New Product Development Report

MARKETING PROJECT New Product Development & Pricing
“CHANGE IS THE ONLY CONSTANT IN TODAY'S MARKETPLACE”
New Product Development & Pricing

“Launch of NEW PRODUCT”
Members:
Faseeh Ur Rehman --- BAF-07-60
Nousherwan Akbar --- BAF-07-14
Umer Farooq --- BAF-07-39
Muhammad Waqas - - - BAF-07-34
Javeria Zia --- BAF-07-17
Ayesha Siddiqui --- BAF-07-18
Instructor:
Mr. Khurram Javed Paracha
1 Students of BS A/F (HONS) Session (2007-2011)

Department of Commerce, Bahauddin Zakariya University Multan
Executive Summary
Report is the practical part of the theoretical subject marketing of our BS
Accounting & Finance (Hons) Program. The sole objective is to familiarize the
students with the practical manipulation of business organization. This report
has been written to know about the causes that lead to the launching new
Product.
In the first phase of the report there is the general introduction about the New
Product Development.
In the next part; we took into account the objectives that are behind this. We
illustrate the objective one by one according to their priority. To understand
and specify the objectives is necessary to understand the variable, which affect
this issue. We define only the key variable. After this we collect the data from
different sources and analyze it, interpret it, and show the diagrammatical
representation for easy understanding. More over this we make some
conclusion and offer our suggestions for improvements with some limitations
that we face. In the next phase the feasibility report of A.G Detergent with the
SWOT analysis, target market, market segmentation and the detail of 7ps of
marketing mix etc.
Authors

Acknowledgment
We are very thankful to Almighty Allah who has all the powers in the world
and who also give us power to perform the assigned task, which otherwise we
can't perform.
We are great full to Hazrat Muhammad (S.A.W.W) who remains an example

in every aspect of life
We are also very thankful to our parents. We are very thankful to our honorable
instructor Mr. Khurram Javed Paracha for providing us with such an
opportunity to explore the practical aspects of the Marketing that refined our
theoretical concepts and would help us in the practical field.
We are also thankful to all of our respondents especially Mr. Allah Ditta who
co-operated with us in conducting the research and sorting out the cause of the
problem. We are especially thankful to our class fellows who help us from
every aspect.

Table of Contents
Introduction………………………………………………………………
Major Stages in New-Product Development

 Idea generation ……………………………………………….…..
 Idea screening ………………………………………………..…...
 Concept Development and Testing ………………………………
 Product Idea ……………………………………..…..
 Product Concept …………………..……………..….
 Product Image………………………………….…….
 Marketing strategy development …………………………………
 Business analysis………………………………………………….
 Test marketing…………………………………………………….
 Commercialization………………………………………………...
Key success factors in New Product Development
 Operating Philosophy….…………………………………………….
 Organization Structure……………………………………………….
 The Experience Effect………………………………………………..
 Management Style …………………………………………………...
The Product Life Cycle
 Product development ……………………………………….…………

 Introduction ……………………………………………………….…..
 Growth ………………………………………………………………...
 Maturity…………………………………………………………….….
 Decline …………………………………………….…………………..

New-Product Failures
1. Faulty Product Idea ……………………………………………...
2. Distribution Related problems …………………………………..
3. Poor Timing of Launch …………………… …………………....
4. Improper Positioning …………………………… ………………
5. Others …………… …………………….………………………..
PRICING
Pricing Objective
Profit oriented goal ………………………………………………..
Sale oriented goal ………………………………………………….
Maintain & increase market share ………………………………...
Status Quo goals ……………………………………………………
Pricing Decision
Cost-orientated ……………………………………………………..
Demand-orientated …………………………………………………
Competitor-orientated ………………………………………………
Influences on Pricing Decisions

Company Objective ………………………………………………..
New Competitors …………………………………………………..
Suppliers / Distributers …………………………………………….
Cost …………………………………………………………………
Existing Competitor ………………………………………………..
Customer ……………………………………………………………
Management Culture ………………………………………………..
Company Market Stance ……………………………………………

Pricing Strategies
Market Skimming ……………………………………………………

Penetration Pricing …………………………………………………..
Value Pricing ………………………………………………………...
Going Rate (Price Leadership) …………………………………….....
Captive Product Pricing ……………………………………………...
Product-bundle pricing ………………………………………………
Promotional pricing ………………………………………………….
Geographical Pricing …………………………………………………
Contribution Pricing ………………………………………………….
Pricing Variations……………………………………………………...
Premium Pricing ………………………………………………………
Ten ways to „increase‟ prices without increasing price
Case Study Self Made

Introduction
What is a new product?
• A product that opens an entirely new market.

