New product launch

Abhishek Mishra (01)

Sabitha.K(30)
Jetmal Singh(17)
Amal Rishi(04)
Anuja Dubey(06)
Ekta Gulati(11)
Surabhi Johri(18)

Dipika Dewan(16) 1A
 Swadisht…….

 Health conscious traditional indian

sweet mart.
 Other products in the market
amul probiotic ice cream range
sugar free deserts
sugar free bakery items
New product development stages…
 Idea Generation
 Idea Screening
 Concept Development & Testing
 Marketing Strategy
 Business Analysis
 Prototype Development
 Market Test
 Commercialization
 Step 1
Idea generation
Idea Generation
 SOV speed governance system
 Puja thali pack
 Ready to serve fruit based
drinks
 Digital newspaper
 Health conscious sweet mart
 Step 2
Idea Screening
SOV speed governance system
 Advantages

• Speed governance
• Safety aspect

 Disadvantages
• High cost
• No Govt ruling
• Not suitable for vehicles in emergency situations.
 Puja thali pack

 Advantages
• High market potential
• Low cost
• Easy to carry

 Disadvantage
• Low Awareness
• Seasonal Use
Ready to serve fruit based drinks
 Advantages
• Nutritious
• Low cost
• Easily available
• High market potential
• portable

 Disadvantages
• Low market awareness
• High competitor density
 Digital newspaper
 Advantages
• compact
• Self updating system
• Portable

 Disadvantages
• Low market awareness
• High initial investment
 Health conscious sweet mart
 Advantages
• Low calorie
• Sugar free
• Affordable
• Easily available
• High market potential
• Low competition

 Disadvantages
• Low market awareness
 Idea Rating –sov(speed governor)
Product success Relative weightage Fit between product Idea rating (c=a*b)
requirement idea & company
capability(0.0-1.0)

Company strategies .15 0.8 0.12

& objectives

Marketing skills & .15 0.8 0.12

experiments
Financial returns .10 0.7 0.07

Channel of .25 0.4 0.100

Distribution
Production .10 0.1 0.01
Capabilities
Research and .10 0.5 0.05
Development
Purchasing and .05 0.5 0.025
Supplies
1.0 0.495
 Weighted Scores
 SOV speed governance system0.495
 Puja thali pack0.69
 Ready to serve fruit based drinks0.7275
 Digital newspaper0.66
 Health conscious sweet mart0.7925
(Idea selected)
 STEP III

CONCEPT DEVELOPMENT
AND TESTING
HEALTH CONSIOUS SWEET MART
 Concept Statement
Offering low cal, low fat, sugar free sweet
meats; that satiates the taste buds and is
healthy, perfectly safe and viable solution
for sweet lovers. Perfect for
diabetes,cholestrol and obese patients, old
aged people and health conscious youth.
 CONCEPT DEVELOPMENT AND
TESTING
 C1 :Diabetes,Cholestrol and Obese
patients
 C2 :Old aged people.
 C3 : Health conscious youth.
Concept evaluation
Market C1 C2 C3
Attractiveness
Size Large but not Large market size Large and highly
focused 7 pts 7 pts health consious6 pts
Growth 8 pts 8pts 6 pts
Profit 8 pts 7 pts 6 pts
Competition less 7 pts Less competition 6 Lot of competition
pts 5 pts
Capability to Health conscious Attracted towards Moderately preferred
create DA product health conscious 6 pts
9 pts 7 pts
Innovation 8 pts 6 pts 7 pts
Finance/Purchasi 8 pts 6 pts 7 pts
ng capability
Social acceptance 8 pts 7 pts 7 pts

Marketing 8pts 7 pts 6 pts

capability
Total 71 pts 61 pts 56 pts
Perception maps for the chosen
product
High

V SWADISHT
A BIKANER
R SUGARFREE HALDIRAM
I ICECREAMS
E SHRI KRISHNA
T
y

Low
Low SUGAR LEVEL High
High

V SWADISHT
A BIKANER
R SUGARFREE HALDIRAM
I ICECREAMS
E SHRI KRISHNA
T
y

Low
Low FAT LEVEL High
High

V SWADISHT
A BIKANER
R SUGARFREE HALDIRAM
I ICECREAMS
E SHRI KRISHNA
T
y

Low
Low CHOLESTROL LEVEL High
High
S
A SWADISHT HALDIRAM
T
I SUGARFREE ICECREAMS BIKANER
S
SHRI KRISHNA
F
A
C
T
I
O
N

Low
Low SUGAR LEVEL High
High SWADISHT

SUGARFREE ICECREAMS
Sugarfree Varieties

HALDIRAMS

BIKANER
SHRI KRISHNA

Low

Low Price High

High SWADISHT
SUGAR FREE ICECREAMS

SHRI KRISHNA HALDIRAMS

BIKANER
QUALITY

Low

Low Price High

 SWADISHT’s
 Positioning statement….
 Product Positioning

A one stop shop for delicious, mouth-

watering traditional sweets from all over
the country, which would be low on
calories and cholesterol for people with a
proven sweet tooth but crippled by and
prone to diabetes,cholestrol & obesity.
 Product Breakdown
SWADISHT

