Management Theory & Practices

8/9/2019 Management Theory & Practices

1/34

MANAGEMENT THEORY & PRACTICESProject

New Product Development

Group Members

Sobia QayyoumMahmoona Khizar Hayat

Farheen Hafeez

1


2/34

Wajeeha Nisar

AcknowledgementThanks to the supremacy of Allah, who blessed us with the ability and

wisdom to complete this project

He gave us a world of challenges,

And gave us ambition to try

A World that hold marvelous secrets,And mind that would ask why.

He gave us a world bright of beauty,

And gave us awareness to see

World were we all could be different,

And hearts that would seek harmony.

He gave us his guidance; He gave us his

Strength,

He gave us his infinite love

To help us in making our wonderful

2


3/34

World

More and more like his world up above.

We are thankful to Allah Almighty that has given us the abilities to do

sheer hard work and enthusiasm to perform well. We owe a special

thanks to our generous teacher Miss SAMEETAH on

providing us the opportunity to use our hidden capabilities.

3


4/34

ABSTRACT

The purpose of this report is to make people aware

of our company and pro provided. Awareness is

becoming necessary in todays fast moving

perfectionist life. Everyone wants to get perfect and

outstanding in every walk of life. So, our company

makes peoples dreams come true by assisting

them.

4


5/34

COMPANY INFORMATIONCOMPANY INFORMATION

Uni-Corn is a public Company with manufacturing facilities in Rawalpindi and Islamabad. The Company

specializes in the development, manufacturing and marketing of Cosmetics Products. Uni-corn products sell in

Rawalpindi and Islamabad through its own sales force and a network of distributors and strategic partners. The

Company was formed in 2000 and attained its full year profit in 2002. Uni-corn has expanded through a

combination of internal and acquisition led growth. Uni-corn developments are as follows:

March 2007 opening date of Uni-corn

July 2007 UNI-SHINE SHAMPOO

August 2007 acquire 20 main markets in Punjab for shampoo sales

September 2007 launched UNI-CLEAN TOOTH PASTE

September 2007 acquire 50,000 sq. ft manufacturing facility in Islamabad

December 2007 open a direct sales and marketing operation in nationwide through

acquiring services of proper marketing personals.

5


6/34

Through a combination of in-house R & D and acquisition, the company has manufactured all the impressive

products and achieving an excellence in developing, manufacturing and marketing products that meet market

demand.

PRODUCT INFORMATION

INTRODUCTION ABOUT LILAK:Every one now a days is curious about his / her skin. People want to make their skin look more attractive and

want a solution for their dry or oily skin and want freshness on their faces.

LILAK 3 IN 1 introduced the best quality soap in the world of soap. This soap comes with the new innovations

having the innovated formulas suitable for all types of skins. It will maintain its positioning and will work as the

soap of freshness. The Apricot paste is used in this product so it will perform its role as scrubbing. Give a fresh

look all the day.

OBJECTIVES OF STRATEGIC BUSINESS UNIT OFLILAK SOAP:

The objectives of strategic business unit of LILAK soap are as follows:

To maintain maximum market share of LILAK soap apricot scrub.

To earn equity for ready to use LILAK soap.

To attain maximum estimated sales to use LILAK soap.

To get product manufactured and placed with in 2 months.

To complete promotion program as soon as possible.

To get 10-15% market share of the market by the end of year 2006.

To concentrate on expansion of business 1st year rather than profit.

6


7/34

Initially start with a single product

The key factors that will take part in attainment of these goals are product, pricing, placing and promotion

strategies.

MISSION STATEMNET OF UNI-CORN

OUR PEOPLE ARE OUR GREATEST ASASSEST AND MEETING

EVERYDAY NEED OF PEOPLE EVERYWHERE.

MISSION STATEMENT OF LILAK

7


8/34

OUR MOTIVE IS TO MAKE YOU LOOK FRESH, MORE

ATTRACTIVE AND TREATING YOU R SKIN WITH USING

CHEMICALS.

VISIONOur vision is to reduce the use of chemicals to make the skin more fresh and attractive by fruits and natural

herbs. Our main focus is to satisfy my all consumer. The use of product is for all types of skin

Oily Skin

Normal Skin

Dry Skin

By reducing chemicals and introduction of fruit APRICOT our vision is to capture 10-15 % market share. Our

message for all people is:

LIVE FRESH WITH FRESH SKIN

As Uni-corn is introducing a new soap first it will cover all the markets of Islamabad and Rawalpindi. In future

our aim is to organize and introduce our product in each and every town of Pakistan.

8


9/34

9


10/34

NEW PRODUCT

DEVELOPMENT

After the research and careful analysis all the steps necessary for new product development were executed

carefully i.e.