• A product that adopts or replaces an existing product.
• A product that significantly broadens the market for an existing product.
• An old product introduced in a new market.
• An old product packaged in a different way.

• An old product marketed in a different way.
Types of new product
• Innovative products
• New product lines – to allow the firm to enter an existing market
• Addition to product line – to supplement the firm‟s existing product line

• Improvements and revisions of existing product
• Repositioned products – existing products targets at new market
• Cost reduction new product that provide similar performance at lower cost
Examples of new products
• New to the world – high definition TV, iPod, flat screen TV, Probiotic Ice Cream
• Product improvement & replacement :SPEED by BPCL
• Cost reduction new product: Moser Baer.

New product can be used to……
• Increase/defend market share by offering more choice or updating older products

• Appeal to new segments
• Diversify into new markets

• Improve relationship with distributors
• Maintain the firm‟s reputation a leading edge company
• Even out peaks and troughs in demand
• Make better use of the organization's resources
Why develop New Product?
• To create stars and cash cows for the future

• To replace declining product
• To take advantage of new technology
• To defeat rivals
• To maintain/increase market share

• To keep up with rivals
• To maintain competitive advantage
• To fill gap in the market
New product development
In business and engineering, new product development (NPD) is the

term used to describe the complete process of bringing a new product or
service to market.

There are two parallel paths involved in the NPD process:

The idea generation, product design, and detail engineering;
Involves market research and marketing analysis.
Companies typically see new product development as the first stage in

generating and commercializing new products within the overall strategic
process of product life cycle management used to maintain or grow their
market share.
OR
Development of original products
Product improvements
Product modifications
New brands through the firm‟s own R & D efforts
OR
New product development is a process which is designed to develop,
test and consider the viability of products which are new to the market in
order to ensure the Growth or survival of the organization.

Major Stages in NPD

There are 7 Stages of New Product Development
IDEA GENERATION
“The "fuzzy front end" of the New Product Development process”
Idea Generation is the Systematic Search for New Product Ideas Obtained
Internally From Employees and Also From:
Ideas for new products can be obtained from basic research using a
SWOT analysis (OPPORTUNITY ANALYSIS), Market and consumer
trends, company's R&D department, competitors, focus groups, employees,
salespeople, corporate spies.
IDEA SCREENING
“Process to spot good ideas and drop poor ones”
Many companies have systems for rating and screening ideas which estimate:
Market Size
Product Price
Development Time & Costs
Manufacturing Costs
Rate of Return

0 Department of Commerce, Bahauddin Zakariya University Multan
OR
The screeners must ask these questions:
Will the customer in the target market benefit from the product?
What is the size and growth forecasts of the market segment/target market?
What is the current or expected competitive pressure for the product idea?
What are the industry sales and market trends the product idea is based on?
Is it technically feasible to manufacture the product?
Will the product be profitable when manufactured and delivered to the
customer at the target price?
Then, the idea is evaluated against a set of general company criteria.
Concept Development and Testing

“Develop the marketing and engineering details”
Product Idea: idea for a possible product that the company can see itself
offering.
Product Concept: detailed version of the idea stated in meaningful
consumer terms.
Product Image: the way consumers perceive an actual or potential product.
Purposes of Concept Testing
To identify very poor concepts so that they can be eliminated.

To estimate (at least crudely) the sales or trial rate the product would enjoy
(buying intentions, early projection of market share).
To help develop the idea (e.g. make tradeoffs among attributes).

