Welcome to Presentation on

“New Product Development Strategy”

Presented by:Mohammed Razib

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We want to market Green Coconut Water. We have prepared this feasibility plan on that basis. We have assigned a name for the product as “Jaul”. Since the raw materials are very much available in our country, we have decided to give the product an indigenous image.

Executive Summary

Jaul is a kind of soft drink that provides the consumers with processed green coconut water in bottles. For the marketing purpose of the product we have decided to launch three product lines. The Jaul would be launched in the market at 250 ml. 500 ml. and 1 Litre bottle.

We have set a reasonable price for the product so that all kinds of people can afford to buy this soft drink. We have followed the Target Costing pricing approach. We would gain a competitive advantage, as this is a first hit in the market.We have targeted a huge market segment for the product. Bangladesh is a large populated country. Lots of people are looking for such a product. Green Coconuts are not available all the time. For example: a person walking on the street. Suddenly he feels thirsty. Now if he wishes to drink green coconut water he cannot find it easily. It is not always found in the right place at the right time. If we launch our product in the market, a person willing to drink green coconut water can have it from a nearby shop. At present this is not possible. Our target market includes health conscious people, sick people, sportsperson & many other consumers, which we have segmented from the Demographical, Geographical, Psycho graphical & Behavioral point of view.

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We have prepared a financial documentation for this feasibility plan of a new product. As we are introducing the product in three categories at 250 ml, 500 ml and 1 Liter bottles, we have prepared the Break-Even-Analysis for each of the product line. We have prepared the feasibility plan for five-year basis.For 250mls the break-even point is at 4158004 Units. That means if we sale 4158004 Units a year, we will make neither profit nor loss. So to make profit we have to create a market demand in such a way so that more than 4158004 Units are sold every year. Obviously the unit cost will eventually come down because of the law of Marginal Cost. Then the break-even point will also come down. But that is from the long run perspective. So initially we might suffer loss but ultimately we would earn enough profit. The consumers will first taste the product by consuming the 250ml bottles. So we might gain a short run profit from that.

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Market Segments

Geographic Segmentation: Sylhet Rajshahi Khulna & Barishal Chittagong DhakaDemographics: Individuals Family Sportsman Business buyer

Psychographics: Higher class Higher mid class Middle class

Behavioral: Sick people Health conscious Sophisticated who take the new product from the

market

Market Segments (cont.)

Target market and projections:

Our target is to maximize profit by providing maximum satisfaction to the consumers.

Analyzing all the segments, we decided our target market according to our product category. The target customers of “Jaul” are sick people, health conscious people, sportsmen and tourists.

Competitive Analysis

The Soft drink industry is very much competitive. Many soft drink companies have acquired a significant portion of the market. But the unique features of “Jaul” will take it far beyond the reach of the competitor. Because, no one has yet thought about selling green coconut water in such a specialized way.

SWOT analysis: Strengths: 1.Available input materials 2.Low production cost 3.Technological and marketing knowledge 4.Strong distribution channel Easy manufacturing process Reasonable price

Weakness: It is easy to copy the idea by others Taste differ from the natural green coconut

water Green coconut water cannot be preserved for

longer period

Opportunities: Monopoly market Large market High demand Might have a chance to get subsidies by Govt. to

export

Threads: High competition in future by copying the idea Entrance of new product Alternatives are avoidable in some segment Uncertainty of launching a new product.

SWOT analysis (Cont.):

Competitor Analysis

The major soft drinks and juice companies of current market are:

Pran Groups Starship Euro Cola RC Cola Coca cola Pepsi Acme Danish Foreign Products etc.

Strategies against competitors:

Providing the best service to create high customer satisfaction

Reasonable and acceptable pricing Promising and providing top quality product Launching highly effective mass promotional

activities Continuous innovation and modification of the

products Creating and maintaining long term customer

relationship Creating “Brand Loyalty” among the target

consumers

Pricing Strategies:

Setting the pricing objectives

Determining Demand

Estimating costs

Types of cost and level of production

Analyzing competitor’s costs, prices and offer

Selecting a pricing method

Promotional Strategies Advertising:

We initially will give more emphasis on paper ads and TV commercials.

Personal Selling: Sales persons will inform the consumers about the

cool refreshing taste and nutritious aspects. Promotional tools: Initially 50% discount just make our new product

familiar with the customers. Public relations: seminars, commit social development, cultural

functions etc.