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A PROJECT REPORT ON

NEW PRODUCT DEVELOPMENT –

A STUDY OF SMILINE LOYALTY CARDS

A SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TO

OSMANIA UNIVERSITY, HYDERABAD.

IN PARTIAL FULFILLMENT OF THE SUMMER INTERNSHIP PROGRAMME OF

B.Com (Honours) - 3rd year

By

Name – Taranpreet Singh Muchal

Roll No . -128-08-01803

AURORA’S DEGREE & PG COLLEGE

(AFFILIATED TO OSMANIA UNIVERSITY)

CHIKKADPALLY, HYDERABAD – 500 020.

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CertificateThis is to certify that the project work entitled

NEW PRODUCT DEVELOPMENT

- A STUDY OF SMILINE LOYALTY CARDS

Is the bonafide work done by

NAME- Taranpreet Singh Muchal

ROLL NO. – 128-08-01803

as a part of their curriculum in the Department of Commerce

Aurora’s Degree & PG College,

Chikkadpally, Hyderabad-20.

This work has been carried out under my guidance

Dr. Ravi Paturi Course Coordinator Head of Dept.

Principal

ExternalExaminer

Aurora’s Degree & PG College, Chikkadpally, Hyderabad-20.

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DECLARATION

This is to inform that I, Taranpreet Singh Muchal of B.Com (Hons) III have

completed my project work titled New Product Development – A Case Study

of Smiline Loyalty Cards in the year 2009-2010. I have completed my project

under the guidance of Ms. Satyavathi , Faculty of Department of Commerce,Aurora’s Degree College, Chikkadpally, Hyderabad.

I hereby declare that this project report submitted by me to Osmania University,

Hyderabad, is an original work done as part of our academic course and has not

been submitted to any other University or Institution for the award of any degree

or diploma.

Taranpreet Singh Muchal

128-08-01803

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TO WHOMSOEVER IT MAY CONCERN

I certify that Taranpreet Singh Muchal of B.Com Honours III rd Year bearing Roll No 128-

08-01803 has done the project titled “ NEW PRODUCT DEVELOPMENT – A CASE

STUDY OF SMILINE LOYALTY CARDS ” under my guidance.

Ms. Satyavathi

Commerce Faculty

(Internal Guide)

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ACKNOWLEDGEMENT

I express my sincere thanks to the staff and management of Aurora’s Degree

College for giving me an opportunity to undertake this project work.

It is my pleasant duty to express my profound gratitude and extreme regards

to my Mentor Ms. Satyavathi without whose learned and able guidance and

encouragement, this work would not have been completed.

I would also like to thank my project External Mentor Dr. Ram Krishna and his

staff for their cooperation in completion of my project in the required time.

It‘s an honor to thank Principal Dr. Ravi Paturi and Vice Principal & Head of

Department Mr. Viswanadham Bulusu who has given me this opportunity.

I’m also thankful to all my family members, classmates and friend who

helped me in carrying out this project.

Name : TARANPREET SINGH MUCHAL

Roll No : 128-08-01803

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Chapter 1IntroductionThis chapter contains introduction, importance and scope of marketing in

general. It also explains the concept of New Product Development. It contains

literature reviewed, the need of the study, the objectives, scope of the study,

period of the study, methodology adopted, limitations of the study and

chapterization.

INTRODUCTION

Marketing is everywhere. Formally or informally, people and organizations

engage in a vast number of activities that we could call marketing. Good

marketing has become an increasingly vital ingredient for business success. And

marketing profoundly affects our day lives. It is embedded in everything we do-

from clothes we wear, to the web sites we click on, to the ads we see.

Marketing (or advertising) is the process by which companies advertise products

or services to potential customers. It is an integrated process through which

companies create value for customers and build strong customer relationships in

order to capture value from customers in return .

Marketing is used to create the customer to keep the customer and to satisfy the

customer. With the customer as the focus of its activities, it can be concluded

that marketing management is one of the major components of business

management. The evolution of marketing was caused due to mature markets ties

in the last decades. Companies then shifted the focus from production to thecustomer in order to stay profitable

The term marketing concept holds that achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desired

satisfactions. It proposes that in order to satisfy its organizational objectives, an

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organization should anticipate the needs and wants of consumers and satisfy

these more effectively than competitors.

Good marketing is no accident, but a result of careful planning and execution. It

is both an art and a science-there is a constant tension between its formulated

side and its creative side. It’s easier to learn the formulated side, which will

occupy most of our attention in this book, but we will also describe how real

creativity and passion operate in many companies. In this chapter, we lay the

foundation for our study by reviewing a number of important marketing concepts,

tools, frameworks, and issues.

Mangers sometimes think of marketing as “the art of selling products” but many

people are surprised when hear that selling is not the most important part of

marketing! Selling is only the trip of the marketing iceberg. Peter Drucker, a

leading management theorist, puts it this way:

There will always, one can assume, be need for some selling. But the aim of

marketing is to make selling superfluous. The aim of marketing is to know and

understand the customer so well that the product or service fits him and sells

itself. Ideally, marketing should result in a customer who is ready to buy. All that

should be needed then is to make the product or service available.

Marketing is defined by the American Marketing Association [AMA] as "the

activity, set of institutions, and processes for creating, communicating, delivering,

and exchanging offerings that have value for customers, clients, partners, and

society at large." The term developed from the original meaning which referred

literally to going to a market to buy or sell goods or services. Seen from a

systems point of view, sales process engineering of processes that are

interconnected and interdependent with other functions, whose methods can be

improved using a variety of relatively new approaches."

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SCOPE OF MARKETING

Marketing is about identifying and meeting human and social needs. One of the

shortest good definitions of marketing is “meeting needs profitably”.

Marketing management is an art and science of choosing target markets and

getting, keeping, and growing, customers through creating, delivering and

communicating superior customer value. Marketing is a societal process by

which individuals and groups obtain what they need and want through creating,

offering, and freely exchanging products and services of value with others.

Marketing management is a business discipline which is focused on the practical

application of marketing techniques and the management of a firm's marketing

resources and activities. Rapidly emerging forces of globalization have

compelled firms to market beyond the borders of their home country making

International Marketing highly significant and an integral part of a firm's marketing

strategy. Marketing managers are often responsible for influencing the level,

timing, and composition of customer demand accepted definition of the term. In

part, this is because the role of a marketing manager can vary significantly based

on a business' size, corporate culture and industry context. For example, in a

large consumer products company, the marketing manager may act as theoverall general manager of his or her assigned product. From this perspective, it

consists of 5 steps, beginning with the market & environment research. After

fixing the targets and setting the strategies, they will be realized by the marketing

mix in step 4. The last step in the process is the marketing controlling. Marketing

management strategy and design effective, cost-efficient implementation

programs, firms must possess a detailed, objective understanding of their own

business and the market in which they operate. In analyzing these issues, the

discipline of marketing management often overlaps with the related discipline of

strategic planning traditionally, marketing analysis was structured into three

areas: Customer analysis, Company analysis, and competitor analysis (so-called

"3Cs" analysis). More recently, it has become fashionable in some marketing

circles to divide these further into certain five "Cs": Customer analysis, Company

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analysis, Collaborator analysis, Competitor analysis, and analysis of the industry

Context. Department analysis is to develop a schematic diagram for market

segmentation, breaking down the market into various constituent groups of

customers, which are called customer segments or market segmentations.

Marketing managers work to develop detailed profiles of each segment, focusing

on any number of variables that may differ among the segments: demographic,

psychographic, geographic, behavioral, needs-benefit, and other factors may all

be examined. Marketers also attempt to track these segments' perceptions of the

various products in the market using tools such as perceptual mapping. In

company analysis, marketers focus on understanding the company's cost

structure and cost position relative to competitors, as well as working to identify a

firm's core competencies and other competitively distinct company resources.

Marketing managers may also work with the accounting department to analyze

the profits the firm is generating from various product lines and customer

accounts. The company may also conduct periodic brand audits to assess the

strength of its brands and sources of brand equity. The firm's collaborators may

also be profiled, which may include various suppliers, distributors and other

channel partners, joint venture partners, and others. An analysis of

complementary products may also be performed if such products exist.

