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TABLE OF CONTENTS

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Executive Summary 2

1.0 Background of the study 3

1.1 What are Grapefruits? 3

1.2 SITRAZE Heath Drink 4

2.0 New Product Development (NPD) of SITRAZE Health Drink 6

2.1 Step 1: Idea Generation 7

2.1.1 SWOT Analysis 8

2.2 Step 2: Ideas Screening 10

2.3 Step 3: Concept Development and Testing 16

2.4 Step 4: Marketing Strategy 18

2.5 Step 5: Business Analysis 20

2.6 Step 6: Product Development 21

2.7 Step 7: Test Marketing 22

2.8 Step 8: Commercialisation 24

3.0 Conclusion 24

References 28

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Executive Summary

SITRAZE Health Drink (SHD) will be the prominent health drink in Malaysia. It is owned by

Sharifah Sakinah and Nurul Hanis; two young entrepreneurs, who have been trained by MARA

in chemical industry. The differentiator for SITRAZE Health Drink will be Sharifah Sakinah

and Nurul Hanis. It is believed that people will buy this product for health reason. The factory to

produce this product will be based in Bandar Darulaman, Jitra, Kedah Darulaman. This area has

a number of benefits in terms of the labour that it will provide for the business. SITRAZE Health

Drink will hopefully have 20% market share of the health drink business in the Malaysia by the

end of year three, and it aims to convert a larger percentage of people away from other health

drink in the market. SITRAZE Health Drink will hopefully maintain a 95% gross profit margin

and make 11% net profit margin after 12 months of operation.

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diabetes. and the formation of tumors. constipation. It is a product that will serve a different segment of customer. NPD is the process of bringing a new product to the marketplace (Kotler & Armstrong. which includes the complete journey (eight steps) from generating the initial idea to bringing the product to the market. By setting out the steps involved. heart disease. “SITRAZE Health Drink”. and sticking to them. which are also known to be powerful drug/poison eliminators. “SITRAZE Health Drink”is a drink that claims to be beneficial to health. There are plenty of health benefits grapefruits have. hopefully our product development will become a more focused and flexible approach that can be adapted for our new product. which helps in changing the 3 .1 What are Grapefruits? Grapefruits (refer to Table 1) are fruits that are high in fiber and low in calories. lower insulin levels. The product is a grapefruit based healthy drink. fever. excess acidity. These fruits work as a natural antiseptic for external wounds and also function as a liver tonic. and many more. and developing new products that meet and exceed our customers' expectations. indigestion. urinary problems. 1. malaria.0 Background of the Study This report is prepared regarding the feasibility planning of a new product development (NPD) for Health product. In this NPD. we have developed the tangible product of the NPD process. 2017).1. They contain a high amount of water. and give you a feeling of fullness. They assist the human body in fighting various conditions like fatigue. Our business needs to engage in this process so as to capitalise on a new opportunity by understanding what the market wants. Grapefruits increase the body’s metabolic rate. It is a kind of beverage that will be prepared by a proper scientific process. and they contain bioflavonoids and other plant chemicals that protect against serious diseases like cancer.

including potassium and lycopene. The pulp and fiber of grapefruits have a healthy bulking action to our food intake. The drink will be very much refreshing and provide great 4 . Grapefruits are packed with the benefits derived from various nutrients and vitamins. which aids in bowel movements and reduces chances of colon cancer. which makes grapefruits the most nutritious fruit amongst various citrus fruits. The Asia Pacific Journal of Clinical Nutrition suggests the intake of grapefruit reduces the risk of developing prostate cancer. reduce the burning sensation that arises during fever.complexion of the skin and increasing the body’s metabolic rate.2 SITRAZE Healthy Drink The name of our product. A glass of chilled grapefruit juice helps to boost levels of vitamin C in our body. Grapefruits also help to quench thirst and thus. Along with these. they also contain calcium. and phosphorous. these fruits are considered a wonderful appetizer and are regularly included for breakfast as a refreshing and energizing start to the day. comes from the word “Citrus” fruit family because this product use grapefruit extract. 1. In terms of culinary value. “SITRAZE”. sugar. Table 1: Grapefruits The health benefits of grapefruits are many and nearly unmatched by any other fruit. The SITRAZE healthy drink will be processed and sold in glass bottle of convenient size of 250ml.

