A PROJECT

REPORT

ON

NEW PRODUCT

DEVELOPMENT
SUBMITTED BY

COL MANISH MANCHANDA

 OUR LOGO
“JUST TAKE OFF”
 BRAND NAME
FLY
FEEL LIGHT YOU
 INTRODUCTION OF NEW PRODUCT

FLY SHOES

“IF YOUR FEET ARE IN YOUR SHOES,

YOU CAN FLY IN ANYWAY YOU CHOOSE”

WHY ATHLEISURE SHOES

The raging pandemic has shown the world how important it is to remain
fit and energetic. It has also underscored the importance of hygiene in our
daily lives. Even if you want to do a workout at home, you need proper
footwear. Without being attired properly for a workout, a person will
neither be able to concentrate nor perform his/her workout properly.

We understand the importance of footwear, a good footwear. A footwear

which not only provides comfort but is ergonomically sound. Which does
not stink after a workout. Which has therapeutic properties. As we
believe the connection of the sole is to the soul.

WHY FOOT- WEAR MARKET?

 The Indian Footwear Market has witnessed a tremendous change in recent years.
According to netscribes by 2023 the Indian footwear market is going to grow up to 796
billion INR which is presently 581 billion INR. The important growth drivers which have
been identified by experts are: -

 Increased income in the hands of Middle Class and willingness to spend.

 Likely growth in exports. By 2025, the Volume of Pairs of Footwear to be sold is

estimated at 360 million pairs. Also, this is a promising figure for retailers. An

increase of 9.6 % is expected annually.

 Increase in etailing especially in footwear sector. 15% of the total revenue will be

generated through online sales by 2025. So, In-Store Retailing still has a major share

in the market, by adopting technology they can transform as a hybrid-model of

Webstores and In-Stores.

 Government policies to promote ATAMNIRBHAR BHARAT.

 Entry and exit barriers are low.

ABOUT THE PRODUCT

 FLY shoes behave like an extension of the foot, which is a complex structure
of bone, muscle and fatty tissues. It is as comfortable as being bare feet.
 FLY shoes provide the user with an unprecedented comfortableness and
ergonomics.
 FLY shoes have a wide range of fragrance pads which give the consumers a
range to choose from. (the inner part of fragrance pad is so designed that it
will fit only to FLY shoes)
 The fragrance provided with the shoes will save the user from
embarrassments arising from bad odour.
 FLY shoes feature of acupressure will not only seek to health problems but
also dilutes problems of leg sprains and muscle strains.

RAW MATERIAL USED IN SHOES

To enhance performance, sophisticated shoe structure is employed which

makes use of viscous and elastic foam materials such as ethylene vinyl
acetate (EVA) and polyurethane (PU). The use of viscous plastics in the
heel area serves to absorb the impact forces during the initial ground
contact and provides the foot with a soft ‘cushioning’ effect.

Additional Materials Used

 KELVAR (Used to enhance the quality)

 The Properties of KEVLAR.
o KEVLAR is one of the most important manmade organic fibers
ever developed. Because of its unique combination of these
properties it is used today in a wide variety of industrial
applications. The fiber possesses a remarkable combination of
properties that has led to its use in a variety of commercial
products since the 1965.
o Fibers of KEVLAR consist of long, interconnecting molecular
chains produced from poly-Para-phenylene tere-phthalamide.

 General Features of KEVLAR

· High Tensile Strength at Low Weight.
· Low Elongation to Break High Modules (Structural Rigidity).
· Low Electrical Conductivity.
· High Chemical Resistance and High Cut resistance.
· Low Thermal Shrinkage.
· High Toughness (Work-To-Break).
· Excellent Dimensional Stability.
· Flame Resistant, Self-Extinguishing.
Material Used in Making of Fragrance Pad and Acupressure Point

 Vegetable tanned sheepskin.

 Active carbon filter prevents odour.
 Slightly padded with latex foam.
 Fragrance dots.
 Breathable leather shoe liner protects the inside of shoes from dampness,
bacteria causing odor.
Product Attributes
 Provides freshness to feet by its pleasant aroma.
 Acupressure will act as a reliever of pain.
 Replaceable fragrance and acupressure pad(the inner part of fragrance
pad is so designed that it will fit only to FLY shoes).
 Pioneered in comfort.
 Best for athletes and sports persons.
 Provides firmness to feet.
 Style quotient also maintained
 Available in varied range of price and size with a warranty of six months.

