MKT-201

Principles of Marketing

Assignment-02

Submitted to:
Mohammad Mohibur Rahman

Submitted by:
Group C

Student Name Student Id Contribution If contributed Involvement

(Whole Report/ in partial (High/ Medium/
Partial report) report, then Low)
which part?
Rukunul Jannat 23204222 Partial Q1 High
Maisha Amrin 23104002 Partial Q1 High
Kayes Eron
Kasfia Nusrat 23204045 Partial Q2 High
Khan Purna
Sidratul 23204260 Partial Q2 High
Muntaha
Hossain
Rahib Asadd 22204047 Partial Q2 High
To prepare a product that will serve profit to both the company and the consumer, companies plan and set
up a systematic and customer driven “new product development process”.
All the major stages in new product development for our brand: Walton and product: Refrigerator , are
explained extensively below.

Idea Generation:
The new product development starts with the systematic search for new product ideas, where the
company generates thousands of ideas from either external or internal or sometimes both sources.

The process of idea generation using internal and external sources to develop a new product, refrigerator,
for our brand Walton, are as follows:

Internal Sources:
● Harnessing Internal Creativity:
By using the brains of our own executives, employees, research team, engineers we’re able to develop
new ideas which help in the new product development process. For example: As a group, we came up
with the idea of the new “Walton: Fresco” which will keep fruits and vegetables extra fresh with its new
cooling system, targeted to health conscious individuals.
● Using Technology to Generate Ideas:
In this day and age, technology platforms play a pivotal role in the efficient generation and evaluation
of product design ideas which helps us to meet the needed requirements. For example: Adding new smart
features like temperature adjustment or using voice commands for water/ice dispensing can help in the
development process.
● Repurposing Existing Products:
Using this source, companies like ours are able determine the actual potential of an actual product and
repurpose it based on consumer needs and usage. For example: Walton added safety measures in their
refrigerator such as child locks and door alarms.

External Sources:
Learning from Competitors:
Competitors like Jamuna, Vision, LG can give us insights which help us to get clues about how they work
or even analyze their sales which helps brands like ours, Walton to decide whether we should bring out a
product of our own. For example: Jamuna advertises models with battery backup feature which lasts up to
72 hours so Walton can also learn and improve their battery backup
Learning from customers:
Customer surveys and reviews are used by companies to collect new ideas either to develop a new
product or redesign existing product. For example: While both Walton and Jamuna have “antibacterial
technology” in their refrigerators, based on customer reviews, Jamuna refrigerators antibacterial
technology has left a stronger impression on consumers.
 Seeking insights from suppliers and distributors:
As suppliers work with a wide range of companies, they are able to contribute a wide range of ideas. On
the other hand, distributors are close to the market and learn about evolving customer needs, consumer
problems as well as potential product innovation which helps the company in developing their own
product. For example: Suppliers can help to include energy efficient compressors, built-in air purifiers,
vacuum sealers whereas distributors provide valuable insights into customer preferences, buying habits,
desired price ranges etc.

Idea Sourcing:
In the idea generation stage, our purpose was to create a large number of ideas and in the later stages, our
goal is to reduce that number. “Idea Sourcing” does exactly that where companies spot the good ideas and
drop the poor ones.
Among the ideas mentioned in the idea generation stage, our team has decided on unveiling a
revolutionary refrigerator named “Walton Fresco: Freshness meets innovation” where we redefine food
preservation and elevate our experience.
But before we move on with this concept, we need to answer “yes” to the R-W-W questions.
1. Is it real? - this questions the real need and desire for the product.
2. Can we win?- this questions whether the product offers sustainable competitive advantage and the
company have enough resources to make this a success or not
3. Is it worth doing?- questions if the product will offer sufficient profit and the company's overall
growth strategy.
Our product “Walton Fresco” answers yes to all the questions above because
1. There has been a new wave regarding sound health and everyone is now focusing on being extra
conscious regarding what they consume. Hence, it’s pretty safe to say there is undoubtedly the
need and desire for a product that will help the consumers to enjoy fresh and healthy foods .
2. Walton already has a basic cooling system but by identifying unique functionalities, the company
will be able to put its resources to its potential and develop the advanced cooling and freshness
feature.
3. With the new demand for fresh food consumption among health conscious individuals, our
product is definitely worth doing as it will offer sufficient profit potential and help in the
company's overall growth strategy.

