NEW PRODUCT DEVELOPMENT

A ProjectOn

New Product

Honey shampoo

Submitted By:

Hina akhter khanShahwana riaz

Asiya farazSadia anjum

Student Declaration

We are the student of INTERNATIONAL ISLAMIC UNIVERSITY, Department of MBA. Here By declare that the Project represent entitled, “New Product of Honey shampoo” is an original work done by us under the supervision of SIR.FAWAD BASHIR Lecturer in Marketing, Department of Business Administration, ISLAMIC UNIVERSITY ISLAMABAD.

LETTER OF TRANSMITTAL

March 2nd June, 2010The TeacherSir Fawad BashirLecturer in MarketingDepartment of Business AdministrationInternational Islamic Uninersity Islamabad.

Sub: Submission of Project

Dear Sir,

Here is the report on “New Product of Honey shampoo” prepared based research. I have tried our best effort to gather all necessary information to the concentrated part of the report to enrich it. We believe that with our limited knowledge this report provides a core concept about consumer perception on gym services.

We tried our level best to put meticulous effort for preparing the report. Any shortcomings or flaws may arise as we are very novice in this aspect. We will wholeheartedly welcome any clarification and suggestion about any view and conception disseminated in our report.

Sincerely Yours

Hina akhter khanShahwana riazAsiya farazSadia anjum

----------------------------

ACKNOWLEDGEMENT

First of all I would like to be grateful to Allah and my parents and pay my deepest respect SIR FAWAD BASHIR, Lecturer in Marketing, Department of Business Administration, INTERNATIONAL ISLAMIC UNIVERSITY, due to his generous and friendly guidance. The school of business international Islamic university help me to get the opportunity to do the work in the New Product. I am also grateful to her for helping me to understand some minute issues as well as those issues which I have failed to understand. I also would like thanks my friends for giving me enormous help can not mention in this short extent.

.

Introduction……..

Introduction:

Now a day in the competitive world practical experience is a must. It is possible to gather theoretical knowledge by passing through book but it is insufficient to acquire practical experience.

In order to complete the MBA program we have to complete a course called Marketing Management. In completing the course our course instructor gives us an assignment on New Product Development.

By preparing the report we will able to gather knowledge about the different types of Product

Objective:

Without objective any mission will not be successful, as the study is important for some reason, these are some objective too. These objectives help to make the study fruitful and reach the goal.

We have divided our objective into two parts:

Broad objective

Gather practical knowledge about New Product. Analyzing how to start new product. At the same time gathering the practical experiences. Present situation about the market. To know the product strategies that the organization allows to apply. To analysis quality of the product

To identify the problem of New product

The specific objectives:

To fulfill the requirements of MBA degree. To fulfill the course requirements. To complete the report.

Company Overview….

Introduction:

Hair Care Ltd is a new and starting up company which forms on Jan 2010 in Pakistan . Its objectives are to provide world class and innovative cosmetics products. This company is preparing to launch Honey shampoo which is quite new and stylish product for alls.

Care of skin has gotten stylish overtime. People spend thousands of money for buying different types of perfume to make them beautiful and sophisticated. As thing get better with time, people will move on from the good Honey shampoo

Marketing objectives:

Honey shampoo key marketing objectives are:

Establish a strong brand image and consumer loyalty.

Maintain positive strong growth in first years.

Decrease consumer acquisition cost by almost 1.5% per year.

Easiest and availability of the product to the target consumer.

Create awareness about this uncommon product.

Financial objectives:

Achieve breakeven within first year.

Reduce production cost at every half yearly period steadily.

Maintain a significant research and development budget for future development and innovation of the product.

After achieving breakeven increase profit margin by 1.5% per quarter through efficiency and economy of scales gains.

Target market:

After segmenting as gender basis (mail and female) we target different social class in Pakistan We prefer people who are living in the urban area of our country. Our targeted social classes are divided as upper-upper, upper-lower, upper-middle and middle. Among the people of these social classes they want something new and sophisticated which would represent their choice and personality. Moreover they want some variation in their daily life and want to use better something which would represent their status and roles.

Young educated people are another preferable target market of us. They are becoming stylish & want new & innovative things they are very much capable of adapting with the new invention.Mean while as honey shampoo very much easy to carry and economical it would be the first choice of those people who are fond of journey.

New product…

Product

Now Hair care is launching a new product in the market named as

“HONEY SHAMPOO”

Slogan:

“BEAUTY WITH SHINE”

Purpose: The purpose of launching the Honey shampoo is to give a new look to the people who are using shampoos available in the market. We want to provide a fresh look to the people so that they become refresh and looks beautiful.

Market Summary:

Honey shampoo possesses good information about the market and knows a great deal about the common attributes of the most customers. This information will be leveraged to better understand what their specific needs and how Honey shampoo can better communicate with them.

