Marketing I

AN ASSIGNMENT ON NEW
PRODUCT DEVELOPMENT

Presented By
Group 2 Section D
Sheenam Amitesh Jasdeep
Prathamesh Prateek
Arkayan Dhairyasheel
Recognition of Need
 Marketing department of SMW has
studied
 the domestic market of
automobiles in
 India and put forward the need of

 launching a new product in the

SMW
company’s
 portfolio, to enhance the
profitability to
 the company.
 SMW
Challenges
Customer Satisfaction
High Innovation Imperative
High Investment Costs
High market uncertainty
Time to Market
Minimum Cost
High Durability and Reliability
Selection of suitable technology
partner
Brand Image at Stake

 SMW
IDEA GENERATION
Idea Screening SMW
 Does the product meet the need?
 People concerned by the rising fuel price
 Would it be unique and superior
product?
 Dual fuel car, sufficient power, good
mileage, small, economical
 Can it be distinctively advertised?
 ‘Environment friendly Car’
 Will the customer accept this product?
 Petrol and diesel prices going up
 Idea Screening SMW
Does the company have the necessary know-how
and capital?
Availability of new technology
Experience in traditional car manufacturing
Technical Tie- ups with vendors
Will the new product deliver the expected sales
volume, sales growth and profit?
Rapidly growing middle class of India (large
potential market)
Unique and economical product (Less
competition)
Prices of petrol and diesel are increasing rapidly
 S M W
Concept Development
 SMW
Concept Testing
 Communicability and believability
 Environment friendly and economical small car.
 Need Level
 Fuel efficient small family car.
 Product 1 and Product III fulfil the need.
 Perceived value:
 Environmental friendly car.
 Reasonable Price
 User Targets, purchase occasions, purchasing
frequency:
 Middle class families
 Mostly festivals and shubh muhurats
 Low purchasing frequency


 CONCEPT 1 IS THE MOST FEASIBLE OPTION

 SMW
Market Strategy
 Target Market size
 Target market – Middle Class
 Target Markets – Metro Cities, NCR
 Target Customers = 25 Lac (First year)
 Expected Sales Vol. (as per Market Research) =
100,000 (First year)


 Distribution
 Through Authorised Dealers
 To provide DEMO Cars for trials


 Marketing Budget
 10% of the expected sales revenue
 Advertisement through Print and Electronic Media
 Brand Ambassador – Aamir Khan


 SMW
BUSINESS ANALYSIS
PARAMETERS YEARS
  2010 2011 2012 2013
Expected Demand ( no . of 100000 110000 126500 151800
Cars )
Growth potential ( YoY 10 15 20 25
%)
Cost ( Fixed + Variable ) 120000 160000 200000 220000
Development Cost 85000 45000 10000 500
Expected Sales Revenue 250000 265000 280000 295000
( Rs .)
Promotional Expenditure 10000 9000 8000 5000
( Rs .)
Profit (% age ) 16.3 23.8 28.4 30.8
 SMW
Product Development
 Converting the marketing requirements into Product
deliverables
 DESIGN
 260BHP Engine
 Fuel Switch Mode (Water/Petrol)
 Power Steering and Power windows
 Anti Skid Braking
 Hydraulic Suspension
 Best in Class Ride Comfort
 Low Interior Noise
 Customized body colors and accessories


 DEVELOPMENT
 3D Modellling using Computer Aided Tools
 Virtual Simulation
 SMW
aqua

* This image is for illustration.

 SMW
Market Testing
 SMW
Commercialization
Thank You !