Our expected sales are very high. We believe this product can gain a competitive advantage by creating and sustaining superior performance and is determined out of the value package our company is able to create for its buyers. once the product is well promoted. and other consumers. we are confidence that lots of people will be searching for this product. We have followed the target costing pricing approach. we hope that this product will sold well. We will be targeting a huge market segment for the product.000. we found that the suppliers are much available in Malaysia. 5 . Since Malaysia is a small but optimise populated country.support to the health conscious people. Geographical.00/250ml bottle) for the product so that everybody can afford to buy this drink. We hope to gain a competitive advantage since this is a first ever product in the market. From our research. Our target market is very large with different segments. Since this is a health drink. and will be segmented from the Demographical. Psychographic Behavioural point of view. We believe that this product can be marketable since the public are now more health conscious. The development cost is budgeted at around RM100. We have set a reasonable price (RM160. Our target market includes health conscious people (men and women).

and sticking to them. For companies.2. or existing products that companies have modified and improved. customer driven NPD process for finding and growing new products. In all.0 New Product Development of SITRAZE Health Drink Our company will face a problem if we did not plan properly. However. New businesses. in developing new products. which includes the complete journey from generating the initial idea to bringing the product to market. or start some of them simultaneously. we have found out that developing the tangible product is only a small part of the NPD process. our company must understand its consumers. New products are important to both customers and the marketers who serve them. the product development will become a more focused and flexible approach that can be adapted for all different types of products. What is 'new products’? New products can be i) products that a business has never made or sold before but have been taken to market by others or ii) product innovations created and brought to the market for the first time (Kotler & Armstrong. new products are a key source of growth. However. NPD is not limited to existing businesses. In this report. to create successful new products. By setting out the steps involved. 2017). Our NPD is “SITRAZE Health Drink”. markets and competitors and develop products that deliver superior value to customers. The nature of our business and idea will determine how many of these steps our company need to take. They may be completely original products. the odds weigh heavily against success. Our company has identifies the key issues and approaches to develop this new product that is appropriate to our customers. Actually. We must carry out strong new product planning and set up a systematic. we will have to skip or duplicate certain stages. sole traders or even freelancers can forge a place in the market by researching. developing and introducing new or even one-off 6 . we are showing our NPD idea.

This is the first step that is common in any product development process.products. we found that consumers are looking for healthier food and drink and a clean eating diet.1 Step 1: Idea Generation To develop new product successfully. our company must understand our consumers. The increased busy lives and consumers feeling time-scarce is strengthening the demand for more energising health drink and aspiration is a powerful tool for brands to boost sales by tapping into consumer demands to appear sophisticated and knowledgeable. We also found that consumers want to feel more confident in their appearance and be healthy and are looking for ways in which they can stand out and express their personality. The eight major steps in this process are given below: Table 2: Eight Process of NPD Source: Kotler & Armstrong (2017). 2. markets and competitors and develop products planning. more consumers are relying on products that can offer them with both "better for you" and indulgent features being 7 . We have sit down in a group and brainstorm the idea. we do not need to be an inventor to master NPD. Hence. Similarly. The company can also consider purchasing new products through licensing or copyright acquisition. a more premium product is needed to encourage consumers to trade up. The process deals with what type of product we are going to produce and other issues in developing the product. Hence. From our research.

Weaknesses. 2. 8 . (Strengths. • Strong distribution channel. which incorporates current market trends. This is used to analyse our company’s position and find a direction that is in line with our business strategy. • Large market. Therefore. • Low production cost. 2) Weakness: • It is easy to copy the idea by others. • Reasonable price. We start with a SWOT analysis. • Various Competitors 3) Opportunities: • Monopoly market. weakness.1.1 SWOT Analysis The product existence in the future will depend on its strength. • Easy manufacturing process. Hence. not just from luxury but happiness in a particular moment. • Technological and marketing knowledge.the key attributes to a consumer's preferred healthy product choice. • Taste differs from the natural grapefruit juice. Our ideas come from many different directions. we have analysed as follow: 1) Strength: • Available input materials. consumers are looking for feelings of happiness from their food and drink consumption. Opportunities and Threats). opportunities and threats analysis.

distributors. to scientists. The most important contributor to our idea came from the customers. Based on our internal idea from our employees. Our team have obtained good new product from the above external sources. 4) Threats: • High competition in future by copying the idea. We have analysed customer questions and 9 . and suppliers. i) Internal Idea Sources We found new ideas through formal Research and Development (R&D) whereby our company brainstorm our employees that are from the executives to salesperson. We have also developed our product by using both internal idea and external idea sources.• High demand. • Entrance of new product. engineers and our manufacturing staff. In addition to this business-centred activity. 90% of them agreed to generate SITRAZE Health Drink. competitors. ii) External Idea Sources The external idea sources include the customers. The methods are: • Under-taking market research • Listening to suggestions from our target audience • Encouraging suggestions from employees and partners • Looking at our competitor’s successes and failures. we also focus on the methods of customer’s needs and wants. • Alternatives are avoidable in some segment.

