Letter of Transmittion
February 11,2019
MD Amdadul Hoque
Assistant Professor,
Department of Finance and Banking,
Comilla University.
Subject: Submission of the assignment on ‘’ New-Product Development”
Honorable Sir,
This is a great pleasure for us to submit the assignment on “New-Product Development” as a
partial requirement of the Department of Finance and Banking in Comilla University. Making
this assignment, we have been a great pleasure & an interesting experience. It enabled us to
know about new product development strategy and the new product development process.
This assignment helped us tremendously to understand the implication of theoretical knowledge
in the practical field. It has also shaped some of our basic views like how to insure and carry
itself in the world market.
We have undertaken our sincere effort to complete this assignment successfully. If we have any
unintentional error and omission that may have entered into this assignment will be considered
with sympathy.
Therefore, we beg your kind consideration in this regard; we will be very grateful if you accept
our assignment and oblige us thereby.
Sincerely,
Rabeya Basri
On behalf of Team Infinitive
Department of Finance and Banking,
Comilla University.
Acknowledgement
As the students of faculty of Business Studies, this assignment is essential part of our academic purpose.
We have gathered a lot of practical knowledge and experience by preparing this assignment. By the
grace of god we have completed our assignment on new product development. At first I want to thank
our FIN:122 " Principles of Marketing" course instructor, MD Amdadul Hoque, Assistant Professor,
Department of Finance and Banking. We have tried best to make the Assignment more comprehensive
and reliable within the given period. Your suggestions and comments for the improvement of this term
paper will be thanked fully received and if you need any quires the study, please inform us.
Origin of the Assignment
In BBA program Assignment is the one of the most important part of a semester.
Every student must work with assignment and need to submit to concern course
teacher. As a student of BBA program we have prepared assignment on “New-
Product Development” under the supervision and guidance of our honourable
course teacher, MD Amdadul Hoque, Chairman, Department of Finance and
Banking, Comilla University,Cumilla.
Objectives
The main purpose of this product development assignment is to know about the process of new
product development and other purpose with related this process.
However, the objectives of this assignment can be summarized in the following:
To understand core concept of new product development and marketing.
To understand critical success factor of new product (why product fail and other flourish) from a
management and from a customer perspective.
To understand key issue in positioning new product in the marketplace.
To enhance cooperation between R & D and marketing in the NPD process.
To understand how and when firm can benefit from use-centered innovation.
To understand basic of branding.
To understand basic principles of marketing communication and advertising in particular.
Hand-on skill through working on a real life new product development project.
Methodology :
Developing a new product isn’t the simplest task, businesses can easily get it wrong and products often
fall into the cracks. To ensure you develop superior products, you need structured methodologies.The
methodology of this new product development is combined. The assignment was prepared through a
lingering process.The process of preparing the assignmentis give below:
√At first the member of our group held a discussion about the process how to prepare the assignment
informative & fruitful.
√we analyze the all concept &then discover and validate the appropriate market idea.
√ we analyze the current maket situation &build the correct product features that solve client’s
need,wants & demand.
√we review our sales,costs,profit projection for our new product.
√we develop our new product with some nutritious ingredients.
√we tested our new product in realistic market settings.
√we introduce our product into the market through commercialization.
Limitations
Product development is very much comprehensive. It is an accumulation of both information and
creative thinking. It requires a great effort and long sound planning to make product. It is true
that we got help from many the responsible participants. While preparing this report we have
faced these problems:
Lack of Experience: As we are really new in this field, we felt lack of experience in every stage
of our work.
Insufficient information: We felt lack of information about market.
Lacking of technology
Commercialization problem
Though this assignment has some limitations, we, the group members, tried our best to prepare a
standard assignment. We have faced several challenges to prepare this assignment, but we have
succeeded to overcome it.
Group infinative
Table of Content
SL.No. Topics Page No.
1 Introduction 09
2 Idea Generation
Internal idea sources 10
External sources
03 Idea Screening
Nutritional Benefits of Panna Cotta 10
Health Benefits of Panna Cotta
4 Situation Analysis
Market Analysis 14
SWOT Analysis
Competitive Environment
5 Marketing Strategy Development
Target market
Planned value proposition:
Estimate Sales
SL.No. Topics Page No.
