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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’

we have done our report on “New product Development Process”. Md. 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. hereby decleared that.Student Declaration I. ______________________ Nurul Habib Chowdhury ______________________ Md. Nazmul Hoque Sabuj. Arif Hossain _____________________ Tahsina Rahman . Arif Hossain. Nurul Habib Chowdhury. Nazmul Hoque Sabuj ____________________ Babul Miah _____________________ Md. Tahsina Rahman and Babul Miah. the group leader of our team and the other members. Md.

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

1 Procedure and Time Frame 03 5.1 Data Collection Method 03 4.4 Technological 10 .1 Strength 06 9.3 Instrumentation 03 SCOPE 03 5.2 Economic 09 10.2 Activity 03 6 LIMITATION 7 COMPANY OVERVIEW 04 8 PRODUCT OVERVIEW 05 8.2 Current Market Situation 05 SWOT ANALYSIS 06 9.1 EXECUTIVE SUMMARY 01 2 INTRODUCTION 02 3 OBJECTIVES 02 4 METHODOLOGY 03 5 4.1 Ingredients 05 8.1 Political 09 10.2 Weakness 07 9.2 Data Analysis 03 4.4 Threats 08 9 10 PEST ANALYSIS 04 08 10.3 Opportunity 07 9.3 Social 09 10.

11 COMPETITIVE REVIEW 10 11.3 Price 11 11.1 Product Strategy 13  Branding 13  Design 14  Quality 14  Feature 14  Packaging 14 12.5 Promotion 11 11.4 Market Place 11 11.2 Segmentation 12  Geographic Segmentation 12  Demographic Segmentation 12  Psychographic Segmentation 12  Behavioral Segmentation 13 12.1 Positioning Strategies 12 12.1 FUSION MANGO Competitors 10 11.4 Marketing Mix 13 12.4.4.3 Targeting 13 12.2 Competitor’s Quality 11 11.3 Distribution 16 12.4.6 Strategy 11 12 MARKETING STRATEGY 12 12.2 Price Plan  Price and Quality Grid 15 15 12.4.4 Communication Plan 17 .

1 News Paper Ad 15 REFERENCE 23 23 23 24 16 CONCLUSION 24 GROUP ACTIVITIES CHART 25 . Promotion 17  Core Sources of Promotion 17  Benefit 19  Measuring 19  Proposed Survey Paper 19  Action Programs 21 13 RECOMMENDATION 14 APPENDICES 14.

We have divided market into different segment and decided to target customers of all ages. Then we have explained the purpose benefits and objectives of the product. weakness opportunities and threats. 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 company’s strength. We shall also conduct market survey in near future to know the opinion of the public about our product and developed our product accordingly.1. The report explain the process of developing an brand new mango juice named Fusion Mango. The primary study focused on a survey of the competitors and the liking and disliking of the people. This product has been made by the Sanowara Drinks & Beverage Industries Ltd which is improved from the ministry of health. 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. Then we have made a marketing mix strategy for our product. 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 Dhaka’s domestic market the study included both primary and secondary research. We have also paid special attention to packaging color and price of the product.0 Executive Summary New Product Development (NPD) is the term used to describe the complete process of bringing a new Product to market. In the beginning of the report we have explained the mission and vision of the Sanowara Drinks & Beverage Industries Ltd.

 Study the customers attitudes towards the product.  Identify the quality of the competitors of the product.  Find out the target market.  Find out the market condition of the product.  Analysis the current market situation. as well as continually reviewing and improving everything he do to stay ahead of the competition.  Find out the advertising policy. 3.  Find out the opportunity and threat of the producer and product.and every businessman should use a marketing plan as a basis for executing his marketing strategy. how to win their business and keep them happy afterwards. profitable relationships.  Identify acceptable pricing policy for the product. Marketing in itself will not guarantee sales.0 Introduction Marketing is a key part of business success . A marketing plan sets out clear objectives and lists the actions that will take to achieve them.  Identify the proper channel of distribution. Perhaps most importantly.  Study the willingness of the people to buy the product. .  Find out the strength and weakness of the producer.0 Objectives The objectives of the study are:  Study the level of targeting customers. A marketing plan includes factors such as deciding which customers to target and how to reach them.2. but a well-researched and coherent marketing plan will give a much better chance of building long-term.  Determining SWOT analysis for the competitors. it looks at how businessman can ensure that your plan becomes reality.  Find out attractive product design.

