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NEW PRODUCT

DEVELOPMENT
PROCESS

NEW PRODUCT
DEVELOPMENT
PROCESS
Prepared for
Anika Khurshid
Faculty
College of Business Admistration (CBA)
Course Instructor of MGT 402

Prepared by
The Avengers
Name
1.
2.
3.
4.
5.

ID

Students of BBA program, Section F


July 31, 2012

IUBAT International University of Business Agriculture


and Technology

Letter of Transmittal
July 31, 2012

Anika Khurshid
Faculty
College of Business Admistration (CBA)
IUBAT International University of Business Agriculture and Technology
Uttara, Sector 10
Dhaka 1230
Dear Madam,
Here is the report on New Product Development Process for the course Entrepreneurship MGT
402 that you asked for.
Although we have faced many problems to gather information on the topic of, it was very
enthusiastic for us. It has been a learning experience for all of us and has imparted us the
knowledge and skills required to prepare this report.

We hope you would be satisfied with it as much as we were in preparing the report. We thank
you for your constant guidance.

Sincerely Yours,
.
Group Leader of The Avengers

Student Declaration
I, Nurul Habib Chowdhury, the group leader of our team and the other members; Md. Arif
Hossain, Md. Nazmul Hoque Sabuj, Tahsina Rahman and Babul Miah, hereby decleared that, we
have done our report on New product Development Process. This report on the stated topic has
only been prepared for the fulfillment of our practicum. It has not been prepared for any other
purpose.

______________________
Nurul Habib Chowdhury

______________________
Md. Nazmul Hoque Sabuj

____________________

Babul Miah

_____________________
Md. Arif Hossain

_____________________
Tahsina Rahman

Acknowledgement
This report would not have been easily accomplished without some people whom we would like
to thank. Firstly we would like to thank our course instructor of Entrepreneurship [MGT 402]
Mrs. Anika Khurshid who gave us the opportunity to do this report on the topic New Product
Development Process. Thanks to his support and guidance, which helped us follow the proper
guidelines for preparing this report.
We would also like to express gratitude to our class members for providing us the information
that was required for completion of this report. They should be remembered because they
produced the platform of our knowledge.
Finally, we like to say that, we have prepared this report from our own experience. We are ready
to accept our unwilling errors and omission, which belong to us.

