Launching of a Product
- Pages: 13
- Word count: 3169
- Category: Chocolate
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I take this opportunity to express my sincere gratitude to my marketing teacher, Mrs. Girija, without whose help this project would have never been completed. I would also like to thank my parents for their kind and appreciating support and to all the other people who helped me in completing my project by filling in the questionnaires. Lastly, I would like to specially acknowledge the efforts to my friends who were there to help me throughout the project and provided me with valuable information.
Firstly I did a research on steps in the development of a new product and the reasons that leads to failure of a product Then I chose a product for launching in the market. My chosen product is chocolate; I conducted a market research to understand the likes and preferences of the customers. For this I prepared questionnaire for the consumers. The data collected was tabulated and analyzed. The conclusion drawn from this helped me get a better understanding of the market and devise a marketing mix for my product.
Launching of a New Product
In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief). There are two parallel paths involved in the NPD process: one involves the idea generation, product design and detail engineering; the other 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.
1. Idea Generation is often called the “fuzzy front end” of the NPD process: * Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company’s R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. * Lots of ideas are being generated about the new product. Out of these ideas many ideas are being implemented. The ideas use to generate in many forms and their generating places are also various. Many reasons are responsible for generation of an idea. * Idea Generation or Brainstorming of new product, service, or store concepts – idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step).
2. Idea Screening:
* The object is to eliminate unsound concepts prior to devoting resources to them. * The screeners should ask several 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?
3. Concept Development and Testing:
* Develop the marketing and engineering details
* Investigate intellectual property issues and search patent data bases * Who is the target market and who is the decision maker in the purchasing process? * What product features must the product incorporate? * What benefits will the product provide?
* How will consumers react to the product?
* How will the product be produced most cost effectively? * Prove feasibility through virtual computer aided rendering, and rapid prototyping * What will it cost to produce it?
* Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling.
4. Business Analysis:
* Estimate likely selling price based upon competition and customer feedback * Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation * Estimate profitability and break-even point
5. Beta Testing and Market Testing:
* 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
6. Technical Implementation:
* New program initiation
* Finalize Quality management system
* Resource estimation
* Requirement publication
* Publish technical communications such as data sheets
* Engineering operations planning
* Department scheduling
* Supplier collaboration
* Logistics plan
* Resource plan publication
* Program review and monitoring
* Contingencies – what-if planning
7. Commercialization (often considered post-NPD):
* 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
8. New Product Pricing:
* Impact of new product on the entire product portfolio
* Value Analysis (internal & external)
* Competition and alternative competitive technologies
* Differing value segments (price, value, and need)
* Product Costs (fixed & variable)
* Forecast of unit volumes, revenue, and profit
Most industry leaders see new product development as a proactive process where resources are allocated to identify market changes and seize upon new product opportunities before they occur (nothing is done until problems occur or the competitor introduces an innovation). Many industry leaders see new product development as an ongoing process (referred to as continuous development) in which the entire organization is always looking for opportunities.
Marketing Tips for Launching a New Product
1. Study your competition. Many business marketing classes teach participants how to perform a SWOT (strengths, weaknesses, opportunities and threats) analysis. You have to start by taking a serious look at your competitors. Make a list of the businesses that offer products or services similar to the one you plan to launch. Even if you think your new product or service is entirely unique and without existing competition, it’s important to put yourself in your prospective customers’ shoes and imagine what they might buy in lieu of what you plan to offer. Once you decide whom your competitors will be, review their marketing materials, including their ads, brochures and websites. Evaluate how your new product or service will stand up against what’s already being offered, in what ways you’ll excel, and which companies or their offerings pose the greatest threats to your success. 2. Target the ideal customer. To successfully launch your new product or service with minimum financial outlay, it’s essential to focus exclusively on the prospects you believe are most likely to purchase from you.