Concept Development and Testing:

Concept Development:
A detailed version of the new product idea stated in terms that are meaningful to the customer.
To bring out the new “Walton Fresco” into the market, Walton can explore these following concepts:
● Concept 1: Serve the families who would like the “Walton Fresco” to serve as a protector of the
family’s well being.
 ● Concept 2: Serve the health conscious individual with the antibacterial properties as they focus on
their healthy body.
● Concept 3: Serve restaurant businesses with the long lasting freshness and coolness to save their
products from being contaminated or septic.

Concept Testing:
In concept testing, companies test new products with a group or targeted customers to check if the
concepts have any customer appeal.

For example: let’s explore concept 3, where Walton targets restaurant owners as their target market.
Marketed as “Walton Fresco: AuraFresh”, it gives the “aura” to imply a clean and healthy atmosphere,
something very important for the restaurant business.
After being exposed to this concept, consumers ask themselves questions and their answers reveal
whether this product has any appeal or not. Some of the questions can be
1. How well do you understand the concept of commercial use of the Walton Fresco:AuraFresh”?
2. Do you believe the claims about the “AuraFresh” refrigerator?
3. What are the most relevant benefits of the “AuraFresh” refrigeration in your business?
4. What are the concerns related to “Walton Fresco: AuraFresh”?
5. When would you prefer to use the AuraFresh refrigerator as opposed to other refrigerators
available in the market?
6. What improvements to the Walton Fresco: AuraFresh would you suggest?
7. Given the price and features would you by the order AuraFresh fridge? (definitely, probably,
probably not, definitely not)
The last question always asks about the consumer's intention to buy the product. To predict sales
volume, Walton could apply these responses to the entire target demographic. However the
assessment is seldom precise, as people don't always follow through on their declared intentions.

Marketing Strategy Development:

In this stage, we design an initial marketing strategy for a new product based on the product concept.

Among the three concepts mentioned in the third stage, our research revealed a profitable market for
concept 3. Now to design the initial marketing strategy for introducing “AuraFresh” , we have to look into
three parts.
● The first part consists
of target market, the planned value proposition and the sales market share as well as profit goals for the
past three years.

The target market for “AuraFresh” includes restaurant business owners as well as home-made food
businesses, seeking healthy, and antibacterial features which will provide a long-lasting freshness to their
ingredients. The “AuraFresh” will help the customers in operating their business and maximize their
profits just by investing in a long term asset. Walton will aim to sell 10 thousand refrigerators in the first
year, at a loss of not more than 5 million taka. In the second year, it will aim to sell double the amount of
refrigerator at a profit of 50 million taka.
● The second part outlines
the products planned price, distribution and marketing budget for the first year.

Customers can get the “AuraFresh” in exchange of 2 hundred thousand taka and its salesforce will
directly sell to targeted consumers. Two million taka will be allotted to warranty services and
in-home repair services from the marketing budget. Walton plans to invest an extra 500,000 taka
in marketing research in order to have a deeper understanding of the intended market.
● The third part of the marketing strategy development describes
the planned long run, profit goals and marketing mix strategy.

The product quality must start off high and get better over time in order to reach a 70%
long-term share of all refrigerator unit sales. In the event that the economy allows, prices will
increase in the second and third years of competition. Every year, the entire marketing
expenditure will increase by roughly 15%. After the first year, marketing research will only be
conducted 10,000 times annually.

BUSINESS ANALYSIS
At Walton, we're dedicated to providing our clients with state-of-the-art appliances that redefine
efficiency and convenience. Our comprehensive evaluation of each phase of the new product
development process is part of our business study for the launch of the “Walton Fresco”
Refrigerator.