Profit Goals
Planned price
Distribution:
19
Marketing budget
Profit goals:
Planned long run sales
Marketing mix strategy
6 Business Analysis
Break Even Analysis 21
7 Product Development
How to Make? 22
8 Test Marketing
Pricing:
Distribution:
Advertising
Positioning
25
Targeting strategy
Branding and packaging
Budget level
9 Commercialization 27
10 Conclusion 28
SL.No. Topics Page No.
Introduction
New product development is the development of original product, product improvements,
product modifications, and new brands through the firm’s own product development efforts.
New products are important to both customers and the marketers who serve them. For
companies, new products are a key source of growth. For customers, they bring new solution and
variety to their lives. Yet innovation can be very expensive and very risky. To create successful
new products a company must understand its consumers, markets, and competitors and develop
products which deliver superior value to customers. The essence of the new product development
process is that it moves from the general to the specific, from the vision to the mission to the
goals to the corporate objectives of the organization, then down to the individual (action plans for
each part of the marketing program. It is also an interactive process, so that the draft output of
each stage is checked to see what impact it has on the earlier stages, and is amended. Evaluation
of present market and consumers perception, we innovate a new product for serving consumers
new expectation. Following various steps, our introducing new product is Juicy P.
Idea generation :
New product development starts with idea generation – the systematic search for new product
ideas. A company typically has to generate many ideas in order to find a few good ones. We also
generate ideas from different sources. Major sources of new product ideas include internal
sources and external sources.
Internal idea sources: Using the internal sources, we find new ideas through formal research and
development. We organized an internal idea submission contest within our group members and
collect various idea papers from our group members, which are given below:
Nutty juice
Juicy p
Alovera Juice
External idea sources: We also obtain new product ideas from any of a number of external
sources. These sources are internet, trade magazine, government agencies, advertising agencies,
marketing agencies firms and inventors through these sources. We find some ideas:
Diabetes Cake
Idea screening :
Papaya - Dr. Axe
Christopher Columbus was known to call papaya the “fruit of the angels.” This orange-colored, melon-
like fruit is native to southern Mexico and Central America but can be grown in most tropical areas.
When ripe, it is commonly used around the world to make juice or as a delicious addition to salads, salsa
or desserts. Not only that, but it is also commonly used as a meat tenderizer or digestive enzyme as well.
Papaya contains a special enzyme called papain. Papain is why it is most known to work as a powerful
digestive aid. But improved digestion and helping the body to detox aren’t the only benefits of papaya. It
can also help improve heart health, reduce inflammation, strengthen the blood and so much more. Like
other types of tropical fruit, it’s also high in multiple vitamins, minerals, flavonoids and antioxidants.
Plus, it is used around the world to boost overall health in a number of incredible ways.
Benefits
Promotes Proper Digestion
Soothes Inflammation
Strengthens the Blood
Enhances Heart Health
May Have Anti-Cancer Properties
Can prevent Macular Degeneration
Helps Prevent Asthma
Slows Signs of Aging
Fights Viral Infections
1. Promotes Proper Digestion
Certain papaya enzyme compounds can help the body break down and use proteins properly. Papain, in
particular, helps to break apart the bonds between amino acids. Amino acids are the building blocks of
proteins. Papain is similar to other types of enzymes made in the pancreas that help our bodies digest
meat, but unlike other enzymes, it can work even without the presence of acid.
Therefore, due to is ability to break apart amino acids, this papaya enzyme can be helpful for people
struggling with low stomach acid who may not be able to tolerate consuming certain types meat. It also
can promote protein absorption in those with other digestive issues.
Eating papaya can also help prevent constipation due to its high fiber content. Fiber adds bulk to the
stool and eases its excretion out of the body. In fact, a 2012 review published in the World Journal of
Gastroenterology found that increasing fiber intake was effective at increasing stool frequency in people
with constipation to help promote regularity. (2)
2. Soothes Inflammation
Inflammation is a natural immune response designed to fend off foreign invaders and protect against
illness and infection. However, chronic inflammation is at the root of most diseases. It is believed to
contribute to serious conditions like heart disease, cancer, diabetes and more. (3)
A 2011 study published in the journal of Molecular Nutrition and Food Research found that
inflammatory markers decreased when test subjects were given papaya. Researchers found it may help
reduce inflammation and relieve symptoms for people with certain conditions, such as rheumatoid
arthritis. It is noted, however, that although further research is needed. (4)
Papain has also been shown to help decrease inflammation in people with diseases such as asthma or
arthritis. (5) And not only can lower levels of inflammation slow the progression of chronic disease, but it
may also help to naturally reverse signs of aging as well.
