Developing a new product

8/9/2019 Developing a new product

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Term Paperon

Developing a New ProductDeveloping a New Product

Term Paper


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on

Developing a New Product

Submitted to:

Mokhlesur RahmanLecturer

Department of Finance

University of Dhaka

Dhaka-1000

Submitted by:Group 7

Name Roll

Monowar Hossain 14-008

Abdul Asif 14-064

Shazia Afrin 14-100

Mehnaz Tabassum 14-160

Sabbir Ahmed 14-162

BBA 14th Batch

Sec- B


University of Dhaka University

Date of Submission: April 15,2009

Letter of Transmittal


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April 15, 2009

Mokhlesur RahmanLecturer


University of DhakaDhaka-1000

Subject: Submission of Term Paper

Dear Sir,

It gives us immense pleasure to submit the report on Developing a New Product as a

requirement of the regular BBA course of the Department of Finance, University of Dhaka.

Apart from the academic knowledge gained this report and preparation of report has given us the

opportunity to acquaint ourselves with the idea of generating a new product. We believe that the

experience we have acquired from this study will be an invaluable asset in our lives.

It expresses our gratitude to you for providing us the opportunity to learn about product idea

generating, idea developing, segmentation, promotion and many more. In spite of various

shortcomings, we have been devoted to find out the core information from different aspects. We

hope you will appreciate our Endeavour and find the report up to your expectation.

It has to be mentioned further that without your expert advice and guidance and the contribution

of all group members it would not have been possible to complete this term paper. We will be

pleased to answer any sort of query you may have regarding this report.

Thanking you

Group 7

Members Name Roll

Monowar Hossain 14-008Abdul Asif 14-064Shazia Afrin 14-100Mehnaz Tabassum 14-160Sabbir Ahmed 14-162

BBA 14th Batch

Sec- B

Department of FinanceUniversity of Dhaka

Table of Contents


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Chapter 1 Introduction

1.1 Origin of the Study

1.2 Objectives of the Study1.3 Methodology of the Study

1.4 Scope of the Study

1.5 Limitations of the Study

Chapter 2 Company Profile

2.1 Companys History

2.2 Companys Vision

2.3 Companys Mission2.4 Companys Goal

Chapter 3 Product Profile

3.1 Product Description3.2 Market Segmentation

3.3 Market Targeting

3.3.1 Evaluating market segment3.3.2 Selecting target market segment

3.4 Differentiation and Positioning

3.5 Market Mix3.5.1 Product

3.5.2 Price

3.5.3 Place3.5.4 Promotion

3.6 Competitive Advantages and competitive strategy

3.7 Business analysis and test marketing

Chapter 4 Product Promotion

4.1 Promotional Strategy

4.2 Advertising

ConclusionBibliography


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Chapter ONE

INTRODUCTIONINTRODUCTION

Origin of the Study

One of the unavoidable aspects of modern business studies isexposure to the practical experience. And the purpose of business


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studies is to make the students wind up their imagination and to beinnovative in this field. As a part of our course F-204, Principles ofMarketing, we were assigned to submit a report on the topicDeveloping a New Product. It endowed us with opportunities toexperience a new challenge. Through this report, we all experienced

the activities of an Entrepreneur.

We were assigned to generate a new product in Bangladesh. For this,we have chosen to make a new company by ourselves, hypothetically.

This report has been prepared as the course requirement of the BBAprogram. We, hope that this report will provide a clear insight on theactivities on developing a new product, generating new idea, theperformance, prospect and future opportunities of this new company.

Objectives of the Study

The main objective of the report is concentrated on generating newidea of a product. This report also focuses on entrepreneurshipdeveloping new opportunities in this new sector.Overall, this study is to be conducted to fulfill the following objectives-

i. To generate new ideaii. To develop the new productiii. To evaluate this new sector of investmentiv. To make new opportunities for marketers and entrepreneur

Methodology of the Study

The information of this study has been collected from otherinternational toy companies. This Secondary Data has been collectedfrom the company brochures, web sites and paper documents.Primary data has been collected from different shop owners byinvestigating directly.

Scope of the Study

We feel fortunate to have the opportunity on work on this report.Though we have created our own organization, we had inspired byother existing organizations. We had worked on different InternationalToy Companies and that helped us a lot to follow the concept of ourcountry and relevant information about toy manufacturing inBangladesh, we were unable to gather more information. Because ofrelevant data and information, the scope of study this specific areawas very limited.


