PRODUCT AND BRAND MANAGEMENT

NEW PRODUCT DEVELOPMENT

Presented by:

Y.T.S.B.M:Raviraj Ghadi , Priti Narvekar, Amit Panchal

Y.T.I.E.T:Rohan Pathare , Rupali Jadhav.

Presented to:

Prof. Dhananjay Talele.

NEW PRODUCT DEVELOPMENT PROCESS

1.Idea Generation.

2.Idea Screening.

3.Concept Testing.

4.Business Analysis.

5.Product Development.

6.Test Marketing.

7.Commercialization.

8.Review of the Marketing Performance.

IDEA GENERATION

The first stage in the new product development involves

generation of new product ideas.

Fruit Punch.

Spin-pie.

Snack Chunk.

Joie' de vivre‘

Divine Spirits.

IDEA SCREENING

Critical appraisal of ideas occurs at this stage.

FP Agro is a company which will produce fruit juice

with Brand name Fruit Punch.

FP Agro is going to make unique position in terms of

corporate presence, with its advanced technology and the

instrumentation required to manufacture a Juice that has

variety of flavors, for utmost customer satisfaction.

FP Agro will be an environment-friendly company

dedicated on sustainable development and corporate

social responsibility, as a service to society and

preservation of nature.

CONCEPT DEVELOPMENT

Concept 1

An instant energy drink for everyone during breakfast.

Concept 2

A thirst-quencher for children to as a midday

refreshment

Concept 3

A health complement for older adults to drink in late

evening before they go to bed.

CONCEPT TESTING

Concept testing of product is an elaborate version of the

idea expressed in meaningful terms.

The first concept of instant energy drink is selected.

Our product is a fruit squash which is rich in

carbohydrates, proteins, vitamins and energy. It also

helps in effective digestion of breakfast. gives person all

the day’s needed nutrition along with good taste.

PRODUCT

Type Fruit Juice

Identification Fruit Punch

FeaturesFruit Punch is a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd.

PLC Our product lie in introduction period

Packaging 1 ltr.Tetra Pack, 250ml, 500ml PET Bottles

Flavors Apple, Mango, Orange, Mixed Fruit.

Price 1 liter -Rs. 70; 500ml – Rs 40; 250 ml – Rs. 25

PRODUCT LIFE CYCLE

Our product lie in introduction

period Low sales Negative profits Few competitors

Objectives: To create awareness & trial Offer a basic product Price at cost-plus Selective distribution Awareness – dealers and early

adopters Induce trial via sales

promotion

PRICING POLICY

Apply the concept of providing quality product at optimum

price.

Provide Lucrative discounts, deals and schemes.

So, as a new comer our pricing strategy is to introduce our

products in the market at lower prices so as to create the huge

demand in the market and to compete with other competitors.

CONTI……

Have one price policy to maintain a goodwill among

customers.

As we come up in the demand, we will increase our

prices and will provide more efficient and affordable

juices

TARGET MARKET

Primary Target

Kids – Fond of Fruit Juice.

Teens – More experimental.

Youth – Experimental and more buying power.

Working People.

Housewives.

Elderly people.

Secondary Target

Travel Industry – Airlines, Railways and Local Transport Systems

Recreational – Multiplex, Malls, Amusement Parks, school, colleges,

hotels, restaurants.

DISTRIBUTION CHANNEL

Raw Material Supplier

Raw Material Supplier

Manufacturing Plant

Manufacturing Plant

Wholesale DistributorWholesale Distributor

Retail OutletRetail Outlet

End Consumers

End Consumers

DelhiDelhi

MumbaiMumbai

KolkataKolkata

ChennaiChennai

Within RegionWithin Region

PROMOTION

Promotional Tactics

Provide free samples with popular cornflakes brands in

the market for the brand awareness.

We will tie up with leading multiplexes in cities to

increase our branding.

Targeting schools & colleges in the cities to change their

beverage choices to Fruit Punch.

BUSINESS ANALYSIS

The idea which comes out of the concept testing stage is

analyzed in terms of demand, cost and profit potential.

Demand is the amount of goods that consumers are

willing and able to buy at a given price.

Factors Influencing the demand for Fruit Punch:

• The price of the juice

The income of consumers

The demand for alternative juice which could be used (substitutes)

The demand for juice used at the same time (complements)

Whether people like the taste of juice (consumer taste).

CONTI…..

The company expects the sale of Rs. 100cr in the first

year. Behind this projection is a set of assumptions about

the rate of market growth, companies market share, &

factory realized price.

PRODUCT DEVELOPMENT

Product ideas that survive the business analysis stage are

transformed into actual product development.

The R & D Dept. will develop one or more physical

versions of the product concept.

The sophisticated virtual development technology will

help in speeding the process of prototype development.

Developing the product according to the attributes of the

consumer.

TEST MARKETING

Test marketing refers to testing of the actual product in

one or two markets on a relatively smaller scale.

The company will follow controlled test marketing.

Testing the product in 4 metros in India.

Market test will last for 2 months.

Retail audit will show the sales & market share,

consumer buying Pattern & loyalty & switching rates.

The process will provide in depth information about

consumer attitude, usage & satisfaction.

COMMERCIALIZATION

If the results of the test marketing are positive, the

marketer can go ahead with the production and

marketing on the large scale.

The product is a late entrant in the market as few

established products have a secured market share.

The product will be available in Metros, urban cities &

towns.

CONTI….

The target consumers will be kids, youth, working

people, elder people.

To coordinate activities involved in launching new

product management will use network-planning

techniques like Critical Path Scheduling.

REVIEW OF THE MARKETING PERFORMANCE

Analyzing the reaction of the consumers, dealers and the

competitors in the market is essential to review the

product’s sales performance in the market.

Few consumers may not be satisfied with price or other

features of the product.

Dealer may not push or promote the new product

properly.

CONTI…

Hence the marketing department will make necessary

changes in the marketing mix of the product as & when

required.

Competitor may react to launch of our product & make

necessary changes in their marketing mix.

THANK YOU