Table of Contents

EXECUTIVE SUMMARY

01

INTRODUCTION

02

OBJECTIVES

02

METHODOLOGY

03

4.1 Data Collection Method

03

4.2 Data Analysis

03

4.3 Instrumentation

03

SCOPE

03

5.1 Procedure and Time Frame

03

5.2 Activity

03

LIMITATION

COMPANY OVERVIEW

04

PRODUCT OVERVIEW

05

8.1 Ingredients

05

8.2 Current Market Situation

05

SWOT ANALYSIS

06

9.1 Strength

06

9.2 Weakness

07

9.3 Opportunity

07

9.4 Threats

08

10 PEST ANALYSIS

04

08

10.1 Political

09

10.2 Economic

09

10.3 Social

09

10.4 Technological

10

11

COMPETITIVE REVIEW

10

11.1 FUSION MANGO Competitors

10

11.2 Competitors Quality

11

11.3 Price

11

11.4 Market Place

11

11.5 Promotion

11

11.6 Strategy

11

12 MARKETING STRATEGY

12

12.1 Positioning Strategies

12

12.2 Segmentation

12

Geographic Segmentation

12

Demographic Segmentation

12

Psychographic Segmentation

12

Behavioral Segmentation

13

12.3 Targeting

13

12.4 Marketing Mix

13

12.4.1 Product Strategy

13

Branding

13

Design

14

Quality
14

Feature

14

Packaging

14

12.4.2 Price Plan

Price and Quality Grid

15
15

12.4.3 Distribution

16

12.4.4 Communication Plan

17

Promotion

17

Core Sources of Promotion

17

Benefit

19

Measuring

19

Proposed Survey Paper

19

Action Programs

21

13 RECOMMENDATION
14 APPENDICES
14.1 News Paper Ad

15 REFERENCE

23
23
23
24

16 CONCLUSION

24

GROUP ACTIVITIES CHART

25

1.0 Executive Summary


New Product Development (NPD) is the term used to describe the complete process of bringing
a new Product to market. The report explain the process of developing an brand new mango juice
named Fusion Mango. This product has been made by the Sanowara Drinks & Beverage
Industries Ltd which is improved from the ministry of health. In the beginning of the report we
have explained the mission and vision of the Sanowara Drinks & Beverage Industries Ltd. And
then we have future carried out our. It will be introduce in the market with the help of various
promotional display advertisements and distribution of fee samples to the general public and
financial institution
This report examine that this product is initially launching in Dhakas domestic market the study
included both primary and secondary research. The primary study focused on a survey of the
competitors and the liking and disliking of the people. Through this strategy company can
penetrate more into the market and can attract the bulk customers
For the purpose we have contracted SWOT analysis of the company to see companys strength,
weakness opportunities and threats. Then we have explained the purpose benefits and objectives
of the product.
Then we have made a marketing mix strategy for our product. We have divided market into
different segment and decided to target customers of all ages.
We have also paid special attention to packaging color and price of the product. We have decided
to place the product in all the markets of Bangladesh specially canteen of college and universities
We will promote our product through various means of advertisement. We shall also conduct
market survey in near future to know the opinion of the public about our product and developed
our product accordingly.

2.0 Introduction
Marketing is a key part of business success - and every businessman should use a marketing plan
as a basis for executing his marketing strategy. A marketing plan sets out clear objectives and lists
the actions that will take to achieve them. Perhaps most importantly, it looks at how businessman
can ensure that your plan becomes reality. A marketing plan includes factors such as deciding
which customers to target and how to reach them, how to win their business and keep them happy
afterwards, as well as continually reviewing and improving everything he do to stay ahead of the
competition. Marketing in itself will not guarantee sales, but a well-researched and coherent
marketing plan will give a much better chance of building long-term, profitable relationships.

3.0 Objectives
The objectives of the study are:

Study the level of targeting customers.

Study the willingness of the people to buy the product.

Study the customers attitudes towards the product.

Find out the market condition of the product.

Analysis the current market situation.

Identify acceptable pricing policy for the product.

Find out attractive product design.

Identify the proper channel of distribution.

Find out the advertising policy.

Find out the target market.

Identify the quality of the competitors of the product.

Determining SWOT analysis for the competitors.

Find out the strength and weakness of the producer.

Find out the opportunity and threat of the producer and product.

4.0 Methodology
We have collected different types of data from different sources and the procedure was simple
random method.

Primary Data: we have collected the primary data from the consumers and retailers
through a structured questionnaire. And also from some faculties, guardians, friends and
relatives.

Secondary Data: Secondary data are collected from different magazines, journals and
some websites which are related to our topic.

Sampling: The sample size for our study had 15 customers and 8 retailers.

4.1 Data collection Method


Our data collection method had personal interview and telephone interview. We had taken
personal interview from customers, retailers, university faculties, friends and some relatives at
Dhaka district as well as telephone interview from Chittagong District.

4.2 Data Analysis


After collecting all the data we had analyzed our data. Individually we had analyzed the data
among ourselves. Then we had made the comparison of data and explain it through graph, chart,
table etc.
Based on our analysis we have made findings, limitation, recommendation and conclusion.
Finally we will present our research in front of audiences.

4.3 Instrumentation
Through face-to-face interview and online interview by structured questionnaires we had done
our survey.

5.0 Scope
5.1 Procedure and Time Frame
It had taken 7 days to fulfill this Marketing Plan.

5.2 Activity
The results of customers and retailers satisfaction on conducted from personal interview by
questionnaires shown in the pie chart.

6.0 Limitation
When we were preparing this report we faced some problems. People did not interest to talk with
us. People did not give 100% information. When we went to collect primary data from different
field we also faced some problem like transportation, financial problem etc. we faced another
problem that secondary data was not available. We did not get enough time for data processing
and analyzing.