REGIONAL
FORM PACKAGING
VARIETIES

1. BENGALI SWEETS
1. CANNED PACK
• WET SWEETS. 2. U.P SWEETS
2. CARDBOARD
• 3. PUNJABI SWEETS
DRY SWEETS. PACKS
4. RAJASTHANI SWEETS
3. PET DISPOSABLE
5. M.P SWEETS
PACKAGING
6. GUJRATI SWEETS
4. FESTIVE PACKING.
 MARKET BREAKDOWN
MARKET

DIABETIES, HEALTH
CHOLESTEROL AGED
AND OBESITY CONSIOU
ADULTS
PATIENTS S YOUTH

WORKIN
G NON-
STUDENT WORKI STUDEN
PROFESS WORKIN
S NG TS
IONALS G
 FAB ANALYSIS
 Features: Low cal, Low fat, Low Sugar
Ingredients.

 Attributes: Many varieties for every

region, easily available, one-stop shop.

 Benefits: Satisfies your sweet tooth

needs without guilt
BARRIERS TO ENTRY
 Features
 Variety of sweets
• A large variety of traditional sweets.

- Bengali-Rasgulla, malai chop, sandesh,

Honey dew, rasmalai.
-U.P- Besan laddo, pinni, boondi laddo, rabri, gulab
jamun, petha, pedda
-M.P- Gujia, gond ke laddo, chikki, gachak
-Rajasthan- Ghewar, churma, anjir barfi
-Gujarat- Mysore thal etc

 First mover advantage

 Distribution channels-

• Direct retailing
• Tie up with fitness centres like VLCC, gyms
• Tie up with caterers
 Price –
• Prices affordable

• Special price on festive packs

• Special price for catering assignments

 Purchase Cues
 Brand name and logo

 Sweets varieties

 Aspartame instead of saccharin

 Guilt free indulgence

 Certified by Diabetic association of
India

 Certified by Indian health and

medical association
 Concept Testing Statement
Presenting SWADISHT –an entirely new concept-Sweet mart- which
brings you sugar free ,low calorie, low fat traditional Indian
sweets through an exclusive outlet in your city for the first time
ever, for all people both young and old with history of
diabetes,cholestrol and obesity, sweets which can be consumed
on all occasions like marriage or during festivals or on a daily
basis as a sweet dish. The sweets are made available to the
customers in any quantity as per their desire in hygenic cardboard
packing for dry sweets and food grade packing for wet sweets. the
sweets of a large variety like Bengali-Rasgulla, malai chop,
sandesh, Honey dew, rasmalai.U.P- Besan laddo, pinni, boondi
laddo, rabri, gulab jamun, petha, pedda,M.P- Gujia, gond ke laddo,
chikki, gachak Rajasthan- Ghewar, churma, anjir barfi Gujarat-
Mysore thal etc are available at very affordable prices(like sugar
free anjeer burfi –Rs 325, sugar free khajur barfi Rs 250).this is a
unique concept ,of a sweet mart for the people who can grab their
favourite sweets anytime they want at reasonable prices.

Come and taste the heavenly delicacies with no guilt……

 Nut Khut Rs
325
Healthy
hamper –
Sugarfree anjeer Rs 495
barfi-Rs 325

Sugarfree
Khajur Barfi-
Rs 250 Mango surprise-Rs 405
 STEP 4
Strategy Formulation
 Part 1
• TMS –
• Size – 7, 50, 000 (TARGETING 5% INITIALLY)
• Structure -people with history of diabetes, cholesterol, or
high/low B.P , obesity.
• Behavior – consuming sweets on occasions such as festivals,
birthday parties, family outing, picnics, friends reunion, etc
-Gifting sweets on various occasions

•Brand product positioning

•Little high price, very high quality, very low in calories in fats,
low cholesterol, low sugar, and hygenic.
 Part 2
• Product -
• Price – affordable price(for eg
• Pack sizes – diff. sizes of packing boxes with diff.
varieties of sweets
• Variants – Different sweets, different sizes, different shapes,
different colors, different taste.

