NEW PRODUCT DEVELOPMENT

A Project On New Product

Honey shampoo
Submitted By: Hina akhter khan Shahwana riaz Asiya faraz Sadia anjum

Department of Business Administration.Student Declaration We are the student of INTERNATIONAL ISLAMIC UNIVERSITY. “New Product of Honey shampoo” is an original work done by us under the supervision of SIR. .FAWAD BASHIR Lecturer in Marketing. Here By declare that the Project represent entitled. Department of MBA. ISLAMIC UNIVERSITY ISLAMABAD.

Any shortcomings or flaws may arise as we are very novice in this aspect. Sub: Submission of Project Dear Sir. 2010 The Teacher Sir Fawad Bashir Lecturer in Marketing Department of Business Administration International Islamic Uninersity Islamabad.LETTER OF TRANSMITTAL March 2nd June. We tried our level best to put meticulous effort for preparing the report. Sincerely Yours Hina akhter khan Shahwana riaz Asiya faraz Sadia anjum ---------------------------- . We believe that with our limited knowledge this report provides a core concept about consumer perception on gym services. We will wholeheartedly welcome any clarification and suggestion about any view and conception disseminated in our report. I have tried our best effort to gather all necessary information to the concentrated part of the report to enrich it. Here is the report on “New Product of Honey shampoo” prepared based research.

I also would like thanks my friends for giving me enormous help can not mention in this short extent. I am also grateful to her for helping me to understand some minute issues as well as those issues which I have failed to understand. . The school of business international Islamic university help me to get the opportunity to do the work in the New Product. INTERNATIONAL ISLAMIC UNIVERSITY.ACKNOWLEDGEMENT First of all I would like to be grateful to Allah and my parents and pay my deepest respect SIR FAWAD BASHIR. Department of Business Administration. Lecturer in Marketing. . due to his generous and friendly guidance.

Introduction……. ..

We have divided our objective into two parts: Broad objective       Gather practical knowledge about New Product. Analyzing how to start new product. these are some objective too. It is possible to gather theoretical knowledge by passing through book but it is insufficient to acquire practical experience. In order to complete the MBA program we have to complete a course called Marketing Management. To know the product strategies that the organization allows to apply.  To fulfill the course requirements. These objectives help to make the study fruitful and reach the goal.  To complete the report. By preparing the report we will able to gather knowledge about the different types of Product Objective: Without objective any mission will not be successful.Introduction: Now a day in the competitive world practical experience is a must. To analysis quality of the product To identify the problem of New product The specific objectives:  To fulfill the requirements of MBA degree. . At the same time gathering the practical experiences. In completing the course our course instructor gives us an assignment on New Product Development. as the study is important for some reason. Present situation about the market.

Company Overview…. .

. Its objectives are to provide world class and innovative cosmetics products. • Easiest and availability of the product to the target consumer. people will move on from the good Honey shampoo Marketing objectives: Honey shampoo key marketing objectives are: • Establish a strong brand image and consumer loyalty.Introduction: Hair Care Ltd is a new and starting up company which forms on Jan 2010 in Pakistan . Care of skin has gotten stylish overtime. • Maintain positive strong growth in first years. People spend thousands of money for buying different types of perfume to make them beautiful and sophisticated. • Decrease consumer acquisition cost by almost 1.5% per year. As thing get better with time. • Create awareness about this uncommon product. This company is preparing to launch Honey shampoo which is quite new and stylish product for alls.

Financial objectives: • Achieve breakeven within first year. They are becoming stylish & want new & innovative things they are very much capable of adapting with the new invention. Our targeted social classes are divided as upper-upper. • Maintain a significant research and development budget for future development and innovation of the product. • Reduce production cost at every half yearly period steadily. . Target market: After segmenting as gender basis (mail and female) we target different social class in Pakistan We prefer people who are living in the urban area of our country. upper-middle and middle. • After achieving breakeven increase profit margin by 1. Among the people of these social classes they want something new and sophisticated which would represent their choice and personality. Moreover they want some variation in their daily life and want to use better something which would represent their status and roles. upper-lower.5% per quarter through efficiency and economy of scales gains. Young educated people are another preferable target market of us.

New product… .Mean while as honey shampoo very much easy to carry and economical it would be the first choice of those people who are fond of journey.

We want to provide a fresh look to the people so that they become refresh and looks beautiful.Product Now Hair care is launching a new product in the market named as “HONEY SHAMPOO” Slogan: “BEAUTY WITH SHINE” Purpose: The purpose of launching the Honey shampoo is to give a new look to the people who are using shampoos available in the market. Market Summary: .