7.0 Company Overview


Sanowara Drinks & Beverage Industries Ltd is a part of Sanowara Group of Companies
which is a country-wide well reputed organization in business arena in Bangladesh. At first the
company launched its business in the name of Sanowara Corporation was setup in 1978 as a sole
agent of Australia based dairy food manufacturer. Since then the company represented numerous
international manufacturer of food and beverage items all over Bangladesh.
Vision: We are the leading food and beverage manufacturer, seller and distributor in Bangladesh
achieving our business vision through growth in market reach, increasing operation size,
international distribution, total service and consistent branding activities by the being most
customers focused & Innovative, cost effective & efficient, socially and environmentally
responsible & quality concerned company in the business.

Mission: Our mission is to provide value at an economic cost, progress in diversity, and
continue to contribute to the growth of industrialization in Bangladesh by being the market
challenger.

8.0 Product Overview


Beside of mineral water and ice cream products, Sanowara Drinks & Beverage Industries Ltd
is going to introduce a brand new product, Fusion Mango, a mango juice.
People started too perished under the scorching the heat of summer in our country they need of
seasonal fruit juice to refresh themselves. Fusion Mango is a fresh mango juice product. It
provide energy and keep fresh when feel weak and tired after doing lot of work in whole day.
It contains vitamin and proteins which is useful energy sources. Vitamins gives freshness and
proteins are the energy cells that are recharge the human body so they work at their maximum.
The students, employee and workers all field of humans become tired due to the work burden
and sunlight which make them feel lose. They need a mango juice that make them energize so
they may be able to perform better again and feel fresh.
The FUSION MANGO will be available in 250ml size in and pure ripe mango flavor.
Slogan: Real Mango

8.1 Ingredients
Ingredients are:

Mango
Water

Artificial Colors

Stabilizers

Ascorbic Acid

Beta Carotene

Sugar

8.2 Current Market Situation


Fusion Mango is an upcoming fresh mango juice product that is going introduce in Dhaka
domestic market. We are focusing to all levels are generation. The price of Fusion Mango is
moderate because it is for all.

9.0 SWOT Analysis

Strength
Weakness
Opportunity
Threats
9.1

Strengths:

Updated technology plant

Quality product

Specialist available for specialize task jobs

Hire experience staff

Medical income of employee

Bangladeshi made

Targeted to low and middle class people

Reasonable price

Better product life and durability, expiry date above six months

End-user sales control and direction.

Right products, quality and reliability.

Superior product performance vs competitors

Direct delivery capability.

Product innovations ongoing

Management is committed and confident

Have customer lists

9.2 Weakness

New in juice industry

Small distribution network

Strong competitors

No market share

Limited experience of customers

No direct marketing experience.

Need more sales people.

Delivery-staff need training.

Customer service staff needs training.

Limited budget

Management cover insufficient

Customer lists not tested

9.3 Opportunities

Increase the distribution network

Acquiring the new technology

Market is very big and attractive

Take over the distributor

Increase demand of high quality of product due to Dhaka being a develop city

Could develop new products

Local competitors have poor products

Profit margins will be good

End-users respond to new ideas

Could extend to overseas

New specialist applications

Can surprise competitors

Support core business economies

Could seek better supplier deals

9.4

Threats

Political instability

New entrance of exiting competitors

So many competitors

Retaining consumers

Economic instability

Increase of general sales tax

Development of plant

Legislation could impact

Environmental effects would favor larger competitors

Existing core business distribution risk

Market demand very seasonal

Possible negative publicity

10.0 PEST Analysis


Political
Economic
Social
Technological
This is the analysis of the various factors that have an effect upon the marketing process. The
organization undergoing a marketing analysis should be taking into consideration all the
environmental factors and give it a thorough analysis. These environmental factors may be
internal or external. The internal factors compromise of the staff and queries related to them. The
external would be the external customers and the various distributors connected to the concern
and the political and economic factors are also taken into consideration.

