NEW PRODUCT

DEVELOPMENT
SUBMITTED BY- HARSH BARDHAN
SINGH || MBA-II || 21202083 || SEC-A
 OBJECTIVE IDEATION
• New Product Development of the company is a •Product Name- CleGum
significant aspect to keep pace with the market demand •Product Description- A Chewing Gum that helps to
clean Teeth and Tongue on the go.
• The project involves idealization, need assessment, and •Product Tagline: Refreshing on the Go
marketing plan development of the product CleGum. •Products Features-
• Portable & Travel Ready
• Technology is changing everyday to make our life • Easily Available
easier, so the company brings CleGum- A Chewing • Water Saver
Gum that cleans Teeth and Tongue on the go. • Enamel Safe, Sugar-free.
• Saves Time and Space too.
• The various issues of the customers are assessed to • Children are Safe and Non-choke-able.
come up with a strategic solution. • Environmental safe as it is Degradable.
• Comes in multiple flavors.
• The main focus for developing the product is to help
Travellers clean their mouth on the go.
NEED ASSESSMENT
•In order to asses the issue both qualitative research and quantitative research was done.
• All respondents used a Tongue Cleaner and Tooth Brush.
• 38% of users generally forgot their mouth-cleaning accessories while traveling
• 94% of the respondents were interested to purchase the product.
• None of the respondents had any knowledge of the product as it is completely new to the market.
• People were also very aware of the water while traveling in buses or Trains.

•In the qualitative research, I interviewed 5 people to understand their need as a traveler respectively
• They need to escape from the hassle of carrying Toothbrush and Tongue-cleaner and Toothpaste
• For remote location where there is unavailability of water this product is a life saver.
• Can help save much time than stopping in a trip while driving
RKETING PLAN DEVELOPMENT
Political Factor
PESTLE
ANALYSIS • Upgradation and modernization
of the daily use product into
convenient and ease of travel
friendliness

PES-
Economical Factor
•Rising disposable income among
the lower middle and upper
middle class shows a interest in
purchase of new travel-oriented
products
Social Factor
•An upgrade shift in lifestyle of the
Travelers in India.
•With the rise in number of
Travelers and Riders, there is an
increase in demand
RKETING PLAN DEVELOPMENT
PESTLE Technological Factor
ANALYSIS • Shift in consumer buying
behavior towards e-commerce
• Use of digital media for
advertising and sponsoring in
many events

-T EL
Legal Factor Environmental Factor
• Approved by Dental • Saves water
Association • Environmentally Degradable
• Enamel Friendly
 MARKETING
STRATEGY
Strategic- STP
Segmentation: Targeting:
Geography • The product has the potential to save on water costs and
• The CleGum is available in every region of India-North, South, East, and time-saving elements.
West. • The target audience is customers like Travelers, Riders,
• It is available exclusively online. College Students, and People with mouth injuries or having
difficulty while brushing their teeth.
Demographics
• It can be used by individuals of age groups from children to Travelers to Positioning:
officegoers. • The product has both Teeth cleaning and tongue cleaning feature,
• The product is used by both males and female. with a pleasant smell of the flavor of the gum they are eating.
• It is used by middle, upper-middle, and high-income groups. • It is multipurpose and hence eliminates carrying multiple products.
• Freshness lasts long.
Psychographics • It is enamel safe and comes with no issue when swallowed by
• Customers who are frequent travelers and like To save time while traveling. mistake.
• Environmentally Biodegradable.
Benefits Sought
• By using the product, the customers need not worry about Mouth cleaning
accessories

Usage Rate
• The product is of frequent use for frequent travelers or riders.
• Can be used by college students when late to class in morning.
 ii. Tactic- 4 Ps of PRODUCT MIX

Product Price

• Product Name- CleGum • We will be applying a price bundling strategy as we

are complementing the Gum with all-round
• Product Description- A Chewing Gum that helps to freshness for the mouth so that a person has to
clean Teeth and Tongue on the go. carry less (just one product)

• Product Tagline: Refreshing on the Go • Price penetration will be the pricing strategy that
• Products Features- we will use at first after which we will be moving
towards a premium pricing strategy (Like
 Portable & Travel Ready introducing longer freshness, more flavours, More
 Easily Available softer

 Water Saver • Our pricing would start from Rs 300/-once we get

 Enamel Safe, Sugar-free. enough customers we will increase the prices, to
match up the expenditure
 Saves Time and Space too.
 Children-Safe and Non-choke-able and can be • Most probably after one year we would be capping
the price at Rs 350/-
swallowed.
 Environmental safe as it is Degradable.
 Comes in multiple flavors.
 Place
• We have decided to go for both online and offline mediums for
displaying our product.
• Since we have targeted metro cities, urban and semi-urban
areas, the product would be made available in shopping malls
and retail shops (small, medium, and large)
• The product would also be available on online platforms like
Flipkart, Amazon, BigBasket, etc.
Promotion
• We would promote our product through
various modes of communication such as
television and Newspaper.
• We would also use the social media platform
as we are well aware of its importance in the
present era
• Apart from that we would be using hoardings
and pamphlets all for promotion( direct
marketing tools)
 Costing (All Overheads) Sales Forecasting
Components Price (in Rupees) Particulars Cost / Month (Rs)

Direct Materials 20,000 Fixed Expenditure

Salary 2,50,000
Direct Labor 50,000
Rent of Go-down & Manufacturing 30, 000
Electricity 80,000 Outlet

Advertising 1, 00, 000 Rent 50, 000

Factory Overheads 50,000 Factory Overheads 1, 00, 000

Factory Cost 25,00,000 Factory Cost 28,00,000

Administrative Overheads 1,25,000

Administrative Overheads 1,50,000
Fixed Materials 40, 000
Operating costs 14,50,000
Operating costs 20,80,700
Interests 68,000
Depreciation on equipment and 15,000
machinery
Depreciation 25,500
Depreciation on Computer 80,000
Others 1,22,600
Insurance 20, 000
Production costs (TOTAL) 46,16,100
Miscellaneous Expenditure 40, 000

Total 56,30,700
 Continued Breakeven Point
Particulars Current Estimate (Rs)
Particulars Amount (Rs.)

Variable Expenditure
Sales (5000 units sold) (5000*300) 15,00,000

Direct Materials 20, 00, 000

Less: Variable Expenditure 26,82,465
Direct Labor 75, 000
Contribution (41,82,465)
Electricity (Manufacturing Expense) 1,50,000
Less: Total Fixed Expenditure 56,30,700
Electricity (Office) 88,960
Profit 14,48,235
Transportation & Fuel 86,730

Advertising 94,886 Gross Margin = 40 %

Repairs & Maintenance 14,000 Break-Even Point = Fixed Cost / Gross Margin
= 56,30,700 * 0.40
Interests 1,72,889 = 22,52,280

• It can be concluded that the company must generate 22,52,280 in

Total 26,82,465
revenue in order to cover its fixed and variable costs. (5000 Units to be
sold approx. with 300 as the price.
• If the company generates more sales, the company will have a profit
and fewer sales would lead to loss.
THANK YOU