A PROJECT REPORT ON NEW PRODUCT DEVELOPMENT A STUDY OF SMILINE LOYALTY CARDS

A SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TO OSMANIA UNIVERSITY, HYDERABAD.

IN PARTIAL FULFILLMENT OF THE SUMMER INTERNSHIP PROGRAMME OF B.Com (Honours) - 3rd year

By Name Taranpreet Singh Muchal Roll No. -128-08-01803

AURORAS DEGREE & PG COLLEGE

(AFFILIATED TO OSMANIA UNIVERSITY)

CHIKKADPALLY, HYDERABAD 500 020.

Certificate
This is to certify that the project work entitled

NEW PRODUCT DEVELOPMENT - A STUDY OF SMILINE LOYALTY CARDS

Is the bonafide work done by

NAME- Taranpreet Singh Muchal ROLL NO. 128-08-01803

as a part of their curriculum in the Department of Commerce

Auroras Degree & PG College, Chikkadpally, Hyderabad-20.

This work has been carried out under my guidance

Dr. Ravi Paturi Principal

Course Coordinator

Head of Dept.

External Examiner

Auroras Degree & PG College, Chikkadpally, Hyderabad-20.

DECLARATION

This is to inform that I, Taranpreet Singh Muchal of B.Com (Hons) III have completed my project work titled New Product Development A Case Study of Smiline Loyalty Cards in the year 2009-2010. I have completed my project under the guidance of Ms. Satyavathi, Faculty of Department of Commerce, Auroras Degree College, Chikkadpally, Hyderabad.

I hereby declare that this project report submitted by me to Osmania University, Hyderabad, is an original work done as part of our academic course and has not been submitted to any other University or Institution for the award of any degree or diploma.

Taranpreet Singh Muchal 128-08-01803

TO WHOMSOEVER IT MAY CONCERN

I certify that Taranpreet Singh Muchal of B.Com Honours III rd Year bearing Roll No 12808-01803 has done the project titled NEW PRODUCT DEVELOPMENT A CASE STUDY OF SMILINE LOYALTY CARDS under my guidance.

Ms. Satyavathi Commerce Faculty (Internal Guide)

ACKNOWLEDGEMENT

I express my sincere thanks to the staff and management of Auroras Degree College for giving me an opportunity to undertake this project work.

It is my pleasant duty to express my profound gratitude and extreme regards to my Mentor Ms. Satyavathi without whose learned and able guidance and encouragement, this work would not have been completed.

I would also like to thank my project External Mentor Dr. Ram Krishna and his staff for their cooperation in completion of my project in the required time.

Its an honor to thank Principal Dr. Ravi Paturi and Vice Principal & Head of Department Mr. Viswanadham Bulusu who has given me this opportunity.

Im also thankful to all my family members, classmates and friend who helped me in carrying out this project.

Name

: TARANPREET SINGH MUCHAL

Roll No : 128-08-01803

Chapter 1 Introduction
This chapter contains introduction, importance and scope of marketing in general. It also explains the concept of New Product Development. It contains literature reviewed, the need of the study, the objectives, scope of the study, period of the study, methodology adopted, limitations of the study and chapterization. INTRODUCTION Marketing is everywhere. Formally or informally, people and organizations engage in a vast number of activities that we could call marketing. Good marketing has become an increasingly vital ingredient for business success. And marketing profoundly affects our day lives. It is embedded in everything we dofrom clothes we wear, to the web sites we click on, to the ads we see. Marketing (or advertising) is the process by which companies advertise products or services to potential customers. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Marketing is used to create the customer to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The evolution of marketing was caused due to mature markets ties in the last decades. Companies then shifted the focus from production to the customer in order to stay profitable The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Good marketing is no accident, but a result of careful planning and execution. It is both an art and a science-there is a constant tension between its formulated side and its creative side. Its easier to learn the formulated side, which will occupy most of our attention in this book, but we will also describe how real creativity and passion operate in many companies. In this chapter, we lay the foundation for our study by reviewing a number of important marketing concepts, tools, frameworks, and issues. Mangers sometimes think of marketing as the art of selling products but many people are surprised when hear that selling is not the most important part of marketing! Selling is only the trip of the marketing iceberg. Peter Drucker, a leading management theorist, puts it this way: There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available. Marketing is defined by the American Marketing Association [AMA] as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." The term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches."

SCOPE OF MARKETING Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is meeting needs profitably. Marketing management is an art and science of choosing target markets and getting, keeping, and growing, customers through creating, delivering and communicating superior customer value. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making International Marketing highly significant and an integral part of a firm's marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business' size, corporate culture and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product. From this perspective, it consists of 5 steps, beginning with the market & environment research. After fixing the targets and setting the strategies, they will be realized by the marketing mix in step 4. The last step in the process is the marketing controlling. Marketing management strategy and design effective, cost-efficient implementation programs, firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, and competitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some marketing circles to divide these further into certain five "Cs": Customer analysis, Company

analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context. Department analysis is to develop a schematic diagram for market segmentation, breaking down the market into various constituent groups of customers, which are called customer segments or market segmentations. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the segments: demographic, psychographic, geographic, behavioral, needs-benefit, and other factors may all be examined. Marketers also attempt to track these segments' perceptions of the various products in the market using tools such as perceptual mapping. In company analysis, marketers focus on understanding the company's cost structure and cost position relative to competitors, as well as working to identify a firm's core competencies and other competitively distinct company resources. Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also conduct periodic brand audits to assess the strength of its brands and sources of brand equity. The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be performed if such products exist. Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include porters five forces, analysis of strategic groups of competitors, value chain analysis and others Depending on the industry, the regulatory context may also be important to examine in detail. In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include: 1. Qualitative marketing research , such as focus groups 2. Quantitative marketing strategy , such as statistical surveys 3. Experimental techniques such as test marks 4. Observational techniques such as ethnography (on-site) observation Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis. IMPORTANCE OF MARKETING Financial success often depends on marketing ability. Finance, operations, accounting, and other business function will not really if there isnt sufficient demand for products and services so the company can make a profit. Many companies have now created a chief marketing officer, or (CMO), position to put marketing on a more equal footing officer with other C-level executives, such as the chief executive officer (CEO) and chief financial officer (CFO). In stating their business priorities, CEOs acknowledge the importance of marketing. One of the surveys of the top 10 challenges CEOs face around the world in 2006 revealed that among the top 5 were both sustained and steady top line growth and customer loyalty/ retention challenges whose achievement depends heavily on marketing. CEOs also recognize the importance of marketing to building brands and a loyal customer base, intangible assets that make up a large percentage of the value of a firm.