Our distributors and suppliers have distributed us with lots of ideas. Hence. These questions need to be considered carefully so as to avoid product failure after considerable investment down the line. and analyse their sales before bringing our new own product. hospital and health agencies). We also set specific screening criteria for this stage. government agencies (MARA. affordability and market potential. marketing research firms. we have considered ideas objectively and ideally. We also invite potential customers to share their suggestions and ideas. techniques and materials that can be used to develop our product. food and drinks and other related issues). they have pass and gives more information to our team regarding the consumer’s problems and new product possibilities while our suppliers help us about the new concepts. are rejected as soon as possible. advertising agencies. Our team also buy and consume the competitors’ product. In this step. seminars. looking at Return on Investment (ROI). 2. for whatever reason. 10 . doing lab related experiment on the competitors’ product.2 Step 2: Idea Screening This step is crucial to ensure that unsuitable ideas. Our team also obtain other good new products ideas from other sources such as trade magazines (health. Competitors are another important source. commercial lab and other inventors.complaint to find new products that can better solve their health and other related problems. Distributors are close to the market. Our team have done their research by watching and reviewing competitors’ advertisement and websites to get information about their new products. education industry (university and colleges).

Our company have also established that our product market is real based on two reasons: First. win. This is because one of the messages of the risk matrix. our company adopt the R-W-W (originated in 1980s by Dominick M. This is far more important than how well the company fields a fundamentally new product or technology. When our company’s market concept is right. the target segment and how the product can do a better job of meeting its needs. the robustness of a market is almost always less certain than the technological ability to make something. the outcome will be determined by the company’s understanding of the market. Schrello) that is “real. This is the first step in screening our product concept. which shows that the probability of a product failure becomes greater when the market is unfamiliar to the company than when the product or technology is unfamiliar. a) Is it real? Our Company has figured out whether our market exists and whether our product can be made to satisfy the market. and also to assess how competitive the environment might be from the start.” In this syndrome. 11 . we have established the nature of the market which can head off a costly “technology push. not its facility with the enabling technologies. worth doing” new product screening framework that asks three questions as follows: i) Real: A market opportunity is real only when the following four conditions are satisfied. This step helps us to indicate the degree of opportunity for our firm to consider the potential market.Under this idea screening. our company has emphasised how to solve a problem rather than what problem should be solved or what customer desires need to be satisfied. Our company has the ability to crystallize the market concept. Secondly.

the market is not real when there are objective barriers to purchasing it. our team have found the answer for the following questions: • Will the customer buy the product? Based on our market survey.00/250ml bottle). motivations. and frustrations. and other tools to explore customers’ behaviours. desires. Our team at this time expose ideas and identify exactly what is to be 12 . capabilities. Even if our proposed product would satisfy a need and offer superior value. and our team members have diverging ideas about the product’s precise characteristics. ethnographic. Improved value does not necessarily mean more capabilities. our customers will evaluate them and consider. among other things. we found that our target market will buy our product. Based on our market research. • Is there a clear product concept and will such a product satisfy the market? Before the product development begins. or cost. From our market research. having established our customers’ need and ability to buy. of course. • Are there subjective barriers to purchasing it? If alternatives to our product exist. we found that the market really need and desire our product from the health issue perspective.b) Is there a real need and desire for the product? We have done a market research on our product since unmet or poorly satisfied needs must be surfaced through this market research by using observational. c) Will the customers buy it? Finally. a difference of RM20. whether our new product delivers greater value in terms of features. the technology and performance requirements of the concept are poorly defined.00 to RM40. we received good response from our customers regarding our product capabilities and the customers find them superior to the incumbents and our cost is lower than the market (RM160.00 per bottle.