10.1 Political

Ecological/environmental issues

current legislation home market

Future legislation

European/international legislation

regulatory bodies and processes

Government policies

government term and change

Trading policies

Home market lobbying/pressure groups

International pressure groups

Wars and conflict

10.2 Economic

Home economy situation

Home economy trends

Overseas economies and trends

General taxation issues

Taxation specific to product/services

Seasonality/weather issues

Market routes and distribution trends

Interest and exchange rates

International trade/monetary issues

10.3 Social

Lifestyle trends

Demographics

Consumer attitudes and opinions

Media views

Law changes affecting social factors

Brand, company, technology image

Consumer buying patterns

Fashion and role models

Major events and influences

Buying access and trends

Ethnic/religious factors

Advertising and publicity

Ethical issues

10.4 Technological

Competing technology development

Research funding

Associated/dependent technologies

Replacement technology/solutions

Maturity of technology

Manufacturing maturity and capacity

Information and communications

Technology legislation

Technology access, licensing, patents

Global communications

11.0 Competitive Review


11.1 FUSION MANGO Competitors
The competitors of FUSION MANGO are more than eight. Frooto and Frootica are leading
market right now and other companies are also having a great image in market. Frooto and
Frootica have loyal customer in all over the Bangladesh because both are from well-known
producers and having good positions in markets. Our aim to compete our all competitors in short
period of time. The Fusion Mango is currently facing very competitive environment. Because
already in market following compotators are:

Pran

Frooto

Frootica

Mangolee

Danish

Acme

Star Ship

Slice

Our main competitors are Frooto and Frootica.

11.2 Competitors Qualities

Good distributions channel


Standard and attractive packing

Large production and market coverage

11.3 Price
Minimum price of Frooto and Frootica are 25 BDT.

11.4 Market Place


Frooto and Frootica both have a large market share in Bangladesh.

11.5 Promotion
They promote this product through
a.
b.
c.
d.

Electric media
Print media
FM radio
Wall chalking

11.6 Strategy

Creating share value global forum

Good pricing

Better quality

By offering different flavors

Intensive distribution

Attractive packaging

12.0 Marketing Strategy and Objectives


12.1 Positioning strategies

We want to put our image an on in the consumers mind as compare to competitors product. We
want to target the high school, college and graduate students and government sector that have to
work hard and need to Refresh them an instant.

12.2 Segmentation
We made the market segmentation on following basses
A. Geographic Segmentation:
This segmentation is based on region, city, rural and semi urban areas. We divided Dhaka city
into four zones.
A zone (Uttara, Airport, Basundhara)
B zone (Cantonment, Mirpur, Mohammadpur )
C zone (Gulshan, Baridhara, Banani)
D zone (Dhanmondi, Motijheel, New Market)
B. Demographic Segmentation:

Age
Family size
Gender
Income
Occupation
Education

C. Psychographic Segmentation:

Socioeconomic classification (SEC)


Life style
Personality

D. Behavioral Segmentation:

Occasions
Benefits
User status
Usage rate
Loyalty status
Readiness stage
Attitude towards the product

12.3 Targeting
We will target the following customers:

Kids
Elders
Sportsman
Youths
Students
Patients

12.4 Marketing Mix


12.4.1 Product Strategy

Develop the long term relationship with customers.


Give values to the customers to delighting them.
Do whatever it task not satisfy the customers but retain our customers.
In order to accomplish this objective, the company has established sales, marketing and support
teams.
Branding
Name: FUSION MANGO

Logo:
Color: Yellow
Slogan: Real Mango
Design
Fusion Mango is the sweet drink with an eye catching tetra pack and plastic bottle.

250ml tetra pack


250ml bottle

Quality
High quality assurance would be our first priority. This would be ensured by

Implementing high quality standards


Total quality management
Acquisition of high quality raw materials

Features
Here are some features of our product

Fresh original mango juice


Provide proteins and minerals
Provide vitamins
Beneficial for kidney
Excellent in taste
Gives freshness
Tetra pack protection packing

Packaging
Product units are packed in 6-layered Tetra Brick Aseptic and plastic bottle.