Marketing management employs various tools from economics and competitive

strategy to analyze the industry context in which the firm operates. These include

porter’s five forces, analysis of strategic groups of competitors, value chain

analysis and others Depending on the industry, the regulatory context may also

be important to examine in detail. In Competitor analysis, marketers build

detailed profiles of each competitor in the market, focusing especially on their

relative competitive strengths and weaknesses using SWOT analysis Marketingmanagers will examine each competitor's cost structure, sources of profits,

resources and competencies, competitive positioning and product differentiation,

degree of vertical integration, historical responses to industry developments, and

other factors.

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Marketing management often finds it necessary to invest in research to collect

the data required to perform accurate marketing analysis. As such, they often

conduct market research (alternately marketing research) to obtain this

information. Marketers employ a variety of techniques to conduct market

research, but some of the more common include:

1. Qualitative marketing research , such as focus groups

2. Quantitative marketing strategy , such as statistical surveys

3. Experimental techniques such as test marks

4. Observational techniques such as ethnography (on-site) observation

Marketing managers may also design and oversee various environmental

scanning and competitive intelligence processes to help identify trends and

inform the company's marketing analysis.

IMPORTANCE OF MARKETING

Financial success often depends on marketing ability. Finance, operations,

accounting, and other business function will not really if there isn’t sufficient

demand for products and services so the company can make a profit. Many

companies have now created a chief marketing officer, or (CMO), position to put

marketing on a more equal footing officer with other C-level executives, such as

the chief executive officer (CEO) and chief financial officer (CFO).

In stating their business priorities, CEOs acknowledge the importance of

marketing. One of the surveys of the top 10 challenges CEOs face around the

world in 2006 revealed that among the top 5 were both “sustained and steady top

line growth” and “customer loyalty/ retention” challenges whose achievement

depends heavily on marketing. CEOs also recognize the importance of marketing

to building brands and a loyal customer base, intangible assets that make up a

large percentage of the value of a firm.

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From being a very small fish to becoming the big one and then the biggest

among all; this is how few brands have changed with time e-g: Levis Microsoft

and many other "The Big Fish" The financial success of such brands have been

depending on combined efforts of their financial strategies and their marketing

efforts. One thing that's been common among all there brands is a high degree of

brand loyalty. They have managed to capture the share of heart and in turn

share of customer’s wallet.

Companies now understand that marketing plays an important roll in their overall

success, so now companies have CMOs (Chief Marketing Officer) along with

CFOs and CEOs. They understand that if there are functions close to customers

its ether Sales or Marketing. Sales become a direct interface among customsand products offered by companies, and marketing is an indirect function

between customer and the company.

But what makes marketing so big? Why is it important? If you have a great

product you are bound to succeed then why do u need to spend on marketing /

advertising?

The answer to these questions lies deep within the customer’s brain. Customers /consumers are smart and they understand what makes your product different

form mine. If you are offering then 1 % more that what I do why should they pay

me rather than paying you? That’s the point. And secondly it’s important to

communicate the product offerings to the end user. If a marketing team has

worked hard on understanding the consumer needs they need to make sure their

customers get a feel “This brand knows what I want”. Trust me this is the only

major differentiator between why your 1% more is able to get you more loyal and

more number of customers.

The time has changed. To products that are offered by a brand you have "n"

number of more substitutes and consumers get to know which the better is

substitute that suites there requirements. So it is important to make sure that

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marketing efforts are more on understanding the changing needs on today’s

customer. We need to understand the minds of customers. It’s rightly said

“customer is KING”

Marketing managers need to understand the customer needs and they need to

make their major decisions such as the features to include, the price to be

offered to customers and what to spend on advertisements.

Marketing today has become an emotional research which helps understanding

customer and consumers psychology so that products are developed based on

these understanding. The marketing managers need to answer following

questions:

• How do we find the right market segment?• How do we differentiate?• How can we compete with low cost business models?• How do we build a better brand?• How do we reduce cost of customer acquisition ?

A successful Marketing team can carefully analyze customer needs and carefully

monitor there competitors marketing moves. Remember a short term sales driven

view does not work in business world today. The C-level managers, the CEO,

CFO should communicate importance of marketing in an organization, how the

marketing function plays a great role in organizations success.

CHANGING TRENDS IN MARKETING

The markets are changing. And that is a fact that cannot be denied. In fact, they

are more dynamic than ever before, and the rate of change is phenomenal.

Changing marketing trends are a beyond our control. The reason we are talking

about this topic today is because of the current market situation, where everyone

is so worried about everything. If you look back into the history of our finances,

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there has never been a time so strong and with such a lot of growth opportunity

as we've had over the last few years. But then, all things change, and what goes

up must come down (according to an old Indian saying). But a lot of things are

looking up. There is a lot of market potential in emerging markets, and all we

need to do is look beyond our borders, and things will be fine. The problem with

some fellow baby boomers is that we do not look beyond the USA. The USA has

been the first country to foster globalization, and today, we believe that the same

globalization is threatening us. However, once we break free the psychological

shackles that we have created for ourselves and truly believe that the whole

world is one global village, new opportunities will suddenly crop up.

Our children, the echo boomers, are better than we are in comprehending this.They are more global in their outlook, and thanks to the work that we have done,

they have the whole world to do business with. And with e-commerce playing a

larger and larger role in our daily life, the market trends are bound to change. So,

sit back, enjoy and adapt to these changes. That will ensure that our lives are

happy and we stay in control.


In business and engineering, new product development (NPD) is the term used

to describe the complete process of bringing a new product or service to market.

There are two parallel paths involved in the NPD process: one involves the idea

generation, product design, and detail engineering; the other involves market

research and marketing analysis. Companies typically see new product

development as the first stage in generating and commercializing new products

within the overall strategic process of product life cycle management used to

maintain or grow their market share.

The New Product Development (NPD) Process, also known as Product

Realization Process (PRP), is a company's formal process for controlling and

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monitoring the flow of ideas into successful product launches. In leading

organizations, this is a structured process with the following typical objectives:

• Encourage and facilitate the review of a large number of new ideas or

concepts• Through rigorous analysis and decision making at specific review points,

prioritize these to a few appropriately resourced programs with the highest

likelihood of market success.• Minimize the number of products that are cancelled in the later (most

expensive) development stages or are released with unsuccessful results• Accelerate time to market and reduce break-even times for the product

program• Continuous improvement of the development process

In practice, organizations tailor the new product development process to their

own environment, and will often combine stages (reducing the number of stage

reviews) for certain types of products or for smaller product programs. In

addition, many organizations are modifying the process to facilitate agile

development methods, where customer feedback is solicited throughout the

development cycle to allow for quicker adjustments.

The process can be visualized as a funnel with a large number of new product

ideas entering the concept stage, narrowing to a fewer number of fully resourced

product programs in subsequent stages. Separating each stage is a gate or

phase review where a decision is made to kill the product, enter into the next

stage or redirect back to a previous stage for additional work. A typical

development process is show below:

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Visual Representation of New Product Development

Source: Robert G Cooper, (2003) Winning at New Products

NEED FOR STUDY

As today we are in 21 st century so its really important for everybody to change

with the time so new product development is one aspect of them were we have

to constantly change our minds to market our products in every way possible a

true marketer is a person who can sell “anything for everything” The rapid pace

of change that engulfed businesses toward the end of the twentieth century put

an even greater burden on companies to build adaptive capabilities into their

organizations. Global competition means there are more competitors capable of

world-class performance. This has made competition more intense, rigorous, and

aggressive than ever before. Fragmenting and more sophisticated markets mean

that consumers demand more from products in terms of quality, differentiation,

and "meaningfulness."

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New technologies have had two important outcomes in regards to innovation.

First, new technologies are responsible for this new market sophistication in

which consumers have more choices and are thus more demanding. Secondly,

new technology has increased manufacturers' capabilities for rapid response to

shifting market needs.

Finally, product life cycles have become more compressed as the skills required

for developing new products increase in complexity. For example, consider the

development of a new type of computer software. The expertise needed to

develop the software from conception to commercialization might take years. The

product's life cycle in such a competitive and turbulent environment might last

only a few months. Therefore, companies have embraced the view that newproducts are transient, whereas the skills and expertise needed to develop these

products are a much more persistent requirement for success. Instead of the

mono-approach, in which technology or markets drive innovation, new product

development now requires a convergence of technology, marketing, product

design, engineering, and manufacturing capabilities. Speed, efficiency, and

quality in product development are the challenges that new product development

faces in today's intense competitive environment.

