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Welcome Everyone

Group # 3

It’s a “Creative Thinkers” Presentation

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Presentation on: “New Product Development”

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“Creative Thinkers”1 Falak Sikander (Market Manager)2. Ahmad Kamal (Supply Chain Manager)3. Hina Tahir (Finance Manager)4. Muhammad Hanif (Product manager)5. Zunaira Shehzad (Finance manager)6 Bilawal Raja (Promotion manager)

MISSION:

“Family, Nature and Health All Go Together”

“SLOGAN”

Blend of Nature and health offering natural sweetness.

“Nature Cultivates Health”

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“CORE VALUE”

“Customer’s Health”

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Product:

“Natural Sugar”

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What is Natural sugar Natural sugar is a sugar that has been cultivated, harvested,

and processed without the use of any chemicals or artificial additives.

Natural sugar is almost always sugar that was grown and processed under natural conditions.

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“FEATURES”

• High in nutrients.• High in vitamins.• No additives, chemicals, human waste or ionizing radiation.• Only using natural pesticides and herbicides during harvesting. • Save from hypertension, diabetes, depression.

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Difference Between Natural Sugar & White Sugar

Natural Sugar :• Only physical process • Retain all properties: • Vitamins • Proteins • Minerals • Available in organic style • No additives

White Sugar :• Less pure flavor (due to

filtering) • Chemical bleaches added to

get the clear color.• No Minerals

PHYSIBILITY REPORT

Question Asked From people?

Do you familiar with this product?

Experience with this product?

Response?80% people knew about this product.20% people used this product.Consuming result:•Retailer: Negative response due to non availability of this product.•Consumers:Positive response due to its effectiveness.

“Segmented Market”Selected the “Local Market” as Segmentation: Shopping Malls: • Mini Mart• Super Mart

Mini Mart: No related product. Purchase by placing the order. High Sale priceGenerally Low demandHigh demand from health conscious peopleShow positive response about this product.Make space for our product.

“Shopping club”

Don't purchase locally but they import the organic sugar. Never get the expected response about the product due to poor

quality. Used artificial ingredients in imported sugar. They suggested that you can sale at your own risk. The price should be reasonable.

Targeting Market We target the,

Health Conscious People Middle High Class

Uniqueness:

In Quality: There is no usage of any chemical and artificial flavor.In Packing: We will use the “Paper packing” instead of “Plastic Bags” Which may eliminate the environment destruction.

COST ANAYLISIS

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"Cost Analysis”

Total Quantity 100 Kg.Price per unit Rs. 85 Purchases (100*85)= Rs.8500Add: Direct Expense Carriage Exps. Rs.1000

Add: Indirect Exps. Packing Exps. Promotion Exps.

(100*20)= Rs. 2000 Rs. 2000

TOTAL COST = Rs.13500

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COST ANALYSIS• Cost price per unit: Total Price = Rs. 13500 Total Units 100 Kg. = Rs.135

Explanation: Manufacturing price of 100 kg sugar is Rs.85 per unit. And

the direct expenses and the indirect expenses are added then the total cost is Rs. 13500 and per unit price is Rs. 135.

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Sale Price per unit:

Cost price per unit Rs.135Profit Margin _Rs. 05_Sale Price Per unit Rs. 140

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Price Analysis Of “Natural Sugar “

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General Strategy to set price of our product.

• Cost based Strategy:

Our product price is under the cost based strategy because;

Firstly we designed our product as “Natural Sugar” Then determine the cost of Product. Set the price based on cost. Convince the customer for its value.

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Strategy for Natural sugarWe select the strategy for setting the price of Natural sugar is

“Skimming” SKIMMING Strategy means, Setting high prices and collect  revenues layer by layer from

the market. Maximize short term profit from the most eager and interested customers.

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REASONS FOR SELECTING.

Following are the reasons for selecting the skimming strategy. Quality and its uniqueness. Enough Buyers. Production Cost. No Competitors.

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SELECTED PLACE FOR

OUR PRODUCT

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PLACE

Where supply comes? Firstly, we purchased the Sugar from the Gojra city. In Gojra city, we meet with different wholesalers of the

Natural Sugar. These all wholesalers offered us different prices as Rs. 90 , Rs. 85 and the Rs. 80 per unit (Kg).

We choose the price Rs. 85. Because this price is common in most of the wholesalers. And its quality is also best.

Then we select one wholesaler and purchase the natural sugar. Then we placed this Sugar in our own place as Sahiwal.

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PLACE then we designed the packing of the Natural Sugar. And select the printing press place in which our product

packing is prepared. We use the paper packing to packed our product. This is the unique feature of our product. Then natural sugar is provided in the Mini Mart, Super Mart, and Shopping Club. At the end, The Natural Sugar is reached to the Consumers for Consumption it by using promotion tools.

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“PROMOTION”

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“Promotion”

Promotion means communication in market about the product.

Our way of communication in market is as under; Personal selling. Advertisement. (through using flexes).

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PERSONAL SELLING

• The first channel is used in promotion is the personal selling.

Reason for selected this channel: Most effective. Widely applied. Quick Response. Two Way Communication. All Kinds Of Consumers.

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“ADVERTISEMENT”• The second channel is used in promotion is the advertisement

channel. In advertisement channel., we selected the flexes tools. Reason for selected this channel:

Wide Geographical area covered. Long term relationship. Legitimacy.

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“Packing Of Our Product”

PACKING Style:

We Proudly Provide You the Evaporated Cane juice

Natural Sugar

Perfect for sprinkling, Beverages and Baking

Front side:

Natural Sugar”

Weight: 1Kg.Manufacture date: ___Expiry Date: ______

Back Side:

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EXPECTED SALES OF “NATURAL SUGAR”

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EXPECTED SALES

Expected Sales (80*140)

Rs. 11200

Less: Cost of sales. Rs. 7600 Gross Profit Rs. 3600Less: Operating expenses: Selling Expenses. Rs. 3200

Expected Profit Rs. 400

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Explanation• Cost of sales: Purchases (80*85) = Rs. 6800 Direct Expenses (1000/100)*80 = Rs. 800 TOTAL COST OF SALES Rs. 7600Operating Expenses: Selling expense =(4000/100)*80 = Rs. 3200PROFIT PER UNITprofit/ / units sold = 400 = Rs.5 80

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It is our collectively team effort

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