12.4.2 Pricing Plan


Our price includes custom services and other expenses. Passage through its life cycle changes its
price strategy. To attain large market share prices should be at moderate level to seek attraction
of large number of consumer
Pricing in BDT
Fruits cost

BDT 6/-

Factory over head

BDT 8/-

Miscellaneous

BDT 5/-

Retailer margin

BDT 2/-

Profit

BDT 4/-

Total price

BDT 25/-

According to our above pricing plan we have decided to offer the product to customers at BDT
25/-.The price is very much competitive and offer is feasible enough to catch a large percentage
of market shares.

Price and Quality Grid


This grid shows what pricing strategy a firm is perusing;
LOW

PRICE

PRESENTATION

PRODUCT
DEVELOPMENT

HIGH
MARKET
DEVELOPMENT
LOW

DIVERSIFICATION
HIGH

QUALITY
According to the above grid we are offering high quality with low rate.

12.4.3 Distribution
We set pathways for our new product after production that can reach our product to the end
user. We follow five players in our distribution system. Those are given below in a diagram.
1. Manufacturer

2. Agent
3. Wholesaler
4. Retailer
5. Customer

12.4.4 Communication Plan


Promotion
Actually promotion is the first step when we are launching a product. But we make its strategy in
last because we want our good image in the mind of our customers.

Our main objective to provide:

Awareness
Knowledge

Liking

Preference

purchasing

Core Sources of Promotion

Electronic media
Print media

Cable network

Billboards

Hoardings

ELECTRONIC MEDIA:
MEDIA

TIME

DURATION

TOTAL

BTV

Prime time & Post prime time

1 min

1215000

Somoy News

Prime time & Early day

1 min

180000

Inqilab TV

Early day & Prime time

1 min

175000

Radio Foorti

Early day & Prime time

1 min

280000

TOTAL

2090000

PRINT MEDIA:
COLOR OR
NEWS PAPER

PAGR

SIZE
BLACK &
WHITE

DAILY
BASIS

CHARGES

PROTHOM
ALO

FRONT

COLORED

STANDARD
SIZE

DAILY

18600

KAALER
KONTHO

MID

COLORED

STANDARD
SIZE

DAILY

5000

ITTEFAQ

FRONT

COLORED

STANDARD
SIZE

DAILY

15000

AMAR DESH

BACK

COLORED

STANDARD
SIZE

DAILY

17500

DAILY STAR

BACK

COLORED

STANDARD
SIZE

DAILY

15000

NEW AGE

BACK

COLORED

FULL

DAILY

600000

BILLBOURDS:
LOCATION

SIZE

DURATION

TOTAL COST

Airport

2060

1 MONTH

250000

Basundhara

2060

1 MONTH

215000

Mirpur

2060

1 MONTH

70000

Uttara

2060

1 MONTH

115000

DU Area

2060

1 MONTH

150000

TOTAL

265000

HOARDINGS:
LOCATION

SIZE

DURATION

TOTAL COST

GULSHAN

3090

1 MONTH

1200000

FARMGATE

3090

1 MONTH

1000000

TEJGAON

3090

1 MONTH

1000000

MIRPUR

3090

1 MONTH

200000

TOTAL

3400000

Benefits
Following are the additional benefits which are offering to the customers to give them values:

Give five rappers and get one juice pack


Purchase ten pack & get one free juice

Measuring

We can check marketing condition through meaning in which different type of task may be
performed like survey. In order to learn weather people would like to buy our product, we have
decided to conduct a market survey in future so that we can assure that people like our product or
not.