REVIEW OF LITERATURE

New Product Evaluation:

Three avoidable focus group mistakes: - by Phil Glowatz

According to Phil glowatz three mistakes made by the developers at the new

product development are explained as follows

1. Biasing respondents before they react to your concepts.

In this developers present the product in front to some group for discussions

that group first only makes an impression of the product which the developer

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cannot clear so this problem creates a lot of problem to move head. The group

can raise points on its needs working etc. so the developer should not do this it

can cause a problem for the qualitative importance of the product.

2: Counting all "votes" the same.This is also again a basic problem at the development stage made by the

developer this problem is that when the moderator shows a new product concept

to the group, asks who wants to buy it, and six of the eight hands go up.

The mistake is in believing each hand expresses the same degree of purchase

interest. They do not! In a qualitative research setting it is important to

differentiate the degree of enthusiasm that consumers have for your ideas by

looking beyond the mere fact they raise their hands. For instance, the ways in

which hands are raised are telling indicators of respondents' true levels of

interest:

The slow hand takes that the product is minimal so his enthusiasm is less

towards that’s why he take a time to decide. The Twitchy Hand rotates back and

forth at the wrist as it is being raised--often slowly--so chances are this consumer

really means, "I'm not sure."

The Fast Hand. This hand shoots up quickly, which can indicate a degree of

enthusiasm for the product. Fast Hands are one of the types of positive

responses you have to see across several groups before you can judge a

concept truly well-received.

3: Taking "yes" for an answer.

When most or all of the respondents in a group say they want your new product,

do not stop there and assume that you have a winner. Near-unanimous purchase

interest simply doesn't exist in the real world. Indeed, respondents can be

promiscuous in "voting" for concepts, because no money is changing hands, thus

no real commitment is necessary. So, probe beyond the positive reaction. Ask if

respondents are sure they want your product, and listen for a convincing reason

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why. If the product is somewhat similar to others, why do they need it, and what

is its key benefit relative to other choices? Reasons for purchase interest must be

challenged. This may make the marketing and research managers feel uneasy in

the viewing room, but they would feel even worse if a so-so product flopped in

the marketplace.

Article 2:- A New Product Adoption Model with Price, Advertising, and

Uncertainty - Shlomo Kalish

Recanati Graduate School of Business Administration, Tel Aviv University, Tel

Aviv, Israel and Graduate School of Management, University of Rochester,

Rochester, New York 14627

This paper introduces a framework for modeling innovation diffusion that includes

price and advertising. The adoption of a new product is characterized by two

steps: awareness and adoption. Awareness is the stage of being informed about

the product search attributes. The process of becoming aware is modeled as a

simple "epidemic" type model, where the information is spread by advertising and

word of mouth. The second step, adoption, is conditional on awareness, and it

occurs if the perceived risk adjusted value of the product exceeds its selling price.

The population is heterogeneous with respect to valuation of the product.

Individuals are risk averse, and therefore are willing to pay more for the product,

on the average, as information from early adopters reduces uncertainty about the

product. Optimal control of the diffusion process by pricing and advertising over

time is analyzed, and a comparative estimation of the model in one application is

reported.

Article 3rd

:- On Decision making in new product development

Whetten (1993) stated that The decision perspective also seems to provide a

description of product development that is both comprehensive and

parsimonious, perhaps because it cuts across the functional perspectives without

getting involved in the functional details of how the decisions are made.

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Article 4 th:- 8 lessons on the marketing strategies developed for a new product

1 st lesson: - Research the competition

The first lesson explains before launching a new product in the market

we should keep a track on the our competition and make a detailed research on

it

2 nd lesson: Know your customers' values.

It says that don’t be into the assumption that your customers will buy

your product when we have a lesser price. No its wrong brand value, quality etc

also plays an important role into so we have to our customer value what the most

3 rd lesson: Identify opportunities.

By analyzing the above to we can know where is our need and so that

we can grab that opportunity.

4 th lesson: Develop a positioning based on opportunity.

Using knowledge from the first three lessons, they positioned

themselves as the quality alternative and on focusing on providing different

benefits than their nearest competitors

5 th lesson: Create a catchy tag line .

We have to make a very catchy tagline for our product for the

advertisement.

6 th lesson: Spread the Word.

It means marketing through pamplets ads and news paper adds etc.

7 th lesson: Subterfuge is a poor long-term strategy.

It explains that we should not show any unethical things in the add, so

that it would not create a problem in the long run for us.

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8 th lesson: Implement until you're blue in the face

It says we should not get disheartened when we are not successful

we should try again and again for the success.

OBJECTIVES OF STUDY

1. To understand different marketing strategies for a new product.

2. To know what is the impact of the advertisement on the customers.

HYPOTHESIS

H0 – There is no impact of advertising on customers.

METHODOLOGY

A central part of the research activity is to develop an effective research or

design. Research methodology involves most of the suitable methods of

investigation. The nature of the research instruments, the sample plant and the

types of data.

Research design

A research design is purely the frame work or plan for the study that actually

guides towards the collection and analysis of the data.

Descriptive research design

Descriptive research study is totally concerned with determining frequency with

which a particular situation occurs or it’s the study about how to variables vary

together. This study is typically guided by an initial hypothesis

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Data collection methods

1. Primary data

Primary data is collected through the well – structured questionnaire. Thismethod of data is quite popular. Administering questionnaire to the

respondents directly and collecting the information immediately.

2. Sampling

Only a few units of population under the study are considered for the

analysis and this is called sampling. Data is collected from about 50

respondents who have seen the advertisement. It is one of the non-probity sampling methods.

Sampling plan

Data source : Primary data

Research approach : Survey

Research instrument : Questionnaire

Method of contact : Personal

Questionnaire

Data collection through questionnaire basis is one of the most popular and it is

well defined and sequentially structured research work approach. The

questionnaire is prepared in such a way that it cover comprehensive objective of the entire study being made. It includes all open end and multiple choice

questions in order to make the study more efficient and informative to its

reader’s.

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SAMPLE

The sample was taken from the people who have seen the ad played by Smiline

Dental Hospitals in popular multiplexes in the twin cities of Hyderabad and

Secunderabad. A random sample of 100 people, 50 male and 50 female wasconsidered for the study.

TECHNIQUES OF ANALYSIS

The comparative study is done with the help of χ 2. Application of percentages

and graphs has been done to give clarity to the data collected.

SOURCES OF DATA

The data required for the study is collected both from primary and secondary

sources. Primary data is collected by conducting personal interviews, discussions

with the old and new customers considered for the study. In addition, data was

collected through questionnaires, feedback, observations etc.

Secondary data includes the information of the old customers and the

prospective ones collected from various sources. Research studies conducted by

individuals, institutions and agencies, and various other journals were

considered.

PERIOD OF THE STUDY

The study tries to understand the effect of advertising on customers of Smiline

Dental Hospitals. The study spread over a period of two years i.e., from 2007 to

2009.

SCOPE OF THE STUDY

The data required for the present study was collected using questionnaires. The

data was collected from the consumers who have seen the ads played at the

multiplexes which were taken for the study. 50 female and 50 male, a total of 100

people were considered for the study.

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CHAPTERISATION

Chapter – I INTRODUCTION

This chapter contains introduction, importance and scope of marketing in




chapterization.

Chapter – II SMILINE DENTAL HOSPITALS –A COMPANY PROFILE

This chapter was taken up to an extensive study on the company as such. This

chapter explores the services offered by the hospitals and the new productconsidered for the study. This chapter also dwells into the marketing strategies

adopted by the company and the reasons for the same.

Chapter – III MARKETING STRATEGIES FOR NEW PRODUCT

DEVELEOPMENT

New product development is a crucial role for any company as it involves huge

amount of costs. Marketing strategies have to be carefully examined and the best

has to be selected as per the target customers.

Chapter – IV DATA ANALYSIS AND INTERPRETATION

In current global market, companies are composed by competitors, regardless of

industry. To develop a competitive advantage, it is important that firms truly

leverage on the marketing as a competitive weapon. This chapter analyzes the

various effects of advertising on customes.

Chapter – V SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter being the last chapter gives conclusions and suggestions and briefly

explains the objectives, methodology, findings and limitations of the study. This

chapter also gives the scope for further study.