Product Concept and Marketing Strategy:

● Our product idea places a strong emphasis on energy efficiency, technological innovation,
and dependability in order to satisfy the changing demands of contemporary homes.
● In addition to targeted digital advertising campaigns and strategic alliances with top home
appliance retailers, the marketing plan makes use of Walton's solid reputation as a
high-quality and reliable “AuraFresh” brand.
Sales Estimation:
● We will evaluate customer preferences and demand trends using market data and the sales
history of comparable products in order to project sales volumes.
● Thorough market research studies will offer perceptions into consumer requirements,
inclinations, and price sensitivity, enabling us to project lowest and maximum sales
scenarios in order to assess market hazards.

Cost Projection:
● Marketing costs: The amount allotted to advertising, promotions, and brand-building
projects that are designed to appeal to our target market.
● Research and development (R&D): Putting money into new ideas and product creation to
make sure our refrigerators always stay at the cutting edge of technology.
● Operations Costs: Detailed examination of labor, raw materials, and transportation costs
associated with manufacturing, distribution, and logistics.
● Accounting and Finance: Projected financial and administrative expenses, including
financing costs, taxes, and accounting services.

Profit protection:
● We will compute expected profit margins by summing up projected sales and costs to
determine whether the Walton Fresco Refrigerator project is financially feasible.
● The profitability of the project will be determined by comparing the estimated profits to
the goals and intended return on investment of our organization.

Financial Attractiveness Analysis:

● To ascertain the project's financial viability, the net present value (NPV) and internal rate
of return (IRR) will be assessed.
● Furthermore, sensitivity analysis will be carried out to evaluate how changes in important
variables, such price, production costs, and sales volume, will affect the project's
profitability.

PRODUCT DEVELOPMENT PROCESS

Conceptualization:
● By utilizing consumer insights and market research, we improve the original product
concept to better suit Walton's brand values and the preferences of our target audience.
 ● In order to satisfy the changing needs of contemporary homes, energy efficiency, creative
features, and durability are important factors.

Design phase:
● The improved concept is translated into comprehensive design specifications for the
refrigerator by our R&D and technical teams.
● The integration of cutting-edge technology, ergonomic design, and visual appeal is
prioritized in order to provide a product that is unique in the marketplace.

Prototype development:
● Making physical models according to the design specifications is the first step in the
prototyping process.
● The prototype is refined over several iterations to ensure the best possible functionality,
dependability, and user experience.
● Prototypes go through extensive testing to confirm functionality and pinpoint areas that
need work.

Testing and validation:

● Thorough testing procedures are designed to assess the refrigerator's functionality in a
variety of scenarios, such as temperature swings, energy usage, and storage capability.
● To determine possible improvements and gauge customer satisfaction, input is gathered
from external focus groups and internal testing teams.

TEST MARKETING
Purpose:
● We choose particular areas or demographic groups to test market the “Walton Fresco”
Refrigerator before bringing it to a wider audience.
● It enables Walton to evaluate the potency of different marketing approaches and improve
the product in response to actual consumer input.

Test market selecting:

● Based on variables like desired consumer profiles and geographic variety, Walton
chooses particular areas or demographic groups to test the market in.
 ● These markets serve as genuine environments in which to assess consumer reaction and
market dynamics with regard to the Walton Fresco Refrigerator.

Implementation:
● Walton Fresco launches the Refrigerator and a trimmed-down version of the suggested
marketing campaign in the selected test markets.
● Testing entails a number of different things, including distribution, pricing, branding,
packaging, advertising, positioning, and targeted strategies.

Data collection and analysis:

● Walton gathers and examines information on customer satisfaction, market reaction, and
sales performance during the test marketing phase.
● The efficacy of the product and marketing programme is determined by analysing critical
criteria including sales volume, market share, customer satisfaction, and brand
perception.

COMMERCIALIZATION

“Walton Fresco” may now proceed with commercializing the refrigerator once the test marketing
phase was completed successfully. A lot of money and careful planning must be made in order to
launch the new product into the market during this period.

Introduction timing:
● Walton gives much thought to when to introduce the refrigerator in order to optimize its
effects and reduce any possible hazards.
● While deciding on the best launch schedule, various factors are taken into consideration,
including the competitive landscape, market conditions, and the possibility of existing
items being cannibalized.

Launch strategy:
● Walton evaluates various launch strategies, including regional, national, or international
rollouts, based on market readiness and distribution capabilities.
 ● Leveraging its extensive distribution network, Walton:Fresco may opt for swift national
or even global rollouts to capitalize on market demand and gain a competitive edge.