3. Strengthens the Blood
Papaya has garnered a good amount of attention as a blood strengthener to help people who have a
medical condition called thrombocytopenia, or low blood platelets. This is a dangerous medical
condition that can reduce the body’s ability to form blood clots and potentially lead to internal bleeding.
(6)
An animal study out of Malaysia conducted on mice found that those given papaya leaf extract had
significantly higher platelet and red blood cell counts after 72 hours compared to those in a control
group. Although more research is still needed, researchers believe that papaya extract may eventually
be used as a treatment for people with blood disorders and impaired blood clotting. (7, 8)
4. Enhances Heart Health
Papaya is loaded with vitamin C. Vitamin C is an important micronutrient that acts as an antioxidant to
protect against free radical damage. It also protects against the oxidation of cholesterol, reducing the
ability of cholesterol to form plaque along the artery walls.
Some research has found that a deficiency in vitamin C may be linked to a greater risk of death from
heart disease, although more research is needed to determine the exact mechanism. (9) Papaya also
contains folate, which can help convert homocysteine, a type of amino acid that has been linked to
heart disease, into other amino acids to reduce the risk of heart problems. (10)
5. May Have Anti-Cancer Properties
Several compounds found in papaya have been shown to have powerful anti-cancer effects. Papain, for
example, has been shown to block the growth and spread of tumors in animal studies. (11) Meanwhile,
vitamin C and beta-carotene, both of which are found in papaya, have been linked to a decreased risk of
several different types of cancer. (12, 13) Plus, in addition to promoting regularity, studies show that
increasing your intake of dietary fiber may also be associated with a lower risk of colorectal cancer.
Concept development and testing:
Concept development and testing is a crucial stage in the new product or service development. It takes
place early on in the process and helps to identify key perceptions, user needs and wants associated
with the product or service.Concept development involves coming up with a detailed description of an
idea, explained from the perspective of your customer.When developing a new product or service, it is
common to work with a large number of concepts and only develop the select few that show the most
promise.
A new product concept is basically a blueprint for your idea. When developing a new product concept,
an attractive idea must be developed into a product idea,product concept and a product image.
★Product idea:
A product idea is an idea for a possible product that the company can see itself offering to the
market.Our product idea is to make papaya juice.
★Product concept:A detailed version of the new product idea stated in meaningful consumer terms. We
will go to make juice from papaya. Ingredients of this juice are:Papaya, water,suger,natural flavor &
color.
★Product image :A product image is the way consumers perceive an actual or potential product.
When developing a new product concept, you should:describe it from your customers' point of view,list
features and benefits of your product that may appeal to customers,research and determine your target
audience,conduct focus groups and thorough market research,consider resources required for
designing, manufacturing and delivering the product.
Concept testing :
Once you develop your product concept, you should test it rigorously with your intended customers to
determine its viability that is called concept testing. Testing new product concepts with a group of target
consumers to find out if the concepts have strong consumer appeal. It is a process that helps you assess
the customer reaction to your proposed product or service prior to introducing it to the market.For
example, you may want to use concept testing to find out:
Are they interested in the product?
How much do they like the product?
How desirable do they find the product’s features?
What features do they like most/least?
How well would the product compare to other brands or similar product?
What price point would they find appealing?
What would they like to change about the product?
Concept testing will help you evaluate objectively which product ideas are likely to yield the best results.
Marketing strategy development
We find that concept 1 for the F&F papaya juice tests best. Our next step is marketing strategy
development, designing an initial marketing strategy for introducing carrot juice to the market. The
marketing strategy statement consists of three parts.
The first part describes the target market, the planned value proposition, estimate sales, and profit goals
for first few years.