or systems problems arise. As the project progresses and our team become immersed in market realities. As such. However. our team will monitor these shifts to avoid any future failure which may result in the launch of an offering that looked great on the drawing board but falls flat in the marketplace. social. • Can our product satisfy the market? During the development stage. or grew more slowly. At each such turn in the road. Either our new product did not achieve its market-share goals. The third reason is that the market is smaller. • Can we win? Two of the top three reasons for new-product failures can be exposed by the Can we win? Analysis. or our price might drop much faster than expected. • Does the product offer a sustainable competitive advantage? Customers will choose one product over alternatives if it is perceived as delivering superior value with some combination of benefits such as better features. lower life-cycle cost. This entails not only nailing down technical specifications but also evaluating the concept’s legal. This is because the more real the opportunity. unforeseen technical. a product designed to meet customer expectations may lose some of its potential appeal. and features are modified. ii) Win: After determining that the market and the product are both real. than expected. and 13 . the more likely it is that hungry competitors such Boost Neutrogena and Vegeta manufacturing among others are eyeing it. manufacturing. our team assessed the company’s ability to gain and hold an adequate share of the market. developed. we have clarified the requirements. Our competitors might copy or leapfrogging our innovations in the future. and environmental acceptability. trade-offs are made in performance attributes. simply finding a real opportunity does not guarantee our company’s success.

Our team has evaluated the relevance of its patents to the product in development and has decided what additional patents are needed to protect our product related intellectual property. no matter how good our product is. greater safety. 14 . can our company lock up scarce resources or enter into exclusive supply contracts? • Does the company have the resources to make such a product a success? After establishing that the offering can win. such as greater social acceptability and the promise of reduced risk that is implicit in a trusted brand name. We have to ensure that our staffs that have the product/organizational knowledge will stay. though. higher quality. it may be impossible to sustain advantage. If our company does not have superior resources. logistics. The team also consider whether our product offers additional tangible advantage such as lifetime cost savings. Sometimes. Our team has assessed all sources of perceived value for our product and consider the question: Does it have a competitive advantage? Our customers’ research from the team’s evaluation of whether the market and the product were real and have been drawn on and extended as needed. service delivery. If not. • Can our company sustain the competitive advantage? Competitive advantage is only as good as the company’s ability to keep imitators at bay. reduced risk. and lower maintenance or support need or intangible benefits. The first line of defense is patents. or brand equity can give a new product an edge by better meeting customers’ expectations. The success of our product will increase markedly when our company has or can get resources that both enhance our customers’ perception of the new product’s value and surpass those of our competitors. our team has determined whether or not the company has the resources to make our product a success. We also have to make sure what other barriers to imitation are possible. Superior engineering. addressing the deficiency is often straightforward. Furthermore.

our team’s advocacy must be constructively challenged throughout the screening process. However. costs. Based on our analysis. our future success requires a passionate cheerleader (head) who will energise the team. applying time to breakeven. net present value. and margins. and other standard financial-performance measures. the project team has indicates whether the company’s brand provide or denies permission to enter the market. We have project the timing and amount of capital outlays. The question now is that • Is it worth pursuing the project? Our team has finalised the final stage of the screening provides with a rigorous analysis of financial and strategic value. As part of its inquiry into resources. the forecasted returns are greater than costs. marketing expenses.deficiencies are more difficult to overcome. and overcome skepticism or adversity along the way. • Will our product be profitable at an acceptable risk? Based on our analysis. enthusiasm can blind champions to potentially crippling faults and lead to a biased search for evidence that confirms a project’s viability. Therefore. In this case. 15 . we found that our product is worth doing. Do we have appropriate management? Here our team has examined whether our company has a direct or related experience with the market. iii) Is it worth doing? Our product has passed the above tests up to this point. sell the vision to the management. as is the case with brand equity. and whether the project both fits our company’s culture and has a suitable champion. since our company is still new. cash flow. whether its development-process skills are appropriate for the scale and complexity of the project. and estimating the profitability and cash flow from both aggressive and cautious launch plans.