Procedure for a Concept Test
Prepare concept statement

Clarify specific purposes
Decide format(s)
Select commercialization
Determine price(s)
Select respondent type(s)
Select response situation
Define the interview
Conduct trial interviews
Interview, tabulate, analyze
Marketing Strategy Development

“Essentially a pattern or plan that integrates your organization's major goals”
Includes development of three part strategy plan
Describes Overall
Describe the market‟s size, structure, and behavior, the planned

product positioning, and the sales, market share, and profit goals for first few
years.
Describes Short-Term
Outlines the planned price, distribution strategy, and marketing budget

for the first year
Describes Long-Term
Describes the long-run sales and profit goals and marketing-mix

strategy over time

Business Analysis
“Estimate likely selling price based upon competition and customer feedback”
Business analysis is the discipline of identifying business needs and

determining solutions to business problems.
Solutions often include a systems development component, but may

also consist of process improvement or organizational change or strategic
planning and policy development.
The person who carries out this task is called a business analyst or BA
There are a number of techniques that a Business Analyst will use

when facilitating business change & in NPD there are two important
techniques used names MOST & SWOT
MOST
This is used to perform an internal environmental analysis by defining
the attributes of MOST to ensure that the project you are working on is
aligned to each of the 4 attributes.
The four attributes of MOST
Mission (where the business intends to go)
Objectives (the key goals which will help achieve the mission)
Strategies (options for moving forward)
Tactics (how strategies are put into action)
SWOT
This is used to help focus activities into areas of strength and where
the greatest opportunities lie. This is used to identify the dangers that take
the form of weaknesses and both internal and external threats.
The four attributes of SWOT
Strengths - What are the advantages? What is currently done well?
Weaknesses - What could be improved? What is done badly?
Opportunities - What good opportunities face the organization?
Threats - What obstacles does the organization face?

There come two Conditions after reviewing this analysis

If No, Eliminate Product Concept
If Yes, Move to Product Development
Test Marketing
“Involves placing a product for sale in one or more selected areas”
Test Marketing is the Stage Where the Product and Marketing

Program are Introduced into More Realistic Market Settings
In this we also
Produce a physical prototype or mock-up
Test the product (and its packaging) in typical usage situations
Conduct focus group customer interviews or introduce at trade show
Make adjustments where necessary
Produce an initial run of the product and sell it in a test market area to
determine customer acceptance

Commercialization
“Considered post-New Product Development”
Commercialization is the Introduction of the New Product into the Marketplace
Must decide on timing (i.e., when to introduce the product).

Must decide on where to introduce the product (e.g., single location, state,
region, nationally, internationally).
Must develop a market rollout plan.
Each successive set of consumers behaves differently

New Product Adoption Process is also known as the “Diffusion Process”.
The Consumer-Adoption Process/ Innovation diffusion process
Adopters of new products move through five stages

Awareness Interest  Evaluation Trial Adoption
Commercialization involves implementing a total marketing plan and full

production
Launch the product

Produce and place advertisements and other promotions
Fill the distribution pipeline with product
Critical path analysis is most useful at this stage

Key Success Factors in NPD

• Operating Philosophy
• Organization Structure
• The Experience Effect
• Management Style
Operating Philosophy
Successful companies are more committed to growth through new

products developed internally.
They are more likely to have had a formal new product process in
place for a longer period of time than unsuccessful companies. They are
more likely to have a strategic plan that includes a certain portion of
company growth from new products.
Organization Structure
Successful companies are more likely to house the new product

organization in R&D or engineering and are more likely to allow the
marketing and R&D functions to have greater influence on the new product
process
The experience Effect
Experience in introducing new products enables companies to

improve new product performance.
New product development costs conform to the experience curve: The
more you do something, the more efficient you become at doing it. This
experience advantage stems from the acquisition of knowledge of the market
and of the steps required to develop a new product.