Target market: our target market is children, teenager, middle class family, and health conscious people.
Planned value proposition: the juice will be positioned as hygiene, nutrients, and testy.
Estimate Sales: our estimate sale for the first year is to 600000 units of 250ml pack and second year is to
650000 units of 250ml pack.
Profit Goals: our first year profit goal is Tk4,00,000 and second year is Tk7,00,000.
The second part of marketing strategy statement outlines the products planned price, distribution and
marketing budget for the first year.
Planned price: The F&F papaya juice will be offered in 250ml pack. It will sell to wholesalers 250ml
bottle tk12.95 and Wholesalers sell to retailers 250ml bottle tk14.50 and Retailers sell to final customer
250ml bottle tk17.
Distribution: Our channel strategy is to use intensive distribution marketing through all local store,
departmental store, supermarket, grocery shop, & fixed price shop. During the first year, we will add
channel partners until we have coverage in all major Bangladesh markets. Finally we plan to arrange
special payment terms for retailers that place volume orders.
Marketing budget: For the first year our marketing budget must be high, because it is a new product for
the market. Our marketing budget for the first year is tk800000.
The third part of marketing strategy development describes the planned long run sales, profit goals, and
marketing mix.
Planned long run sales: we intend to capture a 10% long run share of the total juice market in
Bangladesh. We also hope it will capture 20% market share after 7-10 years.
Profit goals: It’s a new product that’s why first few years we cannot seek much profit. But we hope after
positioning our product in consumer mind we will get our desired return on investment. Our profit goals
are to 10% ROI(return on investment)from after 5 years and it will reach 16%after 10 years.
Marketing mix strategy: our product is papaya juice which has more nutritional benefit rather than other
juice. Although we maintain high quality in our product but we set low price in comparison with other
juice because of our lower rate raw material. We follow penetration pricing and intensive distribution
strategy. Our promotional tools are newspaper, radio, television, banner, and posturing.
★Business Analysis :
A new product idea that survives the screening stage of new product development requires a more
sophisticated and detailed business analysis.Business analysis involves a review of the sales, costs and
profit projections for a new product to find out whether they satisfy the company's objectives.If they do,
the product can move to the product Development stage. The costs of developing a product are
substantial.
Budget :
Fixed cost 50,00,000
Variable cost + 40,00,000
Total cost = 90,00,000
Unit cost =Total cost ÷unit sale
=90,00,000÷6,00,000
=15
We want to earn10% markup on sales first year.
Markup price= 15/(1-.10)
=16.67
Break-Even analysis :we also hope our 250 ml pack will sell 6,00,000 unit & it will sell tk 16.67 per unit.Its
fixed cost is 50,00,000 and variable cost per pack is tk 6.7. Our statement said that our breakeven
volume for 250 ml pack is
Breakeven = Fixed cost \(price-variable cost)
=50,00,000/(16.67-6.7)=5,01,505 units.
The company uses the sales and costs figures to analyze the new products financial attractiveness.
Ingredients
*Three cups papaya chopped
*¼ cup sugar
*4 cups cold water
*2 cups ice cubes
Procedure to Make Papaya Juice
*Place the chopped papaya, sugar, and 2 cups of water in
your blender. Process until you have a very smooth drink.
*Pour this mix into a pitcher. Add ice cubes and the
remaining 2 cups of water. Stir and taste for sweetness.
Most of the time, papayas tend to be very sweet, so you
don’t need to add more sugar to your drink, but that will be
a personal taste.
*Serve and enjoy!
Test marketing :
Commercialization:::::::::::::ঃ
Test marketing gives us the information needed to make a final decision about whether to
launch the new products. This stage introducing the new products into the market company
faced high cost. Commercialization is the vast process.in this step we introducing our juice.p
into the market. For commercialization our new products to the new customer we mainly
focused on quality products with low price,sales promoting, value adding, high distribution &
other marketing effort's for the first year.
This stage consider two steps::
WHEN TO LAUNCH ::::
We launching our f&f juice. P must first decide on introducing timing.we hope we will launch
our products February 10,2019.
WHERE TO LAUNCH :::::;
At first our goal is to launch out products in comilla region and After achieving out first year
goal,we will launch our products each & every place of our country.