People who are in the all age are the vital users. Behavior Factor: • People who are very aristocratic and lead very luxurious life they usually accept this product easily and old conventional people will take longer time to accept this shampoo. Demographics: • • • • • Both male and female can use this shampoo. . It would be very suitable according to our weather condition and climate. People who are involved in earning and lead a prosperous life also our concerning customer. This information will be leveraged to better understand what their specific needs and how Honey shampoo can better communicate with them. People who are educated are major concerning customer. People can use this shampoo all the year round. Bigger family consists of 6 to 10 member can use family size and single person and single family most probably use little size. Market Demographics: Geographic: Honey shampoo has no specific geographic target area in Pakistan but we prefer urban area more than rural area.Honey shampoo possesses good information about the market and knows a great deal about the common attributes of the most customers.

Most of the people recommended hair care are using first and foremost for cleaning purpose.Market Needs: People usually need shampoo for wash hair or similar type of products like liquid soap. The urban population which is 27% of total population .6% of total population Our target segment is very accessible because we urban area is one of our target market. Features: Following are some of the features of our product: • • • • • Honey shampoo is good for hairs health Provides vitamin “E” extracts Beneficial for scalp Gives freshness to your hairs No harmfull effects Marketing mix strategy Segmentation: • • Our market segment is quite measureable because our main target customer is 15–64 aged people and its approximate size is 63. People are very much habituated to use shampoo. for their hair. Almost 75% people in our country use shampoo for their hair.

preference and needs. Women) who have distinct choices needs and characteristics. • We made the market segments on the following basis: • • • • • • • • • • • •  Density Age  Gender  Income  Family size  Family life cycle  Occupation  Education  Social classes  Life style  Personality  Benefits Targeting: We will target the following customers: 1  Young 2  Boys and girls 3  Belongs to middle class 4  Student of colleges and universities 5  Wants a new and refreshing look Differentiation: We will differentiate our product on the following basis: 1  Comparatively less price 2  New Look 3  Good for skin . So our market segment is measurable.• • Our market segment is quite differentiable (Such as Men. We can introduce different marketing strategy and promotional strategy according to men and women choice. In order to actionable our marketing program our market segment will help us. accessible. actionable. and differentiable.

4  Effective distribution Positioning: We have to position our product in the minds of the customers and consequently in the market with the help of our effective and customer oriented market strategies. However honey shampoo contains lots of distinctive features from its competitor products.  It is quite easy to carry and last longer than other.  Honey shampoo is normally suitable for all types of hairs. . But other shampoos wash has no criteria like (men & women). Some distinctiveness are mentioned below It is much more silky than other traditional shampoos.  It has two criteria (men & women) which contains distinct features from others. Positioning is one of the most important key to launch a product that means the distinctiveness from any other product which possess in the customer mind.  It does not dry your skin.  We use some distinct ingredients which are hardly used in our traditional shampoos .

Price: 8 Every marketing activity including pricing should be directed towards a goal. most of the people have showed their interest in bright colors without naming a particular color.Competitor’s strategy Our competitors have a good market share because they are adapting following strategies: 1  Less prices 2  Effective promotion 3  Intensive distribution 4  Quality products 5  Customers research 6  Attractive packaging Color: As for as the colors are concerned. Pricing Objectives: . 1 2 3 4 5  Blue  Red  Orange  Purple  White Packing: 7 Product units are packed in a smart 12 inch bottle Packaging. Thus one should decide on its pricing objectives before determining the price itself. but majority of people have agreed on the following colors to be the part of labeling the product.

10  Miscellaneous Rs. The price is very much compatible and the offer is substantial enough to attract a large percentage of market in a very quick time.12  Electricity Rs.56 In accordance to our strategy we have decided to offer the product to customers at the price of Rs.56.There are mainly three types of pricing objectives. Action plan Placement: We have decided to place the product in all the major and minor markets as well as in the canteens of colleges and universities of Punjab.6  Profit Rs.12 Total price Rs.6  Factory over head Rs. 1  Profit Oriented 1  To achieve a target return 2  To maximize profit 1  Sales Oriented 1  To increase sales volume 2  To maintain or increase market share  Status -Oriented 1  To stabilize prices 1 Our Price Strategy: The total per unit price for the 250mg pack that we will offer is as follows: 1 2 3 4 5 6  Cost of honey Rs. We have decided to acquire the services of large and organized distribution network of Punjab. .10  Retailer margin Rs.

First of all we have designed a survey form that shows how we can fulfill the requirements of the people. For this purpose we have surveyed different areas of Punjab. we have decided to conduct a market survey. There are many different ways through which we can promote our product. We have supported our promotional strategy with the use of electronic media. We have also paid serious attention to the span of intensive promotion in the initial stages. print media.Promotion: Effective promotion paws the way for the product’s success. internet and other sources and also with the help of some schemes such as lucky draws. We have planned a very wide promotion strategy that covers almost every part of the society. Our promotion strategy in detail is as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 3 4 5  Television channels  Geo news  ARY One World  Express news  Aaj TV  Indus TV  Star Plus  Cable ads  Newspapers  Don  Express  Jung  The News  Magazines  Akhbar-e-Jahan  Family Pamphlets  Banners  Sing boards  Prize scheme  Internet Market Survey: In order to learn weather people would like to buy or use our product. The contents of survey form are as follows: .