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LIMITATIONS OF STUDY

The major limitation of the study is that the questionnaires were

given to the intermediary 9or0 final consumer so that ultimate purchase

decision maker is not a part of the picture and hence forth the study is done

from an individual’s point of view.

Primary data analysis is solely dependent on the opinion of the

respondents.

The study was confined only to the people who have seen the

advertisement.

There could be a possibly for an occurrence of a sampling error like

Selection process and non response error.The response of the customer depends on various factors like

experiences, motivational factors, biased opinions, personal feelings etc

No attempt has been made in this study to do a longitudinal

analysis, that is, to explore the influence of these strategies over a period of

time.

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Chapter 2Smiline Dental Hospitals – ACompany ProfileSmiline is a pioneer in creating world class state of the art dental hospital – a first

of its kind. It has been in existence for over a decade and has proven its mettle

by adding more services and technology for the benefit of its customers/patients.

Smiline has also expanded to other areas in the city.

Smiline Dental Hospitals Hyderabad has an ambience and treatment

philosophy that falls in line with the best in the business worldwide. Armed with

the most advanced dental technology, a highly specialized team of doctors and

support staff ensure that patient care and treatment complement each other in

every way.

SMILESURANCE Loyalty Card

Smiline plans to introduce ‘SMILESURANCE Loyalty Cards’ for existing users

Details of the Card

o Price Advantage

o User advantage

o How to go about it

o Options of being part of GAS Foundation

This package includes a comprehensive oral health screening programmes for

existing, loyal customers who have made more than one visit to the hospital.

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This Includes:

1. Twice a year the Oral Hygiene conditions will be assessed and

based on this the patient will be counseled. This includes the

existing oral condition which includes condition of the teeth, gums,

decay rate, past dental works and what is required to be done

2. Formulate a prevention plan for possible dental problem, twice a

year

3. Perform oral prophylaxis (teeth and gum cleaning). Advice on

personal care once a year including giving a dental care kit which

will contain a dental floss with a holder and a mouthwash.

4. Each visit would accrue points which can be used for future dentalexpenses or works

5. Periodic reminders on patients pending works or future

appointments through email or phone as per the convenience of the

patient

6. Regular newsletters on new trends and facilities in the field of

dentistry as well as in Smiline

THE CARD

There are 3 types of cards designed for the convenience of the customer

Smilesurance Single User Card (SSU) – Only the card holder gets the benefit

of 2 screenings and one prophylaxis

Smilesurance Single Floater User (SSFU) – Apart from the card user, his

immediate 4 family members can use the card subject to a maximum of 2screenings and one prophylaxis

Smilesurance Family User (SFU) – This is for 4 family members who can use it

individually for 2 screenings and 1 prophylaxis treatment each.

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Smilesurance Group User (SGSFU)

SMILE CORP – Corporate Card

o

Aimed at corporateso Target 50-100 corporates

o Tell them the need for a corporate card

o The facilities

o Regular dental checks a must

o If corporates buy 50-100 card price benefit, plus priority in

appointments flexibility of usage

o Support staff follow-ups

o Newsletter every quarter

o Eligible for future schemes

o Opportunity to be part of GASF as part of corporate Social

Responsibility ie, either by cash or kind

Littlesmiles – Kids Dentistry

The Idea

Littlesmiles is a first of its kind offering from Smiline aimed at raising awareness

for the need for a comprehensive dental plan for children as most people ignore

this highly important component. Unlike the west where going to the dentist is

almost like a religion, here in India it is the most neglected.

Over the past ten years Smiline hospitals has been rendering its relentless

service to the society in the form of school dental health education, free dental

checkup and treatment to urban and rural school children through its mobile

dental clinic.

Infrastructure and back-up support

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Objectives:

• To introduce pain free dentistry to children in order to get rid of their

inhibition of visiting a dentist.• To maintain a play area in order to ensure sustaining motivation and

enthusiasm through comfortable and relaxing ambience.• To conduct various competitions for children relevant to dentistry.• To educate parents and school teachers along with school children.

To organize exposure visits to Smiline dental studio for better understanding of

dental procedures and state of art dental equipments

The Event

Most schools have occasional dental camps which are sponsored by toothpaste

companies. Some doctors also conduct camps which are mass in nature and no

individual attention to the child is hardly possible. Smiline has worked out a very

novel idea of getting a camp organized which is practical, workable, and

controllable and finally something that a child would love. These camps would be

at the hospital rather than at the schools.

Smiline will communicate to select schools asking them to send their children

with prior appointments through the means of registration to the hospital so that

the child’s dental health and care can be viewed holistically.

The fun filled event on Saturdays will be between 2 -5 PM so that parents can

also accompany the children and get a firsthand experience of the features and

facilities at Smiline.

• To make dentistry a painless and fun filled experience• To create a positive outlook towards dentistry and make dental health a

way of life

Activities at Smiline Hospitals

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• Creation of a child friendly pediatric section• Weekend programmes for children on every Saturday between 2 and 5

PM• Orientation of staff on the Dental Hygiene Campaign and their roles in

making it successful• Free Dental screening for all the children who walk

The weekend programs should be fun, entertaining, educative, and informative.

Registrations

Since all walk-ins will be from schools, it is imperative that a proper registration

mechanism is worked out to ensure a smooth flow of children and patients at alllevels.

Communications to schools will raise the curiosity level

Support staff at the hospital will make personal calls to request for a personal

presentation

A doctor and a support staff will make a Presentation on the role of a holisticapproach to dental health

Support staff will put up posters and banners in the school and leave behind a

register for enquiries.

Registrations will happen online and each child given a particular day/slot

Special events like a 2k run for raising awareness levels can be conducted

periodically

Gift-a-smile Foundation

Smiline does not believe in just running a dental hospital. A deep rooted

commitment to give back to the society- more importantly the underprivileged- is

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the underlying core philosophy. Keeping this in mind it has started the Smiline

Gift – A –Smile Foundation which works as an interface between the individual,

corporate and the needy.

AIMS AND OBJECTIVES:

The main aim of “Gift a smile Foundation” is to render free dental counseling,

dental check up, and rendering quality dental treatment to the poorest of poor

either free or at nominal fee at their door step through mobile dental clinics and

rural dental clinics. Gift A Smile Foundation also shall have the following

objectives.

To conduct School Dental Health checkup programmesTo conduct Dental health awareness Programmes of all

kinds including Dental Checkups, Dental health exhibitions,

Slide shows, competitions for children and youth

To provide other welfare facilities like free safe drinking

water free from fluorides, Calcium rich medicines or food to

pregnant women and growing children and also

distribution of tooth brushes and tooth powdersTo conduct Dental treatment camps for rural poor and school

children, scheduled castes, scheduled tribes, physically

handicapped, aged persons, women, etc., through mobile

dental clinics

To Start Rural dental clinics at block level catering to the

needs of around 25 surrounding villages. A full time

qualified dental surgeon will be appointed to conduct basic

dental treatment procedures like extractions, scaling and

fillings. A nominal fee of Rs. 10/- per patient will be collected

towards registration. It includes dental checkup, Treatment.

Dental clinics will be well equipped with modern instruments

and X ray facilities

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To train youth as Dental Hygienists, Chair side assistants,

dental technicians and dental Mechanics which are skilled

and semi skilled jobs suitable for outside and self

employment opportunities available either independently or

in collaboration with other organization

To provide job opportunities to needy Dental students by

conducting campus selections

To provide scholarships to the poor students studying in

Government or Private Dental colleges under Government

quota

To conduct and organize research programmes, to conduct

surveys, studies, publish research findings, educativematerials, bulletins, periodicals and other material related to

dentistry

To conduct public meetings, seminars, symposia, work-

shops, discussions, debates, demonstrations, exhibitions,

cultural programmes, film shows, to give programmes on

Radio, Television, Press etc.,

To co-ordinate with individuals, voluntary organizationsgovernment agencies, banks and other institutions engaged

in rural development activities, to help organizations.

Individuals working in rural areas, to execute and implement

schemes through other organizations, to provide guidance

and consultation to individuals’ voluntary organizations and

government agencies engaged in rural development in areas

of dental health.

To organize training programmes, orientation programmes,

refresher course etc., for Dental students, and dental

professionals

To conduct academic courses in any of the Dental

specialties

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To do all or any of the above activities and programmes in

rural and urban areas

To do all such acts, activities and programmes which are

necessary for the attainment of the objects of “GIFT A

SMILE FOUNDATION”

How can GAF be used?