Market Demographics:

Geographic:

Honey shampoo has no specific geographic target area in Pakistan but we prefer urban area more than rural area. It would be very suitable according to our weather condition and climate. People can use this shampoo all the year round.

Demographics:

Both male and female can use this shampoo.

People who are in the all age are the vital users.

Bigger family consists of 6 to 10 member can use family size and single person and single family most probably use little size.

People who are educated are major concerning customer.

People who are involved in earning and lead a prosperous life also our concerning customer.

Behavior Factor:

People who are very aristocratic and lead very luxurious life they usually accept this product easily and old conventional people will take longer time to accept this shampoo.

Market Needs:

People usually need shampoo for wash hair or similar type of products like liquid soap, for their hair. Almost 75% people in our country use shampoo for their hair. People are very much habituated to use shampoo. Most of the people recommended hair care are using first and foremost for cleaning purpose.

Features:

Following are some of the features of our product:

Honey shampoo is good for hairs healthProvides vitamin “E” extractsBeneficial for scalp Gives freshness to your hairsNo harmfull effects

Marketing mix strategy

Segmentation:

Our market segment is quite measureable because our main target customer is 15–64 aged people and its approximate size is 63.6% of total population

Our target segment is very accessible because we urban area is one of our target market. The urban population which is 27% of total population

Our market segment is quite differentiable (Such as Men, Women) who have distinct choices needs and characteristics. In order to actionable our marketing program our market segment will help us. We can introduce different marketing strategy and promotional strategy according to men and women choice, preference and needs.

So our market segment is measurable, accessible, actionable, and differentiable.

We made the market segments on the following basis:

Density Age Gender Income Family size Family life cycle Occupation Education Social classes Life style Personality Benefits

Targeting:

We will target the following customers: Young Boys and girls Belongs to middle class Student of colleges and universities Wants a new and refreshing look

Differentiation:We will differentiate our product on the following basis: Comparatively less price New Look Good for skin Effective distribution

Positioning:

We have to position our product in the minds of the customers and consequently in the market with the help of our effective and customer oriented market strategies.

Positioning is one of the most important key to launch a product that means the distinctiveness from any other product which possess in the customer mind. However honey shampoo contains lots of distinctive features from its competitor products.

Some distinctiveness are mentioned below-

It is much more silky than other traditional shampoos.

It has two criteria (men & women) which contains distinct features from others. But other shampoos wash has no criteria like (men & women).

Honey shampoo is normally suitable for all types of hairs.

We use some distinct ingredients which are hardly used in our traditional shampoos .

It does not dry your skin. It is quite easy to carry and last longer than other.

Competitor’s strategy

Our competitors have a good market share because they are adapting following strategies: Less prices Effective promotion Intensive distribution Quality products Customers research Attractive packaging

Color:

As for as the colors are concerned, most of the people have showed their interest in bright colors without naming a particular color, but majority of people have agreed on the following colors to be the part of labeling the product.

Blue Red Orange Purple White

Packing:

Product units are packed in a smart 12 inch bottle Packaging.

Price:

Every marketing activity including pricing should be directed towards a goal. Thus one should decide on its pricing objectives before determining the price itself.

Pricing Objectives:

There are mainly three types of pricing objectives.

Profit Oriented To achieve a target return To maximize profit

Sales Oriented To increase sales volume To maintain or increase market share

Status -Oriented

To stabilize prices

Our Price Strategy:

The total per unit price for the 250mg pack that we will offer is as follows:

Cost of honey Rs.12 Electricity Rs.6 Factory over head Rs.10 Miscellaneous Rs.10 Retailer margin Rs.6 Profit Rs.12

Total price Rs.56 In accordance to our strategy we have decided to offer the product to customers at the price of Rs.56. The price is very much compatible and the offer is substantial enough to attract a large percentage of market in a very quick time.

Action plan

Placement:

We have decided to place the product in all the major and minor markets as well as in the canteens of colleges and universities of Punjab. We have decided to acquire the services of large and organized distribution network of Punjab.

Promotion:

Effective promotion paws the way for the product’s success. There are many different ways through which we can promote our product. We have planned a very wide promotion strategy that covers almost every part of the society. We have also paid serious attention to the span of intensive promotion in the initial stages. We have supported our promotional strategy with the use of electronic media, print media, internet and other sources and also with the help of some schemes such as lucky draws. Our promotion strategy in detail is as follows:

Television channels

Geo news ARY One World Express news Aaj TV Indus TV Star Plus Cable ads Newspapers Don Express Jung The News Magazines Akhbar-e-Jahan Family

Pamphlets Banners Sing boards Prize scheme Internet

Market Survey:

In order to learn weather people would like to buy or use our product, we have decided to conduct a market survey. First of all we have designed a survey form that shows how we can fulfill the requirements of the people. For this purpose we have surveyed different areas of Punjab. The contents of survey form are as follows:

Yes No Which brand do you use? _________________ What do you consider before buying a product? Price

Labeling Packing Brand name What should be the color of packing? Blue White

Red Green Yellow Orange

Purpose of using Honey shampoo:

41%

27%

21%

11%Free fromdandrapSilky hair

Clean

Free fromgearm

Most of the people of our country are very much conventional but our young generations are different as they can cope with newly things much more easily. Some sorts of people especially young generations are very much monotonous with using shampoo. So they are looking for

something new and different. That’s why we believe that our Honey shampoo would be the most impressive want for this growing need.

