MIT School of Business 2011 A PROJECT REPORT ON NEW PRODUCT DEVELOPMENT-(antivirus) at Narmada Computers SUBMITTED TO MAEER’s MIT SCHOOL OF BUSINESS By BIPIN BHARDWAJ 2804111 28 th BATCH IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
MIT School of Business 2011
A PROJECT REPORT
ON
NEW PRODUCT DEVELOPMENT-(antivirus)
at
Narmada Computers
SUBMITTED TO
MAEER’s MIT SCHOOL OF BUSINESS
By
BIPIN BHARDWAJ
2804111
28th BATCH
IN PARTIAL FULFILLMENT OF
POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)
September, 2010-12
1
MIT School of Business 2011
Table of C O N T E N T S
Chapter No.
Title Page No.
Declaration from student iv Certificate from organization v Certificate from Guide vi Acknowledgement vii List of Tables viii List of Graphs ix List of charts ix List if abbreviations x Executive summary xiI Introduction
Background of the study Theoretical background of the topic Company profile
Statement of the problem Need of the study Scope of the study Balance Sheet
2
MIT School of Business 2011
II Research Methodology
Research design Primary data Secondary data Sample design Sample unitSample sizeSampling methodMethod of data collection Instrument for data collection
Limitations
Data Processing and AnalysisFindings Conclusions Recommendations
Bibliography Appendices / annexure
Questionnaire Management lesson
3
MIT School of Business 2011
DECLARATION
I, BIPIN BHARDWAJ, Hereby declare that this project report is the record of authentic work
carried out by me during the period from 8thApril 2011 to 15thJune 2011 and has not been
submitted to any other University or Institute for the award of any degree / diploma etc.
BIPIN BHARDWAJ
Date:
Place:
4
MIT School of Business 2011
CERTIFICATE FROM THE COMPANY
(On the letterhead of the Company, given and signed by the concerned authority in the Company / Organization where student has done his Summer Training. It should also have Company Seal /Stamp.)
5
MIT School of Business 2011
CERTIFICATE
This is to certify that Mr. / Ms----------------------------------------- of MAEER’s MIT School of
Business has successfully completed the project work titled ------------------------------------ in
partial fulfillment of requirement for the completion of PGDM course as prescribed by
the MAEER’s MIT School of Business.
This project report is the record of authentic work carried out by him/her during the
period from ------------------ to -------------. Hershel has worked under my guidance.
Signature
Name
Project Guide (Internal)
Date:
Signature Name
Director Date:
6
MIT School of Business 2011
ACKNOWLEDGEMENTS
I take this opportunity to express my deep sense of gratitude to my mentor & Designated partner
Mr. KUSHAGRA BHARDWAJ for his guidance and other members of the organization for
extending their valuable support and help in the preparation of this project report.
It is my pleasure to acknowledge “Narmada Computers”, for giving me this wonderful
opportunity for allowing me to do my summer training here. I am also thankful to whole
department for their co-operation at the time of my training.
I am equally grateful to all the employees of various departments/processing units who have
provided me with adequate data/information and support, in spite of their hectic schedule.
I am also thankful to Prof. Avanish Deshpande (Internal Guide) & my institute “MIT-SOB”,
for allowing me to do my summer training at Narmada Computers & providing me proper
assistance in making my project a success.
And to my friends for extending their co-operation in completion of this project report.
Date:
Signature:
7
MIT School of Business 2011
List of Tables
Table No. Title Page No.
1 Trial version are using (Questionnaire no 5)
2 Information about antivirus (Questionnaire no 9)
List of Graphs
Graph No. Title Page No.
1 Antivirus version preference (Questionnaire no 3)
List of Charts
Chart No. Title Page No.
1 Competitors of Narmada Computers (Questionnaire
no 1)
2 change antivirus (Questionnaire no 10)
List of Abbreviations
Abbreviations Full form
LLP Limited Liability Partnership
ISO Indian Standard Organization
SWOT Strength Weakness Opportunity Threats
BPO Business process Outsourcing
CSR Corporate social responsibility
EXECUTIVE SUMMARY
8
MIT School of Business 2011
The purpose of behind selecting the topic the NEW PRODUCT DEVELOPMENT was to
understand the market and the challenges which play a key role in development of new product.
According to the studies most of the company needs to grow their revenues by developing new
product & services and expending in to new markets in shorts. The main objective to work on
this topic was to know the effect of improve or replacement product & services on the sales and
to understand the present market potential and customization of the company. The methods used
to study this project were mainly through the primary data collection that is through telephonic
interview with different company and to extent personal interview. As the data collection was
primary mode of collecting data show the analysis was done of the basis of the data collected.
Various charts & graphs are shown in the study more easily and effectively. And the analysis is
carried on basis of those tabulation works. Various conclusion and recommendation have been
also included in project study on the basis of the data collected and analysis an observation
made conclusion which are obtained from the brief study are as follows .Few recommendations
have been made in the study to the company should improve Narmada Computers should
produce this new product. In India there is less number of producers of Antivirus. In perspective
of demand there is a big market in India and also entirely globe. It is a big investment for
Narmada Computers to develop new antivirus software. So Narmada Computers can invite third
party for development of the antivirus software. Narmada Computers is kept his first step stone
in the field of software in the month of March in the city of lakes Bhopal (Madhya
Pradesh).Narmada Computers is a company of Credibility, Reliability, Innovative, and
Outsourcing. Software development. IT consultancy. Software Product marketing company.
Project done in our company is of satisfactory quality and cheaper in cost. Companies also do
marketing of the software product. It also consultant and create awareness to the people who
want to make their own software and website for their products. Narmada Computers is a
company of highly innovative people, and also they are down to earth thinkers.
Mr.Kushagra bhardwaj (Designated partner) is pursuing his engineering in IT as a stream from R.G.P.V Bhopal (M.P)
9
MIT School of Business 2011
BACK GROUND OF THE STUDY
Narmada Computers is a company which deals in Website Design and Development-Commerce Development Solutions, software development, open source development ,Steps, Tips and Detailed: How to Get A New website, Market survey, New product development includes promotion, marketing, selling of new product.