(1)GENERATING NEW-PRODUCT IDEAS:

Our company is specialized in development, manufacturing of cosmetics products. We already have launched

UNI-SHINE shampoo and UNI-CLEAN tooth paste now we want to increase our product line by launching

totally new beauty soap with the name LILAK.

(2) IDEA SCREANING:

As there is much soap available in the market we want to launch a new soap with unique qualities so after

indoor R & D we decided to launch a new soap with new innovation i.e.

For oily skin

For dry skin

For normal skin

(3) BUSINESS ANALYSIS:

A surviving idea is expanded into concrete business proposals. During the stage of business analysis, we

Identified product features.

Estimated market demand, competition, and the products profitability.

10


11/34

Established a program to develop the product.

(4)PROTOTYPE DEVELOPMENT:

In prototype development technical evolutions are carried out to determine whether it is practical to produce the

product so after the favorable results of business analysis we developed a trial model of the product.

(5)MARKET TEST:

For market test we distributed our soap in different colleges and universities of ladies. We also give our soap to

different parlors. The response of the people was above our expectations.

(6)COMMERCIALIZATION:

In this stage after the satisfactory response, full-scale production and marketing programs are planned and then

implemented by us.

11


12/34

MARKETING MIXSTRATEGIES

Product Price Place Promotion

Product StrategiesThe LILAK soap 3 IN 1 is the product by Uni-Corn. Its the consumer product bought by the consumer for

his/her personal use. Its the convenience product. Consumers purchase is it frequently with a little planning or

minimum efforts. Product has a low price, large size, even compared to other branded soaps. Mass marketing

promotion plan for LILAK 3 IN 1 soap. Extensive wide spread distribution.

Product QualityLILAK introduced the best quality soap in the world of soap. This soap comes with the new innovations

having the innovated formulas suitable for all types of skins. It will maintain its positioning and will work as the

soap of freshness. The Apricot paste is used in this product so it will perform its role as scrubbing. Give a fresh

look all the day.

12


13/34

Product Feature

There are 2 sizes available in the market 140g and 95g. The people are less conscious about the size i.e. 5g. Sowe are going to reduce the size by 5g as per according to other soaps e.g. LUX. We will provide the best quality

and offer the low prices according to the will of people supported by our Questionnaire.

The product LILAK 3 in 1 includes the different ingredients:

Sodium Palmate, Sodium Palm Kern elate, Sodium Chloride, Propylene Glycol, Aqua, Triethanolamine,

Apricot powder, paste, Mint, Menthol, Satiric Acid, Glycerin, Perfume, Die-sodium Edta, Denatonium

Benzoate.

Additional Features. Specially formulated for everyday skin cleansing.

Contains an active ingredient with natural antiseptic properties.

Suitable for all skin types.

Kills harmful bacteria.

Neutralizes odors.

Fresh grapefruit fragrance.

Leaves skin feeling soft, clean and moisturized.

Gentle for all skin types.

13


14/34

BRANDING ANDPACKAGING

Brand

14


15/34


16/34

High

Qu

alit

y

Premium

Strategy

Good value

Strategy

Low

Qualit

y

Overcharging

Strategy

Economy

Strategy

It would be the good value strategy, as it could be the best strategy for the FMCG. We will provide the high

quality at the low prices in the introductory stages to capture our market segment.

Price AdjustmentsThere are 2 sizes available in the market 140g and 95g. The people are less conscious about the size i.e. 5g. So

we are going to reduce the size by 5g as per according to other soaps e.g. LUX. We will provide the best quality

and offer the low prices according to the will of people supported by our Questionnaire.

Decided prices

Net weight 135g Net weight 90g

Rs.20 Rs. 130

16


17/34

The Distribution Strategy

For distribution of LILAK soap, the company will adopt the pull strategy. The demand will be created in the

market through effective advertising and promotion, customers will ask retailers for the product, local sellers

will demand the product from the wholesalers, and wholesalers will demand the product from manufacturer.

Distribution Areas

1st of all we have to cover all the markets in IslamabadandRawalpindi, It would be a mess marketing. Our aim

is to plan, organize and throw our product in each and every town of the twin cities.

The Channel Levels

Customers.

Retailers

Whole sellers

Manufacturer

Distribution Intermediaries1) Producer Retailer Consumer:

In this way, we give our product to the retailer and he provides it to the customers.

2) Producer Wholesaler Retailer Consumer:

The second channel adopted by us is that we will give the product to the wholesalers who will distribute the

product to the retail stores and then it will reach the customer.

17


18/34

PROMOTION STRATEGY

Promotion is one of the most important stages in the product development. It is the last P of marketing strategy.

By Promotion we can convey our message to our consumers that the new LILAK will give you the feeling of

freshness all the time and now available in a new form just prepared for your sensitive skin.