Using a small group of our true customer base that is those that convert. and so forth? Does the project create opportunities for follow-on business or new markets that would not be possible otherwise? These questions served as a starting point for what must be a thorough evaluation of our product’s strategic fit. The idea should now be a concept. driving the expansion of manufacturing. Based on the forecasting analysis made. logistics. we need to ask the people that matter that is our potential customers. However. a 16 . internal opinion is not the most important. for example. regulators. the launch is probably ill- advised. but if the overall results suggest that a project makes little strategic sense. we found that there will be sufficient profit potential. is it better to cannibalize one’s own products than to lose sales to competitors?) Will it enhance or harm relationships with stakeholders such as dealers. A discouraging answer to just one of them should not kill a project outright. will it enhance our company’s capabilities by. and bias. distributors. overconfidence. it is important to distinguish between a product idea. In this case. 2.3 Step 3: Concept Development and Testing We have an idea and it has passed the screening stage. or other functions? Will it have a positive or a negative impact on brand equity? Will it cannibalize or improve sales of the company’s existing products? (If the former.• Does the product fit the company’s overall growth strategy? In other words. our team has depended on rigorous answers to the prior questions in the screen for our conclusions about profitability. So. with enough in-depth information that our consumer can visualise it. the idea need to be tested to see their reaction. • Does it offer sufficient profit potential? Given the susceptibility of financial forecasts to manipulation.

and can help lower blood sugar. product concept. As a result. A product idea is an idea for a possible product that the company can see itself offering to the market. and possibly even colon cancer risk. Fiber is a good thing. is then needs for testing with a group of target consumers. cholesterol. 17 . • What are the major benefits (advantages) of our health drink compared with other health drink? i) Low calorie (only 70 calories/bottle) ii) Immunity – support the immune system such as common cold and other illness. the customers believed the claims in our health product. the targeted consumers then are asked to react to it by answering questions as follows: • Do our customers understand the concept of drinking our health drink? Most of the customers (especially health conscious people) understand the concept of drinking our health drink. Several studies have shown that people who eat half a fresh grapefruit or drink grapefruit juice before each meal lose more weight than people who do not. The concept may be presented to the target consumers symbolically or physically. Do our customers understand the concept? After developing the concept. Most of them knew that the pith of grapefruit can have more of a bitter taste than oranges. A product image on the other hand is the way consumers perceive an actual or potential market. A product concept is a detailed version of the idea stated in meaningful consumer terms. iii) Cholesterol – can lower cholesterol through studies done. which is based on the natural grapefruit juices. • Do our customers believe the claims about our health drink? Since our product is based on grapefruit. and a product image. this health drink. We test this product concept with the targeted consumers before attempting to turn it into an actual new product.

4 Step 4: Marketing Strategy Since our company wants to develop and introduce a new product. We have observed and analysed the market and based on the nature of the market. definitely not)? Based on our sample of customers. if we are feeling dehydrated. market share and profit goals for the first three years (2017 to 2019). we have gathered information through in-depth interviews. probably not. We have made a survey of the market to have a clear idea about our market. 25% probably. Malaysia is a country of about 32 million people. Therefore. sales. iv) Calming – Citrus scents are known for being invigorating and stress reducing. needs and wants. • Would you buy such product (definitely. • What would be a reasonable price to charge for our health drink? Based on our market research. v) Hydrating – Since grapefruits are made up almost entirely of water. our customer demand. 5% probably not and 5% definitely not. the above questions show that our product is attractive and this will help our company to decide the potentiality of SITRAZE Health Drink. This is because people nowadays are more health conscious. most of our targeted customers find that our product is reasonably charged at RM160/250ml bottle. 70% definitely. Our competitors have charged in a range of RM200 to RM250/250ml bottle. we have done the marketing strategy statement which consists of three parts: • Target market (planned value proposition. 18 . probably. 2. This information helps us to know about the current market and prospects of our new product. this drink is a great choice. The total market size of the health drink industry is about 20 percent and we believed it will increase day by day.

Marketing strategy is very important to sell our product. businessmen. university students and health related people. • Product’s planned price. Therefore.000 per year after 2017. Based on our planning. 19 . this will allow us to increase our pricing price by 10%. Our company aim to sell and estimate of 10. We will also increase our marketing budget (advertisement) by another 10% but the marketing research will be reduced to RM10. distribution and budgeting budget for the first year (2017). medium to high class individuals.000 bottles in the first year (2017) at a profit of not less of RM100.000. Our target market is women (medium to golden age). Therefore. Our company will also spent RM20. a marketing budget of RM50. we intend to capture a 10% long-run share of the total health drink and realise an after-tax return on investment (ROI) of 10%. profit goals and marketing mix strategy. We planned to price our product for RM160/250ml bottle with 10% off the list to dealers. Our website will also emphasise and advertise our product. our company has to make sure that the quality of our product will start high and improved over time.000 on marketing research to find out the outcome of our sales of the product (to find out who is buying our product) and the customers satisfactory level.000 will be split 50-50 between a national media campaign (such as TV commercial) and local event marketing. • Planned long-run sales. We will also give additional discount of 3% if the dealers can sell more than 1000 bottles for that month. sportsmen. If the competition and the economy permit.