Individuals can get associated by buying a high value Loyalty card from which a

part of the money is given to GAF.

Corporate sector can contribute either by cash or by sponsoring various itemslike toothpastes, brushes etc. Corporates can weave this into their CSR

programmes

The contributors can get a TAX BENEFIT

THE INTEGRATED MARKETING AND

COMMUNICATIONS MIX

SMILINE – AN OVERVIEW

Smile has 4 product offerings

SMILEASSURANCE – A loyalty card for existing usersSMILECORP – An exclusive card for the corporate sector

LITTLESMILES – A kids dentistry programme

GIFT-A-SMILE – A foundation for the underprivileged

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Marketing Objectives

To contact at least 10000 existing customers regularly

To make at least 1000 of them to respond and act

To convert schools into successful dental operations

To make GAF a profit center to generate its own income so

that it can support its philanthropic activities

Marketing Mix – An integration

Use all segments to cross promote each marketsegmentation

Existing users can get more customers

Existing customers can become corporate customers

Corporate customers can become associated with GAF

Corporates can get children for Littlesmiles

Littlesmiles can get more Smilesurances and Smilecorps

Individuals can get associated with GAF

The Communications Mix

Since all segments are important and there is a huge overlap it is essential that

we use a proper communications mix to achieve desired results.

WEBSITE – The focal point of all activities – Mother site and a

promotions/packages site

PR Activity – in select magazines and publications on a sustained basis

Press Advertising – Once in 2 months to raise awareness levels

Direct Marketing – To existing clientele, Schools and Corporates

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Posters/ Banners – For schools, corporates and other promotional places

Theater Screenings

Back-end Support

Present footfall is around 12 patients a day

Ideal situation is around 25 a day

With the concerted activity a lot of footfalls can be expected throwing the existing

system out of gear. Therefore there is a need to

Re-orient existing staff

Get new staff – Doctors, assistants as well as support staff

A well trained marketing team of at least 2 to tackle existing

clientele, corporate clientele and school management

The marketing team should also be trained to correlate

advertising and communications with the core activity

A dedicated call center to tackle a database of 10000

customers and feed backThe call center should be trained to handle individual,

corporate and school queries 24 x 7

Online support to continuously upgrade information as well

as tackle registrations and regular online appointments

A separate communications team for a periodic newsletter,

patients manual, procedure instructions, and other

promotional material who will continuously interact with the

agency and other communication experts

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Chapter 3Marketing Strategies for NewProduct Development


Firms all over world are trying to come up with creative ways to develop even

better new products and services, faster and more efficiently. Marketers are

playing a key role in the development of new products by identifying and

evaluating new-product ideas and working with R&D and others areas in every

stage of development process. Much of the discussions are equally relevant to

new products, services, or business models.

The dynamics of markets, technology, and competition have brought changes to

virtually every market sector and have made new product development one of

the most powerful business activities. The monumental changes that constantly

impact commerce have forced companies to innovate with increasing speed,

efficiency, and quality. In turn, this has made new product development one of

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the most complex and difficult business functions. However, firms must innovate

in order to survive. The power of innovation is revealed in numerous studies,

which show that companies leading their industries attribute about half of their

revenues to products developed in the most recent five years. By comparison,

companies at the bottom of their industries achieve approximately one-tenth of

their sales from new products.

A firm's new product development efforts are shaped by its size, as well as the

nature of the industry in which it operates. New products may be defined as any

product, service, or idea not currently made or marketed by a company, or which

the consumer may perceive as new. Many types of new products exist, from

never-seen-before products like Apple's personal communicator, to repositionedstandards like Sears' shift to Sears Brand Central. Various studies suggest that

between 50 and 80 percent of new products fail—the greater the rate of new

product development, the higher the failure rate. New Product News predicts that

more than 36,000 new products will be brought to market in 2005. Although there

are numerous reasons why new products fail, faulty management and planning

are at the core of most failures. Therefore, managing the new product

development process is a key to a healthy organization.

HISTORY OF NEW PRODUCT DEVELOPMENT

The history of product innovation can be divided into three stages, beginning with

the product-oriented or technology-pushed stage. In the post-World War II era

Americans were coming off wartime shortages and were in the mood to buy the

many goods that manufacturers produced. Engineers, who were more product-

oriented than consumer oriented, designed new products that might or might not

find places in consumers' hearts and minds. This was a product-oriented process

in which the market was considered the receptacle for products that emerged

from the firm's research and development efforts.

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However, competition escalated and consumers became more skeptical and

selective about the types of products they purchased. Marketers found it

increasingly difficult to rely on persuasive sales techniques to move products.

Retailers grew restless when these products did not move off shelves as quickly

as planned. Companies had to know more about their target markets. What were

the wants and needs of the people who were buying their products? How could

their firm satisfy these wants and needs?

The second stage was marked by the emergence of the market as the driver of

innovation. Instead of being technology-driven, new product development

evolved into a market-led process in which new products emerged from well-

researched customer needs. The new product development process was placedin the hands of marketers who knew consumers' wants and needs. Customer

demand "pulled" the product through the development process.

Modern new product development is a blending of these two orientations into a

"dual-drive" approach to innovation. Companies recognize that innovation is a

complex process that requires sound investment in research and development,

as well as significant marketing expertise that focuses on satisfying consumers'

wants and needs.

CHALLENGES IN NEW PRODUCT DEVELOPMENT

New product introductions have accelerated in recent years In many industries,

such as retailing, consumer goods, electronics, autos, and others, the time it

takes to bring a product to market has been cut in half. Companies that fail to

develop new products put themselves at risk. Their existing products are

vulnerable to changing customer needs and tastes, new technologies, shortenedproduct lifecycles, and increased domestic and foreign competition. New

technologies are especially threatening.

NEW PRODUCT SUCCESS

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Most established companies focus on incremental innovation. Incremental

innovation can allow companies to enter new markets by tweaking products for

new customers, variations on a core product to stay one step ahead of the

reasons market, and create interim solutions for industry-wide problems.

NEW PRODUCT FAILURE

New products can fail for many reasons: ignored or misinterpreted market

research: overestimates of market size: high development costs: poor design:

incorrect positioning, ineffective advertising, or wrong place, insufficient

distribution support and competition that fight back hard.

Senior management must decide how much to budget for new-productdevelopment. R&D outcomes are so uncertain that it is difficult to use normal

investment criteria. Some companies solve this problem by financing as many

projects as possible, hoping to achieve a few winners. Other companies apply a

conventional percentage of sales figures or spend what the competition spends.

Still other companies decide how many successful new products they need and

work backward to estimate the required investment.

TYPES AND SOURCES OF FUNDING FOR NEWPROUCTS

New products range from new-to-world products that create an entirely new

market at one end, to minor improvements or revisions of existing product at the

other. Most new-product activity is devoted to improving existing products.

Product innovation and effective marketing programs have allowed the firms to

expand their “market footprint” by improving existing products and with the

support of a strong branding strategy.

There are five categories of new products. New-to-the-world products or services

are new inventions like in-line skates and health maintenance organizations. New

category entries, such as sport utility vehicles, are products or services that are

new to a firm. Additions to product lines add products or services to a firm's

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current markets. For example, when a powder laundry detergent offers a liquid

version it is considered a line extension. Product improvements are another type

of new product and are common to every product category. Repositioning target

products to new markets or for new uses is also another way.

Firms can obtain new products internally or externally. External sourcing means

the company acquires the product or service, or obtains the rights to market the

product or service, from another organization. Internal development means the

firm develops the new product itself. This is riskier than external development

because the company bears all of the costs associated with new product

development and implementation. Collaborations, which include strategic

partnerships, strategic alliances, joint ventures, and licensing agreements, occur when two or more firms work together on developing new products.

Companies handle the organizational aspect of the new product development in

several ways. Many companies assign responsibility for new product ideas to

product managers. Some companies’ high –level management committee

charged managers. Large companies often have established a new product

development headed by a manager who has a substantial authority and access

to top management. The department’s major responsibilities include generatingand screening new ideas, working with the R&D department and carrying out

field testing and commercialization.

MARKETING STRATEGIES FOR NEW PRODUCT

DEVELOPMENT

The field of marketing strategy encompasses the strategy involved in the

management of a given product.