Promotion Mix

The promotion mix for the LILAK 3 IN 1 soap includes

Advertising

Personal selling

Public relations

Sales promotion

Promotion Mix Budget

Advertising = 65%.

Sales promotion = 15%.

Personal selling = 10%.

Public relations = 10%

18


19/34

ADVERTISING

For our products promotion we will use all the Medias i.e. above the line, below the line in our advertisement.

Big IdeaOur big idea is to make perceptions in the consumers mind that the soap will give you the fresh look and you

will feel your self an energetic person all the day. We simply want that consumer once try this soap, after that

we belief he/she will use it again and again. So there would be some creativity in our Add that give you

reminder many times.

Above the line Print Media Newspapers (Jang, Nawa-e-Waqt, Dawn, The News).

Magazines (Akhbar-e-jahan, She, Women)

Radio (FM 100 & 101 , Radio Pakistan a.m)

Television (PTV1 and PTV world, Ads between the dramas by sponsoring for dramas)

Below the line: Billboards

Banners Flyers

Transits

Cable

Broachers

Shopping displays/counter

19


20/34

IMPACT OF ENVIROMENT

There are two types of environment

(1) Internal environment

(2) External environment

INTERNAL ENVIRONMENT

The internal environment contains the following:

1. Suppliers:

Suppliers play a very important role in the companys overall customer value delivery system. They provide the

resources needs by the company to produce goods and services.

We all take every possible step for the availability of our companys suppliers thus increasing the customer

satisfaction and this provides them better services as compared to other companies or so.

2. Customers:Since our product comes under a shopping goods category, so our customers are also from different statuses,

age, etc. we will give every possible incentive to our customers in our product, in order to give them better

service.

Providing customers on time delivery of the product.

Availability of the product in small towns and villages.

Providing the customers the best service.

Resellers help the company to find them customers for the products.

20


21/34

1. Employers:

We will also concentrate on our employers work as we know that in any organization employers can bring some

innovative, positive changes in any organization. So we will try to give comfort to our employers.

We will try to compensate with employers as much as we can because we know that they work as the backbone

of the company.

2. Competitors:

We will also consider some of the following points in order to compete with our competitors.

Since we have all type of competitors, like brand competitors, general competitors, for this we have decided to

come up with new USP. We will also start online package delivery to meet with the requirements of the people

and to face the innovations of our competitors.

We will maintain the availability of our products to all the markets in the twin cities.

EXTERNAL ENVIRONMENT

In external environment we will consider the following sectors of our environment. We can classify these

sectors as follows:

Economic Conditions.

Competition.

Social and Cultural forces.

Political and Legal forces.

Technology.

In economic conditions we have studied the economic conditions of Pakistan. Although it is not safe, but our

scale of production will be low. So we dont have to worry about it.

In competition, we will face the challenges of our competitors to meet the challenges of our competitors; we

will make our product simple according to social structure and hygiene. We have also made our packaging more

attractive to increase impulse buying.

21


22/34

As we have mentioned earlier, we made this product according to social culture of Pakistan. We didnt add any

ingredients, which is haram in Islam.

We have made strategies to face the legal and political forces. We have set up a law committee division, which

will handle all the legal aspects of our working in Pakistan. We are trying to use the best technology available in

Pakistan. As it is not of such high standard, but we are trying to get maximum output from it.

22


23/34

New Product Development

Market Survey1 Gender

Male

Female

2 Age

3 Marital status

Single

Married

4 Profession

Working man

working woman

Student

House wife

5 Average Income

2,500------------5,000

5,000------------10,000

10,000-----------20,000

More than 20,000.

23


24/34

6 Do you prefer branded or unbranded soap? (Also Mention the Name please)

Branded

Unbranded

7 The factors influence you to buy the specific soap because of

Price

Good quality

Available for different skins

Brand Name

Advertisement is appealing

8 Have you ever used the LILAK soap?

Yes

No

9 If yes then how you found it?

Satisfactory

Unsatisfactory

10 Why you are not the regular user / buyer of LILAK soap

Unsatisfied Quality

No Awareness

Packaging

Price

Advertisement decline

24


25/34

11 What price you will suggest for LILAK soap.

Net weight 140g Net weight 95g

Rs.20 Rs.13

Rs.22 Rs.14

Rs.24 Rs.15

12 Would you like the soap 3 IN 1 having flexibility to adjust itself according to your skin

(Meri Tazgi Meri Merzi) for e.g. One soap for dry skin, oily skin and normal skin.

Yes No

13 Would you appreciate the NEW LILAK 3 IN 1 in Apricot scrubbing flavor (Ahsaas Tazgi

Ka)?

Yes No

14 You can write any suggestion that you want to enjoy in the New LILAK soap.

(Thanks for your cooperation.)

25


26/34

Research Methodology:

In this project, we used questionnaire for as our research methodology.