PRODUCT MIX FOR FLY SHOES

PRODUCT MIX WIDTH

RUNNING CRICKET ATHELETE TENNIS SOCCER

 WITH
FRAGRANCE
PAD
PRODUCT LENGTH

TARGETING

Segmentation

Geographic
 City: More focus on metro cities because people believe in trying innovative, new and
better products, also tier 2 and tier 3 cities as the money in people’s pockets is
increasing and they want to try mid segment footwear.

Demographic

Age: 14 years and above.

Gender: Male and female both.

Income: earning above Rs 20000 thousand Per Month.

Occupation: Students, Athletes and fitness enthusiasts.

Psychographic.

Socio-economic:

Upper-middle.

Lower-middle.

Lifestyle: Sport-oriented, outdoor oriented.

Behavioral.

Benefits: Quality, service, after sell service.

User status: Nonuser, potential user, first time user.

TARGETING

Measurable: Size, purchasing power, characteristics of the segments

 Substantial: A segment should be largest possible homogeneous groups
worth going after with a tailored marketing program e.g. earning capacity
20,000 p.m.

Accessible: Reach should be good.

Differentiation: People have different perception about different marketing

mix. A businessman and a sports person will have different feel about FLY
shoes.

Actionable: Effective programs can be formulated for attracting and

serving the segments.

TARGETING

TARGETING
 UNAWARE AWARE

NOT TRIED TRIED

NEGATIVE NEUTRAL POSITIVE

OPINION OPINION

REJECTED NOT YET

REPEATED
REPEATED

LOYAL TO SWITCHER LOYAL TO

OTHER BRAND

BRANDS

LIGHT USER
POSITIONING REGULAR HEAVY
USER USER

Positioning through point of difference by presenting and highlighting the

new attributes of FLY shoes.
 Relevance
 Feasibility
 Distinctiveness
 Believability
 Communicability
 Sustainability

PRICING
Pricing is the process of determining what a company will receive in exchange for its
products. Pricing factors are manufacturing cost, market- place, competition, market
condition, Quality of product.

Setting the price

 As this is a new product with new additional features of fragrance pad and
acupressure points launching for the first time, so reasonable price should be set
according to the following factor.

Selecting the price objective.

 Determine demand.
 Estimate cost.
 Analyzing competitors cost price and offers.
 Selecting price method.
 Final price

SELECTING THE PRICE OBJECTIVE

Product Quality Leadership

As the product has special feature like acupressure points and fragrance pad it will
be characterized by high level of perceived quality and features with price just high
enough but not out of customer’s reach.

Determining the Demand

  Product is distinctive because of its special feature in it (fragrance pad &
acupressure), which makes it different from others.
 Buyers less aware of substitute since there is no other player in the market with
such features, so in respect of its feature’s buyers will not get any substitute.
 Expenditure is smaller part of the buyer’s total income. Since the price of
footwear is small part of the total income.
 The product has more quality and exclusiveness. So according to this market for
the product will be fewer prices sensitive and price can be kept a little higher
than other products.

Estimating Cost

The total cost depends on fixed and variable cost. it is important to know how cost
vary with different levels of production, and accordingly cost are estimated.

Economies of scale are used to minimize the cost in long run.

Analyzing Competitor Cost Price and Offer

Price Comparison of Different Brands

BRANDS PRICE RANGE PRODUCT RANGE

Category(upper
middle-lower
middle)
SKECHERS 2500-7000 RUNNING, CASUAL

PUMA 1500-6500 RUNNING, CASUAL,

SOCCER, CYCLE
,etc.
ADIDAS 1500-4500 RUNNING, TENNIS,
TRAINERS,
BASKETBALL, etc.
NIKE 1700-5000 TRAINERS, FOOTBALL,
RUNNING, GOLF,
BASKET BALL etc…
REEBOK 1300-4000 WALKING, AEROBICS,
RUNNING,
BASKETBALL, etc..
ACTION 900-2800 CASUAL, SOCCER,
CYCLE, RUNNING,
etc…
BATA 1000-1700 SOCCER, RUNNING,
CASUAL etc.

Since the product has added features and enhanced quality so the product
will be perceived similar to product in upper middle and in lower middle
category so the price of the product will be compared with Adidas, Nike
and Reebok.

