new product development

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It is a complete presentation of Operational Management for the students of MBA. It'll provide a guideline how to introduce your new brand.

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Page 1: New product development
Page 2: New product development

Assignment

Presented By

SubjectProduct Development

Hafiz Ali Raza Khan

Roll # MMKT

18

Presented To

Mian Kausar

Hameed

Page 3: New product development

New Product Development

Flavored Bread

Product

Page 4: New product development

Introduction:

“Yummy Bread” is the first company concerning with the manufacturing of the flavored bread.

Yummy Bread is a name that has come to signify quality and freshness in bread products.

Page 5: New product development

Bread Innovation:

Our product is unique in sense that it provides with unique flavored in bread first time in Pakistan.

It is also at the same time a product for the health conscious people.

Page 6: New product development

Currently Yummy has three flavors :

MangoStrawberrychocolate

Page 7: New product development

“To provide our customers with bread that actually looks and tastes good.”

Page 8: New product development

Our vision is to become Pakistan's favorite bread this is underpinned by our dedication to continued improvement across all areas of the business.

Page 9: New product development

Our goal is to ensure that important values such as quality, freshness, and service are delivered to our consumers in the 21st Century.

Page 10: New product development

Current Market Situation:

The bread and bakery products market has struggled with numerous challenges over many years.

The sector has suffered from the effects of discounting, keeping value growth at a modest level.

Page 11: New product development

Only 5 % population of Pakistan is using the packed bread so rest of the markets still to be captured.

Here people are wiling to pay extra amount for the differentiated product.

Page 12: New product development

Market Segmentation:

Effort to increase a company’s precision marketing. We have done the segmentation on the

basis of the following variables:

GeographicDemographicPsychographicBehavioral

Page 13: New product development

Geographic :

Divide Lahore in different segments according to areas, states, regions and markets. E.g. D-ground, medina town.

Demographic:

Divide people according to Age, Income, Social Class, Occupation and their life cycle.

Page 14: New product development

Psychographic:

To analyze the psyche of the people of Lahore we divide them in social class, life style and personality .

Behavioral:

Behavioral segmentation divides buyers into groups based on their knowledge, attitude, uses or responses to products. In Lahore we see the behaviors of people with the help of the questionnaire.

Page 15: New product development

Targeting:

After segmenting the market we are targeting the following segments:

Income Group:

We will be targeting all income groups who should afford easily.It will not discriminate between income groups.

Page 16: New product development

Youth:

A huge potential market for this bread it lies with youth whom we will be Specifically targeting road shows to be held as part of the ‘Add Color’ campaign.

Travelers:

It is also available in mini-size factor, so it will be highly convenient to carry along during large journeys or trips.

Page 17: New product development

Positing Strategies:

Positioning is what the customer believes about your product’s value, features, and benefits.

By benefits:

Through positioning we will tell our customer how many benefits they can get from our product.

Page 18: New product development

By use or application:The different tastes from the ordinary bread. Use it with butter or eat the simple loaf.

By user:Every one who wants to have a

“different taste” may have it.

By product or service class:It is positioned as a lower cost and healthier alternative to the ordinary bread, while it provides better taste and healthy ingredients.

Page 19: New product development

By price or quality:Yummy wants you to believe that their flavor bread is of the highest quality Positioning is what the customer believes

By Values: We will also position our product on the basis of customer values. Like this, if you want to look healthy then use Yummy bread.

Page 20: New product development

Product Review:

Company Name:

“Yummy & Co.”

Product Name: “Yummy Bread”

Logo:

Page 21: New product development

Ingredients:

Flour WaterSaltYeastSugarCooking OilEmprovelFlavor

Preservatives:Calcium propionateCalcium acetate

Page 22: New product development

Quantity per Badge:

Flour 130 kgSugar 6 kgCooking Oil 2 kgYeast 2 kgEmprovel 240 gmCalcium propionate 250 gmCalcium acetate 100 gmWater 62 litersFlavor as per requirement

Page 23: New product development

FlavorStrong bones8 hours energyVitamin A & DQuite notorious

Features:Yummy bread has different flavorsMake the bones strongRepair the dead tissues of the bodySource of creating bloodEnriched with vitamin A & DGlow the body & skinReduce fat & Carbohydrates

Page 24: New product development

Design & Packing:The color of our bread is the same as the flavor we used in making the bread and we provide the bread in a very attractive packing, just look like it.