In questionnaire we applied quantitative approach in order for getting direct information from the end

consumers and also getting the idea about our product, which helped us a lot in assessing the needs & wants of

customers & also their satisfaction level and also helped us to made New 3 in 1 LILAK.

We mostly interviewed and collect the data from the girls (age 20 30) because this age group is skin conscious

and they are main consumer of our product.

The language used in the questionnaire is simple and understandable by all age groups.

Analysis of Market Research:

1.We collect the data 80% from females and 20% from males.

80%

20%

Female

male

26


27/34


28/34

5.When we asked them, what is their favorite soap then we come to know that 30% people use

Safeguard, 21% use Detol soap, 34% people use LUX and 13% people use Lifeguard.

35%

21%

31%

13%

LUX

Detol

safeguard

lifeboy gold

6After that we asked them, what factors influence them to buy that specific soap then we got the number of

reasons, these are as under:

14% people said price influences them to buy their brands.

41% people said Good Quality influences them to buy their brands.

20% people said Availability of different skins influences them to buy their brands.

11% people said Advertisement influences them to buy their brands.

14% people said Brand name influences them to buy their brands.

14%

41%20%

11%

14%

price

Good quality

availabilty of

different skinsadvertisement

brand name

28


29/34


30/34

9.After that we asked about Are they satisfied with LILAK? Then 56% consumer said yes they are

satisfied and 44% consumer said No they arent.

56%

44%satisfied

unsatisfied

10.After that we asked the reason to those people who were Unsatisfied then they told us: 56% because of Advertisement decline & no awareness

30% because of Unsatisfied Quality

8% because of Packaging

6% because of Price

56%30%

8%6%

Advertisement decline

Unsatisfied quality

packaging

price

30


31/34

11. 70% consumer wants changes in old LILAK SOAP & 30% dont want any change in it.

70%

30%

yes no

12. 74% people appreciated our product as New LILAK 3 in 1 Apricot scrubbing.

74%

26%

appreciated by consumer

not appreciated

13. Then we select the price of our product, 76% people said that the price would be Rs.25 for 140gm and

Rs.15 for 95gm of this 3 in 1 LIRIL Soap.

14. After that we asked: which type of fragrances would they like to be in soap, then we got response as:

10% said synthetic

36% said Floral

54% said Semi natural

31


32/34

10%

36%54%

synthetic

Floral

Semi natural

15. In the end, we asked to people to give their own point of view about the New LILAK, what extra thing they

want in it?

Then 56% said that it should help us against germs.

DEFINING MARKETING OBJECTIVES:

The market research was quite helpful for us to develop our marketing objectives. The objectives are as

follows:-

1. To get product manufactured and placed within 2 months.

2. To complete promotion program till December 2003.

3. To get 10-15% market share of the market by the end of year 2004.

4. To concentrate on expansion of business first year rather than profits.

5. Initially, start with a single product.

SITUATION ANALYSIS:SWOT ANALYSIS

During Situation Analysis, We relied on SWOT Analysis. While formulating strategic planning, this is the first

essential step. Because it tells you what internal Strengths & Weaknesses you possess, and what external

Opportunities & Threats are there to deal with.

32


33/34

INTERNAL ENVIRONMENT

STRENGTHS:

We did realize that being a new entrepreneur, we did not enjoy much strength. Even then we could work upon

following strengths:-

As we are doing BBA& we are studying Management, so it helped us in new product development. We enjoyed

confidence of education before going into any professional venture.

We launched new LIRIL soap in the market, which is suitable for all type of skins. So we have a great

chance to get a big market share.

WEAKNESSES:

Distribution Channel was limited.

Initially, we had to face high cost of manufacturing due to smaller scale of economy.

Limited Capital was another weakness.

EXTERNAL ENVIRONMENT

OPPORTUNITIES:

Customers loyalties towards Soaps are always vulnerable. It is easy to attract customers due to high

quality of product loyalty.

There is higher demand of branded soaps in the market.

The demand remains sustained through all phases of economy; whether it is slump, boom or recovery

period.

THREATS:

Being new entrants in the business, we expected much of big giants already in the business. This was a

major factor of my vulnerability in the market share.

Contact with suppliers had to be established.

CONCLUSION

33


34/34

We must say that this project helped us to evaluate our marketing skills. It gives us great

courage to face the challenges of the internal and external market. This project helped us to

increase our marketing skills. In this project we enjoyed the experience of our study of the

market.

At last, we would like to thank our MANAGEMENT THEORY & PRACTICES teacher Miss

SAMEETAH. Words cannot express our immense appreciation for Miss SAMEETAH our

project advisor, without whose conscientiousness, care and creativity, our task would have been

exponentially difficult. Thanks to our parents, sisters, teachers for the inspiration and moral

support they have been providing to us throughout our study.

Management Theory & Practices

Documents