(SESSION: 2009-2011)

ASSIGNMENT

ON

“NPD, PLC, BRANDING, PRICING”

SUBMITTED TO: SUBMITTED BY:

PROF. MAHESH SONI RASHVINDAR

KAUR
MOHIT MALVIYA
POOJA GUPTA
PRAVEEN NAIR
SHISHIR JAIN
 NAME OF THE COMPANY – FP AGRO

Product 1 : FP AGRO
Brand name : fruit punch
FP AGRO
MARKET : BHOPAL
Fruit pack

NEW PRODUCT DEVELOPMENT

IDEA GENERATION

The first stage in the new product development involves generation of new product ideas.

 Fruit Punch.
 Spin-pie.
 Snack Chunk.
 Joie' de vivre‘
 Divine Spirits.

IDEA SCREENING

Critical appraisal of ideas occurs at this stage.

 Our company is FP Agro which will produce fruit juice with Brand name Fruit Punch.
 FP Agro is going to make unique position in terms of corporate presence, with its
advanced technology and the instrumentation required to manufacture a Juice that
has variety of flavors, for utmost customer satisfaction.
 FP Agro will be an environment-friendly company dedicated on sustainable
development and corporate social responsibility, as a service to society and
preservation of nature.
CONCEPT DEVELOPMENT

 Concept 1

An instant energy drink for everyone during breakfast.

 Concept 2

A thirst-quencher for children to as a midday refreshment

 Concept 3

A health complement for older adults to drink in late evening before they go to
bed.

CONCEPT TESTING

 Concept testing of product is an elaborate version of the idea expressed in

meaningful terms.
 The first concept of instant energy drink is selected.
 Our product is a fruit squash which is rich in carbohydrates, proteins, vitamins and
energy. It also helps in effective digestion of breakfast. gives person all the day’s
needed nutrition along with good taste.

FP AGRO
Fruit pack
PRODUCT

Type Fruit Juice

Identification Fruit Punch

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

PLC Our product lie in introduction period

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

Flavors Apple, Mango, Orange, Mixed Fruit.

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

PRODUCT LIFE CYCLE

Our product lie in introduction period

 Low sales
 Negative profits
 Few competitors

Objectives :

 To create awareness & trial

 Offer a basic product
 Price at cost-plus
 Selective distribution
 Awareness – dealers and early adopters
 Induce trial via sales promotion

PRICING POLICY

 Apply the concept of providing quality product at optimum price.

 Provide Lucrative discounts, deals and schemes.So, as a new comer our pricing
strategy is to introduce our products in the market at lower prices so as to create the
huge demand in the market and to compete with other competitors.
 Have one price policy to maintain a goodwill among customers.
 As we come up in the demand, we will increase our prices and will provide more
efficient and affordable juices
PRICING STRATEGY

RETURN ON INVESTMENT PRICING: It is determined by multiplying the

desired return on investment by the investment and adding this figure to the fixed
costs.

FP Agro desires 25% return on the investment of 10 lacs

Fixed Cost 7 lacs

Variable Cost 3 lacs
Total Cost 10 lacs

ROI Price=Unit Cost+ ROI * investment t / Expected unit sales

25+0.3*1000000/55000=31 Rs

TARGET MARKET

Primary Target

 Kids – Fond of Fruit Juice.

 Teens – More experimental.
 Youth – Experimental and more buying power.
 Working People.
 Housewives.
 Elderly people.

Secondary Target

 Travel Industry – Airlines, Railways and Local Transport Systems

 Recreational – Multiplex, Malls, Amusement Parks, school, colleges, hotels,
restaurants.

PROMOTION

Promotional Tactics
  Provide free samples with popular cornflakes brands in the market for the brand
awareness.
 We will tie up with leading multiplexes in cities to increase our branding. Targeting
schools & colleges in the cities to change their beverage choices to Fruit Punch

BUSINESS ANALYSIS

 The idea which comes out of the concept testing stage is analyzed in terms of
demand, cost and profit potential.
 Demand is the amount of goods that consumers are willing and able to buy at a
given price.

