PRODUCT DEVELOPMENT PLAN FOR THE BRAND “NELLI SENSE” (assumption only0

8/14/2019 PRODUCT DEVELOPMENT PLAN FOR THE BRAND NELLI SENSE (assumption only0

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Bachelor of Commerce (Special) Degree Program

2nd Year

PRODUCT DEVELOPMENT PLAN

FOR

THE BRAND NELLI SENSE

(Submitted on: 07/05/2009)

Executive Report

On

Marketing Management22054

Prepared by

INDIAN HILLS PLC

Faculty of Commerce and Management

Department of Commerce and Financial Management

University of Kelaniya

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Group Members

1. N.W.K.H.M.S. Chandrasekera CM/2006/015

2. R.Dalugoda CM/2006/022

3. D.M.S.N.W.Dissanayake CM/2006/033

4. N.Fernando CM/2006/043

5. N.D.N.Harshajith CM/2006/049

6. M.M.S.T.S Mannapperuma CM/2006/097

7. M.P.Niroshan CM/2006/107

8. B.T.V.Peris CM/2006/112

9. S.A.N.K.Subasinghe CM/2006/155

10.P.V.Kasunsirs CM/2006/171

Content

1. Executive Summary

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2. Introduction

2.1 About the Company

2.2 Product & production process

2.3 Product Attributes

3. Strategic marketing planning process

3.1 Situational Analysis

3.2 SWOT Analysis

3.3 Marketing Objectives

3.4 Forecast market potential

3.5 Generate marketing strategies

3.6 Assumption & Contingency plan

3.7 Marketing mix program

3.8 Budget Resources

3.9 Time Scale

3.10 Implement the plan

3.11 Measure & control

4. Product Segmentation

5. New Product Development Strategies

6. Market Development Strategies

7. Summary & Conclusion

1. Executive Summary

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In this modern world, the demand for natural products has increased significantly

compared to last few decades since there are lesser products in the market which are

manufactured based on natural raw materials. Specially, when it comes to soft drinks and

energetic drinks, the general public has the conception that almost all of them are

artificial. Recent market surveys conducted by researchers show that 90% of the public

bear the opinion that the soft & energetic drinks in the market are artificial other than few

which they exclude from that category.

The product that we are launching to Sri Lankan market in the near future is manufactured

based on 100% natural ingredients by Indian Hills Limited

which is a reputed company in India for manufacturing of natural products. Further we

present it to Sri Lankans to an affordable price of Rs. 25 which is very much lower than

the existing products of same type. We are able to do so because our mother Company is

running with the concept of economies of scales and through it we are able to give that

benefit to our customers.

The ingredients, the container, the colour everything in our product are based on the

customers requirements. We carried out poster campaigns at the initial stage of our

promotion period and subsequently we shifted to paper advertising and TV advertising to

familiarize the product to Sri Lankans. We had a good respond from our customers to our

Advertising campaigns as well as pre advertising promotions.

The results of our campaigns show that we have moved to the ideal market to launch our

product and we are confident that Sri Lankans will warmly welcome our product.

2. Introduction

2.1 About our Company

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Our mother Company Indian Hills Limited which is the largest natural products

manufacturer in India owns 90% of the natural products market in India. It is the mother

company of Europe Hills, US Hills and ASIA Hills which are the multi platinum profit

making companies in natural products. 35% of shares of Indian Hills is owned by the

Indian governments, 10% by general public where the rest of the part is owned by private

investors.

Indian Hills is popular in manufacturing natural cosmetics, beverages, energetic food and

consumables and some of its world famous products are Indiana, Beauti, Cocala, Riders.

The nelli drink introduced to Sri Lanka is already in Indian market but in different colour ,

name and contains but for our new product we made some modifications to be suited to

Sri Lankan market.

About our product

Our product Nelli Senseis a 100% natural product which comes under the brand names

of Indian Hills. Its ingredients to produce 500 liters are as follows,

ingredients quantity

Add water

Sugar

Nelli concentrate

Citric acid

Nelli flavour

Salt

Ascorbic acid

stabilizer

Coloring

380 kg

60 kg

60 kg

0.702 kg

0.450 kg

0.227 kg

0.200 kg0.150 kg

0.033 kg

Production process is shown below,

2.2 Production Process

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Stabilizer (Sugar with hot

water

Put hot water (100 0c) using

regulator.Bitter Lemon Concentrate


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Reduce temperature to 400C

Pasteurize to 620 C

2.3 Product Attributes

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300 liter 4 mixing tanks

at 90 0C tem erature

Add Citric Acid, Viatmins (Ascobic

Acid) & Natural Fauoursflavours

Transfer to filling

machines.