These may be customers who are currently buying something similar and will appreciate the additional features your new product or service provides. Your best prospects have a perceived need for what you offer, can afford to buy it and have demonstrated a willingness to do so–probably by purchasing from your competition. Bear in mind, it’s always easier to fill a need than to create one. 3. Create a unique value proposition. At this stage, you should have a clear understanding of what you must offer in order to stand apart from your competition and who will want to take advantage of your offer. But do you know why customers will want to buy from you vs. the vast field of competitors out there? What benefits and features will you provide that your prospective customers will value most? The bottom line is that your product or service “bundle” should be unique and meet the needs and desires of your best prospects. 4. Define your marketing strategy and tactics. Next, choose your sales and marketing channels.
Will you market online, via catalog or through dealers, for example? Generally, multichannel marketers achieve the greatest success because customers who can shop when and however they like tend to spend more and shop more often. Suppose your strategy is to market a low-cost workout device to people who can’t afford gym memberships or high-priced home equipment. You might choose traditional direct marketing plus online sales as your primary channels, and employ tactics including direct-response TV spots and online ads and e-mail solicitations that link to your website. 5. Test your concept and marketing approach. With all the money it takes to bring a new product or service to market, it’s foolhardy to rush headlong into the launch phase prior to testing. What should you test? It’s best to examine your product or service bundle plus your marketing message and you’re your marketing materials. Depending on what you plan to market and your budget, you can use formal focus groups (or simply host roundtable discussions with members of the target audience), employ online research or mall intercept studies, or distribute your product to a select group of users for testing. Only after testing is complete, should you proceed to the final creation of your marketing tools and materials.
6. Roll out your campaign. Public relations often play a vital role in the launch of a product or service. You can use media relations tactics to place articles and win interviews, get coverage by allowing key press to review your product, hold a launch event, or use grass roots marketing to build buzz. But no matter what publicity route you choose, first make sure your product or service is completely ready and available for purchase in order to maximize returns from the coverage you receive. And your other marketing efforts should follow closely on the heels of your press roll out. Monitor the results from all media, and in the first weeks and months, be prepared to adjust your campaign to take advantage of what’s working best. 7. Know your product’s lifecycle. The campaign you use during the introduction and education phase of your product or service launch will need to be updated as your product or service matures. If you’re monitoring your marketing results carefully, you’ll begin to see diminishing returns that will indicate when it’s time to revise the product or service itself, alter your media message, or even phase out this particular offering and lay the groundwork for the launch of your next great idea.
Causes of New Product Failure
Many new products with satisfactory potential have failed to make the grade. Many of the reasons for new product failure relate to execution and control problems. The following is a brief list of some important causes of new product failures after they have been carefully screened, developed and marketed. * No competitive point of difference, unexpected reactions from competitors, or both. * Poor positioning.
* Poor quality of product.
* Non delivery of promised benefits of product.
* Too little marketing support.
* Poor perceived prices/quality (value) relationship.
* Faulty estimates of market potential and other marketing research mistakes.
* Faulty estimates of production and marketing costs.
* Improper channels of distribution selected.
* Rapid change in the market (economy) after the product was introduced.
So where and when did the magic begin? Thousands of years ago is the answer, in the ancient Maya and Aztec civilizations of Central America. Cocoa trees grew wild in the jungle, and they used them to make a spicy, rather bitter drink for special occasions. Centuries later the Aztec Empire fell, and the Conquistador Hernan Cortés brought cocoa beans back across the ocean to Spain. Gradually chocolate spread across Europe – it was the fashionable choice of Kings and Queens, the nobility and the rich, just like caviar or champagne today. At the end of the 19th Century milk was added and at last someone devised a way of making chocolate to eat as well as to drink. But it wasn’t until the 20th century that chocolate became affordable for everyone. So chocolate has been on an epic journey, but its popularity is enduring: prized once by Aztec warriors and today by millions of people around the world. Cocoa trees grew wild in the Amazon and tropical rain forests of Central and South America for thousands of years – way before it ever reached us in Europe.
