New Product Development: (Evening)

New product development
Punjab University (Gujranwala Campus) B.com 5th (evening)
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Principle of Marketing
New Product Development
B.Com (Honors). 5th Semester (Evening)
University of the Punjab Gujranwala Campus.
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Assignment:
New Product Development Travelling bag and wooden astray with extra features
Presented to: Sir. Hafiz Ihsan-ur-Rehman. Presented by:

Syed Sabtain Haider Shah Bukhari Bc08102 Ali Waqas Bajwa Muhammad Hasan Raza Bc08115 Awais Gulzar Bukhtiar Ahmed Bc08126 Sheraz Aaga Bc08132 Bc08134 Bc08131
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Dedication
First of all we dedicate our project to almighty ALLAH who gave us abilities to complete the project.
Secondly we dedicate to our beloved Prophet Hazart Muhammad (S.A.W) whose guidance with key to success in both worlds.
Then we are thankful to our parents and Sir Hafiz Ihsan-ur-Rahman who gave us opportunity to polish our abilities.
In the end we dedicate the project to all class fellows who gave us useful suggestions in the completion of the project.
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Acknowledgement
All praise to Allah, the most merciful, kind and beneficent, and the source of all knowledge, wisdom within and beyond my comprehension. He is the only ALLAH, who can help us in every field of life. All respect and possible tributes goes to my Holy Prophet Hazart Mohammad (S.A.W), who is forever guidance and knowledge for all human beings on this earth. I owe a great many thanks to a great many people who helped and supported us during working on project. Our deepest thanks to Sir. Hafiz Ehsan-ur-Rehman the guide of the project for guiding and correcting various documents with attention and care. He has taken pain to go through the project and make necessary correction as and when needed.
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Contents

Idea Generation. Idea Screening Concept development Concept testing... Segmentation & Target Market. Demand estimation Marketing mix Product Price Placement Promotion . Cost estimation Capital estimation
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Commercialization ..
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New Product Idea Generation

The systematic search for new product.
We have searched these ideas:

Mobile cover with vault Stylish astray Smart traveler bath kit
Cigarette case Multi shoes polish case Marble decoration pieces Wrist watch with different colors
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Idea Screening.
Idea screening is a process to spot good and possible ideas and drop poor ones. Above ideas we have select best idea on following basis, That is easy to make Can capture the market They have less chances of failure in market That is new idea up to some extent We have all the people, skills and resources to make the product. It is easy to distribute and advertise.
We select the two products
Stylish astray Smart traveler bath kit
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Concept Development
A detailed version of the new product idea stated in meaningful consumers. At this stage all the features of the product are listed on the paper by keeping in view the consumer demands and behavior. Wooden astray with extra features is such kind of product that can be utilizable. When you are sitting with your friends at T.V lounge and sitting rooms and restaurants table. Travelling bath kit is such kind of product that is containing different bath items and more, that can be utilize in journey.
CONCEPT TESTING
Questions
Do these products capture the market? How much price would you like to pay? Would you buy it? Which extra feature you suggest must be in the product? For testing this concept we meet with the people that are smokers and have friends that are also smokers. They response in a positive way and ranked this product good and such kind of accessories are available with him that can facilitate the smoking, people want to pay for this product with in the range of Rs.200250. Feature they suggest for ash tray, cigarette pouch, lighter
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pouch, air freshener, pocket for chalia, mint bubble, filter pouch, revolving stand. For testing this concept of second product travelling bath kit, we meet with the people that goes on journey for most times and they attributed this product as nice and made the journey easy. The features the people suggest, soap, shampoo, tooth brush, toothpaste, scissor, razor, surma, towel, comb, perfume, mirror, first aid, shaving gel, beauty cream, beauty lotion, needle, thread etc.
Marketing Strategy development

Market Segmentation:
Market segmentation means to divide the market into different segments on the basis of characteristics of buyers and their buying behaviors.
Geographic segmentation: Country:

Pakistan
Country region: Punjab

City or metro size
Multan Rivand
Punjab University (Gujranwala Campus) B.com 5th (evening) Page 12