Short term objective –there will be marketing of software product like antivirus product, outsourcing of the project that we will take from Software Company and small scale industry, college project by applying innovative ideas to it.To gain credibility and sufficient revenue through building partnership with potential organization with very effective and efficiency way .We as Software Company add value to the software project.
Long term objective - : By delivering software project on time, as per the customer requirement
and with low cost with standard of ISO quality. We successful complete the software as per within time by the client and with low cost .Making long term relationship with the customer by continuous follow up with the clients.
Narmada Computers stands for their Credibility, reliability, process standards, innovative ideas; goodwill provides satisfactory solutions to the clients. To gain clients goodwill by giving them consultancy time to time for the product up gradation in the software project. To make software in such a way that the, clients customer’s visit’s will become into repeaters. By outsourcing the software project our company adds values to the project and with the unique features of giving continuous suggestions to the clients for their software improvement and according to the current trends and patterns, and also takes time feedback from customers.
To understand the present market potential of antivirus in Indian market. To forecast the sales of antivirus for the company. To find weather it is feasible or not for the company. To understand the competition level of antivirus in the market.
11
MIT School of Business 2011
THEORETICAL BACK GROUND OF THE TOPIC
New product development
The process
1. Idea Generation
Ideas for new products can be obtained from basic research using a SWOT analysis
(Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends,
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. 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 must ask at least three 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?
12
MIT School of Business 2011
3. Concept Development and Testing
Develop the marketing and engineering details
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 Modeling.
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 breakeven point
13
MIT School of Business 2011
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, Resource estimation, Requirement publication
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
14
MIT School of Business 2011
Company Profile
Narmada Computers is incorporated on 7th of March 2011.Company registered office is in
Bhopal (Madhya Pradesh) “The city of lakes “.Company deals in
1. Create web based solutions that you can access anywhere, anytime.
2. Provide bespoke software solutions - tailored to your requirements.
3. Help you discover the potential of your business data.
4. Support and maintain your existing software and legacy systems.
5. Increase your productivity by automating repetitive tasks.
MISSION
To make simple and unique approach to develop website, by adding new upcoming technology
like E-commerce applications and Web applications.
To overcome the problem is in a very efficient and cost effective way.
VISSION
To make the company world best in quality website design in innovative
To sell the software product with very lowest price.
15
MIT School of Business 2011
SWOT analysis of Narmada Computers
Strengths:
Low cost
Fully integrated operations from. Lower adverse impact due to market fluctuation.
Good quality of software and technology for productivity improvement.
Manpower and good profile of employees.
Weakness:
High development cost
Opportunities:
High demand growth potential
High potential for value added products with improved reserves, lower cost of
production.
Good scope for expansion and export.
Competitive advantage to India
Threats:
International software development price downward fluctuations.
Environment concerns and failing tariff structure also affecting profitability.
Reductions or withdrawals of export benefits.
16
MIT School of Business 2011
Marketing mix -:
Place -: Company concentrate on the local customer like schools, colleges, small scale business, coaching institute, while concentrating on these segment company can make website and internal software.
Price -: price can be varied from according to the segments wise price list according to the webpage size, what the features clients want according to that price varies.
Promotions -: events, B2B approach presentation to the company or the target clients for the website development /design, web marketing example -: Google.
1. What the company needs to do about new product of antivirus.
2. What information is needed and how should be obtained.
3. It should be action oriented or information oriented.
NEED OF THE STUDY
The basic need of the study behind can be as follows
1. Developing a marketing strategy for introducing a new product in to the market.
2. Estimating total sales.
3. Making budget for new product development.
4. For proper planning and organizing new product development.
5. To draw ideas from customers.
6. For better concept development & testing for new product.
7. For business analysis & future forecasting for new product development.
SCOPE OF THE STUDY
1. Making market budget for new project, along with proper planning and organizing of the new project.
2. To forecast the sales of every new product and developing a strong market for the product.
3. To understand the market and requirement of a new product in the market.4. To understand the customer requirement and increase the sales by increasing customer
loyalty.5. To develop market strategies for the success of a new product.6. Testing of the market and generating new ideas before developing a new product.7. Commercialization of new product.
18
MIT School of Business 2011
Environmental influence -:
While India holds a dominant share of the global offshore IT-BPO sector, yet, at USD 46.3 billion in 2008-09, Indian IT-BPO exports accounted for less than 2.8 percent of the global spend on IT-BPO. Over the next decade, the industry will be influenced by several global macro-economic, demographics, social, business and technological trends that will shape the face of global business. These trends include:
Macroeconomic and demographic trendsShifting centers of economic activity–GDP of Asia and Europe will convergeWorking age population shrinking in key developed countries (e.g., Japan, Italy, US)
Social and environmental trendsIncreased Internet and mobile connectivity transforming the way people live and interactRapidly increasing consumption and associated supply gap in key natural resources (e.g., oil, water) creating need for resource efficiency and climate change solutions
Business and technology trendsGlobal economic crisis leading to major shift in industry structures and higher regulatory controlCorporate boundaries being redefined (e.g., open innovation, extended supply chains, web of partnerships)
Technology radically transforming the way traditional corporations and governments function This will lead to new opportunities for companies to capture new markets largely untapped so far. So far, the prime focus of the global sourcing industry has been on core markets- large enterprises from North America, Western Europe and Japan in verticals such as BFSI, telecom, retail, pharmaceuticals, manufacturing and travel. While these core markets will continue to grow over the next 10 to 15 years, driven by growth in the cost base, the industry will be redefined along four key dimensions:
19
MIT School of Business 2011
New services in core markets:
1) There is still further growth potential (beyond the cost-based growth) even in the core markets described above. The global sourcing industry has largely focused on cost reduction through replication of processes in low-cost locations. Going forward, the industry can propose additional services to these core markets in three ways: 1) offer beyond-cost services, e.g., revenue enhancement, capital avoidance;
2) Suggest integrated manufacturing and services solutions e.g., end-to-end development of new auto parts; and
3) Redesign and transform processes, leveraging automation.