From being a very small fish to becoming the big one and then the biggest among all; this is how few brands have changed with time e-g: Levis Microsoft and many other "The Big Fish" The financial success of such brands have been depending on combined efforts of their financial strategies and their marketing efforts. One thing that's been common among all there brands is a high degree of brand loyalty. They have managed to capture the share of heart and in turn share of customers wallet. Companies now understand that marketing plays an important roll in their overall success, so now companies have CMOs (Chief Marketing Officer) along with CFOs and CEOs. They understand that if there are functions close to customers its ether Sales or Marketing. Sales become a direct interface among customs and products offered by companies, and marketing is an indirect function between customer and the company. But what makes marketing so big? Why is it important? If you have a great product you are bound to succeed then why do u need to spend on marketing / advertising? The answer to these questions lies deep within the customers brain. Customers / consumers are smart and they understand what makes your product different form mine. If you are offering then 1 % more that what I do why should they pay me rather than paying you? Thats the point. And secondly its important to communicate the product offerings to the end user. If a marketing team has worked hard on understanding the consumer needs they need to make sure their customers get a feel This brand knows what I want. Trust me this is the only major differentiator between why your 1% more is able to get you more loyal and more number of customers. The time has changed. To products that are offered by a brand you have "n" number of more substitutes and consumers get to know which the better is substitute that suites there requirements. So it is important to make sure that

marketing efforts are more on understanding the changing needs on todays customer. We need to understand the minds of customers. Its rightly said customer is KING Marketing managers need to understand the customer needs and they need to make their major decisions such as the features to include, the price to be offered to customers and what to spend on advertisements. Marketing today has become an emotional research which helps understanding customer and consumers psychology so that products are developed based on these understanding. The marketing managers need to answer following questions:

How do we find the right market segment? How do we differentiate? How can we compete with low cost business models? How do we build a better brand? How do we reduce cost of customer acquisition?

A successful Marketing team can carefully analyze customer needs and carefully monitor there competitors marketing moves. Remember a short term sales driven view does not work in business world today. The C-level managers, the CEO, CFO should communicate importance of marketing in an organization, how the marketing function plays a great role in organizations success. CHANGING TRENDS IN MARKETING The markets are changing. And that is a fact that cannot be denied. In fact, they are more dynamic than ever before, and the rate of change is phenomenal. Changing marketing trends are a beyond our control. The reason we are talking about this topic today is because of the current market situation, where everyone is so worried about everything. If you look back into the history of our finances,

there has never been a time so strong and with such a lot of growth opportunity as we've had over the last few years. But then, all things change, and what goes up must come down (according to an old Indian saying). But a lot of things are looking up. There is a lot of market potential in emerging markets, and all we need to do is look beyond our borders, and things will be fine. The problem with some fellow baby boomers is that we do not look beyond the USA. The USA has been the first country to foster globalization, and today, we believe that the same globalization is threatening us. However, once we break free the psychological shackles that we have created for ourselves and truly believe that the whole world is one global village, new opportunities will suddenly crop up. Our children, the echo boomers, are better than we are in comprehending this. They are more global in their outlook, and thanks to the work that we have done, they have the whole world to do business with. And with e-commerce playing a larger and larger role in our daily life, the market trends are bound to change. So, sit back, enjoy and adapt to these changes. That will ensure that our lives are happy and we stay in control. NEW PRODUCT DEVELOPMENT In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. The New Product Development (NPD) Process, also known as Product Realization Process (PRP), is a company's formal process for controlling and

monitoring the flow of ideas into successful product launches. In leading organizations, this is a structured process with the following typical objectives:

Encourage and facilitate the review of a large number of new ideas or concepts Through rigorous analysis and decision making at specific review points, prioritize these to a few appropriately resourced programs with the highest likelihood of market success.

Minimize the number of products that are cancelled in the later (most expensive) development stages or are released with unsuccessful results Accelerate time to market and reduce break-even times for the product program Continuous improvement of the development process

In practice, organizations tailor the new product development process to their own environment, and will often combine stages (reducing the number of stage reviews) for certain types of products or for smaller product programs. In addition, many organizations are modifying the process to facilitate agile development methods, where customer feedback is solicited throughout the development cycle to allow for quicker adjustments. The process can be visualized as a funnel with a large number of new product ideas entering the concept stage, narrowing to a fewer number of fully resourced product programs in subsequent stages. Separating each stage is a gate or phase review where a decision is made to kill the product, enter into the next stage or redirect back to a previous stage for additional work. A typical development process is show below:

Visual Representation of New Product Development

Source: Robert G Cooper, (2003) Winning at New Products NEED FOR STUDY As today we are in 21st century so its really important for everybody to change with the time so new product development is one aspect of them were we have to constantly change our minds to market our products in every way possible a true marketer is a person who can sell anything for everything The rapid pace of change that engulfed businesses toward the end of the twentieth century put an even greater burden on companies to build adaptive capabilities into their organizations. Global competition means there are more competitors capable of world-class performance. This has made competition more intense, rigorous, and aggressive than ever before. Fragmenting and more sophisticated markets mean that consumers demand more from products in terms of quality, differentiation, and "meaningfulness."

New technologies have had two important outcomes in regards to innovation. First, new technologies are responsible for this new market sophistication in which consumers have more choices and are thus more demanding. Secondly, new technology has increased manufacturers' capabilities for rapid response to shifting market needs. Finally, product life cycles have become more compressed as the skills required for developing new products increase in complexity. For example, consider the development of a new type of computer software. The expertise needed to develop the software from conception to commercialization might take years. The product's life cycle in such a competitive and turbulent environment might last only a few months. Therefore, companies have embraced the view that new products are transient, whereas the skills and expertise needed to develop these products are a much more persistent requirement for success. Instead of the mono-approach, in which technology or markets drive innovation, new product development now requires a convergence of technology, marketing, product design, engineering, and manufacturing capabilities. Speed, efficiency, and quality in product development are the challenges that new product development faces in today's intense competitive environment.

REVIEW OF LITERATURE New Product Evaluation:

Three avoidable focus group mistakes: - by Phil Glowatz According to Phil glowatz three mistakes made by the developers at the new product development are explained as follows 1. Biasing respondents before they react to your concepts. In this developers present the product in front to some group for discussions that group first only makes an impression of the product which the developer

cannot clear so this problem creates a lot of problem to move head. The group can raise points on its needs working etc. so the developer should not do this it can cause a problem for the qualitative importance of the product. 2: Counting all "votes" the same. This is also again a basic problem at the development stage made by the developer this problem is that when the moderator shows a new product concept to the group, asks who wants to buy it, and six of the eight hands go up. The mistake is in believing each hand expresses the same degree of purchase interest. They do not! In a qualitative research setting it is important to differentiate the degree of enthusiasm that consumers have for your ideas by looking beyond the mere fact they raise their hands. For instance, the ways in which hands are raised are telling indicators of respondents' true levels of interest: The slow hand takes that the product is minimal so his enthusiasm is less towards thats why he take a time to decide. The Twitchy Hand rotates back and forth at the wrist as it is being raised--often slowly--so chances are this consumer really means, "I'm not sure." The Fast Hand. This hand shoots up quickly, which can indicate a degree of enthusiasm for the product. Fast Hands are one of the types of positive responses you have to see across several groups before you can judge a concept truly well-received. 3: Taking "yes" for an answer. When most or all of the respondents in a group say they want your new product, do not stop there and assume that you have a winner. Near-unanimous purchase interest simply doesn't exist in the real world. Indeed, respondents can be promiscuous in "voting" for concepts, because no money is changing hands, thus no real commitment is necessary. So, probe beyond the positive reaction. Ask if respondents are sure they want your product, and listen for a convincing reason