Page 25: New product development

Competitors:

Indirect competitor:Different cakes

Biscuits

Cookies

Pastries

Substitute Competitors:A substitute competitor is any competitor that fills the same

buyer need you fill but fills it in a different way. The substitute

competitor of Flavored Bread is:Dawn Bread

Wonder Bread

Cakes and Bakes

Different Bakery Breads

Vita Bread

Page 26: New product development

Distribution Channels:

Our distribution channels in Lahore are: BakeriesSupper storesDepartmental storesMarts and edible market stores.

We mainly focus on the retailers & Bakeries because they are the only source which delivers our product to the final consumer.

Page 27: New product development

Pricing strategies:

We will adopt the following pricing strategies to set the price of our product:

Marketing Skimming

Cost-plus pricing Method

Page 28: New product development

Marketing Skimming:Yummy is using Price skimming strategy. It is a pricing

strategy in which a marketer sets a relatively high price

for a product or service at first, and then lowers the price

over time.

Cost-plus pricing Method:A pricing method used by Yummy because it is easy to calculate & requires little information.This method determines the cost of the product that used direct cost, in-direct cost and fixed cost whether related to the production OR sale of the product.

Page 29: New product development

Our prices schedule:Product Quantity in

pieces

Price in Rs.

Yummy Bread 8 piece Rs. 22

Yummy Bread 14 piece Rs. 35

Yummy Bread 18 piece Rs. 55

Pricing Objectives:

Market share leadershipProduct Quality Leadership

Page 30: New product development

Yummy Advertising Strategies Position the product:

"Because we are worth it."

Creating a stronger brand personality:It will base on an upscale, character that people will aspire to associate with.

Using the Internet / Web site:Currently Yummy don’t have any Web site but it will have

an internet asses and web site in future to target and sell

younger buyers, new buyers, before they have

established a product.

Page 31: New product development

Media Vehicle:The print and electronic medium employed in an

advertising campaign used by Yummy is as follow:

ELECTRONIC MEDIA PRINT MEDIA

Tv Radio News paper Magazines billboard

Ptv Fm 101 The news Young world Muslim Mor

Geo tv Fm 103 Jang Sunday

magazine

Defense

Chock

A tv Fm 90 Dawn Akhbar-e-

jahan

Yaadgar

chock

Ary Fm 89 Express Family

magazine

General Bus

stand

Thokar Niaz

Baig

Iqbal town

Page 32: New product development

Deciding on Media time:

We will advertise Yummy Bread on TV 4 times in

a day and almost for a week in first 2 and half

months, and the add will go air in the prime time

broadcasting like Drama hours, it will also be

advertise daily in the mid of the KHABARNAMA.

Page 33: New product development

Promotional Material:

Point of sale (POS) Terminals:Yummy has place different check out

counters in big general stores like

AL-FATEH

Participation in Trade Fairs and Exhibitions:Yummy has stalls in the different Exhibitions held in

different schools, universities and cities. Where they

sell and tell the consumers about the product that is the

flavor bread.

Page 34: New product development

Broachers and Leaflets:Yummy has very attractive and appealing broachers which Yummy have distributed with the news papers and they have also placed it on the cash counters in different stores. Plus, Yummy is now having a man standing on the entrance of big shopping malls in the city.

Banner & Hoardings:Yummy has placed banners on different squares

in the city and they have the hoarding placed on

the malls and stalls in the exhibitions.

Page 35: New product development

SWOT Analysis

Strengths:

Our ability to produce options keeps more consumer

interest and needs met.

Our new production technology will enable us to mass

produce products more efficiently and quickly than other

old companies.

Our new taste will attract many such type of consumers

who are taste changer

New product innovation in local area. So it will attract

the people of local area.

No specific Competitor

Page 36: New product development

Weaknesses:

No brand recognition our name in baking industry is new so

most of people are not familiar with Yummy Bread.

No separate outlet as we have not enough finance to

construct our separate outlet.

No customer orientation in local areas, as we newly

introduce in Lahore so customer are oriented in the brand.

The more flavor we create the production cost will

increase.

At starting we will not have as such trained staff that has

such market experience.

Page 37: New product development

Our new taste will attract much, such type of consumers who are taste changer.Our new production technology will enable us to mass produce products more efficiently and quickly than other old companies.Our ability to produce options keeps more consumer interest and needs met.No specific Competitor

Page 38: New product development

Threats:

New product may people don’t accept it.There are large companies who have brand loyal customers providing the market with not exactly similar but milky and other breads.Switching brand loyal consumers to a smaller and newer company.There is open market everywhere means any new company or existing ones can start the same production that may have more experience or more qualified staff.Imitation by existing bakeries, May try to copy it.

Page 39: New product development