New customer segments: Enabled by mega trends such as increased digital connectivity and the
availability of new delivery platforms, the industry can expand its influence beyond large
enterprises to SMBs. The emergence of new service offerings will also allow players to serve
smaller enterprises in an unconventional but profitable manner. The industry can also offer direct
business-to-consumer services (such as financial, healthcare and travel services) to the emerging
class of well-connected retail consumer’s
new geographies: As economic growth expands into new markets, Asia will bypass Europe as
the second largest target market, led by India and China. On the back of greater adoption of
technology and outsourcing by enterprises, BRIC markets will become a sizeable target domestic
outsourcing market, with India and China accounting for almost 50 per cent of the opportunity.
20
MIT School of Business 2011
Several trends:
An estimated 80 per cent of the growth in the addressable market will come from segments that
have not been traditional markets for the industry The addressable market for BPO will exceed
that of technology services by 2020The BRIC domestic outsourcing opportunity will rival that of
core geographies
Innovation can create an additional opportunity (around USD 200 billion for solutions and
products in three select areas alone - namely climate change solutions, clinical research and
Increasing domestic demand to reduce carbon Footprint (India’s carbon footprint from
Electricity generation will grow at a CAGR of 4% double the global average CAGR of 2%from
2010 to 2020)
21
MIT School of Business 2011
Improving regulatory environment -: Mobile applications, Internet offerings like search, mail,
Messenger on mobile platform
SMS-based searches, applications
Mobile middleware solutions, roaming applications, SMS gateways
Large domestic market Robust local ecosystem of companies, value Chain players and investors
Established IT resource pool & development Infrastructure
Total addressable market for global sourcing and domestic outsourcing, 2020-21
Areas of Focus Drivers of India’s advantage
Clinical research Target identification & validation
Lead generation &optimization
Clinical development & trials
Data management & statistical Analysis
Lower time-to market due to easy access to
Low-cost
Large patient pool
Availability of talent for high quality trials
Data Management
Favorable regulations
Domestic market and
Infrastructure
22
MIT School of Business 2011
The outsourcing opportunity in climate change, mobile applications and clinical research could
add over USD 200billion to the total addressable market. India can have a distinctive impact in
these areas including clinical trials and data analysis, Internet offerings on mobile platforms and
creating smart grids for energy efficiency. If India is able to capture distinctive roles in these
value chains, over USD 75 billion could be added to Indian technology and BPO exports by
2020.
Current market size
The Indian IT-BPO industry (excluding hardware) is estimated to be a USD 63 billion industry
by March 2010 employing over 2.2 million people and contributing to over 4 percent of India’s
GDP. On the back of the global economic recession, the growth rate for the industry for FY 2010
is estimated to decline to a low of 7 percent. The past year has witnessed a depressed demand
environment with budget cuts and delayed decision making. However recent data indicates that
the impact of the recession is bottoming out, decision making is starting to happen and there will
be demand for IT-BPO services.
Industry structure
The industry has a healthy mix of Indian providers and foreign providers, with the latter
contributing to 30 per cent of total revenues. Companies operate through a range of sourcing
models-
1. Captive - An internal cost center or a 100% subsidiary company set up to execute IT-BPO
services
2. Strategic Alliances/Joint Ventures - provider owned/joint operations transferable to the
customer or provider at certain milestones/timelines
3. Outsourced/Third party - Use of a third party service provider to provide IT-BPO services
23
MIT School of Business 2011
IT- BPO Expert market
The export industry is diversified across three major focus segments – IT Services, BPO and
engineering services. While IT Services have been the mainstay of the industry, BPO and
engineering services sector has built upon the India value proposition and today there exist
integrated service providers across the three focus areas as well as niche providers.
IT-BPO Domestic market
The domestic IT-BPO segment is estimated to aggregate revenues of INR 650-670 Billion in
FY10, as Indian firms increase IT adoption across verticals. The Government is expected to
contribute significantly to this growth with budget allocation of US$10 billion over the next 3
years for the National e-governance Plan (NeGP). Leading Indian firms, multinationals as well
as the SMEs is gearing their products and services to tap into the e-governance opportunity.
24
MIT School of Business 2011
Financial statement
Balance sheet
Balance sheetcurrent assets
cash1,00,00
0debtors stock
total current assets (A)1,90,00
0current liabilities creditors salaries payable provision for tax provision for dividend total current liabilities (B)
working capital C=(A-B)1,90,00
0fixed assets land and building 8000plant and machine 50,000less accumulated depreciation Net fixed assets (D) 58,000
Net assets E=(C+D)2,48,00
0share holder equity share capital share premium reserve and surpluses net worth (F) long term liabilities
institutional loan 1,00,00
0debentures total debt (G)
25
MIT School of Business 2011
H=(F+G)1,00,00
0
Fund flow statement
fund flow statement source working capital from operation sale of plant intuitional loan issuance of ordinary share funds provided uses purchase of land and building
5,00,000
purchase of plant and machine 50,000payment of cash dividend fund applied increase in working capital
Income Statement
Income Statement Sales cost of goods sold gross margin on sales operating expenses depreciation machine building other expenses net margin from operations
26
MIT School of Business 2011
gain on sales on long term inventories Total loss on sales of machinery (proceeds from sales ) net income
Marketing
Narmada Computers is a company of software and according to the market survey, The Indian IT-BPO industry (excluding hardware) is estimated to be a USD 63 billion industry by March
2010 employing over 2.2 million people and contributing to over 4 percent of India’s GDP.There is so much scope in software sector; government is taking very much care of
Software industry .They is investing in infrastructure for the software industry in India.
There are thousands of competitors in software such as Infosys, Wipro, TCS, Accenture .They are following the different pattern to give solutions to the clients, because many software
companies are going global and taking new technology from the abroad and implicating on the project. Now the software industry cultural had become fixed cultural every software companies are adopting the same process. With our company, there many such reasons to be different from
other are that we had adopted -:
Continuous follow-up with the clients for their software up gradation after handover the project to the clients. We can increase our software company goodwill in the market and with the quality
standard.