Yes No 1 Which brand do you use? _________________ 2 What do you consider before buying a product? 3 Price 1 Labeling 2 Packing 3 Brand name 4 What should be the color of packing? 5 Blue 6 White 7 Red 8 Green 9 Yellow 10 Orange Purpose of using Honey shampoo: .

except 70% male and 95% female respondents replied positively that they use shampoo regularly for hair.11% Free from dandrap Silky hair Clean Free from gearm 27% 21% 41% Most of the people of our country are very much conventional but our young generations are different as they can cope with newly things much more easily. . So they are looking for something new and different. among male and female who is not use shampoo on regular basis because they feel that shampoo trim down the smoothness of hair. However. That’s why we believe that our Honey shampoo would be the most impressive want for this growing need. Market Trends: In our country people usually use shampoo for their hair. Some sorts of people especially young generations are very much monotonous with using shampoo.

Shampoo Usage Pattern: Influencing Factors in New shampoo Purchase Decision: .

67% people search for both availability and packaging.While purchasing shampoo both male and female respondents firstly look for brand and their percentage is 26. Finally. Upper classes and sophisticated people use very expensive and very lucrative beauty soap like Dove. advertisements. only 3. Some other people are very much cautious to their skin and try to keep them fresh . Savlon. Again.67%. and shopkeeper’s opinion.33% people hunt for few other factors which are pack size. Our young generation and sophisticated people want new. Different types of people use different types of shampoo. different. 6. People who are concerned with their beautification they use luxury shampoo like Dove which possesses maximum market share. innovative. .00% consumers seek for both price and ingredients. and Camay. Then. are also used for their beauty. stylish. and quality something for showering. 10. Other face wash like pones. After that. These sorts of people usually use Lifebuoy face wash. So we assume that shower gel would be greater interest in this prospect.33%. . secondly they prefer both antiseptic quality and beauty care quality and for these the percentage is 23.

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SWOT analysis… SWOT analysis Strength of Honey shampoo: • Convenient in distribution .

We assure product differentiation. . Opportunities of Honey shampoo • • New stylish and very much adaptable for the young generation. Weakness of • • • Production cost and price would be higher. No brand awareness of this new product as a start up company. There are no other manufacturers of such kind of product. Combination of different feature Easy to use Affordable for all segments Provide comfortable tube Suitable for all type of skin.• • • • • • • synthetic surfactants as well as vegetable oil. Lack of depth industry experience and insight.

At present our uniliver is our main competitor. 2) Dave: Dove is another main competitor in our shampoo industry which possess about 30% market share. So it is a large market which creates a great opportunity for us. Threat of Honey shampoo Shampoo market is the nearest competitor of us which possess the all market. Much different and distinctive than traditional face wash. It has much possibility to gain more market share. . 4) Head & shoulder: Head & shoulder is another popular shampoo in our country . It will become a market challenger of Dove but it has not enough market shares in comparison of Dove. Ltd. 3) Panteen: It is another USA base shampoo industry which is very popular in not only in Bangladesh but also the other countries. Now it is the market leader in our local market. It will be a competitor of our shampoo . There are two types of Face wash one is tube and another is continer. The manufacturer of Garner is the world most famous brand Unilever (BD). It is widely used by women. • Possibility to come more competitors in this market.• • As the only manufacturer of this product we have an opportunity to capture the greater market share. There are no other companies who produce such kind of product. Company should have successfully competitive strategy to be able attract. But there are similar types of products for face wash. Shampoo: shampoo is basically used for beauty fiction and hair care. Describe some soap competitor in below. retaiun and grow customer. Competition: Competition is an important factor to consider before entering a business. Our local brand Square Toiletries is its manufacturer. 1) Sunsilk: Sunsilk is the main competitor of our Shampoo industry because it possess 43. • Our conventional people hardly take this product enthusiastically.33% market share.

. In the Pakistan market. Sales forecast:…………………… Control: The purpose of marketing plan of honey shampoo is to serve as guideline for the organization. Strategy Discount coupon will serve as marketing strategy to develop similar loyalty scheme in order to indentify and stimulate brand awareness. This will enable us to react very quickly in correcting any problem (if any deviation find ) that may occur. We will measure our performance by controlling following areas: Annual revenue  Annual sales expense  Customer satisfaction Implementation: We are planning tight control measure to closely monitor quality and customer satisfaction. life boy etc. also poses good market share.Among the high priced like Rejoice.

so it has some lacking such as no popular brand name. Hopefully in near future our people will get ride of that old shampoos and get yourself a honey shampoo and change the way their hairs.Conclusion: As honey shampoo is a new product in our country. We believe that our people will prefer the honey shampoo then traditional face wash after comparing the product benefits. people are not accustomed with such kind of product etc. but we hope we can easily overcome these lacking in our nearest future by providing better quality and creating strong brand loyalty among the customer. .

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