Management Style
Successful companies appear not only to select a management style

appropriate to immediate new product development needs but also to revise
and tailor that approach to changing new product opportunities
The Product Life Cycle

There are five main Strategies of PLC
Product development – Discussed in Detailed Previously

Introduction
Growth
Maturity
Decline
Not all products follow this cycle
Fads
Styles
Fashions

Introduction
Growth Stage of PLC

Maturity Stage of PLC
Declining Stage of PLC

NEW PRODUCT FAILURE

In this era of tight competition from domestic and global firms the
firm who don't come out with new products are putting themselves at great
risk because their existing products are prone to changing customer needs,
shorter product life cycles, new technologies and increased competition.
Despite years of research and huge capital being pumped in to

understanding the consumer, making a launch successful is still a difficult
task. The new product largely depends on the product quality and the
marketing tactics of the firm, there are many occasions were the product
failed miserably even after using the best technology and quality the reason
is that the new product is not worth for the customers. The prime factor for
the new product success is - customer value. Value is what the customer
thinks is value.
The major reasons for product failure are:
Faulty product idea
The product often fail because faulty of product idea. A good idea can
revolutionize the market but a bad idea may prove bitter to the firm or it
may backfire
Eg: Polar industries in 1991 launched "COOL CATS" fan -decorated
with cartoon characters meant primarily for children. The fan was priced at
premium; the idea was that children's were increasingly becoming
influencers in purchase decisions and to attract the kids with the cartoon
creatures and to position the product exclusively for kids. The product failed
miserably in spite of its huge advertising budget because when the fan was
put on it didn't have any color effect and the customer did not justify its
premium price.
Distribution related problems
The new product fails if the product is unable to meet the channel
requirements. While developing the product the channel requirements must
be given adequate consideration.

Eg: when NESTLE launched its new chocolates the product and
promotion was ok but the product failed in the distribution side because the
company stipulated the product to be stored in refrigerators.
The product faced two problems in the distribution side because it

meant excluding a number of retail outlets as they didn't have this facility
and secondly the chocolate was not picked by the customers as it was not
seen upfront in the retail shops. Finally Nestle had to reformulate the product
according to channel requirements.
Poor timing of launch
Too early or late entry into the market is a common cause of failure.
Kinetic Merlin was launched in pune in 1991.It was a 3 in 1 set consisting of
a color television, a stereo with detachable speakers and a home computer.
The product was targeted at the Indian consumers who are fond of
sophisticated gadgets to immediately adopt such an innovative idea but in
reality the idea was too advanced for the customers to digest at that time
because they were not exposed to such type of products before.
Improper Positioning
Positioning means putting the product into the predetermined orbit

Improper positioning may affect the product success.
Eg: Titan Tanishq introduced their 18 carat jewellery and the product
was positioned at elite segment but there was a contradiction as to why these
elite segment should go in for a low carat gold because the norms for gold in
India at that time was 22 carat. The product failed miserably in retrospect
Titan had to introduce 22-carat jewellery
Some “Other Reasons” for product failure are:
Lack of differential advantage
Poor planning
Technical problems in the product
Competitors fighting back harder than expected
Poor market research
The watchwords for new product success are
“RIGHT PRODUCT TO THE RIGHT CUSTOMER AT RIGHT TIME”

Pricing
Pricing objectives should flow from and be consistent with corporate
and marketing objectives and the overall company mission these objectives
should be started explicitly because they directly affect pricing polices and
the methods used to be set)
Objectives
Profit Oriented profit goals may be set for the short or long term
.Accompany may select one of two profit –oriented goals for its pricing
policy
To achieve a target returns
The pricing objective of marking as much as money as possible is

probably followed more then any other goal. The trouble with this goal is
that some people profit maximization has an ugly connotation suggesting
profiteering, high prices and monopoly.
E.g. Pizza hut
To maximize profit
A profit maximization objective seeks to achieve as much profit as

possible.
It might be stated as desire to earn a high return an investment or more sonly to
change “what the method will bear”
E.g.
Pizza expert
Pizza hut
Pizza next
McDonalds

Sale Oriented
In some companies management‟s pricing is focused on sales volume.
The pricing goal may be to increase sales volume or to maintain or increase
the firm's market share
To Increase Sale Volume
This pricing goal of increasing sales volume .The pricing goal may be
to increase volume or to maintain or increase the firm's market share.
To maintain or increase
Most industries today are not growing much if t all and have excess
production capacity. Many firms need added and to utilize their production
capacity more fully and, in turn, gain economics of scale and better profits
Market share
Many organization seek to gain same specific share % of a market
.The advantage of a market-share price object is that its force a managers to
pay attention to the performance of the competitions. It is usually easier to
measure an argumentation market share than to determine if profit are
buying maximized since market share is a relation measure it is often the
preferred measurement of an argument competitive
E.g.
McDonald,
Coca-Cola
Pepsi

Status quo oriented

To stabilize oriented
Price stabilized often is the goal in industries where

The product is highly standardized (such as steel or bulk chemicals.
One large firm. Such as Phelps Dogs in the copper industry.