Target Market -:
Large scale industry Small scale industry Government sector Colleges/schools.
We can target the following market by visiting them -:
Appointment -: By phone /By E-Mail /By reference/ by employee Demonstration and presentation of company. Features and details description of a company. Leave business card and take business card.
27
MIT School of Business 2011
Feedback /greeting mail /add them in our website. By giving them updated information on software launching/software market news in
what why we can increases the customer visitors on their website.
Advertising
Target market is defined as a large scale industry, small scale industry, government sector, colleges and schools. Now to do advertisement of software company can be done in a following means -:
Company website Networking website (can give advertisement of company on other networking website) Professional contact /friends contact. Attending business events.
Branding
Narmada Computers as a brand in market we are taking care of the following fundamentals concepts.
To make our company as a brand the parameters of advertisement can be helpful. Outsourcing the software modules which another software company is expertise in
designing, development etc. Core competency of a company can be innovative ideas, standard work process, and
goodwill in market, on time delivery of project.
Sales forecasting
It depends on the company brand value in the market. As per the sales of the services is concerned we can Predict that by giving the project on time to the client (what the time is decided by the clients for a particular modules in a software)
with the quality standard, fraction of the market, at present we can concentrate on college
28
MIT School of Business 2011
website. By giving suggestion to the college administration for upgrading their college website and to make the website as per the current scenario.
Critical risk management
If there is some good things there is some bad things are also associated with them.There is certain risk involved in a company also. When it is not in process and when it is running good. Recession can be a major risk in IT industry.Every software organization had to face with the risk. At the time recession company engages the employee to the CSR activities and take participate in government CSR project.
Management Risks
As per management risk is concerned we can say that If some of the share holder leaves the company or one of the Director wants to leave the company.
Marketing Risks
market risk are the risk in which we are 100% depends on the software market ,if the software market decreases then the Company also revenue also tends to go down.
Operations Risks Suppose in the company there is some employee those are sharing some information to the other company, can be one operation risk.
Financial Risks
If the investors /clients take all this money/project back from company, if the project that the company what to take can also go to other company.
Intellectual Property Infringement
29
MIT School of Business 2011
Innovative idea that is given by the company is taken by other company
New Product Development on (Antivirus internet security product)
Name of the antivirus product -: antivirus capsule.Features -: maximum protection, online update, internet security specialist, pc protection, fast relief from antivirus, total health care of computer.Rate /price – 500/- per piece M.R.P
SWOT analysis of antivirus software -:
1. Strength -: Quality of software, software is made within time limit, which is given by the client and with the company.
a) Credibility.
b) Reliability.
c) Goodwill within the customer and suppliers
2. Weaknesses -:
If the website is not made within the time limit or duration on which client and the company made and agreement .Narmada Computers is newly launched in the software industry.
There is much such other big company, so that Narmada Computers had to struggle more than any other company.
Competitors are large in numbers.
30
MIT School of Business 2011
Employees are less in number (For that it took time for the project completion).
3. Opportunity -:
Favorable time for the company is there is no recession and company gets as many as project from foreign country or from Indian company.
Outsourced antivirus marketing projects from other company
Long term selling and distribution of the antivirus projects.
Design marketing strategy and marketing plan of other company.
Project of online marketing of the antivirus website.
4. Threats -:
For Software Company recession is the major threats.
Inflation increases can also be threats to a company.
Not getting appropriate skill employee for a particular projects.
Not getting the long term marketing and selling and distribution of the projects.
31
MIT School of Business 2011
Strategic research
Marketing strategy -:
1. Segmentation -: As per the segmentation part is concerned there are following segments divided first part of software related -:
a) student (management and engineering)
b) Outsourcing.
c) Company website.
d) SME (Financial software)
For New product development -:
a) Retailers
b) Direct marketing
c) Cyber café
d) SME company /organizations
Target market selection -:
It is much more important then the segmentation. Software related market place (where there are software companies).
32
MIT School of Business 2011
IT Company which outsourced their antivirus work.
Market selection for an antivirus can be antivirus related company.
Positioning -:
Positioning of a software company can be where there is software market for example -: in India major
Software related states are Maharashtra, Karnataka, New Delhi, and Andhra Pradesh.
We as a software company can positions our company in these states to get software projects. Because if there is no market place for the particular things there can not be competition, profit, revenue, growth.
For example -: If a person is new some place and he/she wants to buy vegetable if there is no market then He/she cannot find the vegetable.
Antivirus can be position were there is niche market only we can concentrate on these who are awareness of the internet and those who are using laptop/PC owner of cyber café can position there.
And were there are competition of antivirus worldwide positioning also we can do as per the country wise.
Limitation -:
Browsing pattern (which website are open in foreign country) according to it antivirus is design. So it increases the work load of the company for every country we had to design.
CRM (customer relationship management)-:
a) Gain enterprise commitment.b) Build a CRM project team c) Business needs analysis.
33
MIT School of Business 2011
d) Define the CRM strategy.
Market survey -:
Outsourcing the market survey to the agency (rates) Rs 60 per day on per 6 person questioners’ data. = 60 rs per day*365 days = 21900 rs per year .We can include it as an other expenditure for the company.
Expenditure
Advertising Research
Advertising, promotion and branding -:
Web advertising on websites like Google (rates)-: 1500/- per year or spacing wise /per impression Radio /TV advertising -: A rate per 30 second varies from rs20000 to rs30000. (According to the TV channels TRP rates if it is peak time then rates are double.) Rates of radio -: peak 30 to 60 second rates are different varies from rs5000 to rs7000 peak time
Total cost on adverstiment -: 71,500
Copy testing (story board)
Demo -:“Wife- sunoji market me ek naya capsule aaya hai.Husband- capsule, tumhara matlab ke medicine capsule se hai.Wife – nahi ji ye to apne computer ko virus se bachane ka capsule hai.Husband -: aab to hamara computer ko kaabi bhi virus nahi lagega.Wife -: aur bhi kuch hai ess antivirus capsule me, agar kese ka computer chore ho jaaye to ess antivirus capsule se pata laga saakte hai.
