PRODUCT MANAGEMENT - Shoes Plus

CONTENT

• Company overview

• How do we get the idea?

• Product Innovation Charter (PIC)

• New Product Process

+COMPANY OVERVIEW

COMPANY OVERVIEW• Name: LUCKY RAINCOAT

Raincoat

Raincoat for advertising, with logo

or slogan

Raincoat for workwear

Raincoat for adults with special features

Raincoat Fashion

Raincoat many designs ... designs for minors.

Nonwoven Bag Bags for

supermarkets

Bag records

Bag Wine

Gift

The type of kids backpack, backpack picnic

+ + HOW DO WE GET THE IDEA?

No. Name of ideas V R I N Chosen

1 Tropical fruit flavor beer x x

2 Womanizers beer X X X X X

3 Condensed beer x x

4 No-alcohol beer

5 Giant beer x

6 Mini beer x

7 Coke-mix-beer x x x x x

8

Special flavor beer (pepper, chili,

durian,…) x x

9 Jelly beer x x

10 Diet beer X X X X X

11 Powdered beer x x

12 Colorful beer

13 Powerful beer x x

14 Extra-alcohol beer

15 Shoes for rainy day X X X X X

FORMATION IDEA PROCESS

Items Idea 1 Idea 2 Idea 3

Brand value 20 2 40 1 20 3 60

Develop technical 20 1 20 2 40 2 40

Customer favorable 15 2 30 2 30 2 30

Cost 15 1 15 3 45 3 45

Profit 15 2 30 2 30 2 30

Fix capacity 15 2 30 3 45 2 30

Total 100 165 210 235

FORMATION IDEA PROCESS

TYPE OF NEW PRODUCT

+ + +PRODUCT INNOVATION CHARTER

(PIC)

PIC

• Name of product “SHOES PLUS”• Basic description: Shoe covers are used to protect your shoes in the water

environment.• Main market

– Shoes-lover– 15-27 years old– Low-medium income– Convenient lover, modern life style, had motorbike without trunk/ small trunk (can’t put

their shoes inside).

• Adding market : Walkers• Departments (related to new product process): Direct channel

1. Product Plan

PIC2. Management Organization Chart

Executive Manager (1)

Sales Department

(1)

B2C (2) B2B (2)

Marketing Department

(1)

Employee (2)

Engineering Department

(1)

Employee (3)

Account Department

(1)

Employee (1)

+ + + +NEW PRODUCT PROCESS

1. Opportunity identification

NEW PRODUCT PROCESS


NEW PRODUCT PROCESS

• New demand

• Old Technology

• Role

Profit

• Meaning

Many companies focus on produce and develop the “raincoat” to help people protect “from top to toe“, but they forgot the “toe” in this case so that the reason why we choose to produce it

• Advantages

Raise company’s brand name

Fashion but Cheaper

Low cost

• Profit

This product is produced with simple technology and low cost + less invest, more profit


NEW PRODUCT PROCESS

Creation process

BENEFIT TECHNOLOGY FORM

Concept Name

1 A jelly rain boot which made from 100% PVC plastic

2 A pair of sneakers which made from a waterproof fabric

3 A rain shoes cover for high heels

4 A plastic rain cover with a front/behind zipper

5 A plastic rain cover with zipper and drawstring

Product concepts

2. Concept Generation

NEW PRODUCT PROCESS

Concept 1

NPV

i = 10%

1st Year 2nd Year 3rd Year

Turn

over 1.470.000.000 1.778.700.000 2.041.200.000

Cost 1.048.500.000 979.200.000 1.042.200.000

Profit 421.500.000 799.500.000 999.000.000

Concept 5

NPV

i = 10%

1st Year 2nd Year 3rd Year

Turn

over 3.204.000.000 3.800.000.000 4.455.000.000

Cost 1.726.200.000 1.806.200.000 1.996.200.000

Profit 1.477.800.000 1.993.800.000 2.458.800.000

NPV = 1.794.489.106 > 0

Continue to implementing

NPV = 4.838.555.973 > 0

Continue to implementing

NPV evaluation 2. Concept Generation

NEW PRODUCT PROCESS

CONCEPT STATEMENT

“ Life is noisy, rushing is not enough time, or simply your trunk is notallowed to prepare a pair of sandals to switch when the rain come.And Shoes Plus gives you a new way to protect your shoes in therainy season. Compact storage area, quickly and easy to wear,protect shoes or sandals completely from rain and wind effect. ”

2. Concept Generation

NEW PRODUCT PROCESS

DEVELOPMENT

PRODUCT’S SKETCH: SHOES PLUS SIZE FOR MEN

DEVELOPMENT


The detail about the sole

DEVELOPMENT


For men Euro size Shoe length (cm)

S 36-37 26.5

M 38-39 28.5

L 40-41 30.5

XL 42-44 32.5

DEVELOPMENT


For women Euro size Shoe length (cm)

S 34-35 25.5

M 36-37 26.5

L 38-40 27.5

XL 41-42 28.5

DEVELOPMENTZipper Drawstring

Package

DEVELOPMENT

MARKET SEGMENTATION

People driving manual motorbike

People driving automatic motorbike

People mostly walk to school or to work

TARGET CUSTOMER

Description

Demographic

Ages From 15-27

Gender Irrespective of gender

Income Low and medium income

Job Students, staff officer

Regional Irresective of regional

Society class Low and medium class

Geography

Location People living in Ho Chi Minh city

Lifestyle The target customer has a modern lifestyle. They young, active, busy and

have to move continuously.