FACTORS INFLUENCING THE DEMAND FOR FRUIT PUNCH

 The price of the juice

 The income of consumers
 The demand for alternative juice which could be used (substitutes)
 The demand for juice used at the same time (complements)
 Whether people like the taste of juice (consumer taste).

The company expects the sale of Rs. 100cr in the first year.
Behind this projection is a set of assumptions about the rate of market growth,
companies market share, & factory realized price

PRODUCT DEVELOPMENT

 Product ideas that survive the business analysis stage are transformed into actual
product development.
 The R & D Dept. will develop one or more physical versions of the product concept.
 The sophisticated virtual development technology will help in speeding the process of
prototype development.
 Developing the product according to the attributes of the consumer.

TEST MARKETING

 Test marketing refers to testing of the actual product in one or two markets on a
relatively smaller scale.
 The company will follow controlled test marketing.
 Testing the product in 4 metros in India.
  Market test will last for 2 months.
 Retail audit will show the sales & market share, consumer buying Pattern & loyalty &
switching rates.
 The process will provide in depth information about consumer attitude, usage &
satisfaction.

COMMERCIALIZATION

 If the results of the test marketing are positive, the marketer can go ahead with the
production and marketing on the large scale.
 The product is a late entrant in the market as few established products have a
secured market share.
 The product will be available in Metros, urban cities & towns
 The target consumers will be kids, youth, working people, elder people.
 To coordinate activities involved in launching new product management will use
network-planning techniques like Critical Path Scheduling.

REVIEW OF THE MARKETING PERFORMANCE

 Analyzing the reaction of the consumers, dealers and the competitors in the market is
essential to review the product’s sales performance in the market.
 Few consumers may not be satisfied with price or other features of the product.
 Dealer may not push or promote the new product properly.
 Hence the marketing department will make necessary changes in the marketing mix
of the product as & when required. Competitor may react to launch of our product &
make necessary changes in their marketing mix

BRAND AND BRAND BUILDING

The brand development strategy of our company will be redesigning of its brand
development policies and techniques to keep up with the changing mindset of its
consumers. Laying focus on the following :
• Afford ability
• Availability
• Acceptability
• Price value
• Preference
• "Pervasive penetration".
 The essence of brand building of our company lies in the fact that we want
our consumers accessibility to be "within an arm's reach of desire". Another reason why
a brand can gain acceptance is due to the fact that it has been able to connect very well
with its consumers. This implies brand loyalty. Brand loyalty has been instrumental in
keeping up the brand image . . A part of the brand building technique is also to enhance
"purchase frequency". So our company will look into the above issues seriously and it
will also investe in various advertisement campaigns often engaging the services of
celebrities around the globe.

Product 2 : First aid box

Brand name: Fp aids
Market : Bhopal

NEW PRODUCT DEVELOPMENT

 IDEA GENERATION : We never know when an emergency can occur. Thus,

safety officals and doctors recommends us to have a first aid kit in your home,
office, car or workplace. Best possible solution is to be prepared for emergency.
A first aid kit is a collection of supplies and equipment for use in giving first aid.
First aid kits may be made up of different contents dependant on purpose.
Common contents include items to help stop bleeding, performing CPR, and may
contain some medicines.

 ANALYSIS: The Health and Safety (First-Aid) Regulations 1981 require you to
provide adequate and appropriate first-aid equipment, facilities and people so
your employees can be given immediate help if they are injured or taken ill at
work.

 CONCEPT DEVELOPMENT AND TESTING: This concept has already

developed and tested in the market.As we will be assembling the products from
the renowned companies
 FEASIBILITY ANALYSIS: Rush to the hospital. Is this always feasible
during the hours of emergency? At the same time in small injuries you need not
visit to a doctor that you can manage yourself. But in both the situations you
must keep the first-aid box ready so that whenever required you can just get the
essential things at the right time. This product will be feasible as it will be
needed in every home.

 PRODUCT DEVELOPMENT: We has got CE, FDA approval and ISO

registered, and values its commitment to quality. Longs realize the competitive
nature of today's healthcare market, and we committed to continuously investing
in product development, bringing high quality, innovative and effective products
 to the market and assure you that our products are both excellent in quality and
reasonable in price.