A given firm may hold numerous products in the marketplace, spanning

numerous and sometimes wholly unrelated industries. Accordingly, a plan is

required in order to manage effectively such products. Such decisions consist of

the following decisions:

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• Should we (i.e. the firm) enter a market/industry?• Should we increase funding for our product(s)?• Should we maintain funding for our product(s)?• Should we divest or cease production of our product(s)?

Evidently, a company needs to weigh up and ascertain how to utilize effectively

its finite resources. As an example, a start-up car manufacturing firm would face

little success, should it attempt to rival immediately Toyota, Ford, Nissan or any

other large global car maker. Moreover, a product may be reaching the end of its

life-cycle. Thus, the issue of divest, or a ceasing of production may be made.

With regard to the aforesaid questions, each scenario requires a unique

marketing strategy to be employed. Below are listed some prominent marketingstrategy models, which seek to propose means to answer the preceding

questions.

Marketing strategies usually used to develop a new product:

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve asustainable competitive advantage. A marketing strategy should be centered on

the key concept that customer satisfaction is the main goal.

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and

dominance of a targeted market niche. A marketing strategy combines product

development, promotion, distribution, pricing, relationship management and other

elements; identifies the firm's marketing goals, and explains how they will beachieved, ideally within a stated timeframe. Marketing strategy determines the

choice of target market segments, positioning, marketing mix, and allocation of

resources. It is most effective when it is an integral component of overall firm

strategy, defining how the organization will successfully engage customers,

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prospects, and competitors in the market arena; corporate strategies, corporate

missions, and corporate goals. As the customer constitutes the source of a

company's revenue, marketing strategy is closely linked with sales. A key

component of marketing strategy is often to keep marketing in line with a

company's overarching mission statement

Marketing strategies may differ depending on the unique situation of the

individual business. However there are a number of ways of categorizing some

generic strategies. A brief description of the most common categorizing schemes

is presented below:

1. Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.

Typically there are four types of market dominance strategies:

a. Leader

b. Challenger

c. Follower

d. Nicher

2. Porter generic strategies - strategy on the dimensions of strategic scope

and strategic strength. Strategic scope refers to the market penetrationwhile strategic strength refers to the firm’s sustainable competitive

advantage. The generic strategy framework (porter 1984) comprises two

alternatives each with two alternative scopes. These are Differentiation

and low-cost leadership each with a dimension of Focus-broad or narrow.

a. Product differentiation

b. Market segmentation

3. Innovation strategies - This deals with the firm's rate of the new product

development and business model innovation. It asks whether the

company is on the cutting edge of technology and business innovation.

There are three types:

a. Pioneers

b. Close followers

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c. Late followers

Marketing participants often employ strategic models and tools to analyze

marketing decisions. When beginning a strategic analysis, the 3Cs can be

employed to get a broad understanding of the strategic environment. An Ansoff

Matrix is also often used to convey an organization's strategic positioning of their

marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a

defined strategy.

The Consumer-Centric Business

There are a many companies especially those in the Consumer Package Goods

(CPG) market that adopt the theory of running their business centered onConsumer, Shopper & Retailer needs. Their Marketing departments spend

quality time looking for "Growth Opportunities" in their categories by identifying

relevant insights (both mindsets and behaviors) on their target Consumers,

Shoppers and retail partners. These Growth Opportunities emerge from changes

in market trends, segment dynamics changing and also internal brand or

operational business challenges. The Marketing team can then prioritize these

Growth Opportunities and begin to develop strategies to exploit the opportunitiesthat could include new or adapted products, services as well as changes to the

7Ps.

Real-life marketing primarily revolves around the application of a great deal of

common-sense; dealing with a limited number of factors, in an environment of

imperfect information and limited resources complicated by uncertainty and tight

timescales. Use of classical marketing techniques, in these circumstances, is

inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and

the rational development process may be used (if at all) to screen out the worst

non-runners. The design of the advertising, and the packaging, will be the output

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of the creative minds employed; which management will then screen, often by

'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to

analyze and handle the complex, and unique, situations being faced; without

easy reference to theory. This will often be 'flying by the seat of the pants', or

'gut-reaction'; where the overall strategy, coupled with the knowledge of the

customer which has been absorbed almost by a process of osmosis, will

determine the quality of the marketing employed. This, almost instinctive

management, is what is sometimes called 'coarse marketing'; to distinguish it

from the refined, aesthetically pleasing, form favored by the theorists.

The seven-step process assumes a definite beginning and end. However,

studies suggest that what goes on before and after new products are introduced

is as important as the process itself. Organizational structure, leadership, and

team building influence the speed and efficiency with which new products are

introduced. Structure influences efficiency, autonomy, and coordination. New

product innovation requires structure that optimizes direction and guidance.

Structure that facilitates internal information exchange, decision making, and

materials flow is essential. A "fast-cycle" structure allows more time for planningand implementing activities to gain competitive advantage. This type of structure

also cuts costs because production materials and information collect less

overhead and do not accumulate as work-in-process inventory. Autonomy refers

to the amount of decision making allowed at lower levels of management. The

coordination of the engineering, product designs, manufacturing, and marketing

functions in the new product development process is vital.

Leadership influences strategy, culture, and the firm's overall ability to undertake

new product development. Top management can demonstrate involvement in the

development process by providing career advancement for entrepreneurial skills

and encouraging broad employee participation. Clarity and vision are crucial to

ensuring that new product ideas are good strategic fits for the company. The

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degree to which leadership allows trial and error and promotes individual initiative

positively influences the development of new products. This acceptance of risk

and support for an entrepreneurial spirit within the organization are crucial in

order for innovation to flourish. New products emerge in a variety of ways and

their development does not always proceed in rational and consistent manners. It

is necessary for leadership to view the process as iterative and dynamic, and to

foster adaptation and flexibility. Management flexibility and responsiveness to

change also are needed. This type of leadership is particularly important to the

project manager who must coordinate and integrate the various parts of the new

product development process so that a coherent system emerges that produces

a product with compelling value. Initiative encourages creativity and problem-

solving skills.

Teams provide mechanisms for breaking down functional biases created by a

strict adherence to structure. The amount of interdepartmental conflict in the

organization, the social cohesion among team members, and the frequency and

directionality of interdepartmental communication influence team building.

Through shared understanding of the objectives and purposes of the project, as

well as the tasks required in the development process, teams can shape the

project and influence how work gets done in the organization.

STAGES IN NEW PRODUCT DEVELOPMENT

The stages of new product development process can be explained in the detailed

manner

1. Idea generation: - The new product development process starts with the

search for ideas. Some marketing experts believe the greatest opportunitiesand highest leverage found by uncovering the best possible set if unmet

customer needs or technological innovation. New product ideas can come

from interacting with various groups and using creativity- generating

techniques.

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2. Idea screening: - In screening ideas, the company must avoid. A drop- error

occurs when the company dismisses a good idea. It extremely easy to find

fault with other people’s ideas. Some companies shudder when they

dismissed or breathe sighs of relief when how close they came to dropping

what eventually became a huge success. The executive committee then

reviews each idea against a set of criteria.

3. Concept development and testing: - A product idea can be turned into

several concepts. Customers don’t buy product ideas; they buy concepts.

Each concept represents a category concept that defines the products

competition. Concept testing means presenting the product concept,

symbolically or physically, to target consumers and getting their reaction.

The more the tested concepts resemble the final product or experience, the

more dependable concept testing is .concept testing of prototypes can help

to avoid costly mistakes, but it may be especially challenging radically

different, new-to-the-world product.

4. Market strategy development: - The new product manager will develop a

preliminary three-part strategy plan for introducing the new product into the

market. The first part describes the target markets size, structure, and

behavior; the planned positioning and the sales, market share and profit

goals sought in the first few years. The second outlines the planned price,

distribution strategy, and marketing budget for the first year. The third part of

the marketing strategy plan describes the long-run sales and profit goals and

marketing-mix strategy over time.

5. Business analysis: - after management develops the product concept and

marketing strategy. It can evaluate the proposals business attractiveness.Management needs to prepare sales; cost and profit projections to determine

whether they satisfy company objectives. If they do, the concept can move to

the development stage. As new information comes in, the business analysis

will undergo revision and expansion.

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6. Product development: - The job translating target customer requirements into

a working prototype is helped by a set of methods known as quality function

development (QFD). The methodology takes the list of desired customer t

engineers attributes (CAs) generated by market research and turns them into

a list of engineering attributes (EAs) that can use. The R&D department will

develop one or more physical versions of the product concept its goal is to

find a prototype that embodies they attributes described in the product –

concept statement.