Personality They like the convenience, cleanliness and very love fashion and they

hate the way their shoes get wet when raining.

Demand They need a solution to keep their shoes from getting wet when raining.

Besides that, they want the product must be fashionable.

DIFFERENTIATION

POPs PODs

- Functions

- The form

- The usage

- More fashionable

- High quality

- Sizes for man and woman are different

- New technology

- Durability

- Acceptable price

Positioning “To people driving manual motorbike who living in Ho Chi Minh city and like the

convenience, cleanliness and hate the way their shoes get wet when raining. Shoes cover

will give you a pair of shoes which can cover your shoes and keep it clean, dry and

fashionable when raining. Because we have a very professional staff and we also use the

lastest technology to make it. ”

DISTRIBUTION CHANNEL

• Traditional Channel (Indirect channel)

Manufacturer Retailers

• Normal Retailers : supermarkets, convenience stores or grocery stores in Tan Phu, Tan Binh, BinhTan, District 11…

End-users

• Modern Channel (Direct channel )

Manufacturer

Reintermediates(Online)

End-users


Sales Force

Modern Channel

Online

MerchandisersCustomer Services,

Tranportation

Traditional Channel

Normal retailers, B2B


PROMOTIONFocus on Internet advertising

Campaign’s purposes

Inform the presence of new product.

Reaching target customers.

Customer’s aware.

Campaign’s objectives

30% of customers use the product.

Increase the first year sale volumes.

Implementing communication program in six months(from May 2015 to November 2015).

Advertising Program•TVC

•Poster

Internet Marketing•Adwords – Video ads

•SEO & Banner Ads

•Social network

Public Realations •PR articlesPROMOTION

PROMOTION

BUDGET

The marketing costs 15% of total pre-tax profit in the first year.

10% of total pre-tax profit in the next year.

• Total: 53.500.000 VND

Phase 1 (May 1st 2015 – June 16th 2015)

• Total: 22.500.00 VND

Phase 2 (June 17th 2015 – September 30th 2015)

• Total: 0.000 VND

Phase 3 (October 1st 2015 – October 31st 2015)

76.000.000 VNDThe cost of marketing activities during the period of the first year

BUDGET

PhaseMarketing

ToolsInterpretation Quantity

Price

(VND)

Amount

(VND)

Phase 1

(May 1st

2015 –

June 16th

2015)

PR articles

Published an online articles “Shoes

Plus” on page “Kenh14”, at category

“Lifeslyte” on May 1st 2015.

1 2.500.000 2.500.000

Video ads

Create video ads about 10 – 20

seconds on Youtube and our website

by using Adwords.

1 1.000.000 1.000.000

Poster 1m2 x 2m (include the design costs) 100 500.000 50.000.000

Total 53.500.000

Phase 2

(June 17th 2015 –

September 30th 2015)

SEODaily write posts with important key-phrases to ensure that our website

will appear firstly on the search engines.Free Free

Banner ads

Create and put banner

ads on our website,

Facebook, and the

electronic newspapers in

two months.

Design 1 1.500.000 1.500.000

Website, Facebook 2 Free Free

Yantv.com 1 1.500.000/month 3.000.000/2 months

Kenh14.vn 1 2.000.000/month 4.000.000/2 months

Zing.vn 1 2.500.000/month 5.000.000/2 months

TVC

Create a TVC by using our idea and can hire students to make it. The TVC will

be about 20 – 30 seconds and be shown on the website, Facebook, Youtube,

and Intasgram.

1 3.000.000 3.000.000

PR articlesPublished an online articles “Be Style in rain day” on page “YanTV”, at

category “Fashion” on August 1st 2015.1 2.500.000 2.500.000

Social

networkDaily update at least 1 post a day on Facebook, Instagram. Free Free

Mini gamesCreate a mini game on our Instagram and a

winner will be received our gifts:

A Shoes Plus

1 500.000 500.000

A discount coupon

Total 22.500.000

Phase 3

(October 1st

2015 –

October 31st

2015)

SEO

Daily write posts with important key-phrases to

ensure that our website will appear firstly on

the search engines.