34
MIT School of Business 2011
Wife – are agar dhanyewad dena hai to antivirus capsule walo ko do.Husband – dhanyewad antivirus capsule.
Media Research -:
Promotion in events (rates) -: sponsorship minimum rs20, 000 (for college level event) and in business event sponsorship varies from 1, 00,000 to rs 5, 00,000.Put stalls in various events (rates)-: according to the square foot space .for example 6*4 foot it cost rupees (at college level 20,000 to rs30,000 it also depends on where we are takingLocation for example first stall rates are high 30,000.in the middle rates are low < than 30,000).Banner promotion -: flex rates -: 50 to 60 rs per square foot for advertising purpose 12*6 = 72 = 72 square foot *rs60=rs 4320 and normal glow sign -: 100 to 500 rs 12 * 6 =72 =rs 36000 square foot per square foot.SMS promotion -: 1 lakh SMS @ rates of 250 to 500 rs.
Total advertising cost -: 500+4320+36000+30000+500000+7000+3000+1500 +21900 + 20000 =rs 624220/-
Distribution research -:
Channel management -:
Franching margin -:
Security deposit -:rs 1 lakh to 5 lakh
Should have to buy minimum 5000 products (mandatory)
MRP rs 350/-
Distributor margin -: Security deposit -: rs 50,000/- to rs 1, 00,000/-Should have to buy minimum 500 products (mandatory) M.R.P for distributor is rs400/-
Retailer’s margin-:Security deposit -: 25,000/- to 50,000 minimumShould have to buy 250 products (mandatory)M.R.P for retailers -: rs 450/-
35
MIT School of Business 2011
If the retailers is buying directly from distributor then M.R.P is 450/- .or if client is buying from company then it is M.R.P 480/-
Income received -: 1, 00,000 + 50,000 = rs 150,000/-
Total cost from sales and distribution – (total sales)
Franchise margin -: suppose they sales whole lot in 1 year 5000 products * 350 = 17, 50,000/-
From distributor -: Suppose they sales whole consignment which they demand from the company 400 * 500 product = 2, 00,000/-
From retailers -: whole stock was finished by the retailers 450 * 250 products = 1, 12,500/-
Total = 20, 62,500/-
Other income from deposit can be added to other income to the company that is from the deposit from the franching, distributors, and retailers. Rs 6, 50,000/-
Assumptions of expenditure for manufacturing of new antivirus product.
Development cost -: in this product, the development cost is the cost of design antivirus software from a software company name Narmada Computers .Cost of out sourcing the development to software firm and maintenance and updating etc can cost more than rs 5,00,000/- Total manufacturing and development cost = 5, 00,000/-
Labor expenses salary and wages -: though we are out sourcing the development part we had deleted our engineering department from organization .so now we left with the marketing ,finance and HRDepartments.In our organization we are giving salary according to the designation level of the person.
36
MIT School of Business 2011
Company structure
CEO
FINANCE (GM)MARKETING (GM) HR (GM)
MANAGER MANAGER MANAGER
ACCOUNT ECECUTIVE
SALES EXECUTIVE HR EXECUTIVE
CEO salary -: 1, 00,000 per month.
Finance department -:70,000/-GM -: 40,000/- per month Manager -: 20000/- per month Account executive -: 10,000 per month
Sales and marketing department -:70,000/-GM -: 40,000/- per month Manager -: 20000/- per month Sales executive-: 10,000 per month
HR department -: total salary - : 40,000+20,000+10,000 = 70,000/-GM -: 40,000/- per month Manager -: 20000/- per month HR executive -: 10,000 per month
Total salary -: 2, 10,000 + 1, 00,000 =rs 310,000/-
37
MIT School of Business 2011
Packaging -:
Total cost for the packing of the antivirus software includes laminated think sheet which can be foldable from And from it we can make a good design package .it should attractive, customer see first time, pick the product and buy.Total cost of printing the primary packing – it varies from normal primary pack to jilting pack with colors.For normal pack = rs 10 to rs 15 for 5750 quantity. Total = 86,250/-For lilted pack -:rs20 to rs 25 for 5750 quantity. Total = 1, 43,750 /-
Raw material cost -:
It also includes cost of CD (compact disk)/DVD that is minimum rs 15 to rs 25 for CD and for DVD varies from rs 25 to rs 40 maximum.
Total = 15*5750 + 25 * 5750= rs 2, 30,000/-
Raw material cost -:
For franchise distribution -:
a) CD = 25 * 5000/- = 1, 25,000/-
b) DVD = 40 * 5000/- = 2, 00,000/-
For distributor distribution -:
a) CD = 25 * 500 = 1,25,00/-b) DVD = 40 * 500 = 20,000/-
For Dealers -:
a) CD = 25 * 250 = 6250 /- b) DVD = 40 * 250 = 10,000/-
38
MIT School of Business 2011
Product Patent licensing -:
Logo design patent -: logo should be registered in only patient office .there is in four places in India Mumbai, Delhi, and Calcutta.For design total cost is rs 10,000 (approx) it may also varies state wise department. It will become my company assets afterwards.
Total cost = rs 10,000/-
Fuel, power, light –:
Inverter cost = 15,000/- to 30,000/-
Electricity cost = suppose it cost 5.50/- per unit cost
5unit per day * 5.50 /- = 27.50 /-
27.50 *365 = 10,037.50 /-
Total cost = 40,037.50 /- per year
Administrative cost -:
Stationary cost
1 laptop -: 15,000 /- to 25,000/-
4 PC’s = 15,000 to 20,000/-
20,000 * 4 no’s = 80,000/-
Laser printer -: 25,000/- to 30,000/-
Other stationary (pen, pencil and paper) = 10,000/-
39
MIT School of Business 2011
Total = 2, 55,000/- per year
Terms and condition-:
If the price increases/decreases then we had to tell distributors to change the price as well.
Distributors had to give compulsory the details of retailers /resellers and distributors. Without the
permission of the company, distributor cannot give the retailer ship to the resellers/retailers.
Distributors or retailers had to take permission from Narmada Computers for giving every
antivirus product to the retailer. They had to insert data in their online traction system (made by
company) Day to day traction details should be their in the CRM tools.