Historically has acted as a leader in setting their prices.
To meet competent:
Firm that adopt status quo pricing goals to avoid price competition are
not necessarily passive in their marketing .Quite the contrary! Typically
these companies compete aggressively using other marketing-mix elements-
product. Distribution and especially protion.This approach called nonprime
competition
Pricing Decisions:
Pricing policies can be established in three ways:
• Cost-orientated (the costs involved in manufacturing the product and then

adds on a percentage of the cost as a mark-up in order to set the price)
• Demand-orientated (High demand means high prices – low demand means
low prices)
• Competitor-orientated (pricing is usually found where a group of
organizations is selling the same product i.e. petrol, finance, etc.
Customers are happy to pay and accepted the product as the “market
price”.
Individual firm cannot increase the price and decrease, consequently, loss of
customer and loss of revenue. )

Factors to Consider When Setting Prices
Internal Factors Affecting Pricing Decisions
Marketing Objectives
Survival
Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business
Current Profit Maximization
Choose the Price that Produces the Maximum Current Profit, Cash Flow or ROI
Market Share Leadership
Low as Possible Prices to Become the Market Share Leader
Product Quality Leadership
High Prices to Cover Higher Performance Quality

Marketing Mix Strategy
Product Design & Quality

Non price Factor
Promotion
Distribution
Cost
Total Cost = Fixed Cost + Variable Cost
Total Costs
Sum of the Fixed and Variable Costs for a Given Level of Production
Fixed Costs (Overhead)
Costs that don‟t vary with sales or production levels.
E.g. Executive Salaries, Rent
Variable Costs
Costs that do vary directly with the level of production
E.g. Raw materials
Costs Considerations
“Cost Per Unit at Different Levels of Production per Period”

External Factors Affecting Pricing Decision

Market & Demand Factor
Competitor‟s Cost, Price & Offers
Other External Factors
Economic Conditions
Reseller Needs
Govt. Actions
Social Actions
Market & Demand Factor

Competition-Based Pricing
And the Rest of the Factors which are mentioned before
Economic Conditions
Reseller Needs
Govt. Actions
Social Actions

Pricing Strategies
Setting the price steps between various products in a product line, based on cost
differences between the products, customer evaluations of the different
features and the competitors‟ pricing
Importance of Setting Prices
 Setting the proper price point is instrumental in attracting your target

customer.
 Some customers are willing to pay more for a product as long as they feel
they are getting value for their Money.
 Most customers however are price-sensitive and are always seeking the
lowest possible price.

Price Determination Process
Skimming pricing strategy

“Involves the use of a high price relative to competitive offerings”
 High price, Low volumes

 Skim the profit from the market
 Suitable for products that have short life cycles or which will face
competition at some point in the future (e.g. after a patent runs out)
Examples include: Play station, jewellery, digital technology, new DVDs, etc.
Advantages of Market Skimming

• The practice of „price skimming‟ involves charging a relatively high price
for a short time where a new, innovative, or much-improved product is
launched onto a market

• The objective with skimming is to “skim” off customers who are willing to
pay more to have the product sooner; prices are lowered later when demand
from the “early adopters” falls
• The success of a price-skimming strategy is largely dependent on the
inelasticity of demand for the product either by the market as a whole, or by
certain market segments
Penetration Pricing
“Price set to „penetrate the market”
 Low‟ price to secure high volumes

 Typical in mass market products – chocolate bars, food stuffs, household
goods, etc.
 Suitable for products with long anticipated life cycles
 May be useful if launching into a new market
Example: Telenor – To attract New Corporate Clients
Advantages of Penetration Pricing
• It can result in fast diffusion and adoption. This can achieve high market
penetration rates quickly. This can take the competition by surprise, not
giving them time to react.
• It can create goodwill among the early adopters segment. This can create
more trade through word of mouth.
• It creates cost control and cost reduction pressures from the start, leading to
greater efficiency.
• It discourages the entry of competitors. Low prices act as a barrier to entry
(see: porter 5 forces analysis).
• It can be based on marginal cost pricing, which is economically efficient.