 TEST MARKETING:
• Launch the product.
• Produce and place advertisements and other promotions.

SEGMENTATION:

Group no 5 have never formally segmented our markets on various segmentation

variables but we chooses to cater markets where we knows that products would be
saleable on the basis of experience, keeping in mind the requirement for the product,
logistics, competitive situation, and purchasing power of buyers in the particular
segment. Its markets are segmented on the bases of usage, (professional or domestic),
income (lower & lower middle class), and geographic areas (rural and sub-urban)
However for we have done the segmentation on the basis of various factors they are:

Geographic
Region: south India, western India, north India, east India.
City: - class-1 cities, class-2cities.
Rural and semi-urban area:- rural village, semi-urban area, small town

DEMOGRAPHIC

Age :- under 6 years, 6-11 years, 12-19 years, 20-34 years, 35-49 years, 50-60 years, 60+years.
Gender: - male, female
Occupation: - unskilled worker, skilled worker, petty traders, shop owners, businessman, self-
employed such as professionals, clerical, officers. Senior executives, union executives.
Income: people whose income is 2000 above.

PSYCHOGRAPHIC

Lifestyle: - culture-oriented, sports-oriented, outdoor-oriented.

USAGE

Occasions:- regular, special

Light style: - light user, medium user, heavy user.
Targeting

The target market for the first aid box is the product specialization market. As we have
targeted the children, youth, and older.

PRODUCT SPECIALIZATION

Children youth older

p1

p2

p3

POSITIONING
This approach is needed because consumers are bombarded with a continuous
stream of advertising. The consumer’s mind reacts to this high volume of
advertising by accepting only what is consistent with prior knowledge or
experience. In today’s growing market with healthy competition around, it is very
important to for us to secure relatively higher position in mind of customer then the
key competitor. A product position is reflected by the attitudes of the people in the
target market. So we accept customer’s attitude as they are and tailor any of the
marketing mix to fit in these attitudes. If they are not successful they seek to
change there attitude.
PRODUCT LIFE CYCLE

 INTRODUCTION: As our company is the first company in the market which is

going to come with the first aid box in the market. So in the product-life-
cycle(PLC) first stage our sales growth of a product will be slow and profits are
nonexistent because of the heavy expenses of product incurred in this stage.

 GROWTH: It is the period where there is the rapid market acceptance and
substantial profit improvement.

 MATURITY: It is the stage where product has achieved the acceptance by the
most potential buyer. As in this stage most of the product decline but as our
product is the unique in the market so rather than declining it
is stable.
PRICING STRATEGY
Every office, factory,home and school should have an accessible first-aid box. It is
readily available in shops but you can use a tin or card board box at home as your first
aid box
. Following are the common stuff you should have in your first aid box.
• First-aid book.
• Sterile adhesive bandages in assorted sizes
• Small roll of absorbent gauze or gauze pads of different sizes
• Adhesive tape
• Triangular and roller bandages
• Cotton (1 roll)
• Band-aids (Plasters)
• Scissors
• Pen torch
• Latex gloves (2 pair)
• Tweezers
• Needle
• Moistened towels and clean dry cloth pieces.
• Antiseptic (Savlon or dettol)
• Thermometer
• Tube of petroleum jelly or other lubricant
• Assorted sizes of safety pins
• Cleansing agent/soap
Non-prescription drugs
• Aspirin or paracetamol pain relievers
• Anti-diarrhea medication
• Antihistamine cream for Bee Stings.
• Antacid (for stomach upset)
• Laxative

Since we are assembling these items from other resources so our pricing is clearly
done on that basis.we are purchasing these items in bulk quantity so approximatel
cost of per box is about 400rs and we are estimating 25% profit on each box so we
are using MARK UP PRICING

Mark up price=unit cost/1-desired return on sales

400/1-0.25=533.33 or 533rs
Total profit=selling price-cost price
533-400=133rs per box

Since in starting we have targeted to sale about 1,00,000boxes in major cities like
Bhopal,indore,Gwalior etc so
Total sale=1,00,000*533=53300000rs
So,
Total profit=53300000-400*100000
=13300000rs