40
MIT School of Business 2011
RESEARCH METHODOLOGY
RESEARCH DESIGN:-
In this study of exploratory research has been used which is focused on discovery of new product
of antivirus. It is based on secondary data.
PRIMARY DATA:-
The sources of primary data are
1. Customer
2. Market Corporate
SECONDRY DATA:
Secondary data may either be published data or unpublished data. Usually published data are
available in:
1. Report and publications of various associations connected with business and industry, banks,
stock exchanges, etc.Reports prepared by research scholars, universities, economics, etc. in
different field.
3. Technical and trade journals, books, magazines newspapers, various publications of the
central, state or local governments;
4. Various publications of foreign governments or of international bodies and their, Subsidiary organizations, Public records and statistics, historical documents, and other sources of published
41
MIT School of Business 2011
Information, Website
Sample Design
The sample design involved working out a concrete plan that would involve in our data
collection process and activity. The population was initially studied for the same and then a
definite sample was derived for analysis and study.
Sample Unit: student
Sample Size: 30
Sample Method: Non probability sampling method has been used.
DATA COLLECTION
Primary Data: - Primary Data was collected through questionnaire.
Secondary Data: - Main sources of secondary data was from
1. Companies own data
2. Internet
The following stages were used during the market research:
Formulation of project objective: - A few days were spent for gaining knowledge and
information about Narmada Computers broad strategies.
Desk research: - A few days were spent in marketing questionnaire.
Pilot testing: - Initially a questionnaire was prepared and calls were made to match the
project objective.
Work: - A few days were spent for filling up the questionnaire.
42
MIT School of Business 2011
Data tabulation and analysis: - Data collected was then tabulated and analyzed. Analysis
was then interpreted to arrive at a conclusion that was used for giving necessary
suggestions.
INSTRUMENTS FOR DATA COLLECTION:-
1. Questionnaire Interviews
2. Telephonic Interviews
LIMITATIONS:
Companies were not ready to disclose the material facts.
Time for the study was limited to only two months.
It was difficult to know whether willing respondent were truly representative.
There was lack of adequate data for survey.
Faced problem in taking appointment.
43
MIT School of Business 2011
Questionnaires
Name -: ……………………………………………………Age -: ………… E -Mail –ID -: ……………………………………………………………
Note-: Kindly tick mark (√) on the selected items.
1. In your laptop /PC which antivirus you are using
…………………………….
Analysis -:
Out of 30 data collected from different respondent we observed that -:
According to the chart we observe that out of 30 respondent 34 % are using quick heal antivirus.
Demand for the quick heal antivirus is more in market.pie chart shows very clearly.
2. How many times you contact with your antivirus service provider.
a. Dailyb. Weeklyc. Monthlyd. Never
Analysis -:
This questionnaire is kept because it tells us about the CSR about the company. Due to this we can calculate the % of data that how much respondent are contacting the company
Daily -: out of 30 respondent only 1 respondent contact to the company.
Weekly -: out of 30 respondent only 05 contact to the company.
Monthly -: out of 30 respondent only 13 are interested to contact with the company.
Never-: There are 11 respondents out of 30 those who are never contact the company.
So we came to an analysis that those who don’t contact to the company we had to concentrate on them and have a touch with them that why they are not contacting the customer care.
3. Which antivirus version you prefer
a. Trial version
b.Buy antivirus from distributors or retailers
45
MIT School of Business 2011
preference of an-tivirus
0
5
10
15
20
25
trial versiondealer
Analysis -:
There are versions available on the website of the antivirus company and there is another option that we can buy from the direct from the dealers.
So we found out that out of 30 respondent 7 go for trail version and rest buy from dealers.
Recommendation -: antivirus company should think about it seriously why they are going to buy from dealer the trail, if trail version is available on company website.
4. from where you want to buy antivirus product
a. Shop online
b.Buy from distributors or retailers
Out of 30 respondent 76 % are intersected in buying from dealer and rest go for online shopping of antivirus.
Recommendation -: company can concentrate more on website marketing.
46
MIT School of Business 2011
5. Which trial version you are using.
a. 30 days b. 45 daysc. 60 daysd. None
no of days out of 30 respondant
30 745 260 5
none 16Total 30
Analysis -: It was observed that out of 30 respondents that they are not using trial version from the website of the company.
Recommendation -: antivirus company can concentrate on the website design, they can make website so much attractive that more users can buy trail version from the website by online shopping.
6. What are the features you prefer for your antivirus which you are using?
a. Safer b. Simply safetyc. online protectiond. Other ……………………………………………………
In this question most of the respondent wanted features that is online protection.
Recommendation -: most likely features of the antivirus that the respondent like are online protection, company can extend the features or company can make more attractive and updated features in their antivirus like for example -: online tracking of the laptop.
47
MIT School of Business 2011
7. What are the uses of antivirus according to you?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Analysis -: there are various comments on the uses of the antivirus.
a) It helps PC and away from the virus, files are protected. It protects our documents (important), protect our lapy.
b) Antivirus cleanup, Safes your PC from losing important info and from getting hacked, Safety to PC from all types of virus or threats, Detect virus
f) Protects PC/laptop from malware, antivirus, spyware, parental control, black list etc.
g) To prevent from malware, antivirus, fishing etc,) Protect from virus,) for safety
j) Saves computer from virus, saves the data to get corrupted and helps to have an access whether required, prevent any damage to the computer (external) damage
l) Protects virus threats, removes worms, protect computer, and protects computer information. To be safe while keeping all the data in soft copy.
n) Prevents the uploading of virus which sometimes automatically happens .also prevents uploading from other sources like CD’s DVD’s, pen drives etc, to keep off virus, worms as well as provide full security from malicious hackers as well as attacks.
p) Protects the main and important drives from being corrupted through virus and Trojan online.
8. How long have you been using your current antivirus service providers?
a. 0 -6 months b. 6 months – 1 yearc. 1 year – 3 yearsd. 3 years – and above
analysis -: From the data collected from the 30 respondent it was observed that 60 % are using 6 to 1 year –it suggest that users are contacting their service provider company. Recommendation -: To increase the number of customer of antivirus, company had to concentrate on the customer satisfaction index (CSI).
