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A PROJECT

REPORT
ON
NEW PRODUCT
DEVELOPMENT
SUBMITTED
BY
ACHAL

BHUSHAN KHESS

ANSHUL GUPTA

KUMAR MAKRAND BHASKER

NEHA JHA

MEGHA AGARWAL

PRAGYAN DAS

(SCHOOL OF MANAGEMENT KIIT UNIVERSITY (09-11 BATCH))

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OUR LOGO
“be AheAd”

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Cox
Is
“Comfort
Occult
Xtraordinary”

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ACKNOWLEDGEMENT

We would like to take this opportunity to express our deep


sense of gratitude to Mrs.Rakhi Dutta, Prof.(Marketing),KIIT
School of Management, Bhubaneswar, for her sincere
guidance and help extended to us during the project work .

She as a guide has constantly encouraged and inspired


us by her personal involvement, making the project a
success.

We are also grateful to the library authorities of KSOM for


providing us with the needed information during our
preparation of project work.

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Executive summary

we know that a person can be best described with his shoes. we have come
up with a unique and simple product COX SHOES .These days in our hectic
lives, we face a general problem of bad odour from a pair of shoes worn by
us for long duration .People sitting close to us or in our nearby surrounding
start getting irritated as well as they get bad smell that is more than difficult
to bear up.So, to over come this problem we have come up with a solution
for you – “COX SHOES”. Cox shoes avid range of fragrance pad gives the
consumers a varied range to choose from. (the inner part of fragrance pad
is so designed that it will fit only to COX shoes) Cox shoes feature of
acupressure will not only seek to health problems but also dilutes problems
of leg sprains and muscle strains. Additional materials like KELVAR has been
used to enhance the quality. As this is a new product with new additional
features of fragrance pad and acu pressure points in the sports shoes for
the first time, so reasonable Price is set 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… also 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.Determinig all these factors
Price range of product: Rs1500.00 to 4000.00 is set. Promotion mix like

Advertising,Sales promotion,Direct marketing and public relation are used


to build a brand image and increase the sales volume.Distribution channels
like zero-level ,1level and 2 –level has been selected for the product to
reach all the targeted segment.

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INTRODUCTION OF NEW PRODUCT
COX SHOES
“If your feet is in your shoes,You can steer
yourself IN ANY DIRECTION You choose,You
are on your own,and You know what you
know,you are the guy who ll decide where to
go.”
And as we know that a person can be best described wih his shoes
we have come up with a unique and simple product COX SHOES
.These days in our hectic lives, we face a general problem of bad
odour from a pair of shoes worn by us for long duration .People
sitting close to us or in our nearby surrounding start getting
irritated as well as they get bad smell that is more than difficult to
bear up. So, to overcome this problem we have come up with a
solution for you – “COX SHOES” with a special fragrance oriented
pads ,so as to secrete a pleasing odour all the while schedule
without being embarrassed.
Using this once will make a you a loyal believer of its advantages,
which industry has never witnessed before.

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Since our pads are replaceable, we are also providing two extra
pads with our shoes free. Each pad can be used regularly for six
months.
Since we are also targeting health and as it is said that “health is
wealth” so we have come up with and added feature of our shoe
that is there will be accupressure points, so that customer will be
relieved from major health problems which come up due to stress
and over exertion.
Our shoe will also be available with different fragrances (mild &
strong) accordingly.

WHY FOOT WEAR MARKET?

• The Indian foot wear retail market is expected to grow at a CAGR of over 20% for

the period spanning from 2008 to 2011.

• It is expected to increase in about 60% of the total raw materials of foot wear

export by 2011 from over 38% in 2006-2008.

• Presently the Indian footwear market is dominated by men’s foot wear market that

accounts 58% of the total Indian footwear retail market.

• Entry and exit barriers are low.

ABOUT THE PRODUCT

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• COX shoes behave like an extension of the foot, which is a
complex structure of bone, muscle and fatty tissues.
• Cox shoes provide the user with a comfortableness and
uniqueness to the maximum.
• Cox shoes avid range of fragrance pad gives the consumers a
varied range to choose from. (the inner part of fragrance pad
is so designed that it will fit only to COX shoes)
• The fragrance provided with the shoes will save the user from
embarrassments arising from bad odour .
• Cox shoes feature of acupressure will not only seek to health
problems but also dilutes problems of leg sprains and muscle
strains.
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 materials used:

1. KELVAR (Used to enhance the quality)

The Properties of KEVLAR.

KEVLAR is one of the most important manmade organic fibers ever


developed. Because of its unique combination of 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 1970's
Fibers of KEVLAR consist of long, interconnecting molecular
chains produced from poly-paraphenylene terephthalamide.
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General Features of KEVLAR:

· High Tensile Strength at Low Weight


· Low Elongation to Break High Modulus (Structural Rigidity)
· Low Electrical Conductivity
· High Chemical Resistance
· Low Thermal Shrinkage
· High Toughness (Work-To-Break)
· Excellent Dimensional Stability
· High Cut Resistance
· Flame Resistant, Self-Extinguishing

2.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 odor.
Product attributes
• Provides freshness to feet by its pleasant smell.
• Acupressure will act as a reliever of pain.
• Replacable fragrance and acupressure pad(the inner part of
fragrance pad is so designed that it will fit only to COX
shoes)
• Pioneered in comfort
• Best for athletes
• Provides firmness to feet
• Style quotient also maintained
• Available in varied range of price and size with a warranty of 1
year.