why. If the product is somewhat similar to others, why do they need it, and what is its key benefit relative to other choices? Reasons for purchase interest must be challenged. This may make the marketing and research managers feel uneasy in the viewing room, but they would feel even worse if a so-so product flopped in the marketplace. Article 2:- A New Product Adoption Model with Price, Advertising, and Uncertainty - Shlomo Kalish Recanati Graduate School of Business Administration, Tel Aviv University, Tel Aviv, Israel and Graduate School of Management, University of Rochester, Rochester, New York 14627 This paper introduces a framework for modeling innovation diffusion that includes price and advertising. The adoption of a new product is characterized by two steps: awareness and adoption. Awareness is the stage of being informed about the product search attributes. The process of becoming aware is modeled as a simple "epidemic" type model, where the information is spread by advertising and word of mouth. The second step, adoption, is conditional on awareness, and it occurs if the perceived risk adjusted value of the product exceeds its selling price. The population is heterogeneous with respect to valuation of the product. Individuals are risk averse, and therefore are willing to pay more for the product, on the average, as information from early adopters reduces uncertainty about the product. Optimal control of the diffusion process by pricing and advertising over time is analyzed, and a comparative estimation of the model in one application is reported. Article 3rd :- On Decision making in new product development Whetten (1993) stated that The decision perspective also seems to provide a description of product development that is both comprehensive and parsimonious, perhaps because it cuts across the functional perspectives without getting involved in the functional details of how the decisions are made.

Article 4th:- 8 lessons on the marketing strategies developed for a new product
1st lesson: - Research the competition

The first lesson explains before launching a new product in the market we should keep a track on the our competition and make a detailed research on it
2nd lesson: Know your customers' values.

It says that dont be into the assumption that your customers will buy your product when we have a lesser price. No its wrong brand value, quality etc also plays an important role into so we have to our customer value what the most
3rd lesson: Identify opportunities.

By analyzing the above to we can know where is our need and so that we can grab that opportunity.
4th lesson: Develop a positioning based on opportunity.

Using knowledge from the first three lessons, they positioned themselves as the quality alternative and on focusing on providing different benefits than their nearest competitors
5th lesson: Create a catchy tag line.

We have to make a very catchy tagline for our product for the advertisement.
6th lesson: Spread the Word.

It means marketing through pamplets ads and news paper adds etc.
7th lesson: Subterfuge is a poor long-term strategy.

It explains that we should not show any unethical things in the add, so that it would not create a problem in the long run for us.

8th lesson: Implement until you're blue in the face It says we should not get disheartened when we are not successful we should try again and again for the success. OBJECTIVES OF STUDY 1. To understand different marketing strategies for a new product. 2. To know what is the impact of the advertisement on the customers. HYPOTHESIS H0 There is no impact of advertising on customers. METHODOLOGY A central part of the research activity is to develop an effective research or design. Research methodology involves most of the suitable methods of investigation. The nature of the research instruments, the sample plant and the types of data. Research design A research design is purely the frame work or plan for the study that actually guides towards the collection and analysis of the data. Descriptive research design Descriptive research study is totally concerned with determining frequency with which a particular situation occurs or its the study about how to variables vary together. This study is typically guided by an initial hypothesis

Data collection methods 1. Primary data Primary data is collected through the well structured questionnaire. This method of data is quite popular. Administering questionnaire to the respondents directly and collecting the information immediately. 2. Sampling Only a few units of population under the study are considered for the analysis and this is called sampling. Data is collected from about 50 respondents who have seen the advertisement. It is one of the nonprobity sampling methods. Sampling plan Data source Research approach Research instrument Method of contact Questionnaire Data collection through questionnaire basis is one of the most popular and it is well defined and sequentially structured research work approach. The questionnaire is prepared in such a way that it cover comprehensive objective of the entire study being made. It includes all open end and multiple choice questions in order to make the study more efficient and informative to its readers. : : : : Primary data Survey Questionnaire Personal

SAMPLE The sample was taken from the people who have seen the ad played by Smiline Dental Hospitals in popular multiplexes in the twin cities of Hyderabad and Secunderabad. A random sample of 100 people, 50 male and 50 female was considered for the study. TECHNIQUES OF ANALYSIS The comparative study is done with the help of 2. Application of percentages and graphs has been done to give clarity to the data collected. SOURCES OF DATA The data required for the study is collected both from primary and secondary sources. Primary data is collected by conducting personal interviews, discussions with the old and new customers considered for the study. In addition, data was collected through questionnaires, feedback, observations etc. Secondary data includes the information of the old customers and the prospective ones collected from various sources. Research studies conducted by individuals, institutions and agencies, and various other journals were considered. PERIOD OF THE STUDY The study tries to understand the effect of advertising on customers of Smiline Dental Hospitals. The study spread over a period of two years i.e., from 2007 to 2009. SCOPE OF THE STUDY The data required for the present study was collected using questionnaires. The data was collected from the consumers who have seen the ads played at the multiplexes which were taken for the study. 50 female and 50 male, a total of 100 people were considered for the study.

CHAPTERISATION Chapter I INTRODUCTION This chapter contains introduction, importance and scope of marketing in general. It also explains the concept of New Product Development. It contains literature reviewed, the need of the study, the objectives, scope of the study, period of the study, methodology adopted, limitations of the study and chapterization. Chapter II SMILINE DENTAL HOSPITALS A COMPANY PROFILE

This chapter was taken up to an extensive study on the company as such. This chapter explores the services offered by the hospitals and the new product considered for the study. This chapter also dwells into the marketing strategies adopted by the company and the reasons for the same. Chapter III MARKETING STRATEGIES FOR NEW PRODUCT DEVELEOPMENT New product development is a crucial role for any company as it involves huge amount of costs. Marketing strategies have to be carefully examined and the best has to be selected as per the target customers. Chapter IV DATA ANALYSIS AND INTERPRETATION

In current global market, companies are composed by competitors, regardless of industry. To develop a competitive advantage, it is important that firms truly leverage on the marketing as a competitive weapon. This chapter analyzes the various effects of advertising on customes. Chapter V SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter being the last chapter gives conclusions and suggestions and briefly explains the objectives, methodology, findings and limitations of the study. This chapter also gives the scope for further study.

LIMITATIONS OF STUDY The major limitation of the study is that the questionnaires were

given to the intermediary 9or0 final consumer so that ultimate purchase decision maker is not a part of the picture and hence forth the study is done from an individuals point of view. Primary data analysis is solely dependent on the opinion of the The study was confined only to the people who have seen the There could be a possibly for an occurrence of a sampling error like The response of the customer depends on various factors like No attempt has been made in this study to do a longitudinal respondents. advertisement. Selection process and non response error. experiences, motivational factors, biased opinions, personal feelings etc time. analysis, that is, to explore the influence of these strategies over a period of

Chapter 2 Smiline Dental Hospitals A Company Profile

Smiline is a pioneer in creating world class state of the art dental hospital a first of its kind. It has been in existence for over a decade and has proven its mettle by adding more services and technology for the benefit of its customers/patients. Smiline has also expanded to other areas in the city. Smiline Dental Hospitals Hyderabad has an ambience and treatment philosophy that falls in line with the best in the business worldwide. Armed with the most advanced dental technology, a highly specialized team of doctors and support staff ensure that patient care and treatment complement each other in every way. SMILESURANCE Loyalty Card Smiline plans to introduce SMILESURANCE Loyalty Cards for existing users Details of the Card
o o o o

Price Advantage User advantage How to go about it Options of being part of GAS Foundation

This package includes a comprehensive oral health screening programmes for existing, loyal customers who have made more than one visit to the hospital.