48
MIT School of Business 2011
9. From where you got information about antivirus.
a. Relativesb. Friendsc. Websitesd. Newspaperse. Radio/TVf. Retailers/distributors of antivirus
Sources out of 30 respondent
relatives nonefriends 17website 8newspaper noneradio/TV 5Dealers none Total 30
Analysis -: 56 % respondent are getting information about the antivirus from friends.
Recommendation –: antivirus company can give advertisement on the newspaper in telgu (because mostly in India telgu newspaper is read as compare to Hindi newspaper) sources from business standard -: dated pune Friday 2 September 2011.
49
MIT School of Business 2011
10. Do you want to change antivirus
a. Yesb. No
yes13%
no87%
Chart Title
Analysis -: Out of 30 respondent 87% are not interested in changing the antivirus which they are using.
Recommendation -: antivirus company can do some innovative ideas in market.
If yes, which antivirus you would like to use why?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
50
MIT School of Business 2011
Comments from respondent -:
“A good antivirus like quick heal, panda, kaspersky”
“Net protector because since last 3 years I used NP but because of necessary and urgently I purchased K7 but while installing it requires net and everything it is not possible to be online ,otherwise no any problem “
“Antivirus should prevent uploading of antivirus effectively and don’t slow down the speed of the system/laptop”
“It depends upon the user which are stated as above”
Thanks for your support
With warm regards Bipin Bhardwaj Narmada Computers
51
MIT School of Business 2011
Features of antivirus -:
Antispyware, Parental Control, Antimalware, Anti-Root kit, USB Drive Protection, Browsing Protection, Self Protection, Entertainment Moderate-Phishing, Antisam, Firewall Protection, and Parental Control.Anti Spyware, Anti-Hijack, Anti Spam, OS Firewall, Anti Malware, Email Backup, Anti-Root kit, Browser Repair.
Antivirus capsule -: by Narmada Computers
Online update
Internet security specialist,
Pc protection,
Protection from theft,
Antispyware,
Parental Control,
Antimalware,
Anti-Root kit,
USB Drive Protection,
Browsing Protection,
Self Protection,
Entertainment Moderate-Phishing,
Antis am,
Firewall Protection,
Parental Control
52
MIT School of Business 2011
RECOMMENDATIONS / SUGGESTIONS
There are following suggestions which will further help in increasing production & sells:
1. Narmada Computers should produce new product Antivirus because there is huge market
potential as there are less number of producers of Antivirus.
2. Since huge investment is required for development of software, Narmada Computers should
invite third party for development of antivirus.
3. Narmada Computers has to optimally utilize the software.
4. Narmada Computers should undertake the awareness campaign among the potential customer
for Antivirus software through online and personal approach.
53
MIT School of Business 2011
19. BIBLIOGRAPHY
1. Product Brochure- Antivirus
2. Software Bulletin Research.
3. Company Information (Narmada Computers )
4. Marketing Management by Philip Kotler.
5. Websites:
www.narmadacomputers.co.in
http://www.infovinity.com/
Marketing Management by Philip Kotler
www.webmill.in
ANNEXURE
We as software and market research company what to write only there things.
Why need of management lesson -: To assess an individual performs in term of the highest level of work, the individual will be able to handle comfortably and successfully in future without being over stretched. The organization in discharging its responsibility of selecting and developing mangers for the future to ensure continuous growth of the organization.
Date -: 08/04/2011
Time -:
Place -: MITSOB pune
Party /person involved -: internal guide (Prof Avanish deshpande)
Incident -: introduction about the project, discussion was held at 11:00 am .It was first formal meeting with the internal guide of the college.
Comment -: Meeting with internal guide of the college was fixed at 11:00 am .when I entered the room .prof avanish deshpande was sitting at his place. I was very much excited that my project is going to start .Then he tell that mainly punctuality is more important is more importance in organization’s keep this words in my mind and after the brief introduction was over. I started my summer project report.
Management lesson -: punctuality
Date -: 22/04/2011
Time -:
Place -: Bhopal (Madhya Pradesh)
Party /person involved -: Mr.bipin bhardwaj and brother kushagra bhardwaj
Incident -: in the morning with punctuality we both want to the office of register in Bhopal to register the company of software. We decided to open Software Company in Bhopal (Madhya Pradesh) .sharp 10:00 are we reach office, after all the formality of the office over at that day we had not taken lunch.
Comment -: we both learn on things from it that without hard work we cannot do any things, at some place to reduce time we both also do some smart work.
55
MIT School of Business 2011
Management lesson -: hard work/smart work
Date -: 27/04/2011
Time -:
Place -: Bhopal (Madhya Pradesh)
Party /person involved -: mr.kushagra bhardwaj
Incident -: There was a call from the registrar that there are something more to give the documents. I had some more personal work to do then I tell that you go and submit the documents.kushagra bhardwaj had done so much nicely handle the situation.
Comment -: We both learn the lesson that one should had problem solving approach skill with logical way
Management lesson -: problem solving approach
Date -: 06/05/2011
Time -: 07:00 pm
Place -: Bhopal (Madhya Pradesh)
Party /person involved -: Mr. Kushagra bhardwaj
Incident -: we had to decide the salary of the employee .It was so completed situation that to whom to give the highest salary in compare to his/her experience according to experience or according to salary or with job profile.
Comment -: I learn from kushagra bhardwaj that how to solve the analytical skill and make the problem into workable units and reformation the structure.
Management lesson -: Analytical skill -: ability to breakdown or reformate an apparently complicated problem into workable units.
56
MIT School of Business 2011
Date -: 10/05/2011
Time -: 10:00 am
Place -: Indore /Madhya Pradesh
Party /person involved -: Mr.Kushagra bhardwaj
Incident -: We both together was travelling in bus and he told some creative thing to me that why we can’t open a job consultancy along with software company. I keep this in mind and started working on it. I created a business plan for it related to job consultancy.