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Limitations of the Study

Difficulty in gathering relevant data from the local market

Non-availability of some preceding and latest data.

It was not possible to consider all variables sufficiently Lack of local information sources

Limited experience and expertise


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Chapter TOW

COMPANY PROFILECOMPANY PROFILE

Company Profile

Company Background

Toy Fantasy commenced its journey on 5th February, 2009, asthe first Toy Manufacturing Company with national collaborationand the partner of Kathy Kidz Wear Ltd. Technical assistance wasprovided by LEGO toy company, the top most toy company inUSA.

The company we establish with a vision of a new Bangladesh. Asthere were no toy companies in Bangladesh right now, the


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pioneers of this company found this specific sector very muchinteresting and innovative. The partner company was veryinterested about this new project.

Vision of Toy Fantasy

Toy is the model of ones imaginative and creative mind. Toysjust do not make a child happy it also helps the child to dream, tolearn, to make new things. Toy Fantasy company has vision tochange the Bangladesh, to make a difference in the lives ofyoung Bangladeshis.Toy Fantasy company is at their first step of the journey. Thistoy soldiers which are representing the Seven National Heroes.

They were so normal human beings; when they were born. Butthey are not actually so normal, so ordinary. They fought for ourmother land and sacrificed their lives. So, ordinary personbecomes a hero through his death.

They are our national heroes; with no extraordinary power. Butthey are they guardian angles of us.

To make our young kids informed about these HEROES and overliberation war- is the vision of the company. Because we believe,if the kids can be related to these toy soldiers, they would love to

hear the stories about our glorious past. And they would learn tolove their country from an early age. This will make them relatedand moved from the core.

Mission of Toy Fantasy

To make the new generation of our country informed aboutour glorious past.

To give the kids a wonderful place to be their elves.

To deliver our massage about Liberation War. To enhance their knowledge.

To make the kids happy and delightful.

To help them to be creative and thoughtful.

Goal of Toy Fantasy


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Development of this new sector

Development of new products

Achieving the highest level in the market.

Developing kids oriented products and market


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Chapter THREE

PROCUCT PROFILEPROCUCT PROFILE

Product DescriptionProduct Description

The Current informed Bangladesh often faces a dilemma in aneffort to make the future nation builders more aware of theircultural heritage and past. The 1971 War of Liberation is abloody, yet glorified mark in our history and it is our con-scientious responsibility to make the generations of tomorrowaptly informed about it.

With this view, our company has developed a new product. Aset of seven plastic toys. Resemble of our seven nationalheroes.


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Market SegmentationMarket Segmentation

In our project, first we have segmented the market using

appropriate variables. The variables used for this project are:

Geographic segmentation i. On the basis of districtsii. on the basis of citiesiii. on the basis of zonal

division

Demographic segmentation i. Ageii. Education

iii. Generationiv. Income level

Physiographic segmentation i. Social class

Behavioral segmentation i. User stage

Geographic SegmentationIt is dividing a market into different geographic unitssuch as nations, states, regions, countries, cities orneighborhoods.As we are the first toy producing company in our countrywe have targeted the main cities and metropolis for ourproduct.

Demographic SegmentationWhen any marketer divides a market into groups onvariables like age, gender, family size, family cycle,income level, occupation, education, religion, race,generation and nationality. We have used some of thesevariables to segment out market.


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i. Age- As we are producing toys for children and our toys are

not only toys; also teaches them about the history of our liberation

war. So we have targeted children of6-10 years old who are able to

read and understand and also school going.

ii. Education- As we are producing products for kids, which tells

about liberation war, we are focusing on kids who go to schools andread in Grade 1- Grade 4. Because children within this range playswith toys and also knows about our Liberation war.

iii. Generation- The generations we are concerned about are the

young generations who have been born after Liberation War. These

generations are the thirdgeneration after 1971.

Physiographic SegmentationWe have segmented the market with the help of somephysiographic variables like;

Social Class: our main focus is on the- Middle class

Upper middle class

Lower upper class

Upper class

Behavioral SegmentationUsers status: As our product is completely new in themarket so the user of our product will be First Time

users.

Market TargetingMarket Targeting

1. Evaluating Market Segments:Market segmentation reveals the firms market segmentopportunities.. All firms must evaluate the various segments

and decides how many and which segment it can serve best.In evaluating market segments any organization or firm musttook all these 3 factors:

Segment size and growth

Segment structural attractiveness

Object and resources


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We have examined all these factors collected informationabout the expected probability for various segments.