Final product (At 18-200c

temperature, Weight 215g&200ml Pack

Transfer this to mixing

Tank 500 liter.

Transfer to storage tank

and kee at 30C

Pack in to Tetropack

Termize (keep the temperature

at 30C for 40 mints)


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One of the most important requirements of a product is that it must fulfill a need or

want.

a. One of the most important requirements of our product is that fulfills our

consumers needs or wants. [Environmental healthy product, 100% natural, The

company produce the product while covering Green Marketing :-(being good to

environment while satisfying customers)

Factors to emphasize Green Marketing concept.

Our customers are demanding.

Government environmental legislations of Sri Lanka.

To increase satisfaction of our employees.

Our companys own existence.

For increase corporate image, regards to the company.

b. Sufficient profit margin is another crucial attribute that our product has.

c. Increase the perceived value of your product

What customers think our product should cost, or more specifically, what

value they think it has to them and what they would be willing to pay for it.

d. Improving perceived value

Here are the eight ways to improve the perceived value of our product.

1. Emphasize quality

2. Display success stories

3. Tell of our top quality customer service

4. Stress convenience

5. Improve the design of our product's packaging and labeling

6. Distinguish our product from competitor's product and tell why our is best

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7. Develop our unique selling proposition.

8. And if you are selling this product from your website, make sure your

website is nicely designed, easy to use, and typo-free.

3. Marketing Planning Process

Feed Back

8

Mission statement Company Audit

Budget resource including staffing

Assumption & Contingency Plan

Prepare detailed marketing Mix program

Marketing Objectives

SWOT Analysis

Macro EnvironmentPEST

Situational Analysis

Forecast market potential

Generate marketing strategies

Agree-Time Scale


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Steps follow to develop the market strategies.

3.1 Situational Analysis

In theoretically the situational analysis are can be defined as the Current

situation of the company. These analysis consist in two inputs, we can

interpret it in this in following way,

Sociological and Technological macro environmental factors have in the

situational analysis.

Our company follows the green marketing theory such as the, Developing

environmental friendly products. Companys product is a Tetra pack

product (using Tetra pack filling machine technology) while being an

environmental friendly product. Under CSR the company hope to enhance

social welfare as well the company credit one rupee for each packet selling

to Api Wenuwen Api Fund.

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Situational Analysis

The Company AuditMacro Environment( PEST / SLEPT)

Implement the plan Measure & Control


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Under situational analysis number of very short statements use made in

respect of each of the PEST+C+L sub-divisions.

3.2 SWOT Analysis.

According to our Research and Development staff report we identified

there are several Strength and Weaknesses in the internal as well as

Opportunities and Threats externally of the company. Those are as follows,

Strengths of the Product

Using the worlds best technology to manufacture the product.

Normally we use the Tetra pack filling machine technology.

We have highly skilled Indian and Sri Lankan specialists for lab

experiments and also in top management.

The company has developed a stable market condition in India

while undergoing good marketing strategies.

Weaknesses of the product.

The main drawback is the company and products both are newly

launcher to Sri Lankan market.

Opportunities of the product.

There is no such competitor in the Sri Lankan market to the

product. We can get highly skilled employees at low price in Sri Lankan

market & we can be implemented them.

Threats of the product.

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The main threat is strike Government legislation in Sri Lanka.

We have to import all the inputs and machine spare parts to Sri

Lanka so we have to paid high taxes.

There no such Natural Energy drinks In Sri Lankan market so we

have to adopt customers in special way.

3.3 Marketing Objectives.

The short term objective of the company is to catch 10% market

share in the total market before in year 2010.

Also get the awareness of customers and adopt them to product.

3.4 Forecast market potential,

According to the R & D report our forecasting monthly sales in

introducing stage is with in 5000-6000 packets per month. We hope

this will increase to 25000 in after one year from introducing. It is

the 25% of total market share.