This Includes: 1. Twice a year the Oral Hygiene conditions will be assessed and based on this the patient will be counseled. This includes the existing oral condition which includes condition of the teeth, gums, decay rate, past dental works and what is required to be done 2. Formulate a prevention plan for possible dental problem, twice a year 3. Perform oral prophylaxis (teeth and gum cleaning). Advice on personal care once a year including giving a dental care kit which will contain a dental floss with a holder and a mouthwash. 4. Each visit would accrue points which can be used for future dental expenses or works 5. Periodic reminders on patients pending works or future appointments through email or phone as per the convenience of the patient 6. Regular newsletters on new trends and facilities in the field of dentistry as well as in Smiline THE CARD There are 3 types of cards designed for the convenience of the customer Smilesurance Single User Card (SSU) Only the card holder gets the benefit of 2 screenings and one prophylaxis Smilesurance Single Floater User (SSFU) Apart from the card user, his immediate 4 family members can use the card subject to a maximum of 2 screenings and one prophylaxis Smilesurance Family User (SFU) This is for 4 family members who can use it individually for 2 screenings and 1 prophylaxis treatment each.

Smilesurance Group User (SGSFU) SMILE CORP Corporate Card

o o o o o o

Aimed at corporates Target 50-100 corporates Tell them the need for a corporate card The facilities Regular dental checks a must If corporates buy 50-100 card price benefit, plus priority in appointments flexibility of usage Support staff follow-ups Newsletter every quarter Eligible for future schemes Opportunity to be part of GASF as part of corporate Social Responsibility ie, either by cash or kind

o o o o

Littlesmiles Kids Dentistry The Idea Littlesmiles is a first of its kind offering from Smiline aimed at raising awareness for the need for a comprehensive dental plan for children as most people ignore this highly important component. Unlike the west where going to the dentist is almost like a religion, here in India it is the most neglected. Over the past ten years Smiline hospitals has been rendering its relentless service to the society in the form of school dental health education, free dental checkup and treatment to urban and rural school children through its mobile dental clinic. Infrastructure and back-up support

Objectives:

To introduce pain free dentistry to children in order to get rid of their inhibition of visiting a dentist. To maintain a play area in order to ensure sustaining motivation and enthusiasm through comfortable and relaxing ambience. To conduct various competitions for children relevant to dentistry. To educate parents and school teachers along with school children.

To organize exposure visits to Smiline dental studio for better understanding of dental procedures and state of art dental equipments The Event Most schools have occasional dental camps which are sponsored by toothpaste companies. Some doctors also conduct camps which are mass in nature and no individual attention to the child is hardly possible. Smiline has worked out a very novel idea of getting a camp organized which is practical, workable, and controllable and finally something that a child would love. These camps would be at the hospital rather than at the schools. Smiline will communicate to select schools asking them to send their children with prior appointments through the means of registration to the hospital so that the childs dental health and care can be viewed holistically. The fun filled event on Saturdays will be between 2 -5 PM so that parents can also accompany the children and get a firsthand experience of the features and facilities at Smiline.

To make dentistry a painless and fun filled experience To create a positive outlook towards dentistry and make dental health a way of life

Activities at Smiline Hospitals

Creation of a child friendly pediatric section Weekend programmes for children on every Saturday between 2 and 5 PM Orientation of staff on the Dental Hygiene Campaign and their roles in making it successful Free Dental screening for all the children who walk

The weekend programs should be fun, entertaining, educative, and informative. Registrations Since all walk-ins will be from schools, it is imperative that a proper registration mechanism is worked out to ensure a smooth flow of children and patients at all levels. Communications to schools will raise the curiosity level Support staff at the hospital will make personal calls to request for a personal presentation A doctor and a support staff will make a Presentation on the role of a holistic approach to dental health Support staff will put up posters and banners in the school and leave behind a register for enquiries. Registrations will happen online and each child given a particular day/slot Special events like a 2k run for raising awareness levels can be conducted periodically Gift-a-smile Foundation Smiline does not believe in just running a dental hospital. A deep rooted commitment to give back to the society- more importantly the underprivileged- is

the underlying core philosophy. Keeping this in mind it has started the Smiline Gift A Smile Foundation which works as an interface between the individual, corporate and the needy. AIMS AND OBJECTIVES: The main aim of Gift a smile Foundation is to render free dental counseling, dental check up, and rendering quality dental treatment to the poorest of poor either free or at nominal fee at their door step through mobile dental clinics and rural dental clinics. Gift A Smile Foundation also shall have the following objectives.

To conduct School Dental Health checkup programmes To conduct Dental health awareness Programmes of all kinds including Dental Checkups, Dental health exhibitions, Slide shows, competitions for children and youth To provide other welfare facilities like free safe drinking water free from fluorides, Calcium rich medicines or food to pregnant women and growing children and also distribution of tooth brushes and tooth powders To conduct Dental treatment camps for rural poor and school children, scheduled castes, scheduled tribes, physically handicapped, aged persons, women, etc., through mobile dental clinics To Start Rural dental clinics at block level catering to the needs of around 25 surrounding villages. A full time qualified dental surgeon will be appointed to conduct basic dental treatment procedures like extractions, scaling and fillings. A nominal fee of Rs. 10/- per patient will be collected towards registration. It includes dental checkup, Treatment. Dental clinics will be well equipped with modern instruments and X ray facilities

To train youth as Dental Hygienists, Chair side assistants, dental technicians and dental Mechanics which are skilled and semi skilled jobs suitable for outside and self employment opportunities available either independently or in collaboration with other organization To provide job opportunities to needy Dental students by conducting campus selections To provide scholarships to the poor students studying in Government or Private Dental colleges under Government quota To conduct and organize research programmes, to conduct surveys, studies, publish research findings, educative materials, bulletins, periodicals and other material related to dentistry To conduct public meetings, seminars, symposia, workshops, discussions, debates, demonstrations, exhibitions, cultural programmes, film shows, to give programmes on Radio, Television, Press etc., To co-ordinate with individuals, voluntary organizations government agencies, banks and other institutions engaged in rural development activities, to help organizations. Individuals working in rural areas, to execute and implement schemes through other organizations, to provide guidance and consultation to individuals voluntary organizations and government agencies engaged in rural development in areas of dental health. To organize training programmes, orientation programmes, refresher course etc., for Dental students, and dental professionals To conduct academic courses in any of the Dental specialties

To do all or any of the above activities and programmes in rural and urban areas To do all such acts, activities and programmes which are necessary for the attainment of the objects of GIFT A SMILE FOUNDATION

How can GAF be used? Individuals can get associated by buying a high value Loyalty card from which a part of the money is given to GAF. Corporate sector can contribute either by cash or by sponsoring various items like toothpastes, brushes etc. Corporates can weave this into their CSR programmes The contributors can get a TAX BENEFIT