2. Selecting Target Market Segments:Target Market consists at a set of buyers who share common

needs or characteristics that a company decides to serve.Market targeting can be carried out several levels, like-

We have selected concentrated marketing which a firm goes

after a large share of one or a few segments or niches.As our company is completely new and have noel limitedresources we have targeted this, because we think throughconcentrated marketing, we can market more effectively byfine-tuning our products, price and programs to the needs ofcarefully defined segments. We have targeted our producttoward only consumers that we can serve best and mostprofitably.

Differentiation and PositioningDifferentiation and Positioning

After deciding which segments of the market it wouldtarget, company must decide on a value positioning onhow the new product will create differentiated value fortargeted segments and what positions it wants to occupyin those segments.

Products positioning-It is the way the product is defined byconsumers on important attributes- the place theproduct occupies in consumers minds relative tocompeting products.

Concentrated

(niche) Marketing

Differentiated

(segmented)Marketing

Undifferentiated

(mass) Marketing


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For our product we have emphasized both onthe product differentiation and product Positioning. Wemade our product in such a way that it can cratedifferentiated value for customers and can acquire andretain a position in consumers mind relative to

competing products. For this we have followed somestrategy. We have also followed the three steps ofdifferentiation and positioning task:

1. Identifying a set of possible customer valuedifferences that provide competitiveadvantages upon which to build a position

2. Choosing the right competitive advantage3. Selecting an over all positing strategy

In our categorized product Freedom Fighters Commandosensured the product quality,Where Freedom Fighter Heroes offers low price.By differentiating the toy above categories Freedom Fighterswill make a position in Juniors and their parents mind.

Market MixMarket Mix1.1. ProductProduct

The product, the" Freedom Fighters, Action Figure Toy, issuch a product that should add value to a buyers life. It shouldalso add utility, and meet the wants and needs of targetedconsumers. The product should be unique and different from allsimilar products that are already available on the market. Thestrategy is to differentiate the products design and packaging,which in return will cause this Action Figure Toyto stand out. .

According to the target market Freedom Fighters will besegmented as follows:

Freedom Fighters Commandos

Freedom Fighters Heroes

2.2. PricePriceForFreedom Fighters Commandos, we would price the toy

at TK. 250


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ForFreedom Fighters Heroes we would price the toy at TK.200

3.3. PlacePlaceThe most important part of marketing is how our product will

get from the seller to the buyer. Many products go through achannel of distribution, which involves manufacturers,wholesalers, retailers, and consumers. The distribution strategyproposed for the " Freedom Fighters, Action Figure Toy, isthrough the large retailer stores, toy shops, departmentalstores like Agoraand Nandan.

4.4. PromotionPromotionProduct promotion is communication spread throughadvertising, publicity, and sales promotion. FreedomFighters, Action Figure Toy would advertise their products by

using commercial, magazine ads, which are to be placed beforeschools, amusement parks, residential and commercial areaslike Dahnmondi, Motilhil, Farmgate, Banani, Gulshan etc, inbillboards, and the sides of buses. Advertising would also bedone to promote new products, remind consumers of existingproducts, and also promote the image of the company at hand.

Competitive StrategyCompetitive StrategyAn advantage over competitors gained by offering

consumers greater value either through lower prices or byproviding more benefits that justify higher prices.

A company can differentiate and position itself as providingsuperior value and it gains competitive advantage. An alertcompany can find ways to differentiate itself at everycustomer contact point. A company can differentiate itselfand its market offer along the lines of product, services,channels, people or image.

We have selected product differentiation strategy. Ourproduct is differentiated by

features

performance style design


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The toy we are producing is different from the other toys. Itwill provide superior value to the customers. In our countryour toy is first that will tell us about our glorious liberationwar and our freedom fighters. As not every difference makesa good differentiator, our product is different from other in

such a way that each difference has the potential to createcustomer benefit.

The difference will deliver a high valued benefit totarget customer.

Competitors dont offer the difference.

The difference is communicable and visible to thebuyer.

Competitors can not easily copy the difference.

Buyers can afford to pay for the difference.

Company can introduce the difference profitability.