3.5 Generate market potential,

3.6 Assumption and Contingency planning,

3.7 Detailed marketing mix programmed,

According to the market mixing program there are four component in

marketing mix those are,

Product

In production introduce stage we talked about the production

process. There are major Attributes in the product,

This product is 100% Environmental healthy product.

Also this product use 100% natural ingredients

This product is mainly use the ayurwedic bitter lemon so we

identified this as an ayurwedic product.

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Pricing Methods

Normally we are using market penetration strategy to estimate the selling

price. The price will below the total cost because we can easily catch the

market share and get awareness of the customers. According to our

Standard cost card we give it in covering for variable cost. Also we look at

existing products. According to our cost card we had incur Rs23/= per

pack. So we decided to launch product to market at Rs25/=

Place

The ideal places that we identified to produce this product Colombo,

Kandy, Gampaha & Galle. Because of these districts peoples are very

much aware about the energy drinks.

Promotion Methods

We are doing huge campaign in promotion stage; before we enter in to the

market we use some pre campaign method using froe Printing and

Electronic media. After launch new product we advertise it in bill boards,

electronic media & some selling promotions, such as free samples,

competition and contests.

3.8 Budget Resources and Staffing.

3.9 Time Scale.

This can show that in a Gant chart

2008 2009

May June July Aug Sep Oct Nov Dec Jan Feb March Apri

Advertising

Sales Promo:

Demonstration

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Other Costs

3.10 Implement the Plan

Now the company implements the plan with in the pre determined budget,

resources, parameters and along the time scale that has been agreed.

3.11 Measure and Control.

The company pays attention to frequent measure and control strategies to

sustainable quality of the product.

4.Segmentation Basis of Nelli Sense.

As a profit focus your Company it is certain face that due to financial and resource

constrain we couldnt target entire market space which is available. There for strategic

decision makers alone with the marketing expertise decided to offer our product to highest

profitable target ordinance. To select the most suitable segmentation we involved in

following techniques and mythologize.

1. A retail Audit

2. Focus group results

3. Sales force feedback survey

4. Online quest nary

5. A.C nelson research agency finding

The suitable segmentation selection process transmit the following results

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0

10

20

30

40

50

60

FEED

BACK(NOO

FCONSUME

RS)

A Retail

Audit

Sales Force

Feedback

A.C Nilson

Research

Agency

Finding

Forcus

Group

Result

Online

Questioning

SEGMAN SELECTION CRITERIA

Individuals Urban Age 15 - 30 (Male

/Female)

Individual Rural Age 15 - 30 (Male

/Female)

Mature Consume rs Including 45+

From the feedback obtain through the surveys suggested us that our profitable segmented

target audience probably would be, Individuals who are in urban areas aged with 15-30

both male & female. Our selected segment & product computability with the target

segment.

1. Urban younger crowd move value given on status symbols. Since our product

position as an up market Icon it symbolizes the required status factors.

2. Lack of energy drink product for competitive price in the current market space.

3. Emerging health conciseness among the younger crowd

A Retail

Audit

Sales Force

Feedback

A.C Nilson

Research Agency

Finding

Focus

Group

Result

Online

Questioning

Individuals Urban Age 15

- 30 (Male /Female) 45 60 50 35 40

Individual Rural Age 15

- 30 (Male /Female) 30 50 35 15 25

Mature Consumers

Including 45+ 15 35 10 20 15

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4. Younger audience more involved in instant energy required activities (Ex:

Athletics, gym workouts)

5. Market extensive search on a sure a product that gives refreshment health

substitutes with instant energy gaining.

Expected Profit & Sales for Nelli Sense at Target Segment

EXPECTED PROFIT & SALES600

420

255

195

120

65

15

-65

-20

15 2540

120

180

-100

0

100

200

300

400

500

600

700

JUNE

JULY

AUGUS

T

SEPTEM

BER

OCTO

BER

NOVEMBE

R

DECEMBE

R

MONTH

SALES&PROFIT(INMILL)

SALES

PROFIT

5. Product Development Strategies.

1. Idea Generation.

Our companys notion of the marketing orientation is to; the company should look our

customers first (through marketing research) before embarking upon New Product

Development.

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Companys Idea Generation was done based on following researches,

Questionnaires

Observing a wide distribution of questionnaires, the company was able to identify

various conclusions with regards to the desired product.