Investment allocation:
● To promote the Refrigerator's debut, large sums of money are devoted to manufacturing
facilities, marketing campaigns, and distribution networks.
● To raise awareness and encourage customer involvement, funds are set aside for
marketing initiatives such as sales promotion, advertising, and other campaigns.

Marketing campaign:
● Walton develops an all-encompassing advertising strategy to generate interest in the
Refrigerator.
● Walton Fresco hopes to reach a broad audience and convey the special value proposition
of the Refrigerator by utilizing a variety of platforms, including print, digital, broadcast,
and in-store adverts.

“Walton Fresco:AuraFresh” hopes to position the Refrigerator as a top product in the home
appliance market by navigating the commercialization phase wisely. This will spur growth and
further solidify the brand's reputation for excellence and innovation.

WALTON’S Product Life Cycle

Product life cycle is basically the time period from where a product gets launched in the market
till the time it gets removed from the market. As our product is “Walton:Fresco” refrigerator,
here is how it’s life cycle would shape like:
● Product Development: In this stage we have just come with the idea of our new
refrigerator. We make no sales, so the curve goes under the primary line of sales as on
this period we only invest. Here it is all about planning, sorting out strategies and
investing for it.

● Introduction: The goal of the introduction phase is to raise consumer knowledge of the
Advanced Freshness Fridge. Its cutting-edge technology for preserving food extra fresh
for longer periods of time will be highlighted in marketing campaigns. In this stage we
create a pre-launch buzz by emphasizing the issue of food deterioration and teasing a
creative solution through industry events, influencer marketing, and social media. As the
product is new, it will be more about reaching the knowledge of the targeted audience
than to gain profit. So, as per the diagram the sales are very low whereas the investment
is high because of the production supply.

● Growth: As we have already introduced our fridge to the market, it gradually finds
acceptance through gaining high sales. From this stage the profitability boosts up.
However, as we become known, we step into the territory of competitors. In this
competitive market, the price we have fixed for our fridge might drop. Here, our primary
goal is to attract new clients by running focused advertising campaigns and holding sales
events. Simultaneously, we prioritize keeping current clients by offering effective
after-sale assistance, warranty services, and loyalty programs.
 ● Maturity: As the market is saturated and competition heats up, sales growth levels down
during the mature phase. During this stage, retaining market share and increasing
profitability take precedence over quick growth. The advanced fridge and other
competitive goods with comparable features and advantages oversaturate the market. So,
intense competition can be seen between suppliers, merchants, and manufacturers.
Threats may appear to our product through pricing wars and aggressive marketing
strategies when rivals introduce their own freshness-preserving freezers to the market.
We use branding, product characteristics, price tactics, and customer service to set our
product apart from the competition.

● Decline: Sales and market demand of the Fresco Fridge gradually diminishes during the
decline phase of the product life cycle. This decline is caused by a number of
circumstances, such as market saturation, growing competition, shifting customer
preferences, and technical obsolescence. Models with the newest features and technology
can draw in customers, which would reduce our product’s market share. In an attempt to
gain market share, rivals step up their marketing campaigns and launch new goods.
Advanced features like smart networking, energy efficiency, or improved food
preservation capabilities may be preferred by consumers over less sophisticated models.
It gets challenging for our product to stand out in the market because there are so many
similar items available. The fridge's market share could be further eroded by rivals who
provide greater features or lower prices. Walton’s Fresco fridge eventually reaches the
end of its useful life. It ends up being a discontinued product, with few or no units still
available. With the advent of newer, more inventive refrigerators, the product’s life cycle
journey comes to an end. So we need to carefully manage the transition during the
decline phase in order to minimize losses and maximize prospects for continued
profitability. This could entail making calculated choices about pricing schemes, resource
distribution, and inventory control.

Market Position

Walton Fresco's growing stage is likely comparable to Jamuna's. With rising sales and customer
numbers, Jamuna's refrigerators, which compete with Walton Fresco, may be gaining market
share. The increased demand for refrigerators, particularly those with health-conscious features
like antibacterial technology, is benefiting both firms.