THE

INTEGRATED

MARKETING

AND

COMMUNICATIONS MIX SMILINE AN OVERVIEW Smile has 4 product offerings

SMILEASSURANCE A loyalty card for existing users SMILECORP An exclusive card for the corporate sector LITTLESMILES A kids dentistry programme GIFT-A-SMILE A foundation for the underprivileged

Marketing Objectives

To contact at least 10000 existing customers regularly To make at least 1000 of them to respond and act To convert schools into successful dental operations To make GAF a profit center to generate its own income so that it can support its philanthropic activities

Marketing Mix An integration

Use all segments to cross promote each market segmentation Existing users can get more customers Existing customers can become corporate customers Corporate customers can become associated with GAF Corporates can get children for Littlesmiles Littlesmiles can get more Smilesurances and Smilecorps Individuals can get associated with GAF

The Communications Mix Since all segments are important and there is a huge overlap it is essential that we use a proper communications mix to achieve desired results. WEBSITE The focal point of all activities Mother site and a promotions/packages site PR Activity in select magazines and publications on a sustained basis Press Advertising Once in 2 months to raise awareness levels Direct Marketing To existing clientele, Schools and Corporates

Posters/ Banners For schools, corporates and other promotional places Theater Screenings Back-end Support Present footfall is around 12 patients a day Ideal situation is around 25 a day With the concerted activity a lot of footfalls can be expected throwing the existing system out of gear. Therefore there is a need to

Re-orient existing staff Get new staff Doctors, assistants as well as support staff A well trained marketing team of at least 2 to tackle existing clientele, corporate clientele and school management The marketing team should also be trained to correlate advertising and communications with the core activity A dedicated call center to tackle a database of 10000 customers and feed back The call center should be trained to handle individual, corporate and school queries 24 x 7 Online support to continuously upgrade information as well as tackle registrations and regular online appointments A separate communications team for a periodic newsletter, patients manual, procedure instructions, and other promotional material who will continuously interact with the agency and other communication experts

Chapter 3 Marketing Strategies for New Product Development

NEW PRODUCT DEVELOPMENT Firms all over world are trying to come up with creative ways to develop even better new products and services, faster and more efficiently. Marketers are playing a key role in the development of new products by identifying and evaluating new-product ideas and working with R&D and others areas in every stage of development process. Much of the discussions are equally relevant to new products, services, or business models. The dynamics of markets, technology, and competition have brought changes to virtually every market sector and have made new product development one of the most powerful business activities. The monumental changes that constantly impact commerce have forced companies to innovate with increasing speed, efficiency, and quality. In turn, this has made new product development one of

the most complex and difficult business functions. However, firms must innovate in order to survive. The power of innovation is revealed in numerous studies, which show that companies leading their industries attribute about half of their revenues to products developed in the most recent five years. By comparison, companies at the bottom of their industries achieve approximately one-tenth of their sales from new products. A firm's new product development efforts are shaped by its size, as well as the nature of the industry in which it operates. New products may be defined as any product, service, or idea not currently made or marketed by a company, or which the consumer may perceive as new. Many types of new products exist, from never-seen-before products like Apple's personal communicator, to repositioned standards like Sears' shift to Sears Brand Central. Various studies suggest that between 50 and 80 percent of new products failthe greater the rate of new product development, the higher the failure rate. New Product News predicts that more than 36,000 new products will be brought to market in 2005. Although there are numerous reasons why new products fail, faulty management and planning are at the core of most failures. Therefore, managing the new product development process is a key to a healthy organization. HISTORY OF NEW PRODUCT DEVELOPMENT The history of product innovation can be divided into three stages, beginning with the product-oriented or technology-pushed stage. In the post-World War II era Americans were coming off wartime shortages and were in the mood to buy the many goods that manufacturers produced. Engineers, who were more productoriented than consumer oriented, designed new products that might or might not find places in consumers' hearts and minds. This was a product-oriented process in which the market was considered the receptacle for products that emerged from the firm's research and development efforts.

However, competition escalated and consumers became more skeptical and selective about the types of products they purchased. Marketers found it increasingly difficult to rely on persuasive sales techniques to move products. Retailers grew restless when these products did not move off shelves as quickly as planned. Companies had to know more about their target markets. What were the wants and needs of the people who were buying their products? How could their firm satisfy these wants and needs? The second stage was marked by the emergence of the market as the driver of innovation. Instead of being technology-driven, new product development evolved into a market-led process in which new products emerged from wellresearched customer needs. The new product development process was placed in the hands of marketers who knew consumers' wants and needs. Customer demand "pulled" the product through the development process. Modern new product development is a blending of these two orientations into a "dual-drive" approach to innovation. Companies recognize that innovation is a complex process that requires sound investment in research and development, as well as significant marketing expertise that focuses on satisfying consumers' wants and needs. CHALLENGES IN NEW PRODUCT DEVELOPMENT New product introductions have accelerated in recent years In many industries, such as retailing, consumer goods, electronics, autos, and others, the time it takes to bring a product to market has been cut in half. Companies that fail to develop new products put themselves at risk. Their existing products are vulnerable to changing customer needs and tastes, new technologies, shortened product lifecycles, and increased domestic and foreign competition. New technologies are especially threatening. NEW PRODUCT SUCCESS

Most established companies focus on incremental innovation. Incremental innovation can allow companies to enter new markets by tweaking products for new customers, variations on a core product to stay one step ahead of the reasons market, and create interim solutions for industry-wide problems. NEW PRODUCT FAILURE New products can fail for many reasons: ignored or misinterpreted market research: overestimates of market size: high development costs: poor design: incorrect positioning, ineffective advertising, or wrong place, insufficient distribution support and competition that fight back hard. Senior management must decide how much to budget for new-product development. R&D outcomes are so uncertain that it is difficult to use normal investment criteria. Some companies solve this problem by financing as many projects as possible, hoping to achieve a few winners. Other companies apply a conventional percentage of sales figures or spend what the competition spends. Still other companies decide how many successful new products they need and work backward to estimate the required investment. TYPES AND SOURCES OF FUNDING FOR NEW

PROUCTS New products range from new-to-world products that create an entirely new market at one end, to minor improvements or revisions of existing product at the other. Most new-product activity is devoted to improving existing products. Product innovation and effective marketing programs have allowed the firms to expand their market footprint by improving existing products and with the support of a strong branding strategy. There are five categories of new products. New-to-the-world products or services are new inventions like in-line skates and health maintenance organizations. New category entries, such as sport utility vehicles, are products or services that are new to a firm. Additions to product lines add products or services to a firm's

current markets. For example, when a powder laundry detergent offers a liquid version it is considered a line extension. Product improvements are another type of new product and are common to every product category. Repositioning target products to new markets or for new uses is also another way. Firms can obtain new products internally or externally. External sourcing means the company acquires the product or service, or obtains the rights to market the product or service, from another organization. Internal development means the firm develops the new product itself. This is riskier than external development because the company bears all of the costs associated with new product development and implementation. Collaborations, which include strategic partnerships, strategic alliances, joint ventures, and licensing agreements, occur when two or more firms work together on developing new products. Companies handle the organizational aspect of the new product development in several ways. Many companies assign responsibility for new product ideas to product managers. Some companies high level management committee charged managers. Large companies often have established a new product development headed by a manager who has a substantial authority and access to top management. The departments major responsibilities include generating and screening new ideas, working with the R&D department and carrying out field testing and commercialization. MARKETING STRATEGIES FOR NEW PRODUCT

DEVELOPMENT The field of marketing strategy encompasses the strategy involved in the management of a given product. A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to manage effectively such products. Such decisions consist of the following decisions:

Should we (i.e. the firm) enter a market/industry? Should we increase funding for our product(s)? Should we maintain funding for our product(s)? Should we divest or cease production of our product(s)?