One of the main objectives of our product was, will the product attract the youth? Or,

will it attract elders? Our observation was, the product will attract by the youth.85% of

observations hold that attitude.

And the questionnaire was distributed among schools as well. 80% of the observations

helped to identify the product as a packet, not as a bottle.

Around 90% of the target audience was likely to be the product as an energy drink.

Mostly sports persons are hold those attitudes as well.

One of the highlighting questions of our questionnaire was, do they like to be the product

as an artificial product? Or they likely to be the product as a natural product? Their

response for that question was highly attractive and highly responsive. Ultimately the

observation was the Product should be a natural product.

Obviously our innovation is 100% natural product. 95% of the responds was likely to be

the product as a natural product.

Brainstorming sessions implemented by product development team was a highlysuccessful event.

Venture team results were in a considerable stage.

2. Screening.

In the stage of two, company went through three main questions. Always the marketing

team emphasize that the New Product Development process should run under a

systematic procedure.

1. Is there a real consumer need?

Under this the company wishes to gain a potential market share, where using product

attributes. The main attribute of the product is that the ingredients of the product are

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100% natural. On the other hand the company has captured a huge amount of market

share in India, where the product was established at the beginning.

2 Does the company have enough resources and technical competence to

produce the product?

Large scale of labor force.

Management :- 600

Laborers :- 5300

High technology using to manufacture the product. (This was discussed under

production process)

Quality of the products is verified by the qualified Indian specialists on regular basis

and when Nelli Sense was introduced to Sri lanka the suitability was verified by the

State Pharmaceutical corporation of Sri Lanka.

3 Is potential market large enough to gain profits?

Hopefully the company wishes to capture high market share, because existing product

in the market will be defeated by our 100% natural innovative product.

3. Business Analysis.

Demand is estimated together with cost and profitability. The unit price was assigned

based on the following cost structure.

Tetra pack 7.75

Ingredients 7.50

Labor 4.75

Overhead 3.00

Total cost 23.00

Profit 2.00

Selling price25.00

4. Product Development.

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On this stage the company tries to maximize risk and isolate potentially valuable

new product ideas.

Develop a Prototype product in order to confirm its market potential.

In terms of product suitability and performance the company hopes to get

customer feedback as well.

If the product is successful the product is go ahead with product launch.

5. Test Marketing

Objective of the company at this stage: - To investigate the appropriateness of

proposed marketing and tactics.

Companys penultimate stage to emphasize to check on whether the product can

be marketed appropriately or not.

Our product is a FMCG (Fast Moving Consumer Good), before going to national

level our company went through test marketing, implementing test town

promotions. (Gampaha, Colombo,Galle, Kandy)

6. Commercialization.

Ultimately, the company wishes to go ahead with commercialization stage while

observing following points.

Launch the product

If above stages are successful the company pay attention to the initial product

launch. The one and only competitors product price is Rs.30. But our companysbest fitting technology was able to label the price at Rs25.

Produce and place advertisements and other promotions

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Products promotional campaigns that were held so far caught the attention of

public in a larger scale. Through our promotional campaigns we were able to

attract new customers which the existing product failed.

Our parent company was able to reserve 10million Sri Lankan rupees to place

advertisements and other promotions. Obviously that systematic procedure was

able to successful.

6. Market development strategies.

Pricing strategy.

The companys product is a FMCG. Therefore the company implemented a

Penetration pricing strategy that the management identified. Market penetration

occurs when a company enters/penetrates a market with current products. The best

way to achieve this is by gaining competitors' customers. Other ways include

attracting non-users of our product or convincing current clients to use more of our

product (by advertising etc)

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Ansoff matrix

Ansoff matrix developed to help firms recognize if there was any advantage of entering a

market.

The product is new to the market. The product should place where in the existing market.

The box shows where is our product is situated.

7. Summary and conclusion

The product Nelli Sense is an innovative product to Sri Lanka, which the company

hope to capture a considerable market share as well. The company identified there is

only one competitor in the market. Our questionnaire observations were able to find

out various relevant information about our targeted consumer buying behavior. We are

using benchmark strategies as well. That will help to develop our potential market

share and profitability in the near future.

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Nelli Sense


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PRODUCT DEVELOPMENT PLAN FOR THE BRAND “NELLI SENSE” (assumption only0

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