0 Scope 5. recommendation and conclusion. chart.1 Data collection Method Our data collection method had personal interview and telephone interview.  Secondary Data: Secondary data are collected from different magazines. 4.  Primary Data: we have collected the primary data from the consumers and retailers through a structured questionnaire. friends and some relatives at Dhaka district as well as telephone interview from Chittagong District.2 Data Analysis After collecting all the data we had analyzed our data. Individually we had analyzed the data among ourselves. friends and relatives. 4. And also from some faculties. We had taken personal interview from customers.4. Finally we will present our research in front of audiences.  Sampling: The sample size for our study had 15 customers and 8 retailers.0 Methodology We have collected different types of data from different sources and the procedure was simple random method. Then we had made the comparison of data and explain it through graph. retailers. 4.1 Procedure and Time Frame It had taken 7 days to fulfill this Marketing Plan. guardians. 5. limitation. table etc. Based on our analysis we have made findings. university faculties. . journals and some websites which are related to our topic.3 Instrumentation Through face-to-face interview and online interview by structured questionnaires we had done our survey.

Since then the company represented numerous international manufacturer of food and beverage items all over Bangladesh. At first the company launched it’s business in the name of Sanowara Corporation was setup in 1978 as a sole agent of Australia based dairy food manufacturer. . international distribution. 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.5. When we went to collect primary data from different field we also faced some problem like transportation. seller and distributor in Bangladesh achieving our business vision through growth in market reach. we faced another problem that secondary data was not available. People did not interest to talk with us. socially and environmentally responsible & quality concerned company in the business. financial problem etc.2 Activity The results of customers and retailers satisfaction on conducted from personal interview by questionnaires shown in the pie chart. increasing operation size. 6.0 Limitation When we were preparing this report we faced some problems. Vision: We are the leading food and beverage manufacturer. We did not get enough time for data processing and analyzing. People did not give 100% information. total service and consistent branding activities by the being most customers focused & Innovative. cost effective & efficient.

It provide energy and keep fresh when feel weak and tired after doing lot of work in whole day. a mango juice. It contains vitamin and proteins which is useful energy sources. The students. Sanowara Drinks & Beverage Industries Ltd is going to introduce a brand new product.Mission: “Our mission is to provide value at an economic cost. Slogan: Real Mango 8. 8. Vitamins gives freshness and proteins are the energy cells that are recharge the human body so they work at their maximum.1 Ingredients Ingredients are:   Mango Water  Artificial Colors  Stabilizers  Ascorbic Acid  Beta Carotene  Sugar . and continue to contribute to the growth of industrialization in Bangladesh by being the market challenger”.0 Product Overview Beside of mineral water and ice cream products. They need a mango juice that make them energize so they may be able to perform better again and feel fresh. employee and workers all field of humans become tired due to the work burden and sunlight which make them feel lose. progress in diversity. Fusion Mango is a fresh mango juice product. Fusion Mango. People started too perished under the scorching the heat of summer in our country they need of seasonal fruit juice to refresh themselves. The FUSION MANGO will be available in 250ml size in and pure ripe mango flavor.

The price of Fusion Mango is moderate because it is for all. .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.8. 9. We are focusing to all levels are generation.2 Current Market Situation “Fusion Mango” is an upcoming fresh mango juice product that is going introduce in Dhaka domestic market. expiry date above six months  End-user sales control and direction.

 Limited budget  Management cover insufficient  Customer lists not tested .  Customer service staff needs training.  Product innovations ongoing  Management is committed and confident  Have customer lists 9.  Need more sales people.  Superior product performance vs competitors  Direct delivery capability.  Delivery-staff need training.2 Weakness  New in juice industry  Small distribution network  Strong competitors  No market share  Limited experience of customers  No direct marketing experience. Right products. quality and reliability.