• Distributor Strategy
• Sweet Shops, + free home delivery
• Full time offer with every 5 kgs, ½ kg free
 Part 3
1. Long run sales and profit goals
• Market share (3-5yrs) 40%
• PAT 25-30%
1. Marketing mix strategy
• Product quality- continuously upgrade, add new
variants, new varieties (locally consumed)
• Price – a little more
• Place – Pune and then Metros
• Promotion - initial advertising to sales promotion
(70:30) and eventually become 50:50
 STEP 5

BUSINESS
ANALYSIS(EXCEL
SHEETS)
 ATAR MODEL
Total population 7, 50, 000

NUMBER OF CONSUMERS WHO ARE AWARE OF OUR 0.90

PROD.
% OF CONSUMERS WHO WILL TRIAL IT 0.50

% OF CONSUMERS AVAILABLE IN EXISTING DIST. 0.40

CHANNELS
% OF CONSUMERS WHO WILL BUY AGAIN 0.50

AMOUNT 1 kgs every 2 months so 6kg/yr 0.54

Total Market Size (IN Rs) 12.15 crores

TARGETING 5% OF POPULATION INITIALLY (SALES IN 6075000

Rs)
 SENSITIVITY ANALYSIS
MARET SIZE AWARENE TRAIL AVAILABILITYRPEAT NUMBER FORECAST MKT. FORECAST GROWTH
SS PURCHAS BOUG POT. SHAR
E HT/Y E.
EAR

750000 0.9 0.5 0.4 0.5 6 405000 0.2 20250

-do- 0.91 0.5 0.4 0.5 6 409500 0.2 20475 225

-do- 0.9 0.51 0.4 0.5 6 413100 0.2 20655 180

-do- 0.9 0.5 0.41 0.5 6 415125 0.2 20756 101

-do- 0.9 0.5 0.4 0.51 6 413100 0.2 20655 -101

-do- 0.9 0.5 0.4 0.5 7 472500 0.2 23625 2970

-do- 0.91 0.51 0.41 0.51 7 509477.377 0.2 25474

5
 Observations
 Number of kgs purchased has
highest sensitivity

 Availability and repeat purchase has

lowest sensitivity
NORMAL SCENARIO
NORMAL Yr0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
SALES REVENUE 0 60.75 67.5 75.8 88.9 97.5

COST OF GOODS SOLD (@ 20%) 0 12.15 13.5 15.16 17.78 19.5

GROSS MARGIN 0 48.6 54 60.64 71.12 78

DEVELOPMENT COST 50 0 0 0 0 0

PROD. PROCUREMENT COST

MR COST

MKTG. COSTS 0 25 25 20 30 33

AD,SALES,PROMOTION
MKTG. ADMIN

ALLOCATED OHD 0 12 15 18 22 27

GROSS CONTRIBUTION -50 11.6 14 22.64 19.12 18

SUPPLIMENTARY 0 0 0 0 0 0
CONTRIBUTION

NET CONTRIBUTION -50 11.6 14 22.64 19.12 18

DISCOUNTING CONTRIBUTION (@ 12%) -50 10.357 11.16 16.12 12.15 10.21

CUMMULATIVE DISCOUNTED -50 -39.64 -28.5 -12.4 -0.22 9.99

CASH FLOW

IRR 19%

Payback period 4-5 years (4.3) years

 OPTIMISTIC SCENARIO
 10% INCREASE IN SALES
 DECREASE IN COST OF GOODS SOLD BY 5%
 DECREASE IN MARKETING/ADV COST BY
1%
OPTIMISTIC Yr Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

SALES REVENUE 0 66.825 74.25 83.38 97.79 107.3

COST OF GOODS SOLD (@ 30%) 0 11.543 12.83 14.4 16.891 18.53

GROSS MARGIN 0 55.283 61.43 68.98 80.899 88.73

DEVELOPMENT COST 50 0 0 0 0 0

PROD. PROCUREMENT COST

MR COST

MKTG. COSTS 0 24.75 24.75 19.8 29.7 32.67

AD,SALES,PROMOTION
MKTG. ADMIN

ALLOCATED OHD 0 12 15 18 22 27

GROSS CONTRIBUTION -50 18.533 21.68 31.18 29.199 29.06

SUPPLIMENTARY CONTRIBUTION 0 0 0 0 0 0

NET CONTRIBUTION -50 18.533 21.68 31.18 29.199 29.06

DISCOUNTING CONTRIBUTION (@12%) -50 16.54 17.28 22.19 18.556 16.48

CUMMULATIVE DISCOUNTED -50 -33.46 -16.2 6 24.6 41.05

CASH FLOW

IRR 39%

Payback period 2 - 3 years (2.9 years)

 PESSIMISTIC SCENARIO
 10% DECREASE IN SALES
 INCREASE IN COST OF GOODS SOLD BY 5%
 INCREASE IN MARKETING/ADV COST BY 1%
PESSIMISTIC Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