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H
T
G
N
E
L

T
C
U
D
O
R
P

PRODUCT MIX FOR COX SHOES

PRODUCT MIX WIDTH

RUNNIN CRICKET ATHELET TENNIS SOCCER


G E

WITH
FRANGANCE

SIZE -6 TO10

WITH
FRANGANCE
PAD & ACU
PRESSURE

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PRODUCT DEPTH =VARIANTS X SIZES

2 X 5 = 10
TARGETING

SEGMENTATION
Geographic

City: More focus on metro cities because people believe in trying


innovative, new and better products.
Demographic:
Age: 14 years and above.
Gender: Male and female both.
Income: earning above Rs 20000 thousand P.M.
Occupation: Students, Athletes.
Psychographic:
Socio-economic: Upper-middle.
Lower-middle.
Life-style: Sport-oriented, outdoor oriented.

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Behavioral:
Benefits: Quality, service, after sell service.
User status: Non user, potential user, first time user.

TARGETING

1. Measurable: Size ,purchasing power ,characteristics of the


segments
2. Substantial: A segment should be largest possible homogeneous
groups worth going after with a tailored marketing program
e.g.earning capacity 20,000p.m.
3. Accessible: Reach should be good.
4. Differentiation: People have different perception about different
marketing mix. A business man and a sports person will have
different feel about COX shoes.
5. Actionable: Effective programs can be formulated for attracting
and serving the segments.

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TARGETING

TARGETING

UNAWA AWARE

NOT TRIED
TRIED

NEGATIVE NEUTR POSITI


OPINION AL VE

REJECTED NOT
YET
REPEATED
REPEAT
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LOYAL TO SWITCHER LOYAL
OTHER TO
BRAND

LIGHT REGUL HEAVY


USER
AR USER
USER

POSITIONING

Positioning through point of difference by presenting and


highlighting the new attributes of cox 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
acu pressure points launching for the first time, so reasonable price should
be set according to the following factor.

1. Selecting the price objective.


2. Determine demand.
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3. Estimate cost.
4. Analyzing competitors cost price and offers.
5. Selecting price method.
6. 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


1. Product is distinctive because of its special feature in it (fragrance pad &
acupressure), which makes it different from others.

2. Buyers less aware of substitute since there is no other player in the


market with such features, so in respect of its features buyers will not get
any substitute.

3. Expenditure is smaller part of the buyers total income .since the price of
footwear is small part of the total income.

4. 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.

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Analyzing competitor cost price and offer
PRICE COMPARISON OF DIFFERENT BRANDS

BRANDS PRICE PRODUCT RANGE


Category(upper RANGE
middle-lower
middle)
PUMA 1500-6500 RUNNING,
CASUAL,SOCCER,CYCLE ,etc.

ADDIDAS 1500-4500 RUNNING, TENNIS,TRAINERS,


BASKET BALL, etc.

NIKE 1700-5000 TRAINERS, FOOTBALL,


RUNNING, GOLF, BASKET BALL
etc…
REEBOK 1300-4000 WALKING, AEROBICS,
RUNNING, BAKET BALL, etc..

ACTION 900-2800 CASUAL,SOCCER,CYCLE,RUNNI


NG,etc…

BATA 1000-1700 Soccer,running,casual etc.

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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…

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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 materials used:
1.KELVAR (Used to enhance the quality)
2.Material used in making of fragrance pad and
acupressure point
• Vegetable tanned sheepskin
• Active carbon filter prevents odor
• Slightly padded with latex foam
• Fragrance
• Breatheable leather shoe liner protects the inside of shoes from
dampness, bacteria causing odor .
Fixed cost + Cost incurred Low middle Upper
variable cost in percentage category middle

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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 300 800.00


(25% on sales)

Required sale 1500.00 4000.00


price

Price range of product: Rs1500.00 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

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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 “we did it “which we have taken also
suggest 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.

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
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• Weekly magazines e.g. india today
• Health magazines
• Newspaper
1. Electronic media
• Adds on TV and internet
• Radio
• Bill boards.

Direct marketing public relation:


Public relation will be used to explain the benefits of cox 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.
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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.

CHANNEL LEVELS

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Their are four channel levels by which a company can reach to consumers.

• zero level channel

• 1- level channel

• 2- level channel

But we will be using only first three channel for our product distribution.

1. Zero level channels consist of a manufacturer selling directly to final consumer. we will

be selling our shoes by internet selling(by sending mails, by using sites such as e-bay

,amzon, alibaba.com).We will also sell our shoes directly to various institutes and sports

academy.

2. 1-level channels, In 1-level channel we use only one intermediary or distributor, who will

supply goods to the retailer and they will also provide feedback to the company about

demand of consumers.

Exclusive showrooms can be used with wide coverage to cover different price points and

target different segment of customers, which will generate sales volume.

3. 2 -level channels contains two intermediaries selling to retailers through wholesaler and

finally to customer inorder to cover the maximum targeted segment .(Here benefits of

influence of distributor is used)

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