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 9.9.4 Threats  Political instability  New entrance of exiting competitors  So many competitors  Retaining consumers .

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.1 Political  Ecological/environmental issues . The organization undergoing a marketing analysis should be taking into consideration all the environmental factors and give it a thorough analysis. 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. These environmental factors may be internal or external.0 PEST Analysis Political Economic Social Technological This is the analysis of the various factors that have an effect upon the marketing process. 10. The internal factors compromise of the staff and queries related to them.

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 . 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.

company.3 Social  Lifestyle trends  Demographics  Consumer attitudes and opinions  Media views  Law changes affecting social factors  Brand. 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 .10.

Frooto and Frootica are leading market right now and other companies are also having a great image in market. Manufacturing maturity and capacity  Information and communications  Technology legislation  Technology access. Frooto and Frootica have loyal customer in all over the Bangladesh because both are from well-known producers and having good positions in markets. Because already in market following compotators are:  Pran  Frooto  Frootica  Mangolee  Danish  Acme  Star Ship  Slice . Our aim to compete our all competitors in short period of time. patents  Global communications 11. The Fusion Mango is currently facing very competitive environment.1 FUSION MANGO Competitors The competitors of FUSION MANGO are more than eight. licensing.0 Competitive Review 11.

0 Marketing Strategy and Objectives 12.1 Positioning strategies .3 Price Minimum price of Frooto and Frootica are 25 BDT.Our main competitors are Frooto and Frootica.2 Competitor’s Qualities   Good distributions channel Standard and attractive packing  Large production and market coverage 11. c. 11. 11. 11. d.4 Market Place Frooto and Frootica both have a large market share in Bangladesh. Electric media Print media FM radio Wall chalking 11. b.6 Strategy  Creating share value global forum  Good pricing  Better quality  By offering different flavors  Intensive distribution  Attractive packaging 12.5 Promotion They promote this product through a.

city. A zone (Uttara. Airport.2 Segmentation We made the market segmentation on following basses A. Demographic Segmentation:       Age Family size Gender Income Occupation Education C. We divided Dhaka city into four zones. Basundhara) B zone (Cantonment. 12. Behavioral Segmentation:        Occasions Benefits User status Usage rate Loyalty status Readiness stage Attitude towards the product . Motijheel. Baridhara. rural and semi urban areas. Mirpur.We want to put our image an on in the consumers mind as compare to competitor’s product. Mohammadpur ) C zone (Gulshan. Banani) D zone (Dhanmondi. Geographic Segmentation: This segmentation is based on region. Psychographic Segmentation:    Socioeconomic classification (SEC) Life style Personality D. college and graduate students and government sector that have to work hard and need to “Refresh” them an instant. We want to target the high school. New Market) B.

4 Marketing Mix 12. 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.3 Targeting We will target the following customers:       Kids Elders Sportsman Youths Students Patients 12. This would be ensured by . Give values to the customers to delighting them.   250ml tetra pack 250ml bottle Quality High quality assurance would be our first priority. the company has established sales.4.1 Product Strategy    Develop the long term relationship with customers. In order to accomplish this objective. marketing and support teams. Do whatever it task not satisfy the customers but retain our customers.12.

   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. Passage through its life cycle changes its price strategy. 12.2 Pricing Plan Our price includes custom services and other expenses.4. 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/- .

1.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/-. 12. Those are given below in a diagram.3 Distribution We set pathways for our new product after production that can reach our product to the end user. Price and Quality Grid This grid shows what pricing strategy a firm is perusing.4. Manufacturer .The price is very much competitive and offer is feasible enough to catch a large percentage of market shares. We follow five players in our distribution system. 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.

Agent 3. Wholesaler 4. . But we make its strategy in last because we want our good image in the mind of our customers.4 Communication Plan Promotion Actually promotion is the first step when we are launching a product.4. Customer 12.2. Retailer 5.

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 20’’60 1 MONTH 250000 Basundhara 20’’60 1 MONTH 215000 .