Evidently, a company needs to weigh up and ascertain how to utilize effectively its finite resources. As an example, a start-up car manufacturing firm would face little success, should it attempt to rival immediately Toyota, Ford, Nissan or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production may be made. With regard to the aforesaid questions, each scenario requires a unique marketing strategy to be employed. Below are listed some prominent marketing strategy models, which seek to propose means to answer the preceding questions.

Marketing strategies usually used to develop a new product: Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers,

prospects, and competitors in the market arena; corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:
1.

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:
a. b. c. d.

Leader Challenger Follower Nicher

2.

Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
a. b.

Product differentiation Market segmentation

3.

Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
a. b.

Pioneers Close followers

c.

Late followers

Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. The Consumer-Centric Business There are a many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered on Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges. The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output

of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable. For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists. The seven-step process assumes a definite beginning and end. However, studies suggest that what goes on before and after new products are introduced is as important as the process itself. Organizational structure, leadership, and team building influence the speed and efficiency with which new products are introduced. Structure influences efficiency, autonomy, and coordination. New product innovation requires structure that optimizes direction and guidance. Structure that facilitates internal information exchange, decision making, and materials flow is essential. A "fast-cycle" structure allows more time for planning and implementing activities to gain competitive advantage. This type of structure also cuts costs because production materials and information collect less overhead and do not accumulate as work-in-process inventory. Autonomy refers to the amount of decision making allowed at lower levels of management. The coordination of the engineering, product designs, manufacturing, and marketing functions in the new product development process is vital. Leadership influences strategy, culture, and the firm's overall ability to undertake new product development. Top management can demonstrate involvement in the development process by providing career advancement for entrepreneurial skills and encouraging broad employee participation. Clarity and vision are crucial to ensuring that new product ideas are good strategic fits for the company. The

degree to which leadership allows trial and error and promotes individual initiative positively influences the development of new products. This acceptance of risk and support for an entrepreneurial spirit within the organization are crucial in order for innovation to flourish. New products emerge in a variety of ways and their development does not always proceed in rational and consistent manners. It is necessary for leadership to view the process as iterative and dynamic, and to foster adaptation and flexibility. Management flexibility and responsiveness to change also are needed. This type of leadership is particularly important to the project manager who must coordinate and integrate the various parts of the new product development process so that a coherent system emerges that produces a product with compelling value. Initiative encourages creativity and problemsolving skills. Teams provide mechanisms for breaking down functional biases created by a strict adherence to structure. The amount of interdepartmental conflict in the organization, the social cohesion among team members, and the frequency and directionality of interdepartmental communication influence team building. Through shared understanding of the objectives and purposes of the project, as well as the tasks required in the development process, teams can shape the project and influence how work gets done in the organization. STAGES IN NEW PRODUCT DEVELOPMENT The stages of new product development process can be explained in the detailed manner 1. Idea generation: - The new product development process starts with the search for ideas. Some marketing experts believe the greatest opportunities and highest leverage found by uncovering the best possible set if unmet customer needs or technological innovation. New product ideas can come from interacting with various groups and using creativity- generating techniques.

2.

Idea screening: - In screening ideas, the company must avoid. A drop- error occurs when the company dismisses a good idea. It extremely easy to find fault with other peoples ideas. Some companies shudder when they dismissed or breathe sighs of relief when how close they came to dropping what eventually became a huge success. The executive committee then reviews each idea against a set of criteria.

3.

Concept development and testing: - A product idea can be turned into several concepts. Customers dont buy product ideas; they buy concepts. Each concept represents a category concept that defines the products competition. Concept testing means presenting the product concept, symbolically or physically, to target consumers and getting their reaction. The more the tested concepts resemble the final product or experience, the more dependable concept testing is .concept testing of prototypes can help to avoid costly mistakes, but it may be especially challenging radically different, new-to-the-world product.

4.

Market strategy development: - The new product manager will develop a preliminary three-part strategy plan for introducing the new product into the market. The first part describes the target markets size, structure, and behavior; the planned positioning and the sales, market share and profit goals sought in the first few years. The second outlines the planned price, distribution strategy, and marketing budget for the first year. The third part of the marketing strategy plan describes the long-run sales and profit goals and marketing-mix strategy over time.

5.

Business analysis: - after management develops the product concept and marketing strategy. It can evaluate the proposals business attractiveness. Management needs to prepare sales; cost and profit projections to determine whether they satisfy company objectives. If they do, the concept can move to the development stage. As new information comes in, the business analysis will undergo revision and expansion.

6.

Product development: - The job translating target customer requirements into a working prototype is helped by a set of methods known as quality function development (QFD). The methodology takes the list of desired customer t engineers attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that can use. The R&D department will develop one or more physical versions of the product concept its goal is to find a prototype that embodies they attributes described in the product concept statement.

7.

Market testing: - after management is satisfied with the functional and psychological performance, the product is ready to be dressed up with the brand name and packaging and put into a market test, in an authentic setting, marketers can learn how large the market is how consumers and dealers reach to handling, using and repurchasing the product. The amount of market testing is influenced by the investment cost and risk on the one hand, and the time pressure and research cost on the other.

8.

Commercialization: - if the company goes ahead with commercialization, it will face its largest costs to date. It will need from are contract for manufacture or built or rent a full-scale manufacturing facility. Another major cost is marketing. To introduce a major new consumer packaged goods into the he national market in the United States.

These steps may be iterated as needed. Some steps may be eliminated. To reduce the time that the NPD process takes, many companies are completing several steps at the same time (referred to as concurrent engineering or time to market. Most industry leaders see new product development as a proactive process where resources are allocated to identify market changes and seize upon new product opportunities before they occur (in contrast to a reactive strategy in which nothing is done until problems occur or the competitor introduces an innovation). Many industry leaders see new product development

as an ongoing process (referred to as continuous development) in which the entire organization is always looking for opportunities. For the more innovative products indicated on the diagram above, great amounts of uncertainty and change may exist, which makes it difficult or impossible to plan the complete project before starting it. In this case, a more flexible approach may be advisable. Because the NPD process typically requires both engineering and marketing expertise, functional are a common way of organizing projects. The team is responsible for all aspects of the project, from initial idea generation to final commercialization, and they usually report to senior management (often to a vice president or Program Manager). In those industries where products are technically complex, development research is typically expensive, and product life cycles are relatively short, strategic alliances among several organizations helps to spread the costs, provide access to a wider skill set, and speeds the overall process.