Proposed Survey Paper


People Perception about Mango Juice
Name:
Age:
Profession:
Organization:

1. Do you like mango juice?


(a) Yes

(b) No

2. Usually what type of mango juice you drink?


(a) Packed Juice

(b) Bottled Juice

(b) Home Made

3. Which brand do you drink usually?


(a) Pran

(b) Frooto

(c) Frootica

(d) Mangolee

(e) Danish

(f) Shezan

(g) Acme

(h) Slice

4. Why do you use this particular brand?


(a) Good quality

(b) Brand image

(c) Reasonable Price (d) Flavor

5. Which brand gives you more preference?


a) Domestic

(b) Global or International

6. If domestic then why?


(a) Patriasm

(b) Quality

7. If foreign then why?

(c) Price

(a) Brand image

(b) Quality

(c) Flavor

8. What kind of attributes you expect from Mango juice?


(a) Good quality

(b) Reasonable price (c) Good flavor

9. What things are more important to you?


(a)Quality

(b) Price

(c) Brand image

(d) Good flavor

(e)Both a & b
10. If new brand come, will you accept it ?
(a) Yes

(b) No

11. If yes, why?


(a) For taste (b) good quality (c) Reasonable price
(d) New brand always offers some extra benefits
12. If no, why?
(a) Untrusted

(b) Less experience (c) Less segmentation in products

13. What kind of attribute you want from a new brand?


(a) Good quality

(b) Reasonable price (c) Different flavor

(d) Attractive shave

(e) Hyzenic

(f) Availability

14. We are going to lounge a new mango juice in the market. If we can able to give you better
quality product with a reasonable price and also fulfill all attributes that you want from after
shave, will you accept it?
(a) Yes

(b) No

- Questionnaire of Retailers
Organization:
Location:

1. Please tell me the first three brands of mango juice which are highest selling from your shop?
.
2. What are the reasons that customers buy that mango juice more?
Please give your opinion.

3. What are the factors customers considers at the time of purchase?

Action Programs
The FUSION MANGO will be introduced in May .following are summaries of the programs
we will use during this summer session to achieve our stated objectives.
May we will initiate 80,00,000 BDT trade sales promotion campaign to educate dealers and
generate excitement for the product launch , and provide sample crates to our selected product
reviewers, opinion leader and celebrities as part of our public relation strategy.
June we will start with integrate print /television campaign. The campaign will show how many
features the Fusion Mango have for users to reenergize them.
July as the juice advertisement continues, we will add consumer sales promotion by including
them to our message. We will also support or retailer to increase our sales.
August we plan to roll out a new advertisement having new views of customer through survey
who have used our drink which ill help to promote our juice.

13.0 Recommendations

If we go ahead with delight, we will have to move quickly.

The window of opportunity is open, but if Frooto and Frootica are as good as they claim,
we will be in for a fight.

We are new in the market so we face the threat of ever-higher competition and downward
pricing pressure.

We think, also we have lack of knowledge and skill, a holistic corporate culture and lack
of systematic approach.

14.0 Appendices
14.1 News Paper Ad

15.0 References

URL 1: http:// www.sanowara.com/

URL 2: http:// www.beverages1.com/supplier/akij-food-and-beverage-ltd.html/

URL 3: http://www.pranfoods.net/

Writing Format: Lesikar, Flatley and Rentz (2010-2011). The long analytical report
illustrated. Business Communication: making connections in a digital world. Eleventh
Edition. 386-401.

16.0 Conclusion
Organizations in our era are extremely sensitive - as they must be - to demographic, political,
technological and economic developments. Environmental changes most affect strategic
perspective. With respect to the marketing mix, quality in the beverage industry is a key factor.
For example, Globe Beverage's uses its Tiger brand to compete at the budget end of the market,
but promotes its own brand on the basis of quality at the upper end. Competition with non-juice
products such a cola drink is partly on the basis of packaging. It can be seen that competitors have
a stronger market share than Sanowara Beverage Ind. Ltd. due to stronger promotion, so
marketing department of the company have to work hard with a brilliant strategy to face them.
An effective marketing program brings together all of the elements of the marketing mix to
achieve the organization's marketing objectives by delivering to customers what they want and
need. Thus, the most successful companies will be those that can meet these needs most
effectively.

Group Activities Chart


Name

Nurul Habib Chowdhury

ID

10302016

Introductory

Body

Methodological

Final

Part

Part

Part

Part

Md. Nazmul Hoque Sabuj

10302021

Md. Arif Hossain

10302005

Tahsina Rahman

10302032

Babul Miah

10302041