Mirpur 20’’60 1 MONTH 70000 Uttara 20’’60 1 MONTH 115000 DU Area 20’’60 1 MONTH 150000 TOTAL 265000 HOARDINGS: LOCATION SIZE DURATION TOTAL COST GULSHAN 30’’90 1 MONTH 1200000 FARMGATE 30’’90 1 MONTH 1000000 TEJGAON 30’’90 1 MONTH 1000000 MIRPUR 30’’90 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 .

If domestic then why? (a) Patriasm (b) Quality 7. Why do you use this particular brand? (a) Good quality (b) Brand image (c) Reasonable Price (d) Flavor 5. we have decided to conduct a market survey in future so that we can assure that people like our product or not. Which brand do you drink usually? (a) Pran (b) Frooto (c) Frootica (d) Mangolee (e) Danish (f) Shezan (g) Acme (h) Slice 4. Proposed Survey Paper People Perception about Mango Juice Name: Age: Profession: Organization: 1. In order to learn weather people would like to buy our product. Usually what type of mango juice you drink? (a) Packed Juice (b) Bottled Juice (b) Home Made 3.We can check marketing condition through meaning in which different type of task may be performed like survey. Do you like mango juice? (a) Yes (b) No 2. If foreign then why? (c) Price . Which brand gives you more preference? a) Domestic (b) Global or International 6.

What things are more important to you? (a)Quality (b) Price (c) Brand image (d) Good flavor (e)Both a & b 10. why? (a) Untrusted (b) Less experience (c) Less segmentation in products 13. why? (a) For taste (b) good quality (c) Reasonable price (d) New brand always offers some extra benefits 12. What kind of attributes you expect from Mango juice? (a) Good quality (b) Reasonable price (c) Good flavor 9. 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. 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.(a) Brand image (b) Quality (c) Flavor 8.Questionnaire of Retailers Organization: Location: . If no. will you accept it? (a) Yes (b) No . We are going to lounge a new mango juice in the market. will you accept it ? (a) Yes (b) No 11. If new brand come. If yes.

 The window of opportunity is open.000 BDT trade sales promotion campaign to educate dealers and generate excitement for the product launch . What are the factors customers considers at the time of purchase? …………………………………………………………………………… Action Programs The “FUSION MANGO” will be introduced in May . we will have to move quickly. …………………………………………………………………………… 3. May we will initiate 80.00. 13. June we will start with integrate print /television campaign. but if Frooto and Frootica are as good as they claim. we will be in for a fight.1. . Please tell me the first three brands of mango juice which are highest selling from your shop? ……………………………………………………………………………. we will add consumer sales promotion by including them to our message. What are the reasons that customers buy that mango juice more? Please give your opinion. 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.0 Recommendations  If we go ahead with delight. We will also support or retailer to increase our sales. opinion leader and celebrities as part of our public relation strategy. and provide sample crates to our selected product reviewers. The campaign will show how many features the “Fusion Mango” have for users to reenergize them. 2. July as the juice advertisement continues.following are summaries of the programs we will use during this summer session to achieve our stated objectives.  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. 14.1 News Paper Ad .0 Appendices 14.

15.0 References  URL 1: http:// www.sanowara.com/  URL 2: http:// www.html/ .com/supplier/akij-food-and-beverage-ltd.beverages1.

Group Activities Chart Name Nurul Habib Chowdhury ID 10302016 Introductory Body Methodological Final Part Part Part Part * * * * . technological and economic developments. quality in the beverage industry is a key factor.net/  Writing Format: Lesikar. With respect to the marketing mix.to demographic. Business Communication: making connections in a digital world. It can be seen that competitors have a stronger market share than Sanowara Beverage Ind. Environmental changes most affect strategic perspective. due to stronger promotion. Flatley and Rentz (2010-2011). Thus. the most successful companies will be those that can meet these needs most effectively.0 Conclusion Organizations in our era are extremely sensitive . ‘The long analytical report illustrated’.pranfoods. URL 3: http://www.as they must be . 386-401. Ltd. 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. 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. political. For example. 16. Eleventh Edition. so marketing department of the company have to work hard with a brilliant strategy to face them.

Arif Hossain 10302005 * * Tahsina Rahman 10302032 * * Babul Miah 10302041 * * . Nazmul Hoque Sabuj 10302021 * * Md.Md.