Free Free

Social

network

Daily update at least 1 post a day on Facebook,

Instagram.Free Free

Total 0.000

BUDGET

MARKETING ACTIVITIESAMOUNT

(VND)

Cost for website 2.000.000

Cost for Facebook, Instagram. 1.000.000

Salary of marketers 60.000.000

Cost for the implementation phase 76.000.000

Provision expenses 5.000.000

Transportation 12.000.000

Total cost 156.000.000

Specific costs for the first year of marketing activities

BUDGET

PRICING STRATEGY AND EXPENSE

• The price of this product is based on fixed costs (fixed assets, salaries, marketing costs ...) and variable costs (materials, design, packaging ... .)

• Price 89 000 VND

Pricing


Fixed assets The value

The value used

for 1 month

(VND)

Note

Sewing-machine 15.000.000/5 years 250.000JUKI-8700

Price: 5.000.000 vnđ

Warehouse 18.000.000/6 months 3.000.000

Cost of living (electricity, water,

Wi-fi,..)3.000.000/month 3.000.000

Taxes 600.000/month 600.000

Rent employees 15.000.000/month 15.000.000

Cost Marketing:

2.000.000/month 2.000.000

Facebook Ads, SEO, SEM

Total 23.850.000

ExpenseGoal: 18.000 pairs/ 6 months 100 pairs/ day/ 3 employees Fixed cost


Expense*1 product = 0,46 m2 = (80x60) cm2/pair

Variable costsPrice/Product (VND)

Materials Wateroof

material

15.000

Drawstring 3.000

Sole 2.000

Rubber band 5.000

Zipper 10.000

Design The printing 3.000

Packaging 2.000

Total 40.000

The breakeven point = Fixed costs / (Price - Variable costs)

= 23.850.000/ (89.000- 40.000) = 486,73 pairs

Phase Activities Start date Duration

1

Formation ideas process 5 Jul 13 30Develop the product concepts 6 Aug 13 90Test the concept 7 Nov 13 60Official designing 8 Jan 14 90

2Buy new machines 9 Apr 14 60Contact with existing distributors 9 Apr 14 80

3

Customer's awareness survey 5 Jun 14 45Evaluate the database 20 Jul 14 15Fix the problem 5 Aug 14 60Intellectual property registration 6 Oct 14 90

4

Planning Marketing plan 6 Nov 14 60Find new distributors 7 Jan 15 60Product's pricing 8 Mar 15 30Sale forecast 9 Apr 15 20Set the budget 29 Apr 15 7

5 Deploy promotion plan 1 May 15 606 Launching 6 Jul 15

TIMELINE

4 Jul 13 12 Oct 13 20 Jan 14 30 Apr 14 8 Aug 14 16 Nov 14 24 Feb 15 4 Jun 15 12 Sep 15

Formation ideas process

Develop the product concepts

Test the concept

Official designing

Buy new machines

Contact with existing distributors

Customer's awareness survey

Evaluate the database

Fix the problem

Intellectual property registration

Planning Marketing plan

Find new distributors

Product's pricing

Sale forecast

Set the budget

Deploy promotion plan

GANTT CHART

SALE FORECAST

Assume awareness 90%

Trial rate T = 52%

Availability 40%

Proportion who switch to new product Rs = 85%

Proportion who repeat purchase the new productRr = 52%

The number of manual motorbike in HCMC 2,24 mils

Rt is long-run repeat purchase

Rt =𝑅𝑠

(1+𝑅𝑠−𝑅𝑟)=

85%

(1+85%−52%)= 63.91%

Market share = T x Rt x Awareness x Availability = 52% x 63.91% x

90% x 40% = 11.96%

1st Year 2nd Year 3rd Year 4th Year 5th year

Turn over 3.204.000.000 3.800.000.000 4.455.000.000 4.900.500.000 5.390.550.000

Profit 1.477.800.000 1.993.800.000 2.458.800.000 2.704.680.000 2.975.148.000

ATAR model

Sale Forecast For The First 5 Years

BACKUP PLANTHREATS BACKUP PLAN

Exceed budget estimates for

marketing.

Using the provision expenses for cost incurred.

Reducing the cost of advertising.

Strict control expenditures.

Market instability and

government policy affect

production costs.

Closely monitor market conditions and prices change frequently.

Research carefully of customers’ acceptance with our product and

continue get feedback from customers.

Packaging and design of the

product not eye-catching.

Closely monitor each design step, timely adjustments.

Changing the different concept or adjusting current product and make

innovative product.

The feedback from customers is

not as expected Create an intimate relationship with customers.

Do not get the cooperation of

vendors.

Build relationships with the vendors by financial support or by

promotions.

THANK YOU FOR LISTENING <3

ASK US MAYBE <3

PRODUCT MANAGEMENT - Shoes Plus

Marketing

Transcript of PRODUCT MANAGEMENT - Shoes Plus