Business Analysis and Test MarketingBusiness Analysis and Test Marketing

Business Analysis means a review of sales, costs and profit

projections for a new product to find out whether the productsatisfies the companys objectives. There are three stages inbusiness analysis;

1. Product Development2. Test Marketing3. Commercialization

Test MarketingTest Marketing

As we have developed our product we should go for a test

marketing to find out whether the product is fulfilling ourobjectives.

There are three types of test marketing process, like-

Standard Test marketing

Controlled Test Marketing

Simulated Test Marketing


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We should go for aSimulated Test Marketing. Because for a newproduct its the best way to judge the customers choice.

The process:In a store we placed different types of toys of differentcompanies. And some of our employees were there to observe.

We picked randomly some consumers, children, parents andteenagers to do the examination. There were 100 peoples in theroom. Around 60% of the children was amused of our product.Around 40% parents loved the idea and teenagers thought it wasgreat.So this shows that our product will be appreciated by thecustomers.

Chapter FOURChapter FOUR


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PRODUCTPRODUCT

PROMOTIONPROMOTION

PromotiPromotional Strategyonal Strategy

As we are starting a new manufacturing company we have to gothrough heavy promotional activities. We have decided and madea plan strategically. We have segmented our whole promotionalactivities into two parts:

1. Caravan campaigning2. Advertising in different media

1. Caravan Campaigning:

Caravan is a way to deliver the massage to people by moving oneplace to another. This type of promotion or activities involvesshowing documentary, acting, singing, displaying posters andfilms etc.For our promotional activities we decided to go for caravancampaigning in the main 5 districts. We would do the campaignin the cities and would try to deliver the idea of our product.


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Chart of our Promotional Zone:

Campaigning Process- Campaigning in Schools:

It will include short film show or documentary show amongthe children.

Some game shoes among the children.Hand over some of our toys to them.

Campaigning in Shopping Malls:Shopping Malls like Basundhara City or Jamuna Future Parkwill be our target places also.Models of our toys will be displayed over there.

Campaigning in Theme Parks:Theme Parks like Fantasy Kingdom and Nandan are such

places where kids love to go. As we are producing toys;theme park would be a great place.

There will be models and booth. This will provide informationas well as our products.

2. Advertising in different media:

Rajshahi

Khulna

Sylhet Barisal

Dhaka

Chittagong


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Advertising means to inform the consumers about any newproduct. It helps the product to be familiar to the consumergroup. For a new company aggressive marketing is important formarket penetration.As a new manufacturing company we are going to advertise our

product in the Print and Electronic media. There will be-

TV commercials

Bill-Board advertising

Adds in news papers

AdvertisingAdvertising

Any paid form of non personal presentation and promotion ofideas, goods or services by an identified sponsor are calledAdvertising.For making a way for a new product- Advertising is must. Andadvertise plays a vital role in the promotion.

Marketing management must take four important decisionswhen developing an advertising program:1. Setting advertising objective2. Setting the advertising budget3. Developing advertising strategy4. Evaluating advertising campaignsHere we are going to discuss about our Advertising Object andAdvertising Budget.

Advertising ObjectiveObjective Setting is a specific communication task to

be accomplished with a specific target audienceduring a specific period of time.As we are launching a new product and our companyis new in business our Advertising Objective isInformative Objective, because-

Used heavily because we are introducing a newcategory


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Informing the market about this new product

Explaining how the product works

Explaining whom the products for

Budget SettingAfter determining the advertising objectives, the nextthing is to set the advertising budgetfor each product.For a new product typically need large advertisingbudgets to build awareness and gain consumer trial.We are assuming our promotional budget will bearound 50lakh. And at the primary level profit will beless. This financing will be done from Bank Loans.

ConclusionBy placing the product next to an existing companys product,consumers may not see the benefits of switching, and could continueto prefer using the existing product rather than even considering tryingthe new one. But by placing the new product next to a competitorsproduct, it may lead to the consumer questioning which product isbetter, hopefully causing the consumer to try the new product, over itscompeting product.We hope the grand success ofFreedom Fighters, action figuretoy by formulating the above strategies in a coordinating way.


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Bibliography

Kotler, Phillip and Armstrong, Gray, 2008,Principlesof MarketingTull, S. Donalds and Hawkins, I. Del, 2002, Marketing Research

www.weikipedea .com.

www.lego

www.toyrus.com

www.wal-mart.com
http://www.lego/http://www.toyrus.com/http://www.wal-mart.com/http://www.lego/http://www.toyrus.com/http://www.wal-mart.com/

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