000 bottles) and maximum sales (12.5 Step 5: Business Analysis Once the concept has been tested and finalised. we have found our products financial and proposal to be attractive.000 bottles at RM160/250ml bottle 20 .000 bottles) to assess the range of risk. In this analysis we also include: whether there is a demand for the product. Our team then prepared the sales forecast and also estimated the expected costs and profits for our product. operations. Estimate our product price After reviewing our market and competitor research and the feedback from our potential customers. Veta. R&D. We have carried out the following steps to assess the viability of our new product.2. costs involved in our proposed NPD. competition and identification of a break-even point. and we will likely make a profit of 20 to 25% in the first operating year (2017). a full appraisal of the costs. 1.000 bottles in the first year. we have looked at the sales history of similar products (such as Gatorade. and finance costs. Based on these sales and cost figures. a) Sales forecast Below is the sales forecast: • 2017 – 10. Neutrogena. In estimating our sales of 10. etc.) and conduct our market surveys. We then estimate the minimum (10. we have put together the business case to assess whether our new product will be profitable. the selling price of our product will be RM160 (250ml/bottle). A business analysis will help us to determine the sales. and forecast the profits we may make from the product so as to satisfy our company’s objectives. accounting. which include marketing.

2. planning for them in advance will help our company and financiers of 21 . for feedback on specifics like look. c) Determine the minimum sale price Our project returns are based on our anticipated discounted product price to identify the lowest sales figure per item that is RM160. In this case. advertisement etc.000 bottles (10% increase) at RM176/250ml bottles (10% increase) • 2019 – 12. As such.00 – RM30.• 2018 – 11.000/RM160. Patents might have to be filed in order to protect the development process and the product itself. Our R&D team has investigated the exact design and specifications and any manufacturing methods.6 Step 6: Product Development Once the product has been approved. feel and packaging. We have also contacted the suppliers of raw materials in a timely manner.) and salary.230 bottles (770 x 12 months) to break even in our first operating year (2017). This is when a prototype or a limited production model is created.00/250ml bottle. it is passed to the technical and marketing development stage. we have to sell a minimum of 770 bottles per month (RM100.100 bottles (10% increase) at RM193. and also gives something tangible for consumer testing.60/250ml bottles (10% increase) b) Break-even Point (BEP) Analysis We have identifies our break-even point analysis estimation since we need to sell our product to cover our fixed costs (such as rents. All these are processes that take time. d) Consider the long term We have also forecast for 3 years (2017 to 2019) with an increase of 10% every year.00) and 9.

Test marketing (or market testing) is different to concept of consumer testing. Ascorbic Acid. Quillaia. Hops.the idea know how long the NPD will take. Colour Caramel. Sugar. Below is our new product – SITRAZE Health Drink • Type of Product: Health Drink • Ingredients: Malt. Natural Grapefruit Juice.00/250ml bottle • Estimated Durability: 12 Months from date of manufactured.7 Step 7: Test Marketing After producing the bottle labelling and health juice. it is tested in real market setting that gives our company the experience with marketing the product before going to the great expense of all introductions. • Machinery used: Advanced technology imported from USA. Water. in 22 . • Container: Glass Bottle • Container size: 250ml Glass Bottle • Product Price: RM160. This will show whether our product can be turned into a consumable product. Table 6: SITRAZE Health Drink 250ml SITRAZE Drink Bottle 2.

we have a distinct competitive advantage since it will be a brand new product. from product to marketing message. We also do the competitor analysis. When introducing a new product like the health drink. ii) Reasonable and acceptable pricing. iii) Promising and providing top quality product. we will adopt the following measures: i) Providing the best service to create high customer satisfaction.00 to RM200.that it introduces the prototype product following the proposed marketing plan as whole rather than individual elements. To compete with our competitors. Hence.00/250ml bottle which is much lower than our competitors (which is around RM180. it requires a big investment. so we have to do a lot of test marketing. The other advantage is our lower price of RM160.00/250ml bottle. This process is required to validate the whole concept and is used for further refinement of all elements. Among the major health drink companies in the current Malaysia market are Vegeta Manufacturing Company and Neutrogena Sdn Bhd. and might be risky. 23 . In this stage. The other companies might take sometimes to enter into the market. we can have a monopoly market condition. iv) Launching highly effective mass promotional activities. These companies can try to entrance our market by launching the new product lines to compete us. we have to understand the possibility of health drink in the market. vii) Creating “Brand Loyalty” among the target consumers. vi) Creating and maintaining long term customer relationship. Yet. Our team took a lot of time (more than six months) with it because we knew it could undermine our company if we did not do it right. v) Continuous innovation and modification of the products.