DENTAL INSURANCE PLANS Dental insurance plan can be referred to as a plan which covers all or partial expenses when one visit a dentist either for routine check up or for any dental assistance. One who visits the dentist or needs any dental assistance is required to pay a certain amount called premium at regular intervals to the insurance provider. One

who has acquired a dental insurance plan can pay the premium according to ones choice. Unlike most western countries, specific dental insurance plan not common in India. In India, oral health is normally integrated with the general health insurance schemes. However, some popular tooth care product companies have forged tie ups with general or companies to produce dental insurance products. Some popular health insurance that is offered by Indian insurance companies is the Mediclaim policy, accident policy and traffic accident policy. In cases where the Indian dental insurance is clubbed to these general health insurance policies, one has to look for the specific provisions that relate to the dental cover in these plans. Dental insurance refers to the cost which one has to bear in order to cover ones dental expenses. The National Association of Dental insurance covers. DENTAL INSURANCE: COVERAGE Dental insurance generally covers the following, although the coverage may differ from one insurance provider to the other: 1. Dental insurance covers dental cleaning for removing plaque and tartar by a professional, which may be needed from time to time. 2. Dental insurance may also include extraction of teeth, needing surgery which can be included in non-cosmetic surgery. 3. Dental x-ray is also covered by dental insurance. Taking a dental x-ray is important because it shows the exact condition of dentition. 4. A person suffering from cavities and chippings can get fillings done. This is also covered by dental insurance.

5.

Dental insurance also covers situations needing urgent dental attention in case of an injury or accident. The emergency may include tooth replacement or dental surgery.

All dental insurance providers make tall claims, but one needs to weigh the pros and cons carefully before parting with their hard earned money as there are several loopholes which one needs to be aware of. NEW PRODUCT DEVELOPMENT OF LOYALTY CARDS AT SMILINE DENTAL HOSPITALS The loyalty card also has to go through this process of the new product development: Idea generation: - The Managing Director of Smiline Dental Hospitals had an idea to introduce a smiline insurance card which was named as smiline loyalty card for the old and the new corporate customers. Idea screening: - The Managing Director of Smiline Dental Hospitals introduced this idea to the other doctors of the hospital and also to the other departments. The idea was well discussed over Concept development and testing: - This idea of dental loyalty now was more developed it was divided in concepts and tested with the old customers, and unit members. Marketing strategy development: - After finding that the product was trust worthy, different marketing strategies were started to introduce the smiline loyalty card in the market. Suitable marketing strategies were discussed over in limited resources.

Business analysis: - In discussion with the other doctors a plan was formulated to help loyalty card can meet its goal of profits.

Product development: - After all this process now it was the turn to introduce the product in the market. The coverage of the dental insurance how many types of card should be issued etc. were discussed and worked on.

Market testing: - The product is yet to be introduced in the market and be tested. This product is still in the development stage.

Commercialization: - The product is to be commercialized once it is tested in the market and necessary changes are made.

There are 3 types of cards designed for the convenience of the customer Smilesurance Single User Card (SSU) Only the card holder gets the benefit of 2 screenings and one prophylaxis Smilesurance Single Floater User (SSFU) Apart from the card user, his immediate 4 family members can use the card subject to a maximum of 2 screenings and one prophylaxis customers Smilesurance Family User (SFU) This is for 4 family members who can use it individually for 2 screenings and 1 prophylaxis treatment each.

Chapter 4 Data Analysis and Interpretation

Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions often follow set procedures for bringing products to market. In the scientific area that may mean the establishment of ongoing laboratory research programs for discovering new products (e.g., medicines) while less scientific companies may pull together resources for product development on a less structured timetable. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product

development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena; corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement METHODOLOGY A central part of the research activity is to develop an effective research or design. Research methodology involves most of the suitable methods of investigation. The nature of the research instruments, the sample plant and the types of data. Research design A research design is purely the frame work or plan for the study that actually guides towards the collection and analysis of the data. Descriptive research design Descriptive research study is totally concerned with determining frequency with which a particular situation occurs or its the study about how to variables vary together. This study is typically guided by an initial hypothesis Data collection methods 1. Primary data

Primary data is collected through the well structured questionnaire. This method of data is quite popular. Administering questionnaire to the respondents directly and collecting the information immediately. 2. Sampling Only a few units of population under the study are considered for the analysis and this is called sampling. Data is collected from about 50 respondents who have seen the advertisement. It is one of the nonprobity sampling methods. Sampling plan Data source Research approach Research instrument Method of contact : : : : Primary data Survey Questionnaire Personal

Questionnaire Data collection through questionnaire basis is one of the most popular and it is well defined and sequentially structured research work approach. The questionnaire is prepared in such a way that it cover comprehensive objective of the entire study being made. It includes all open end and multiple choice questions in order to make the study more efficient and informative to its readers. SAMPLE The sample was taken from the people who have seen the ad played by Smiline Dental Hospitals in popular multiplexes in the twin cities of Hyderabad and Secunderabad. A random sample of 100 people, 50 male and 50 female was considered for the study.

RESPONDENT PROFILE The ages of the respondents were analyzed to get an idea of the group under consideration. This was done to know the target customers better, as the sample was taken for a multiplex.

REGULARITY OF VISITATION TO THE DENTIST As, this study is related to loyalty cards in a dental hospital it was essential for the study to examine the regularity of visits to the dentist. This helps to identify the target customers.

It is quite evident from the above data that the number of people visiting the dentist regularly is quite high. And hence, it can be said that launching loyalty cards would be a good idea as there is a higher number of people who visit the dentist regularly.

HOSPITAL VISITED REGULARLY This data enables us to understand the preference among people for different hospitals. Consumers prefer private hospitals for their service and the efficiency.

SERVICES OF SMILINE DENTAL HOSPITAL The general review of Smiline Dental Hospitals has been very good as seen from the data. This shows that the response to the loyalty cards would be very good

RESPONSE TO THE ADVERTISEMENT An ad of Smiline Dental Hospitals Loyalty Cards was played in the leading multiplexes in the twin cities. Later, a study was conducted on the effectiveness of this marketing strategy.

Chi square value is calculated at 6.95 (>3.84) which shows that the advertising is significant or has impact on the customers.

ENJOY SERVICES OF THE CARD The study shows that, a very positive response is there towards the card. Consumers would like to use the card and enjoy the services provided by it

CHANGES IN THE CARD The study shows that consumers accept the card as it is, and very small proportion want to see changes in the card. This shows that the idea has been successful.

