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					FRESH exe
  IN THE NAME OF ALLAH THE MOST BENEFICIENT AND MOST MERCIFUL




                        Assignment On

                PRODUCT PLAN


   Submitted To:
                      Mr. HASSAN RASOOL




   Submitted By:

                      QAISER HASEEB
                       ATOOF QADIR
                         USMAN
                   SALMAN GHULAM RASOOL
                     MBA (R) 2nd Semester




    DEPARTMENT OF BUSINESS ADMINISTRATION
UNIVERSITYOFAGRICULTURE FAISALABAD




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CONTENTS


PART I DEFINING THE PRODUCT                    2


    Define the product
    Objectives for the New Product
    Physical Features and Appearance

PART II ANALYSIS OF MARKETING OPPORTUNITIES    3


    Current Marketing Situation
    Opportunities and Issue Analysis

PART III SHAPING THE MARKET OFFERING           4


    Marketing Strategy
    Action Plans

PART IV FINANCIAL PROJECTION                   5


    Developing Price Strategies and Programs
    Expected Sales Budget
    Financial Institutions

PART V PROJECT IMPLEMENTATION                  6


    Developing “GOALS „n BUDGET” Program
    Periodical Review
    Contingency Plan




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PART I DEFINING THE PRODUCT

THE NEW PRODUCT

      NIVIA, a multinational company, is getting ready to introduce a
new article in its men‟s product line, named as FRESH exe. The FRESH
exe is shaving foam with high quality lather giving utmost great shave.
NIVIA„s new product is entering a marketplace crowded with offerings
from Gillette, Old Spice, Addidas, Dettol.

OBJECTIVES FOR THE NEW PRODUCT

      The major objective of introducing this new FRESH exe to the
market is to provide the spanking new and amazing experience at the
shave. The problem of filthy and rough shave is overcome with the
smooth and remarkable foam, providing a fresh fragrance with a skin
care treatment. Besides all this we have a list of organizational objectives
which are to be achieved with the development and sale of this new
FRESH exe. These objectives must include:

NIVIA‟s Financial Objectives,
    Earn an annual rate of return on investment of 35% after taxes
      over the next three years.
    Produce net profits of 6 million next year with a target profit
      margin of 10 percent on total sales.
    Achieve first-year total sales revenue of 15 million.

NIVIA‟s Marketing Objectives,
    Achieve a first-year unit sales volume of 9,99,999 which represents
      a projected market share of 16 % with two products in the product
      line.
    Increase second-year share to 26% based on sales of three
      products in product line.
    Generate 40% brand awareness within the consumer target
      market.


PHYSICAL FEATURES AND APPEARANCE OF THE PRODUCT

      The product‟s appearance, shape „n size is designed with a great
care keeping in view the positioning of NIVIA, and compatibility with all
the market rivals. The analogy of the product is maintained with the
similar products in the product line of NIVIA for correlation to the



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manufacturing setup of the company. The pictorial view is available in
the form of the trial product available for description.




PART II ANALYSIS OF MARKETING OPPORTUNITIES
CURRENT MARKETING SITUATION

       The 7.2 Million-market is subjugated by Gillette, which sold 29% of
its total sales in its first operating year. The sales of FRESH exe are
expected to increase at least in the next two years. Analysts predict 35%
sales of our first year production which will increase up to 56% in the
next year.
       Market Leader Gillette offers a range of shaving gels, foams and
creams from the small to economy packs with different other product
offerings (hybrids) like shaving razors, brushes, additional razors, after
shaves etc. Similarly Old Spice dominates 21% of the total market share.
There are two kinds of foams available in the product line of Old Spice,
one for the youngsters and the other for the seniors. Both the products
have different product constituents with different fragrances and
different packaging.
       Despite intense competition, NIVIA‟s FRESH exe can rely on
numerous strengths. First, the product is offered with a superior quality,
classic lather providing foam which overcomes the problem of filthy and
rough shave by giving and immense and close shave. Second, it packages
valuable features found only on higher-priced rival products. Third,
NIVIA‟s FRESH exe is offered with three different French delicate scents.
Fourth, FRESH exe is accessible in three categories, the close-stub round
rotating pack, the small travel pack and the economy pack. Fifth, it is
priced lower than competing models. However, its weaknesses include:
lack of brand awareness and image; one category for all customers i.e.
boys and men.