00 to RM2. Middle Malaysia: Kuala Lumpur & Selangor. 2. a) Standard Test Market Our marketing team have gone through a full marketing campaign in a small number of the seven representative cities (Northern Malaysia: Kedah & Penang. c) Simulated Test Market Our marketing team also distribute samples to environment such as universities. all the information about SITRAZE Health Drink is collected and final decisions about this product is taken.We have done the following test market: Standard test market.50 depends on the stores). Table 7: Types of Test Market Source: Kotler & Armstrong (2017).8 Step 8: Commercialisation After test marketing. Eastern Malaysia: Kelantan). This final decisions need to be made to move the product to 24 . Giant and Aeon stores have agreed to promote our product for a small fee (RM2. b) Controlled Test Market Tesco. shopping complex among others. gym and sport centres. control test market and simulated test market. Southern Malaysia: Johor. hotels.

our company may wait until the following year to launch our product.launch the product into the market. a review of the market performance will be needed to access the success of the product. our company will focus on the following goals: i) To promote consumers about healthy lifestyle ii) To raise a global awareness for “from poison to purity” regarding the health drink. Finally. However. or international market? Our company has decided to introduce our product into the full national market with regard to cost and timing. our company may push to introduce our product sooner. This report have allowed us to identify the gaps in the market. Kedah Darulaman. 3. the national market. so that the product and company is ready for the final stage. To achieve this NPD. 25 . Jitra. We have finalised the pricing and marketing plans and the sales teams and distribution briefed. The next question is where to launch our product? Is it in a single location. We also have determined the manufacturing facility that will be in Bandar Darulaman.0 Conclusion The report highlights new product development for effectively targeting consumers' most important needs as well as offering strategic recommendations to capitalise on the evolving motivations health consumption. Our company also has decided on the introduction timing which is in 2017 to launch our product. if our competitors are ready to introduce their own health drinks product. On the other. iii) To reach 80% of sales within first 3 years (2017 to 2019) iv) To develop product by improving company’s technicians and workers. In order to learn from any mistakes made. we are introducing the health drink into the market. if the economy is down. a region.

This is because we believe that our targeted customers have the reasons to buy after we have investigated actionable insight into this new and emerging marketing opportunities. adapt our product strategies to our target consumer behaviours that can be exploited by our innovation. through the use of Malaysia's consumer data. and accurately plan and resource our NPD project. in particular how 26 . An NPD strategy also help our company to organise our product planning and research. we can avoid wasting time. and exposing our business to risks and threats from unexpected competition.by understanding the consumer attitudes and behaviours that the most recent successful product launches and advertising campaigns have tapped into. we are hoping that our product. capture our customers' views and expectations. spending resources we do not have on higher- than-anticipated development costs. incorrectly pricing products. We also find novel ways of communicating credible messages that resonate with our target audiences. launching a poorly designed product. Our product also adds value to our product by providing consumers with new experiences of our product regarding to health consciousness. SITRAZE health drink is our new product development. SITRAZE Health Drink will be a success and acceptable to the market. identify the most valuable opportunities in the market. With a well NPD strategy. This strategy will also help us in avoiding overestimating and misreading our target market. money and business resources. With the above NPD strategy. which quantifies the influence of consumption motivations in Food and Drink and Health Product and we have assessed the market trends. or a product that does not meet the needs of our target customers. Our company is a manufacturing and a profit making company. We also understand how the new application of technologies can increase our product awareness. such as superior taste and quality.

27 . we have updated and realigned our sales and marketing strategies with the very latest consumer behaviours. Finally.the most innovative marketers are seeking to target them.

Pearson Education. & Armstrong. 28 . 17th Edition.References Kotler.T. Principles of Marketing. G. Inc. P. (2017).