SALES REVENUE 0 57.713 64.13 72.01 84.455 92.625

COST OF GOODS SOLD (@ 30%) 0 12.758 14.18 15.92 18.669 20.475

GROSS MARGIN 0 44.955 49.95 56.09 65.786 72.15

DEVELOPMENT COST 50 0 0 0 0 0

PROD. PROCUREMENT COST

MR COST

MKTG. COSTS 0 25.25 25.25 20.2 30.3 33.33

AD,SALES,PROMOTION
MKTG. ADMIN

ALLOCATED OHD 0 12 15 18 22 27

GROSS CONTRIBUTION -50 7.705 9.7 17.89 13.486 11.82

SUPPLIMENTARY CONTRIBUTION 0 0 0 0 0 0

NET CONTRIBUTION -50 7.705 9.7 17.89 13.486 11.82

DISCOUNTING CONTRIBUTION (@ 12%) -50 6.879 7.73 12.73 8.57 6.706

CUMMULATIVE DISCOUNTED -50 -43.12 -35.4 -22.7 -14.09 -7.385

CASH FLOW

IRR 6%

Payback Period > 5yrs  

 STEP 6
PROTOTYPE DEVELOPMENT
1. TARGET MARKET SEGMENT..

 People with diabetes, obesity and

cholesterol, (Around 750000 people in
and around PUNE CITY)

 Income group: Middle & upper middle

clientele.

 Age: 20 and above

 Available at Swadisht outlets.

 2. PRODUCT POSITIONING

Tasty and healthy sweets available at fairly

reasonable price
• Low calorie
• Low cholesterol
• High on nourishment
• Delicious.
 3. PRODUCT ATTRIBUTES..

Packs available of each size.

 Price -Depending on variety

 Variants of all regional varieties.

 Usage occasion Daily/on all special occasions
and festivals
 Ingredients Sugar-free aspartame, low
fat vegetable ghee, other
ingredients of high
quality
4. COMPETETIVE COMPARISION..

First of its kind

 5. AUGMENTATION DIMENSION..

 Referral by dieticians and doctors.

 Advertising on sites on diabetes and health
centers
 Free one time initial tasting.
 Discounts on festivals.
 Complete information on handouts
 6. TIMING..

 2 months for product development

and launch.
7. MARKETING REQUIREMENTS..

 Promotional schemes through hoardings.

 Posters inside retail shops and health
centers.
 Print media promotional schemes.
 Advertisements in gyms and clinics
 8. FINANCIAL REQUIREMENTS..

 Development and introductory period

losses not to exceed Rs 10 Lacs .
 Breakeven in 4-5 years.
 Sales aimed at Rs 6075000 initially.
 9. PRODUCTION REQUIREMENT..

 High quality ingredients

 Sophisticated machinery and other

cooking utensils
 Qualified chefs
10. REGULATORY REQUIREMENTS..

 BIS
 Our manufacturing facilities are

approved by Diabetic association of

India
 Our manufacturing facilities are

approved by Indian health and

medical association
 11. CORPORATE STRATEGY..
 Brand image in coherence with health
solutions.

 Committed to the cause of developing

high quality and tasty sweet that does
not pose any heath threats.

 Highly innovative product.

 12. POTHOLES..
 Sustaining price difference with
other, normal sweets.
 Extra awareness programme
 Easily replicable by existing
competitors
 STEP VII

TEST MARKETING
 STANDARD TEST MARKETING
1. Test market in residential areas, diet clinics, VLCC
and other weight reduction centers & gyms in pune.
2. Select small samples of
• Working men and women .
• Housewives
• Students
1. Conduct marketing programme campaign
• Get recommended by diabetes and cholesterol specialist medical
practitioners.
• Promote through on ground and online diabetes and other health related
helpcenters(www.diabeteshelpcenter.com)
• Promote through some family restaurants on special occasions like
festivals or some organized parties.
• Tie-ups with famous caterers
• Putting up kiosks in retail supermarkets and malls to bring awareness and
promote our sweetmeat among daily buyers.
 STEP VIII

COMMERCIALISATION
 Commercialization
1. INTRODUCTION TIMING:
• Improvement needed
 Consumers need more education on the concept
 Consumers need to be educated about the fact that sugar free does not mean
saccharin
 Better tie ups with caterers to get initial foothold

• Simultaneously launch ads

1. WHERE TO LAUNCH:
• Prime location in Pune-(M.G.Road)
• Looking at feedback we will launch in other places in pune.

1. WHOM TO LAUNCH:
• Diabetics, Cholesterol patients, Obese patients
• Health conscious youth
• Aged adults
• Opinion leaders : Doctors, dieticians, certifying agencies
ROLL OUT ATTRACTIVENESS
CRITERIA RATING COMMENT

Market Potential High Growing

Co’s. Reputation High Already into sweets
business
Cost of dist. Medium Due to tie-ups big
names, certifications
costs

Competitive penetration Low New concept, no

current competitors

Alternative markets Many Yet to explore

Thank you…….