Value Pricing
“Price Based on Consumer Perception”
• Value based pricing, or Value optimized pricing is a business strategy. It sets

selling prices on the perceived value to the customer, rather than on the
actual cost of the product, the market price, competitors prices, or the
historical price
• The goal of value-based pricing is to align price with value delivered. Price
for any individual customer can be customized to reflect the specific value
delivered. Examples could include metrics such as number of users, number
of annual transactions, size of revenues, cost savings, or other
measurements. Value based pricing typically enables companies to become
more competitive and more profitable than using simpler pricing methods.
 Price set in accordance with customer perceptions about the value of the
product/service
Examples include Value menus at Fast Food Restaurants
Going Rate (Price Leadership)

“Based on Limited Competition”
In case of price leader, rivals have difficulty in competing on price – too

high and they lose market share, too low and the price leader would match
price and force smaller rival out of market
May follow pricing leads of rivals especially where those rivals have a clear
dominance of market share
Where competition is limited, „going rate‟ pricing may be applicable –
banks, petrol, supermarkets, electrical goods – find very similar prices in all
outlets

Psychological Pricing
“Used to play on consumer perceptions”
To get a customer to respond on an emotional, rather than rational basis

Links with value pricing – high value goods priced according to what
consumers THINK should be the price
Example: Rs.99 not Rs.100 „price point perspective
Captive product pricing

“Products that complement others”
e.g Gillette razors (low price) and blades (high price)
Product-bundle pricing
“Sellers combine several products at the same price”
E.g. software, books, CDs.
Promotional pricing
• BOGOF e.g. toothpaste, soups, etc
Geographical pricing
“Different prices for customers in different parts of the world”
E.g. include shipping costs
Pricing variations
“off-peak‟ pricing, early booking discounts, etc”
E.g. cash back‟ incentive for expensive goods
Premium pricing
“Uses a high price, but gives a good product/service exchange”
E.g. 5 Star Hotels

Ten ways to „increase‟ prices without increasing price

“By Dr Winkler P”
• Revise the discount structure

• Change the minimum order size
• Charge for delivery and special services
• Invoice for repairs on serviced equipment
• Charge for engineering, installation
• Charge for overtime on rushed orders
• Collect interest on overdue accounts
• Produce less of the lower margin models in the line
• Write penalty clauses into contracts
• Change the physical characteristics of the product

A.G - Detergent
Idea Generation
New product that we are going to launch is an Anti Germ detergent. The idea
behind this product is that people are very much health conscious and are aware of the
importance of germ prevention. Recently we were conducting a research on brand
preferences in soaps. Our survey based research showed that most people prefer anti-
bacterial soap over other soaps for health reasons. Many people think that Germ Killing
ability is one of the core benefits of soaps.
Market Research
This research triggered the idea that if most people prefer to keep skin germ free,
than it is their latent demand to have a product that keeps there towels, clothes, bed-
sheets etc. germ free. Than we conducted another survey asking people that if we
introduce an anti-germ detergent whether they would purchase it. 80% people said that
they will surely purchase it. Most of them were enthusiastic about the idea of this new
product. This argument convinced them that anti-bacterial soap cannot help to achieve
the goal of germ-free, healthy living. To be truly germ-free you have to keep your
immediate surroundings hygienically clean.
Most of the germs that our body catches come from our contact with clothes, bed
sheets, curtains, pillows and most importantly towels. Towels are made of materials that
are especially receptive to germs. Towels provide suitable place for germs and their
reproduction.Anti-bacterial soaps can kill germs from our body but when we use towels
to dry our body, millions of germs living on it transfers to our body and hands making us
again “Germy”.
Market segmentation and Targeting

“Dividing a market into smaller group of buyers distinct characteristics or
behavior who might require separate products or marketing mix”
We are dividing the market geographically, psychographic ally and
demographically.