Gujranwala Lahore Islamabad
Density
Hotels. CNG station Coffee bars Etc.
Demographic segmentation:
Age 18-65 Gender......Male Family life cycle.Young, single, married, older. Income.2 to 5 lakh OccupationProfessional and technical, tourist, officials and
religious,
Nationality..Pakistani. Education.illiterate and educated.
Behavioral segmentation:
Occasions
Regular occasions Special occasions
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Holidays
User rate:
Medium user Heavy user
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Target market:
The set of buyer by sharing common needs or characteristics that our company decides to serve are Sales men
Religious person (tabligi). Tourists Smokers
Guests Party friends Business men Hotels

Coffee bars
Marketing Strategy:
We have used the undifferentiated strategy for marketing. We will offer our product in market as a new product containing feature that will facilitate the travelling and smoking.
Product positioning:
The way the product is define by consumer on important attribute-the place the product occupies in consumers mind relative to competing products The consumer attributes this product good and convincing and they position this product ok and this is a new product.
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Business setup:
Company name:
ORGANIZATIONAL HIERARCHY:
Company Office: Modal Town GRW Manufacturing Plant:
Industrial Area Estate 2 GRW

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Area Required:
2 kanal Building
No. of Employees: Total 25
Marketing Mix
Product:
Anything or activity that can be offered to a market for attention, acquisition, use, or consumption that might satisfy the want or need is called product Smart Bath kit Wooden Ashtray
Levels:
Core benefit:
The core benefit is
It will be helpful for pocketing petty luggage during the journey. You can remove your cigarette ash in an easy way.
Actual level:
Brand Name: RED STONE Quality Level: HIGH

Packaging:
Use Primary and Secondary Packaging
Features:
Ashtray:
Wooden Durable Cigarette Portion Lighter Portion Chalia Portion Corming
Smart Bath Kit:

Leather Bag Having Three Portions Soap, Shampoo Tooth Brush Tooth Past Razor Seizer Mirror Beauty Cream Perfume Comb Medicine Punjab University (Gujranwala Campus) B.com 5th (evening) Page 18

Strip
Classification of Product:
Our Both Products are shopping products.
Individual product decision:

Product attributes: Product quality The characteristics of a product or services that bear on its ability to satisfy stated or implied customers needs Our products are having high quality because of leather and wood is used in manufacturing
Product features:
Ashtray
(Wooden, durable, Cigarette Portion, Lighter Portion, Chalia Portion, Corming)
Smart Bath Kit:

(Leather Bag, Having Three Portions, Soap, Shampoo, Tooth Brush, Tooth Past, Razor, Seizer, Mirror, Beauty Cream, Perfume, Comb, Medicine, Strip)
Product style and design:

Slim that can be easily adjusted in the pocket
Decorative and according to our Pakistani culture
Branding:
A name term sign symbol design or a combination of these that identifies the products or services of one seller or group of sellers and differentiate from others those of competitors.
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Our brand name or sign is very attractive due to its colors and design which is easily identify from bundle of product that are lying on the stall of shop.
Packaging:
The activities of designing and producing the container or wrapper for a product. We have use the packaging that can image protect our products from any type of damaging and that can satisfy the market requirement that will play a big role in our sales tasks from attracting attention, to describing the product, to making the sales and profits.
Labeling:
Price:
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefit of having or using the product or service.
Wooden ashtray:
COST OF PRODUCT Product cost Packing Cost Advertisement & Promotion Sales Tax (17%) Organization Profit (20%) Company Price 350 44 50 3.00 5.00 250.00
Goms bath kit:


Cost of product Product cost Packing Cost Advertisement & Promotion Sales Tax (17%) Organization Profit (20%) Company Price 280 2.00 3.00 34.85 41 200.00
Desired return:
We are using Skimming pricing strategy for selling the product. In this strategy, maximum possible price is charged from our customer before the competitors entry into the market.
Placement:
Place include companies activities that make the product available to the target consumers and where raw material is also easily available.
Location:
At introductory level we will introduce our new product to GUJRANWALA
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Lahore
Multan
Promotion:
Designing and managing the marketing mix element to inform persuade and remind current and potential customers, is called promotion
Promotion Objectives:
Awareness:
At awareness stage the sellers task is to let the buyers know that the product or brand exists. Since we are a totally new brand, our biggest objective is to create awareness and make people realize that we have entered too.
Knowledge:
Knowledge goes beyond awareness to learn about a products features. Once we have created awareness about our existence in the market, we will provide information to consumers why we are unique and why they should come to us for purchasing salad by describing its advantages and motivating people through our ad campaigns.
Liking:

Liking refers to how the market feels about a product. Promotion can be used to move a knowledgeable audience from being indifferent to liking a brand. We will create this element by advertising caring for customers, salad advantages, and future positive results and also by affordable prices.
Preference:
Creating preferences involves distinguishing among brands. This stage creates no difficulties for us as there is no big market for such convenience products in existence.
Conviction:
Conviction entails the actual decision or commitment to purchase. The promotional objective here is to increase the strength of the buyers need. 4SN will achieve this objective by providing quality products to its customers and by treating them affectionately.
Purchase:
Purchase can be delayed or postponed indefinitely, even for the customers who are convinced that they should buy a product. Our product consumers can purchase from any retail or super market stores.
Total promotion Budget:

One of the hardest marketing decisions facing a company is how much to spend on promotion. For setting the total budget we will use Affordable method to set budget. As the companys business is on small scale, we cannot spend heavily on advertising. In this from our total revenues we deducted operating expenses and capital outlays, and then devote some portion of the remaining funds for promotion. We calculated and set our budget at the amount of Rs.5, 000, 00.
Promotional Mix:

Promotional Mix is a combination of personal selling, advertising, sales promotion, public relations, and publicity. Following promotion tools will be used:
Advertisement. Sales Promotion.
Advertisement
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising may be described as the science of arresting the human intelligence long enough to get money from it.
Objectives:
An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. To inform the public about our new product To build primary demand It should support personal selling. Lifting short-term sales
Setting the Budget:

The Wooden Ashtray and Smart bath kit is newly entering the market so it needs heavy advertisement to inform public. Following factors were considered:
Stage in product life cycle:

Our product stands at the introduction stage, so to introduce our product in market we need heavy advertisement.
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New product development Market share:

Our product as newly entering with zero percent shares. To capture market portion it needs to develop strong image in market.
Media:
The vehicle that carries the ideas to the minds through its multidimensional tools. The channel through which the ideas travel through one end to the other.
Electronic Media:
Physical & practical representation of thoughts. It provides Mass coverage Combination of sight, sound and motion Appealing to the senses We selected following channels in electronic media:
Cable network
As the targeted market of our product (Wood ashtray & Smart bath kit) includes only the market of Lahore, Gujranwala, so to inform them we need not to advertise on other television channels. We would use them later as we expand our market coverage.
Print Media:
Newspapers:
Wood Ashtray and bath kit product will be advertised in three newspapers; The Dawn, The Jang and Local newspaper of target cities covering quarter-page only on Sundays due to maximum readership. This medium provides:

Flexibility Good local market coverage Easy acceptability Highly believable
Magazines:
Wood ashtray and bath kit product will be advertised in Sunday magazines covering full-page.
Billboards:
Sign board will be displayed near Pindi Bypass, G.T Road for Rs.50,000. This medium provides: Highly attractive Attention capturing Deliver message in no time
BUSINESS ANALYSIS
We have done the business analysis of the wood ashtray and bath kit on the following basis.
Demand estimation Cost estimation Capital estimation
Details are as follows
Demand estimation
Demand estimation is a process with the help of which we can predict our future forecasted demand of product.
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For estimating the demand of Laptop Charger we get assistance from experts in the fields of economics.
Demand estimation for Hostel
Charger
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New Product Development: (Evening)

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New product development

Punjab University (Gujranwala Campus) B.com 5th (evening)