Anda di halaman 1dari 34

MANAGEMENT THEORY & PRACTICES

Project
New Product Development

Group Members

Sobia Qayyoum
Mahmoona Khizar Hayat
Farheen Hafeez

1
Wajeeha Nisar

Acknowledgement
Thanks 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
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
ABSTRACT

The purpose of this report is to make people aware

of our company and pro provided. Awareness is

becoming necessary in today’s fast moving

perfectionist life. Everyone wants to get perfect and

outstanding in every walk of life. So, our company

makes people’s dreams come true by assisting

them.

4
COMPANY 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
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 OF


LILAK 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
• 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
OUR MOTIVE IS TO MAKE YOU LOOK FRESH, MORE

ATTRACTIVE AND TREATING YOU R SKIN WITH USING

CHEMICALS.”

VISION
Our 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
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 product’s profitability.

10
• 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
MARKETING MIX
STRATEGIES

Product Price Place Promotion

Product Strategies
The LILAK soap 3 IN 1 is the product by Uni-Corn. It’s the consumer product bought by the consumer for
his/her personal use. It’s the convenience product. Consumer’s 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 Quality
LILAK 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
• Product Feature
There 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.
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
BRANDING AND
PACKAGING

• Brand

14
LIRIL is the branded name registered by the Lever Brothers. Brand name would not be changed but the brand
extension strategy would be practiced along with the same name e.g. LIRIL 3 IN 1.

• Packaging
The high quality rapper would be used for the soap. The design and packaging is the main source to compete
the competitors. We will display the model with the fresh look at the front of the soap which also will play the
role of impulse buying in our target markets.

• Product Labeling
People are less conscious about the reading material. But the label LIRIL 3 IN 1 will attract them and increase
their curiosity to know about the new change 3 IN 1. In the text area it would be boldly mentioned.
 For Normal Skin
 For Oily Skin
 For Dry Skin
The main message would also be mentioned on the rapper the freshness soap which will maintain its
positioning. And at the rest of the body the ingredients would be mentioned.

PRICE STRATEGIES
• Market Pricing Penetration Strategy
We are selling at a low price and at the high quality for new products to maximize our target market segment.

High Price Low Price

15
High Premium Good value
Qu Strategy Strategy
alit
y
Low Overcharging Economy
Qu Strategy Strategy
alit
y

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 Adjustments
There 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
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 Islamabad and Rawalpindi, 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 Intermediaries
1) 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
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
ADVERTISING
For our product’s promotion we will use all the Medias i.e. above the line, below the line in our advertisement.

• Big Idea
Our 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
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 company’s 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 company’s 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
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 don’t 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
As we have mentioned earlier, we made this product according to social culture of Pakistan. We didn’t 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
New Product Development
Market Survey
1 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
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
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
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.

20%

Fem ale
m ale

80%

26
2.72%, we collect the data from the students (age 20-25) and 15%, we collect the data from the
Housewives and 13%, and we collected from working persons.

15%

13% students
housew ives
w orking persons

72%

3.The people who’s average income more than Rs.20000, they were 83% and remaining were less than
Rs.10000.
4.After collect the data, we come to know that 89% people consumed branded Soap and 11% people
consumed unbranded soap.
11%

Branded
unbranded

89%

27
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.
13%

35%

LUX

Detol
31%
s afeguard

lifeboy gold

21%

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% 14%
price

11% Good quality

availabilty of
different sk ins
advertis em ent

20% 41%
brand nam e

28
7.We asked to them “Are they Skin conscious or not?” then 84% people said “yes” and 16% said “No”.
16%

yes no

84%

8.When we asked to people, have they ever used the LILAK? Then 73% said “yes” and 27% said “No”.

27%

Ye s
No

73%

29
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 aren’t.

s atisfied
44%

56%
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”
6%
8%

Adve rtis em ent decline

Unsatisfied quality

30% 56%
packaging

price

30
11. 70% consumer wants changes in old LILAK SOAP & 30% don’t want any change in it.

30%

yes no

70%

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

26%

appreciate d by consum er
not appreciated

74%

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
10%

synthe tic
Floral
54%
36% Sem i 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
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
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.

34