Geographically
We are dividing the market into major and small cities. Initially, we are targeting
only the big cities like
Karachi
Lahore
Islamabad
Multan
Faisalabad
Demographic Segmentation
We are dividing consumers into 3 classes on the basis of their Income.
Upper Class
Middle Class
Lower Class
But we are targeting the only the upper and middle class
Psychographic Segmentation
We are dividing consumers into these groups:
Innovators
Thinkers
Achievers
These all will buy our product.
Marketing Mix
Now we discuss in terms of marketing mix ----- the set of controllable marketing
tools i.e. product, price, place and promotion, which are blended to produce the desired
response in the target market.
Product
Brand Name
“Anti Germ” Detergent.
Quality
It is of high quality in cleaning white and colored alike.

Features
i. Superior quality detergent
ii. It salient feature is killing Germs, Bacteria and various types
viruses.
iii. It does not the fibers of the clothes so they give a new look for a
longer time.
Packaging
The product is available in 4 sizes of different weights.
80 gm
200 gm
500 gm
1 Kg
Price
We are the 1st ones to introduce an anti-bacterial detergent. So we are in a position to
charge relatively high price than ordinary detergents. If we charge very high price as
compared to other detergents than chances are that most people especially middle class
detergent users, though convinced about the importance of its Germ Killing feature, will
not purchase it. If we charge low price as compared to ordinary detergents than people
may consider that it is an inferior product. So we are introducing it at prices which are
slightly higher than Arial and Surf Excel.
The prices are as follows:
80gm……………………Rs. 20
200gm…………………..Rs. 40
500gm…………………..Rs. 85
! Kg …………………....Rs. 150
Place
Initially, we will make this product available at all departmental stores and
superstores. Once the product gets off to a good start availability will be increased to
other cities and small shops.

Promotion
There will be extensive promotion for the product. All our promotion efforts will
be to persuade people to buy anti-bacterial detergent powder.
We will not have to spend money on creating awareness of the importance of
germ prevention, because the general awareness has been created by anti-bacterial soap
industry.
We will mainly use 3 media type.
1. Electronic Media
2. Print Media
3. Outdoor media
Electronic Media
We will make persuasive commercials and infomercials about our product in
Doctors will be shown explaining importance of Germ-free towels and clothing and
hence the importance of “Anti Germ ” as an anti-bacterial detergent. These Ads will be
presented on TV, RADIO and INTERNET.
Print Media
Ads would be placed especially on women digests and weekly magazines in
which details of the benefits of the product for consumers will be discussed persuasively.
Out-door Media
The portraits from the TV ad will be placed on bill boards on centralized
locations.


New Product Development Report

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New Product Development Report

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MARKETING PROJECT New Product Development & Pricing

“CHANGE IS THE ONLY CONSTANT IN TODAY'S MARKETPLACE”

New Product Development & Pricing

1 Students of BS A/F (HONS) Session (2007-2011)

2 Students of BS A/F (HONS) Session (2007-2011)

We are great full to Hazrat Muhammad (S.A.W.W) who remains an example

3 Students of BS A/F (HONS) Session (2007-2011)

Major Stages in New-Product Development

Key success factors in New Product Development

The Product Life Cycle

 Product development ……………………………………….…………

4 Students of BS A/F (HONS) Session (2007-2011)

Influences on Pricing Decisions

5 Students of BS A/F (HONS) Session (2007-2011)

Market Skimming ……………………………………………………

Ten ways to „increase‟ prices without increasing price

Case Study Self Made

6 Students of BS A/F (HONS) Session (2007-2011)

• A product that opens an entirely new market.

• An old product packaged in a different way.

Types of new product

• Addition to product line – to supplement the firm‟s existing product line

Examples of new products

7 Students of BS A/F (HONS) Session (2007-2011)

New product can be used to……

• Increase/defend market share by offering more choice or updating older products

• Diversify into new markets

Why develop New Product?

• To create stars and cash cows for the future

• To maintain/increase market share