of scale can be achieved and
there is fierce competition in the market.
Following are the markup rate that we will charge on the cost of books and
stationary.
Uses
Books are not the necessity of life so they don’t have primary use. To be successful in life
we need to study books hence books have secondary use.
Service strength
We have the following product and service strengths
Books for all disciplines
Magazines
Children Books
Cooking Books
All types of dictionaries
Stationary
Highly motivated employees
Huge book carrying capacity
Traditional and e-library
We are offering memberships
Fully air conditioned library and Computer lab.
Computer lab equipped with latest computers and high speed internet
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Weakness
Library may prove to be expensive, it may not attract many individuals to cover our costs
and earn a good margin over costs.
Market share
Industry sale by market
Book retailing industry in Faisalabad has about 95% share of the Faisalabad market. That
is book retail stores in Faisalabad meets 95% of the demand of books of people. Some
books are not available in the city and people often have to move to other cities to get
those books.
The Market
2). Potential
the potential market is not only students but also teachers, professors ,schools
,colleges and universities.
Needs
Market needs are
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Desire
Desires are
Books availability with ease
Quick service
Books should be cheap
Pleasant library environment
Characteristics of market
Geographic
Punjab is Pakistan’s biggest province with respect to population. Faisalabad is the third
biggest city of Pakistan. It has the strong textile sector and sugar industry.
Demographics
Faisalabad is the second biggest city of Punjab populace with approximately 50 lakh
individuals and it has 50% literacy rate.
Psychographic
Life Style : Both Modern and Traditional
Personality : Sober, creative, ambitious
Behavioral
User Loyalty : Low brand loyalty
Usage Rate : Low and Moderate
Occasion : Regular and Special
Benefits : Quality, Service, Speed and Economy
User Status : Ex-User, Non User, Potential User, Regular User
Attitude : Indifferent, Positive, Enthusiastic
New Admissions
Reading Habits
To Acquire New Skills
To Learn Something
To Appear in Intelligence Tests( NTS,GRE,GMAT,ECAT etc)
To Appear in competition exams (CSS, ISI, PMS, PSC etc)
To give as Gifts
Frequency of Purchase
Books related to discipline by the students are
Purchased two times is semester system and one time in annual system. Other books like
cooking, coloring books etc and magazines are purchased many times.
a. Characteristics
b.1. Characteristics Shared with rest of Market
Book selling
stationary
we are providing equipped with advanced technology. They like the parking and café
facility.
3. Consumer Appeals
Possible future appeals
Our possible future appeals are as following
Brochures
Banners
Bill Boards
Local TV
FM Radio
The Competition
Primary Competitors:
Our primary competitors are the books sellers already operating in market
the major competitors are located in Aminpur Bazar Faisalabad just like
Kitab Markaz, Friends Book center, Istaqlal book center, Majeed book center, Fine book
center.
Secondary Competitors
Share of Market
A large no of market share that is 60% is captured by large competitors.
Strength of Competitors
They have a set up for a long time period. They are located at the center of
the city, they have loyal customers.
Weaknesses of Competitors
Competitors are charging prices at a level where the other sellers are charging.
They are distributing their products through their own outlets only
They are advertising only through brochures and banners.
Distribution Strategies
Distribution
We will operate via only company on outlets even in case of expansion;
company will use its own distribution channel.
Strength of Distribution Channels
Timely availability of books in our outlets.
It will increase our brand building.
As the entire margin we have to earn, so we can save our cost through our own
distribution channel.
Opportunity
A opportunity in the type of distribution is that it can create awareness a
associations with the customers, the can use their past experience as a cue for others.
Threat
If some competitors come to play and can make open a book like us
because this business has large potential in market.
Pricing Policies:-
While setting the prices trends of the industry, affordability of the customer and the
competition will be taken under consideration.
Pricing Threats
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Communication Strategies
Sales Force
Our sales force will comprise of fifteen sales persons.
Our sales force will be trained for a week before launch and then
performance evaluation parameters will be implemented.
Advertisement Program
Advertising will be through local electronic media (cable network) local news papers,
banners, billboards.
Appeals positioning
Our communication program in terms of advertise will be based on the theme that their
will be convenience, ideal environment for all.
Advertisement expenditures will be allocated on yearly basis.
Opportunities of Communication
Threats of Communication
Communication will make other competitors i.e. all other book sellers
aware, so they can cut their prices down. However exaggerations in communication can
create disloyalty if they experience less in reality.
Environmental Factors
Economy
Although the economy of Pakistan is at stake but being a book
seller and study environment provider we are less threatened by this situation because we
are providing books which are necessary for all.
Economic Forecast
Pakistan’s economy is suffering at a high level so there are enough
chances of growth as Pakistan’s economy is growing however at a slower rate. As the
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nature of our business shows, there will be high expectations of more membership at this
location and more outlets in other big cities.
Political Situations
Societal Concerns
Our business will have high societal association because we are not
going to provide some harmful but we are making you aware, knowledgeable so people
will take us as their friends and this societal association can also affect political threats.
Technological Influences
Profitability/ ROI
Sales revenue and cost reductions will be made up to extent where
minimum ROI is 10%.
Partnership Equity
Corporate strategy will be to optimally utilize the equity of
partners.
In current situation our competitors are not using full marketing tactics
they emphasis on products not customer care or customer relationship. They don’t have
any network with universities and colleges. And they are not using mkt promotional
activities enhance their customers. These are our potential marketing opportunities for us.
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Our services objectives are directed towards market and community need
satisfying. Following are our market need satisfying objectives.
Providing books in all range and stationary all books from playgroup to
master level and stationary at one place. Provide education concern material, computer
research lab, cool and calm environment for study.
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