Selecting a Price Method

GOING RATE PRICING

Our product’s price is based largely on competitor’s price, by comparing
quality, and features.

Our product is compared with products in upper middle and lower

middle category i.e. with Adidas, Nike, Action, Reebok etc.

Selecting Final Price

Finally selecting the price additional factors like the impact of other
marketing activities, company pricing policies, gain and risk sharing
pricing are considered.
 Raw Materials Used in Shoes

To enhance performance, sophisticated shoe structures are employed

which make use of viscous and elastic foam materials such as ethylene
vinyl acetate (EVA) and polyurethane (PU). The use of viscous plastics in
the heel area serves to absorb the impact forces during the initial ground
contact and provides the foot with a soft ‘cushioning’ effect.

Additional Material Used.

KELVAR (Used to enhance the quality)

Material used in making of fragrance pad and acupressure point
 Vegetable tanned sheepskin
 Active carbon filter prevents odor
 Slightly padded with latex foam
 Fragrance
Breathable leather shoe liner protects the inside of shoes from
dampness, bacteria causing odour .

Fixed Cost + Variable Cost Cost Incurred in Low Middle Upper Middle
Percentage Category Category

Cost of materials 65% 780.00 2080.00

Cost of labor 15% 180.00 480.00

Other expenses 20% 240.00 640.00

Total cost 100% 1200.00 3200.00

 Desired profit (25% on 300 800.00
sales)

Required sale price 1500.00 4000.00

Price range of product: Rs 1500.00 to 4000.00

PROMOTION
Marketing activity used to communicate to consumer about the
organization its product, its activity and directly or indirectly expenditure.

Promotion mix

Advertising

Sales promotion

Direct marketing public relation

Advertising : A paid form of non personal communication through media.

We are promoting our shoe as it provides.

-Nice fragrance

- Acupressure point that help to control blood pressures.

As our logo & caption “JUST TAKE OFF “which we have taken also suggests
that we have created a product which is beneficial for the customer
because no such shoes has been launched yet which have acupressure
 point and fragrance paid along with good quality and makes you feel
light.

Sales Promotion

An activity or material that Offer a direct inducement to purchase.

We can do our sales promotion by:

1. Sport Sponsorship
By sponsoring local sports events.
2. Event Sponsorship
By sponsoring events like new year eve.
3. Advertisement on wheels
4. Contests
Contest like Marathon Race can be organized to build brand image
and increase the sales volume.
5. Tying up with core companies having brand name and involved in
making only sports accessories or associating with brand
companies producing health care gadgets to get the benefits of their
brand value and increase the sales volume .
6. Using print media
 Sport magazines
 Weekly magazines e.g. India today
 Health magazines
  Newspaper
7. Electronic media
 Ads on TV and internet.
 Radio.
 Bill boards.
 Facebook and Instagram.

Direct marketing public relation:

Public relation will be used to explain the benefits of FLY shoes (like
benefits of pleasant fragrance and acupressure points in shoes ).Direct
marketing like internet and catalogs will be used to inform the targeted
segments about the feature of the product and various models of the
product.

DISTRIBUTION

Distribution is one of the four elements of marketing mix. An organization

or set of organizations (go-betweens) involved in the process of making a
product or service available for use or consumption by a consumer or
business user.
 DISTRIBUTION CHANNEL

Chain of intermediaries, each passing the product down the chain to the
next organization, before it finally reaches the consumer or end-user. This
process is known as the 'distribution chain' or the 'channel.' Each of the
elements in these chains will have their own specific needs, which the
producer must take into account, along with those of the all-important
end-user.

CHANNELS

A number of alternate 'channels' of distribution may be available:

 Distributor, who sells to retailers

 Retailer (also called dealer or reseller), who sells to end customers
 Advertisement typically used for consumption goods
Distribution channels may not be restricted to physical products alone.
They may be just as important for moving a service from producer to
consumer in certain sectors, since both direct and indirect channels may
be used. Hotels, for example, may sell their services (typically rooms)
directly or through travel agents, tour operators, airlines, tourist boards,
centralized reservation systems, etc.
There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services
- the latter offering anything from televisions through tools. There has
also been some evidence of service integration, with services linking
together, particularly in the travel and tourism sectors.