Cocoa beans were prized by the Maya Indians as far back as 600 AD. They roasted the beans, and added chili and other spices to make a drink called ‘xocoatl’. It wasn’t much like our drinking chocolate though. The Mayan drink ‘xocoatl’ means “Bitter Water.”
Mayan Indians lived in what’s now Southern Mexico, the tropical Yucatan Peninsula. At first they harvested cocoa beans from wild trees in the rainforest. Then they started growing their own trees by clearing bits of the forest – which shows how important cocoa was to them. They didn’t only drink the cocoa; they used it as currency too. Here’s an idea of what it was worth: 4 cocoa beans could buy a pumpkin
10 could buy a rabbit
100 could buy a slave
And merchants used cocoa beans to trade for cloth, jade and ceremonial feathers. Just think, if someone hadn’t invented coins and notes, you could have been going to the shops with a pocketful of cocoa beans instead! Like money and jewellery these days, cocoa beans were valuable and were given as gifts at religious ceremonies and other important occasions.
Swirls Fine Chocolate has set the standard for quality gourmet chocolates. Swirls simply mean “better” and the name says it all! Our chocolate is made from only the finest ingredients. Our recipes are tried and true and able to soothe and satisfy the most distinguished pallet. Swirls, a better choice for you and yours!
ASI, Food Safety Consultants performs annual Good Manufacturing Practices (GMP) & HACCP verification audits to assure continued compliance to regulatory and food safety guidelines. In May, 2010, Swirls achieved certification of our quality management system to ISO 9001: 2008. ISO 9001 is an internationally recognized and globally respected standard. As such, it will add distinction and credibility to the Swirls name and product line, as well as demonstrating that swirls places no priority above quality products and our customers’ satisfaction.
Elements of the marketing mix are often referred to as the “Four ‘P’s”, * Product – It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.
* Price – The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.
* Promotion – Represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion.
* Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Marketing Mix of Swirls
1. Product mix:
Swirl chocolate can be molded into different shapes and gifted like:
* chocolate bunnies and eggs are popular on Easter
(Available On the occasion of Easter)
* Milk Chocolate Mummy
(Available on the occasion of Halloween)
* Can be gifted on Occasions like Birthdays
(Available at all shops, at all times)
* Chocolate Lollipops:
(Available at all shops, at all times)
* Other Gift Sets like :
(Made on Special Order)
2. Price Mix:
The price of Swirls Chocolate depends upon the Products like:
* The Gift sets for occasions like Birthdays, Valentine’s Day, Easter and
Halloween etc are available for prices ranging from 40-50 Dhs. * The chocolate Lollipops are for 3-4 Dhs each.
The Gift set made only of chocolate lollipops is for 40 Dhs that can also be given as a birthday gift (12 chocolate lollipops).
3. Promotion Mix:
For promotion, Swirls chocolate ads were given in billboards,
And are given as free samples for tasting.
4. Place Mix:
The Swirls chocolate Shop will be located in malls.
1. Do you like chocolates?
2. What kinds of chocolates do you like the most?
* Milk chocolate
* Whole nut
3. How would you rate the taste of Swirls chocolates?
* Very good
4. Is the price of Swirls chocolate affordable?
5. Are you satisfied with the variety of chocolates provided by the Swirls chocolates? * Yes
Graphs and Analysis
1. Do you like chocolates?
Result: Most of the people like chocolates.
2. What kinds of chocolates do you prefer the most?
Result: Most of the people prefer Milk chocolate.
3. How would you rate the taste of swirls chocolates?
Result: Many people said that the taste of Swirls chocolates was ‘Very Good’.
4. Is the price of Swirls Chocolates affordable?
Result: Swirls chocolates are Affordable.
5. Are you satisfied with the variety of chocolates provided by the Swirls chocolates?
Result: Some are happy with the variety, whereas some are not and expect more variety.
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