Comment -: I learn from Mr.kushagra bhardwaj that how to creative in nature and one should have a creative imagination his/her mind.
Management lesson -: Creative imagination -: ability to become ditched from “what is in order to enter the realm of new possibilities”
Date -: 20/05/2011
Time -: 10:00 am
Place -: Bhopal (Madhya Pradesh)
Party /person involved -:Mr. Kushagra bhardwaj and Mr Bipin bhardwaj
Incident -:We both in the morning start visiting the company which are related to real state manufacturing ,college ,schools for the software development .we visited 17 companies on that day ,so we decided that we do visit more company next day. So we started searching more company to visit.
Comment -: I learn that day we had to more practical in nature while working so we stop making more documents and become more practical oriented towards our company mission and vision.
Management lesson -: Practical thinking
57
MIT School of Business 2011
Date -: 27/05/2011
Time -:
Place -: Indore (Madhya Pradesh)
Party /person involved -: mr.kushagra bhardwaj /Mr. Bipin bhardwaj
Incident -: when we visited one company called www.webmill.in company director was sitting in his cabin .we both were sitting at the reception counter, waiting for the director call. Then after few minutes director of the company call reception and tell to send us inside.mr kushagra, so nicely present the project concept of www.naramdeo.com .it is a project of matrimony website.
Comment -: I learn that how much innovative we had to be in work and day to day activity.
Management lesson -: Innovative thinking -:
Date -: 03/06/2011
Time -: 10:00 am
Place -: Bhopal (Madhya Pradesh)
Party /person involved -:mr.bipin bhardwaj and Mr. Kushagra bhardwaj
Incident -: We both started to work on the project given by the director of www.webmill.in .we through that we had to work on the project seriously, so we went to many people done of matrimony to make project done and take some suggestion from and we prepare a questionnaire for it
Comment -: management lesson learn from my side that we had to be initiator in mature and always take the responsibility to do work ahead.
Incident -:I usually go first with god and then I start the work .I always keep the god in first place mr.kushagra one day tell me that you always do wish you are not hard working person you had to in involving of the situation approach more.
Comment -: At that day I realize that I had to be more concentration work.
Management lesson -: Sense of reality -: He should not engage in wishful thinking, be able to maintain objective approach to situation in which own personal involvement is considerable.
Date -: 17/06/2011
Time -: 06:00 pm
Place -: Indore (Madhya Pradesh)
Party /person involved -:Mr. Kushargra bhardwaj and bipin bhardwaj
Incident -: We both were sitting at the office of the www.webmill.in and one person was sitting beside us he was listening the conversation of both of us, then after some time he told us that we had to look this project for the project just like that .he was the website developer of the company www.webmill.in
Comment -: Then we learn that one should had a hostitic view in nature with higher thinking and to look at the higher things and point of view.
Management lesson -: Holistic view -: looks at the problem from a higher wattages point with simultaneous attention to relevant details to shape one’s work and act according.
Party /person involved -:Mr. Kushargra bhardwaj and bipin bhardwaj
Incident -:in the morning I was very upset that we now had to stop the project ,because due to some money problem ,financial status of the company was not so good that we can now start the project and done it completely then mr.kushagra bhardwaj call me and said that we are now going for microfinance institute
Comment -: Then I realize that Mr. Kushagra bhardwaj had ability to go quickly to the heart of a problem .he was always concentrating on the main objective of the company.
Management lesson -: Insight thinking -: The individual displays the ability to go quickly to the heart of a problem, thus he does not start with the wrong orientation or loss of time by wondering off the main course.
Date -: 30/06/2011
Time -: 10:00 pm
Place -: Indore (Madhya pradesh)
Party /person involved -:Mr. Kushargra bhardwaj and bipin bhardwaj
Incident -: We are sitting together for the preparation of the presentation of the project that we had work on it .we had done so much work in deep on it .we had to now stuck in some thing then Mr. geete told us that we had to more concentrate on the content of the website and then make the overall presentation.
Comment -: Then we realize from the thing that Mr. veete had told us that we had to action oriented in nature.
Management lesson -: Action oriented approach -: He is able to sum up the total needs of a situation and to take the necessary steps at the right moments of the time.
60
MIT School of Business 2011
Date -: 08/07/2011
Time -: 11:00 pm
Place -: Indore (Madhya Pradesh)
Party /person involved -:Mr. Kushargra bhardwaj and bipin bhardwaj
Incident -:Mr. Kushagra bhardwaj is doing engg from Bhopal he is in 3rd year of engg in stream of computer science .he always software
Comment -: I learn from him that we can’t do all the work at a time .We had to concentrate on the one thing and give attention
Management lesson -:Seeing the relative nature -: He judges correctly he relative weight of his own specialist knowledge or experience when the problem tie with many other fields .He will then be able to denote appropriate attention to other relevant aspects and to put mean full questions to specialists in other fields.
Date -: 22/07/2011
Time -: 08:00 pm
Place -: pune (Maharashtra)
Party /person involved -:Mr. Bipin bhardwaj and MITSOB pune friends
Incident -: We are sitting in durga café and one of the friends told me that you had to concentrate on the sales and distribution of the software.
Comment -: From the friend I decided to go for the website marketing give the project to the outsource and make it happen .It was very much welcome advice from me that from the day itself .I started my website marketing and concentrate on the sales of the software.
Management lesson -: Judgment -: He is a source of welcome advice to together and is known not to hold readymade or overly one-sided views. His judgment correctly surprise and satisfied by taking into account wider aspects of the problem that may narrower vision.
61
MIT School of Business 2011
Date -: 28/07/2011
Time -: 11:30 am
Place -: pune (Maharashtra)
Party /person involved -:Mr. Bipin bhardwaj and MITSOB pune friends
Incident -: Our class was over and we were absent to leave the class then one annocement from the APO was made that from APO that there are some changes in the structure of the project report
Comment -: I think that why can’t we in the project we can make some changes and make the website online transaction.
Management lesson -: Alertness -: He can swiftly re –organize resources to deal effectively with a completely different subject on new situation .He has ability of quick re-orientation.