7. Market testing: - after management is satisfied with the functional and

psychological performance, the product is ready to be dressed up with the

brand name and packaging and put into a market test, in an authentic

setting, marketers can learn how large the market is how consumers and

dealers reach to handling, using and repurchasing the product. The amount

of market testing is influenced by the investment cost and risk on the one

hand, and the time pressure and research cost on the other.

8. Commercialization: - if the company goes ahead with commercialization, it

will face its largest costs to date. It will need from are contract for

manufacture or built or rent a full-scale manufacturing facility. Another major

cost is marketing. To introduce a major new consumer packaged goods into

the he national market in the United States.

These steps may be iterated as needed. Some steps may be eliminated. To

reduce the time that the NPD process takes, many companies are completing

several steps at the same time (referred to as concurrent engineering or time to

market. Most industry leaders see new product development as a proactive

process where resources are allocated to identify market changes and seizeupon new product opportunities before they occur (in contrast to a reactive

strategy in which nothing is done until problems occur or the competitor

introduces an innovation). Many industry leaders see new product development

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as an ongoing process (referred to as continuous development) in which the

entire organization is always looking for opportunities.

For the more innovative products indicated on the diagram above, great amounts

of uncertainty and change may exist, which makes it difficult or impossible to plan

the complete project before starting it. In this case, a more flexible approach may

be advisable.

Because the NPD process typically requires both engineering and marketing

expertise, functional are a common way of organizing projects. The team is

responsible for all aspects of the project, from initial idea generation to final

commercialization, and they usually report to senior management (often to a vice

president or Program Manager). In those industries where products are

technically complex, development research is typically expensive, and product

life cycles are relatively short, strategic alliances among several organizations

helps to spread the costs, provide access to a wider skill set, and speeds the

overall process.

DENTAL INSURANCE PLANS

Dental insurance plan can be referred to as a plan which covers all or partialexpenses when one visit a dentist either for routine check up or for any dental

assistance.

One who visits the dentist or needs any dental assistance is required to pay a

certain amount called premium at regular intervals to the insurance provider. One

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who has acquired a dental insurance plan can pay the premium according to

ones choice.

Unlike most western countries, specific dental insurance plan not common in

India. In India, oral health is normally integrated with the general health insurance

schemes. However, some popular tooth care product companies have forged tie

ups with general or companies to produce dental insurance products.

Some popular health insurance that is offered by Indian insurance companies is

the Mediclaim policy, accident policy and traffic accident policy. In cases where

the Indian dental insurance is clubbed to these general health insurance policies,

one has to look for the specific provisions that relate to the dental cover in these

plans.

Dental insurance refers to the cost which one has to bear in order to cover one’s

dental expenses. The National Association of Dental insurance covers.

DENTAL INSURANCE: COVERAGE

Dental insurance generally covers the following, although the coverage may

differ from one insurance provider to the other:

1. Dental insurance covers dental cleaning for removing plaque and tartar

by a professional, which may be needed from time to time.

2. Dental insurance may also include extraction of teeth, needing surgery

which can be included in non-cosmetic surgery.

3. Dental x-ray is also covered by dental insurance. Taking a dental x-ray is

important because it shows the exact condition of dentition.

4. A person suffering from cavities and chippings can get fillings done. This

is also covered by dental insurance.

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5. Dental insurance also covers situations needing urgent dental attention

in case of an injury or accident. The emergency may include tooth

replacement or dental surgery.

All dental insurance providers make tall claims, but one needs to weigh the pros

and cons carefully before parting with their hard earned money as there are

several loopholes which one needs to be aware of.

NEW PRODUCT DEVELOPMENT OF LOYALTY CARDS

AT SMILINE DENTAL HOSPITALS

The loyalty card also has to go through this process of the new product

development:

• Idea generation: - The Managing Director of Smiline Dental

Hospitals had an idea to introduce a smiline insurance card which

was named as smiline loyalty card for the old and the new

corporate customers.

• Idea screening: - The Managing Director of Smiline Dental

Hospitals introduced this idea to the other doctors of the hospitaland also to the other departments. The idea was well discussed

over

• Concept development and testing: - This idea of dental loyalty now

was more developed it was divided in concepts and tested with the

old customers, and unit members.

• Marketing strategy development: - After finding that the product

was trust worthy, different marketing strategies were started to

introduce the smiline loyalty card in the market. Suitable marketing

strategies were discussed over in limited resources.

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• Business analysis: - In discussion with the other doctors a plan was

formulated to help loyalty card can meet its goal of profits.

• Product development: - After all this process now it was the turn to

introduce the product in the market. The coverage of the dentalinsurance how many types of card should be issued etc. were

discussed and worked on.

• Market testing: - The product is yet to be introduced in the market

and be tested. This product is still in the development stage.

• Commercialization: - The product is to be commercialized once it is

tested in the market and necessary changes are made.

There are 3 types of cards designed for the convenience of the customer

Smilesurance Single User Card (SSU) – Only the card holder gets the benefit

of 2 screenings and one prophylaxis

Smilesurance Single Floater User (SSFU) – Apart from the card user, his

immediate 4 family members can use the card subject to a maximum of 2

screenings and one prophylaxis customers

Smilesurance Family User (SFU) – This is for 4 family members who can use it

individually for 2 screenings and 1 prophylaxis treatment each.

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Chapter 4Data Analysis and InterpretationBecause introducing new products on a consistent basis is important to the future

success of many organizations, marketers in charge of product decisions often

follow set procedures for bringing products to market. In the scientific area that

may mean the establishment of ongoing laboratory research programs for

discovering new products (e.g., medicines) while less scientific companies maypull together resources for product development on a less structured timetable.

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and

dominance of a targeted market niche. A marketing strategy combines product

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development, promotion, distribution, pricing, relationship management and other

elements; identifies the firm's marketing goals, and explains how they will be

achieved, ideally within a stated timeframe. Marketing strategy determines the

choice of target market segments, positioning, marketing mix, and allocation of

resources. It is most effective when it is an integral component of overall firm

strategy, defining how the organization will successfully engage customers,

prospects, and competitors in the market arena; corporate strategies, corporate

missions, and corporate goals. As the customer constitutes the source of a

company's revenue, marketing strategy is closely linked with sales. A key

component of marketing strategy is often to keep marketing in line with a

company's overarching mission statement

METHODOLOGY




types of data.

Research design








1. Primary data

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Primary data is collected through the well – structured questionnaire. This

method of data is quite popular. Administering questionnaire to the


2. Sampling



respondents who have seen the advertisement. It is one of the non-

probity sampling methods.

Sampling plan





Questionnaire



questionnaire is prepared in such a way that it cover comprehensive objective of

the entire study being made. It includes all open end and multiple choice

questions in order to make the study more efficient and informative to its

reader’s.

SAMPLE



Secunderabad. A random sample of 100 people, 50 male and 50 female was

considered for the study.

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RESPONDENT PROFILE

The ages of the respondents were analyzed to get an idea of the group under

consideration. This was done to know the target customers better, as the sample

was taken for a multiplex.

REGULARITY OF VISITATION TO THE DENTIST

As, this study is related to loyalty cards in a dental hospital it was essential for

the study to examine the regularity of visits to the dentist. This helps to identify

the target customers.

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It is quite evident from the above data that the number of people visiting the

dentist regularly is quite high. And hence, it can be said that launching loyalty

cards would be a good idea as there is a higher number of people who visit the

dentist regularly.

HOSPITAL VISITED REGULARLY

This data enables us to understand the preference among people for different

hospitals. Consumers prefer private hospitals for their service and the efficiency.

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SERVICES OF SMILINE DENTAL HOSPITAL

The general review of Smiline Dental Hospitals has been very good as seen from

the data. This shows that the response to the loyalty cards would be very good

RESPONSE TO THE ADVERTISEMENT

An ad of Smiline Dental Hospitals Loyalty Cards was played in the leading

multiplexes in the twin cities. Later, a study was conducted on the effectiveness

of this marketing strategy.

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Chi square value is calculated at 6.95 (>3.84) which shows that the advertising is

significant or has impact on the customers.