Jamuna's refrigerators are growing because they're entering the market and gaining share.
Jamuna, like Walton, would use its distribution methods, marketing, and product innovation to
remain competitive and seize market possibilities.

Walton Fresco and Jamuna's refrigerators may be profiting from the growth stage of the product
life cycle, which involves increased sales and market acceptability. This period is usually
competitive as enterprises compete for market share and brand loyalty. Walton and Jamuna
would work on product differentiation, price tactics, and marketing to retain momentum and
expand in a competitive market.

The recommended marketing mix for walton brand , according to

its life cycle journey:

1.Product:

Introduction Stage: Highlight the cooling system that keeps fruits and vegetables for longer appealing
to health conscious consumers.
Showcase key attributes like energy efficiency, ample storage space and user friendly design.

Growth Stage:
Diversify the product range by introducing sizes, designs and features based on customer input and
market trends.
Focus on innovation to stay ahead of the competition like integrating technology for temperature control
or using eco friendly materials.
Maturity Stage:
Set the product apart with packaging redesigns, limited editions or bundling with items to maintain
customer engagement.
Emphasize improving product quality and longevity to foster customer loyalty and withstand market
pressures.
Decline Stage;
Explore options for expanding or extending the product line to capitalize on Waltons brand reputation and
reach consumer segments.
Consider repositioning or targeting niche markets to extend the product's life cycle.
2.price:

Introduction Stage:
Use penetration pricing strategies to quickly gain market share and encourage early adopters to test.
Offer promotional discounts or bundled deals to stimulate purchase and generate initial interest.
Growth Stage:
Implement competitive pricing strategies based on market demand, production costs, and competitor
prices.
Monitor prices regularly and make adjustments as needed to remain competitive while maintaining
profitability.
Maturity stage:
Consider price adjustments, such as discounts, loyalty programs or value-added services, to maintain sales
and market share.
Explore pricing strategies such as skimming on premium versions (setting a higher initial price and then
gradually lowering it) or discounts on clearance sales.
Decline stage:
Implement price reductions or clearance sales to clear inventory and minimize losses.
Evaluate opportunities for price differentiation or target cost-conscious segments with budget-friendly
options.

3.Place:

Introduction stage:
Focus on selective distribution to health-conscious consumers through exclusive retail partners or online
channels.
Ensure stock is available in key locations frequented by your target group, such as health food stores,
supermarkets or online marketplaces.
growth stage:
Expand sales channels to reach a wider audience, including wholesalers, department stores, and specialty
stores.
Form partnerships with distributors or wholesalers to expand into new geographic markets and increase
accessibility.
Maturity stage:
Optimize sales efficiency by streamlining logistics, shortening delivery times and minimizing stock-outs
to meet customer demand.
Consider direct-to-consumer channels, such as company-owned stores or e-commerce platforms, to have
more control over the customer experience.
Decline stage:
Streamline sales channels and focus on high-performing stores to maximize sales and reduce distribution
costs.
Explore alternative distribution models, such as licensing or franchising, to expand product reach without
requiring large investments.
4.Promotion;

Introduction stage:
Launch an integrated marketing campaign that utilizes multiple channels to increase awareness and
enthusiasm for Walton Fresco.
Use digital marketing strategies like social media advertising, influencer partnerships, and content
marketing to reach health-conscious consumers.
Growing stage:
Increase promotional efforts through targeted advertising, sponsorships and experiential marketing
campaigns to maintain momentum and drive sales.
Leverage customer opinions, reviews, and recommendations to build credibility and trust in your product.
Maturity stage :
Enhance brand loyalty and encourage repeat purchases through loyalty programs, rewards and referral
incentives.
Invest in brand-building activities such as PR campaigns, community engagement programs, and cause
marketing to stay relevant and approachable.
Decline stage:
Implement promotions such as sales, limited-time offers, or product bundles to stimulate demand and
reduce inventory.
Communicate the heritage, quality and value proposition of the product to mitigate decline and expand its
relevance in the market.

By aligning marketing mix strategy with Walton Fresco's life cycle, the brand can effectively manage
each stage and capitalize on opportunities for growth, differentiation and continued success.