OPPORTUNITY AND ISSUE ANALYSIS

       FRESH exe is a daily-used product and is required by a majority of
men‟s population. Also, humans need a variety and perfection and NIVIA
is a well-reputed and well-established company providing the classic
skin-ointments and other skin-treatment beauty products. It will be an
opportunity for NIVIA to offer this high quality product to its existing and
most out-spoken NIVIA-lover customers.
       Increased competition from its rivals such as the Old Spice and the
Gillette could slow the acceptance of the NIVIA‟s FRESH exe. Increased


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competition will complicate the NIVIA‟s ability to differentiate the NIVIA‟s
new product from competing products.
Among the issues NIVIA must address are: (1) Should NIVIA develop and
offer a hybrid product with FRESH exe for competing in this immense
competition? (2) Should NIVIA offer a customized product for men and
boys separately? (3) Should it develop or offer an extremely low-priced
product?


PART III SHAPING THE MARKET OFFERING
MARKETING STRATEGY

      On the consumer side, the target market is middle-to upper
income people who need of a better product for their skin for which the
product is certified by the AHA (American Health Association), and which
provides them with a better experience of shave. These consumers prefer
lower-priced products with versatility and other interrelated features
found in all of the products. These customers want elegant lather, a nice
fragrance, a quality of included after shave, no skin resistance, easy to
apply and a more sophisticated packaging.

       A highlight of NIVIA‟s marketing strategy:
      Positioning: FRESH exe is the most versatile skin-oriented
       shaving ointment foam.
      Product management: Basic product, to be introduced this year,
       incorporates a health-institution certified invention, with almost
       every feature and constituent found in all the products of the
       competitors, offered in three French fragrances.
      Pricing: First-year average product price of Rs.190 is in the mid-
       range of the market, offering unusually high value for advanced
       features. Expect to lower price of first version, when higher-end
       product is introduced in second year.
      Distribution: Should be through the best-known distributors of
       the country.
      Marketing Communications: Create an advertising campaign to
       build brand awareness and differentiate the product from
       competitors; emphasize trade sales promotion to support
       distribution strategy; and develop a high-profile product-launch
       strategy to generate publicity and media coverage.
      Marketing Research: Measure brand awareness before, during,
       and after marketing campaigns, study customer satisfaction and
       identify opportunities for future product development efforts.




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ACTION PROGRAMS

       NIVIA will accomplish its marketing strategy and perform
marketing research to achieve its objectives through a variety of
scheduled programs. A fixed amount of 0.9 million is planned to be
invested for the promotion of the product to educate the dealers, and to
create excitement for the product-launch in the end of this year. NIVIA
will conduct a major consumer skin-treatment mania for health cautious
people which will help promoting the FRESH exe. In the mid of this year,
the advertising will be transferred on to the major television channels.




PART IV FINANCIAL PROJECTION
DEVELOPING PRICE STRATEGIES AND PROGRAMS
      The price of the product i.e. FRESH exe is considered after having
covered all the direct and indirect expenses and additional 10% profit on
the total cost of production.

EXPECTED SALES BUDGET
       Total first-year sales revenue is projected at 15 million, with an
average whole sale price of Rs.180, variable cost Rs.115, and a target
profit margin of 10 percent. On a quarterly bass, NIVIA‟s projects sales of
4 million, 7 million, 11 million, 15 million, based on cumulatively higher
business sales and a spike in year-end consumer sales. Each action
program carries its own financial assumptions, as well as managerial
assignments and scheduling details. In turn, these financial projections
lay the foundation for planning in the manufacturing, human resources,
research and development, and finance and accounting departments.

FINANCIAL INSTITUTIONS
      The manufacturing plant has been financed by bank Al-Zurich.
The investment ratio being 40-60, where 40% share held by NIVIA (pvt)
ltd.




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PART V PROJECT IMPLEMENTATION
DEVELOPING “GOALS „N BUDGET” PROGRAM

      A program with certain past product-analysis values has been
designed accordingly. There are certain pin points which are to be
considered in order to implement this program. According to the defined
budget and defined objectives of the new product, this newly designed
“Goals „n Budget” program will help NIVIA in achieving its desired
objectives. This marketing plan includes a detailed budget, schedule, and
managerial assignments for every action program. For control purposes,
the plan also allows for month-by-month comparison of actual versus
projected sales and expenses. A contingency plan, attached, has been
developed for implementation in the case of severe downward pricing
pressure.




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posted:8/20/2011
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