Market Trends:

In our country people usually use shampoo for their hair, except 70% male and 95% female respondents replied positively that they use shampoo regularly for hair. However, among male and female who is not use shampoo on regular basis because they feel that shampoo trim down the smoothness of hair.

Shampoo Usage Pattern:

Influencing Factors in New shampoo Purchase Decision:

While purchasing shampoo both male and female respondents firstly look for brand and their percentage is 26.67%. Then, secondly they prefer both antiseptic quality and beauty care quality

and for these the percentage is 23.33%. After that, 10.00% consumers seek for both price and ingredients. Again, 6.67% people search for both availability and packaging. Finally, only 3.33% people hunt for few other factors which are pack size, advertisements, and shopkeeper’s opinion.

Different types of people use different types of shampoo. People who are concerned with their beautification they use luxury shampoo like Dove which possesses maximum market share. Other face wash like pones, are also used for their beauty. Some other people are very much cautious to their skin and try to keep them fresh . These sorts of people usually use Lifebuoy face wash, Savlon. Upper classes and sophisticated people use very expensive and very lucrative beauty soap like Dove, , and Camay. Our young generation and sophisticated people want new, different, innovative, stylish, and quality something for showering. So we assume that shower gel would be greater interest in this prospect.

SWOT analysis…

SWOT analysis

Strength of Honey shampoo:

Convenient in distribution

synthetic surfactants as well as vegetable oil.

Combination of different feature

Easy to use

Affordable for all segments

Provide comfortable tube

Suitable for all type of skin.

We assure product differentiation.

Weakness of

Production cost and price would be higher.

No brand awareness of this new product as a start up company.

Lack of depth industry experience and insight.

Opportunities of Honey shampoo

New stylish and very much adaptable for the young generation.

There are no other manufacturers of such kind of product.

As the only manufacturer of this product we have an opportunity to capture the greater market share.

Much different and distinctive than traditional face wash.

So it is a large market which creates a great opportunity for us.

Threat of Honey shampoo

Shampoo market is the nearest competitor of us which possess the all market.

Our conventional people hardly take this product enthusiastically.

Possibility to come more competitors in this market.

Competition: Competition is an important factor to consider before entering a business. Company should have successfully competitive strategy to be able attract, retaiun and grow customer. There are no other companies who produce such kind of product. But there are similar types of

products for face wash. At present our uniliver is our main competitor. There are two types of Face wash one is tube and another is continer. Describe some soap competitor in below.

Shampoo: shampoo is basically used for beauty fiction and hair care. It is widely used by women.

1) Sunsilk: Sunsilk is the main competitor of our Shampoo industry because it possess 43.33% market share. Now it is the market leader in our local market. The manufacturer of Garner is the world most famous brand Unilever (BD). Ltd.

2) Dave: Dove is another main competitor in our shampoo industry which possess about 30% market share. Our local brand Square Toiletries is its manufacturer. It has much possibility to gain more market share.

3) Panteen: It is another USA base shampoo industry which is very popular in not only in Bangladesh but also the other countries. It will become a market challenger of Dove but it has not enough market shares in comparison of Dove.

4) Head & shoulder: Head & shoulder is another popular shampoo in our country . It will be a competitor of our shampoo .

Among the high priced like Rejoice, life boy etc. also poses good market share.

Strategy

Discount coupon will serve as marketing strategy to develop similar loyalty scheme in order to indentify and stimulate brand awareness. In the Pakistan market.

Sales forecast:……………………

Control: The purpose of marketing plan of honey shampoo is to serve as guideline for the organization. We will measure our performance by controlling following areas:-

Annual revenue Annual sales expense Customer satisfaction

Implementation:

We are planning tight control measure to closely monitor quality and customer satisfaction. This will enable us to react very quickly in correcting any problem (if any deviation find ) that may occur.

Conclusion:As honey shampoo is a new product in our country, so it has some lacking such as no popular brand name, people are not accustomed with such kind of product etc. but we hope we can easily overcome these lacking in our nearest future by providing better quality and creating strong brand loyalty among the customer. We believe that our people will prefer the honey shampoo then traditional face wash after comparing the product benefits. Hopefully in near future our people will get ride of that old shampoos and get yourself a honey shampoo and change the way their hairs.