DENTAL INSURANCE BENEFICIAL People send a huge amount on dental treatment these days. Dental hygiene has become more important than anything else and hence the concept of dental insurance. People feel dental insurance has been a boon to people

Chapter 5 Summary, Conclusions and Suggestions

Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Marketing is used to identify the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The evolution of marketing was caused due to mature markets and overcapacities in the last decades. Companies then shifted the focus from production to the customer in order to stay profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. NPD relates to, as the label denotes, the development of a new to market product. The stages of the process are so:

Idea Generation Idea Screening Business Analysis Product Development Product Testing

Test Marketing Commercialisation

Given the resources placed in the development of a product, a firm must gauge the economic viability of a good, coupled with the viability of the notion of the good, prior to releasing it onto the market. NEED FOR STUDY As today we are in 21st century so its really important for everybody to change with the time so new product development is one aspect of them were we have to constantly change our minds to market our products in every way possible a true marketer is a person who can sell anything for everything The rapid pace of change that engulfed businesses toward the end of the twentieth century put an even greater burden on companies to build adaptive capabilities into their organizations. Global competition means there are more competitors capable of world-class performance. This has made competition more intense, rigorous, and aggressive than ever before. Fragmenting and more sophisticated markets mean that consumers demand more from products in terms of quality, differentiation, and "meaningfulness." New technologies have had two important outcomes in regards to innovation. First, new technologies are responsible for this new market sophistication in which consumers have more choices and are thus more demanding. Secondly, new technology has increased manufacturers' capabilities for rapid response to shifting market needs. Finally, product life cycles have become more compressed as the skills required for developing new products increase in complexity. For example, consider the development of a new type of computer software. The expertise needed to develop the software from conception to commercialization might take years. The product's life cycle in such a competitive and turbulent environment might last only a few months. Therefore, companies have embraced the view that new

products are transient, whereas the skills and expertise needed to develop these products are a much more persistent requirement for success. Instead of the mono-approach, in which technology or markets drive innovation, new product development now requires a convergence of technology, marketing, product design, engineering, and manufacturing capabilities. Speed, efficiency, and quality in product development are the challenges that new product development faces in today's intense competitive environment. OBJECTIVES OF STUDY 3. To understand different marketing strategies for a new product. 4. To know what is the impact of the advertisement on the customers.

HYPOTHESIS H0 There is no impact of advertising on customers.

METHODOLOGY A central part of the research activity is to develop an effective research or design. Research methodology involves most of the suitable methods of investigation. The nature of the research instruments, the sample plant and the types of data. Research design A research design is purely the frame work or plan for the study that actually guides towards the collection and analysis of the data. Descriptive research design

Descriptive research study is totally concerned with determining frequency with which a particular situation occurs or its the study about how to variables vary together. This study is typically guided by an initial hypothesis Data collection methods 3. Primary data Primary data is collected through the well structured questionnaire. This method of data is quite popular. Administering questionnaire to the respondents directly and collecting the information immediately. 4. Sampling Only a few units of population under the study are considered for the analysis and this is called sampling. Data is collected from about 50 respondents who have seen the advertisement. It is one of the nonprobity sampling methods. Sampling plan Data source Research approach Research instrument Method of contact Questionnaire Data collection through questionnaire basis is one of the most popular and it is well defined and sequentially structured research work approach. The questionnaire is prepared in such a way that it cover comprehensive objective of the entire study being made. It includes all open end and multiple choice questions in order to make the study more efficient and informative to its readers. : : : : Primary data Survey Questionnaire Personal

SAMPLE The sample was taken from the people who have seen the ad played by Smiline Dental Hospitals in popular multiplexes in the twin cities of Hyderabad and Secunderabad. A random sample of 100 people, 50 male and 50 female was considered for the study. TECHNIQUES OF ANALYSIS The comparative study is done with the help of 2. Application of percentages and graphs has been done to give clarity to the data collected. SOURCES OF DATA The data required for the study is collected both from primary and secondary sources. Primary data is collected by conducting personal interviews, discussions with the old and new customers considered for the study. In addition, data was collected through questionnaires, feedback, observations etc. Secondary data includes the information of the old customers and the prospective ones collected from various sources. Research studies conducted by individuals, institutions and agencies, and various other journals were considered. PERIOD OF THE STUDY The study tries to understand the effect of advertising on customers of Smiline Dental Hospitals. The study spread over a period of two years i.e., from 2007 to 2009.

SCOPE OF THE STUDY The data required for the present study was collected using questionnaires. The data was collected from the consumers who have seen the ads played at the

multiplexes which were taken for the study. 50 female and 50 male, a total of 100 people were considered for the study. CHAPTERISATION Chapter I INTRODUCTION This chapter contains introduction, importance and scope of marketing in general. It also explains the concept of New Product Development. It contains literature reviewed, the need of the study, the objectives, scope of the study, period of the study, methodology adopted, limitations of the study and chapterization. Chapter II SMILINE DENTAL HOSPITALS A COMPANY PROFILE This chapter was taken up to an extensive study on the company as such. This chapter explores the services offered by the hospitals and the new product considered for the study. This chapter also dwells into the marketing strategies adopted by the company and the reasons for the same. Chapter III MARKETING STRATEGIES FOR NEW PRODUCT DEVELEOPMENT New product development is a crucial role for any company as it involves huge amount of costs. Marketing strategies have to be carefully examined and the best has to be selected as per the target customers. Chapter IV DATA ANALYSIS AND INTERPRETATION In current global market, companies are composed by competitors, regardless of industry. To develop a competitive advantage, it is important that firms truly leverage on the marketing as a competitive weapon. This chapter analyzes the various effects of advertising on customers. Chapter V SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter being the last chapter gives conclusions and suggestions and briefly explains the objectives, methodology, findings and limitations of the study. This chapter also gives the scope for further study.

LIMITATIONS OF STUDY The major limitation of the study is that the questionnaires were given to

the intermediary 9or0 final consumer so that ultimate purchase decision maker is not a part of the picture and hence forth the study is done from an individuals point of view. Primary data analysis is solely dependent on the opinion of the The study was confined only to the people who have seen the There could be a possibly for an occurrence of a sampling error like The response of the customer depends on various factors like No attempt has been made in this study to do a longitudinal analysis, that respondents. advertisement. Selection process and non response error. experiences, motivational factors, biased opinions, personal feelings etc is, to explore the influence of these strategies over a period of time.

FINDINGS Out of 100 respondents only 74% respondents said that they go for dental check up regularly and the remaining go for only if they have tooth pain or a cavity Mostly prefer to go for private clinics as 95% respondents said that they prefer private as its more convenient and accessible.

The persons who saw the advertisement about the smiline insurance card doesnt know what smiline dental hospital is 35% know about the hospital

84% of the respondents say that they know about dental insurance but they actually not seen the details of it

72 % of the respondents were ready to buy the new card and other was still in dilemma to think out it as it would be beneficial or not.

23% of the respondents said they want to make some changes in the card that means they were not satisfied with services rendered by the card.

87% of the people belief that its beneficial to have dental insurance card but remaining people thought that its a waste of money.

SUGGESTIONS Advertisements should be more strengthened at point of sales Maximum consumers are looking for better beneficial at a low premium Smiline should make a market survey for their card is getting beneficial for the people Promotional campaigns and advertisements have to mainly focus on the benefits of the people

Only 60% respondents are only ready to buy the card so we have to make the marketing strategies more effective that the sales should be increased

Questionnaire
Age: Gender:

1. Do you go for dental check up regularly? a. yes b. no

2. Which hospital do you visit mostly? a. Government hospitals b. Private hospitals.

3. Have you ever visited smiline dental hospitals? a. yes b. no

4. If yes then how were the services of the hospital? a. excellent b. very good c. good d. poor

5. Have you heard about the dental insurance card? a. yes

b. no

6. Have you seen the advertisement of dental insurance card? a. yes b. no

7. How was the add? a. excellent b. very good c. good d. poor

8. Would you like to enjoy the services of the card? a. yes b. no

9. Would you like to make some changes in the card? a. yes b. no

10. Do you think that dental insurance is beneficial to the people? a. yes b. no

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