ENJOY SERVICES OF THE CARD

The study shows that, a very positive response is there towards the card.Consumers would like to use the card and enjoy the services provided by it

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CHANGES IN THE CARD

The study shows that consumers accept the card as it is, and very small

proportion want to see changes in the card. This shows that the idea has been

successful.

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DENTAL INSURANCE BENEFICIAL

People send a huge amount on dental treatment these days. Dental hygiene has

become more important than anything else and hence the concept of dental

insurance. People feel dental insurance has been a boon to people

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Chapter 5Summary, Conclusions and

SuggestionsMarketing is the process by which companies determine what products or

services may be of interest to customers, and the strategy to use in sales,

communications and business development. It is an integrated process through

which companies create value for customers and build strong customer

relationships in order to capture value from customers in return.

Marketing is used to identify the customer, to keep the customer and to satisfythe customer. With the customer as the focus of its activities, it can be concluded

that marketing management is one of the major components of business

management. The evolution of marketing was caused due to mature markets and

overcapacities in the last decades. Companies then shifted the focus from

production to the customer in order to stay profitable.

The term marketing concept holds that achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desiredsatisfactions. It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy

these more effectively than competitors.

NPD relates to, as the label denotes, the development of a new to market

product. The stages of the process are so:

• Idea Generation• Idea Screening• Business Analysis• Product Development• Product Testing

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• Test Marketing• Commercialisation

Given the resources placed in the development of a product, a firm must gauge

the economic viability of a good, coupled with the viability of the notion of the

good, prior to releasing it onto the market.

NEED FOR STUDY

As today we are in 21 st century so its really important for everybody to change

with the time so new product development is one aspect of them were we have

to constantly change our minds to market our products in every way possible a

true marketer is a person who can sell “anything for everything” The rapid paceof change that engulfed businesses toward the end of the twentieth century put

an even greater burden on companies to build adaptive capabilities into their

organizations. Global competition means there are more competitors capable of

world-class performance. This has made competition more intense, rigorous, and

aggressive than ever before. Fragmenting and more sophisticated markets mean

that consumers demand more from products in terms of quality, differentiation,

and "meaningfulness."

New technologies have had two important outcomes in regards to innovation.

First, new technologies are responsible for this new market sophistication in

which consumers have more choices and are thus more demanding. Secondly,

new technology has increased manufacturers' capabilities for rapid response to

shifting market needs.

Finally, product life cycles have become more compressed as the skills requiredfor developing new products increase in complexity. For example, consider the

development of a new type of computer software. The expertise needed to

develop the software from conception to commercialization might take years. The

product's life cycle in such a competitive and turbulent environment might last

only a few months. Therefore, companies have embraced the view that new

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products are transient, whereas the skills and expertise needed to develop these

products are a much more persistent requirement for success. Instead of the

mono-approach, in which technology or markets drive innovation, new product

development now requires a convergence of technology, marketing, product

design, engineering, and manufacturing capabilities. Speed, efficiency, and

quality in product development are the challenges that new product development

faces in today's intense competitive environment.

OBJECTIVES OF STUDY

3. To understand different marketing strategies for a new product.

4. To know what is the impact of the advertisement on the customers.

HYPOTHESIS

H0 – There is no impact of advertising on customers.

METHODOLOGY




types of data.

Research design




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3. Primary data

Primary data is collected through the well – structured questionnaire. This

method of data is quite popular. Administering questionnaire to the


4. Sampling



respondents who have seen the advertisement. It is one of the non-

probity sampling methods.

Sampling plan





Questionnaire



questionnaire is prepared in such a way that it cover comprehensive objective of

the entire study being made. It includes all open end and multiple choice

questions in order to make the study more efficient and informative to its readers.

8/3/2019 128-08-1803 (1)


SAMPLE



Secunderabad. A random sample of 100 people, 50 male and 50 female wasconsidered for the study.

TECHNIQUES OF ANALYSIS

The comparative study is done with the help of χ 2. Application of percentages

and graphs has been done to give clarity to the data collected.

SOURCES OF DATA

The data required for the study is collected both from primary and secondary

sources. Primary data is collected by conducting personal interviews, discussions

with the old and new customers considered for the study. In addition, data was

collected through questionnaires, feedback, observations etc.

Secondary data includes the information of the old customers and the

prospective ones collected from various sources. Research studies conducted by

individuals, institutions and agencies, and various other journals were

considered.

PERIOD OF THE STUDY

The study tries to understand the effect of advertising on customers of Smiline

Dental Hospitals. The study spread over a period of two years i.e., from 2007 to

2009.

SCOPE OF THE STUDY

The data required for the present study was collected using questionnaires. The

data was collected from the consumers who have seen the ads played at the

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multiplexes which were taken for the study. 50 female and 50 male, a total of 100

people were considered for the study.

CHAPTERISATION

Chapter – I INTRODUCTION

This chapter contains introduction, importance and scope of marketing in




chapterization.

Chapter – II SMILINE DENTAL HOSPITALS – A COMPANYPROFILE

This chapter was taken up to an extensive study on the company as such. This

chapter explores the services offered by the hospitals and the new product

considered for the study. This chapter also dwells into the marketing strategies

adopted by the company and the reasons for the same.

Chapter – III MARKETING STRATEGIES FOR NEW PRODUCT

DEVELEOPMENT

New product development is a crucial role for any company as it involves huge

amount of costs. Marketing strategies have to be carefully examined and the best

has to be selected as per the target customers.

Chapter – IV DATA ANALYSIS AND INTERPRETATION

In current global market, companies are composed by competitors, regardless of

industry. To develop a competitive advantage, it is important that firms truly

leverage on the marketing as a competitive weapon. This chapter analyzes the

various effects of advertising on customers.

Chapter – V SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter being the last chapter gives conclusions and suggestions and briefly

explains the objectives, methodology, findings and limitations of the study. This

chapter also gives the scope for further study.

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LIMITATIONS OF STUDY

The major limitation of the study is that the questionnaires were given to

the intermediary 9or0 final consumer so that ultimate purchase decision

maker is not a part of the picture and hence forth the study is done from an

individual’s point of view.

Primary data analysis is solely dependent on the opinion of the

respondents.

The study was confined only to the people who have seen the

advertisement.

There could be a possibly for an occurrence of a sampling error like

Selection process and non response error.The response of the customer depends on various factors like

experiences, motivational factors, biased opinions, personal feelings etc

No attempt has been made in this study to do a longitudinal analysis, that

is, to explore the influence of these strategies over a period of time.

FINDINGS

• Out of 100 respondents only 74% respondents said that they go for dental

check up regularly and the remaining go for only if they have tooth pain or

a cavity

• Mostly prefer to go for private clinics as 95% respondents said that they

prefer private as it’s more convenient and accessible.

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• The persons who saw the advertisement about the smiline insurance card

doesn’t know what smiline dental hospital is 35% know about the hospital

• 84% of the respondents say that they know about dental insurance but

they actually not seen the details of it

• 72 % of the respondents were ready to buy the new card and other was

still in dilemma to think out it as it would be beneficial or not.

• 23% of the respondents said they want to make some changes in the card

that means they were not satisfied with services rendered by the card.

• 87% of the people belief that its beneficial to have dental insurance card

but remaining people thought that it’s a waste of money.

SUGGESTIONS

• Advertisements should be more strengthened at point of sales

• Maximum consumers are looking for better beneficial at a low premium

• Smiline should make a market survey for their card is getting beneficial for

the people

• Promotional campaigns and advertisements have to mainly focus on the

benefits of the people

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• Only 60% respondents are only ready to buy the card so we have to make

the marketing strategies more effective that the sales should be increased

QuestionnaireAge: Gender:

1. Do you go for dental check up regularly?

a. yes

b. no

2. Which hospital do you visit mostly?

a. Government hospitals

b. Private hospitals.

3. Have you ever visited smiline dental hospitals?

a. yes

b. no

4. If yes then how were the services of the hospital?

a. excellent

b. very good

c. good

d. poor

5. Have you heard about the dental insurance card?

a. yes

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b. no

6. Have you seen the advertisement of dental insurance card?

a. yes

b. no

7. How was the add?

a. excellent

b. very good

c. good

d. poor

8. Would you like to enjoy the services of the card?

a. yes

b. no

9. Would you like to make some changes in the card?

a. yes

b. no

10. Do you think that dental insurance is beneficial to the people?

a. yes

b. no

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