mkt 207 assignment

8/14/2019 Mkt 207 Assignment

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Presidency UniversityCourse code: MKT 207Spring 2009

Course Instructor: MuzzakerulDate: 29. March. 2009

DEVELOPMENT OF A NEW PRODUCT:

C A R T R A C K E R S

Group Members:Quazi Nayeemul Huq – 081 222 025

Md. Shariful Islam - 081 011 025S. M. Sad Arifin- 081 137 025

Tony Roy – 081 000 025



Development of a New Product

The following are the processes for the development of a product:

IDEA

GENERATION

IDEA

SCREENING

CONCEPT

DEVELOPMENT

AND

TESTING

MARKETING

STRATEGY

DEVELOPMENT

COMMERCIALIZATION TEST

MARKETING

PRODUCT

DEVELOPMENTBUSINESS

ANALYSIS

NEW PRODUCT



What is a product?

A product is anything that can be offered to a market for attention,

acquisition, use, or consumption that might satisfy a want or need.

What is a new product?

`A new product is influenced by the perceptions of marketers and

consumers. It usually refers to a product which is new to the company or any

product that is offered by a company which is relevantly different from the

other products available in the market. Example: Square Group introduced

Radhuni Masala Powder to the market whereas the company usually focused

mainly on Pharmaceuticals before.

What is the new product development process?

New product development is the development of original product,

product improvements, product modifications and introducing new products

in a market through the firm’s own Research & Development team.

The strategies that are followed in developing a new product are:

1. Idea Generation

2. Idea Screening

3. Concept Development & Testing

4. Marketing Strategy Development

5. Business Analysis

6. Product Development

7. Test Marketing

8. Commercialization



IDEA GENERATION

The idea generation is the systematic search for new product idea. We have

generated some ideas for our new product. The ideas are as follows:

I) Car Tracking Device

II) Automatic Exam Paper Checking Machine

III) Exporting Dry Fish

IV) Producing Local Automobiles

V) Local Canned Pure Juices

VI) Navigation System in Cell Phones

VII) Wireless Internet in Shopping Malls and Universities

VIII) HIV Vaccination

IX) Tablet for not Smoking

X) Exporting Puffed Rice

XI) Exporting Jack Fruit



IDEA SCREENING

Screening new-product ideas in order to spot good ideas and drop poor ones

as soon as possible. The screening stage is needed because it is the first stageat which alternative ideas are stored. Sometimes the new ideas are also

rejected. The Research and Development at first goes through the positive

and negative sides of all the ideas generated of developing a new product

and then takes the decision of choosing which product to develop. There are

three basic questions for screening new product ideas. The questions are:

1. Whether the product is needed by the consumer?

2. Whether the company is well equipped to develop the

product?

3. Whether the product will bring profit to the company?

The answer to these questions can be achieved by some marketing researchand discussion with the marketing department of the company, some senior

and experienced executives and also by running a survey to a certain number

of target customers.

We followed the same procedure and came to a decision that “Car

Tracking Device” should be our screened idea. This is because it is very

essential for our country Bangladesh where car stealing rate is increasing at

a very high rate. The device is used in many countries and statistics show

that by using the device stealing of cars fell by 80%. When our companysurveyed with 100 target customers, 90% of the people gave positive

feedback. The rest were not sure but did not give any negative answer.

Therefore, we went ahead with our screened idea that is “Car Tracking

Device”.



CONCEPT DEVELOPMENT & TESTING

The third stage is Concept Development and Testing. At first we should

know what this segment is about.

CONCEPT DEVELOPMENT: A detailed version of the new-product idea

stated in meaningful consumer terms.

CONCEPT TESTING: Testing new-product concepts with a group of target

consumers to find out if the concepts have strong consumer appeal.

Let us first focus on the Concept Development of our Car Tracking Device.

We named the device as “Car Trackers”. Our product has a wide range of

features among which switching off a car in a matter of seconds in 10

seconds if found stolen by the owners mobile or online. Not only that, the

device also shows the location of where the car has been taken via internet.

Features:

Bonnet Lock

Battery Tampering Alerts

Remote Immobilization and Activation

24 hrs Nationwide Control Room Access

Over Speeding

Ignition On and Off

Location – Date – Time – Duration

Cell Track Harsh Braking

Remote Door-Lock Control



“Car Trackers” will be available to customers at only Tk. 15000

and the device will be having a maintenance fee of Tk 1200 per

year.

Now, let us see the Concept Testing section. In this section, we will run asurvey to our target customers. The questionnaire is as follows:

1. Do you need Car Tracking Device for your car?

(a) Yes (b) no

The answer was yes from 90% customers.

2. Do you think it will be effective and efficient?

(a) Yes (b) No

Maximum said yes.

3. Is Tk. 15000 too high for the device?

It is reasonable since it will be used for protecting an expensive product.

4. Tk. 1200 per year for maintaining the device. Is it ok?

Most of our customers said that it is fine.

5. Do you think switching the car off through mobile and online is a very

good idea?

We got a positive response from everyone.



6. Via Internet the cars location can be traced out. Do you think it will be

helpful?

Yes was the answer from maximum.

7. Will you install the product if it is launched in the market?

90% said definitely.

Therefore, from the survey we can say the product that we are about to

launch in the market is in demand and the product will be helping themvery much as 90% customers was looking forward to purchase the

product if available in the market.

MARKETING STRATEGY DEVELOPMENT

Designing an initial marketing strategy for a new-product based on

the product concept is known as Marketing Strategy Development.

Our target customer range is the upper and the middle class of our

society. They are the people who has an average income that is,

they can afford to purchase a car and for protecting the car from

getting stolen, they would buy the tracker since car is an expensive

item.

The company will aim to sell about 50,000 car trackers which will

gain Tk 250,000,000 of profit in the first year.

The device will be costing Tk 15000. The device will be available

in different car showrooms and car accessory shops. The

advertising process will cost Tk 100,000,000 for the first year. And

the production cost is Tk 400,000,000.



In this way, the company to capture 75% of the market share. By

analyzing all positive and negative sides the company came to this

breakdown.

In the next step, Business Analysis will help us to find out more

about the success of launching this product in the market.

BUSINESS ANALYSIS

It is a review of the sales, costs, and profit projections for a new

product to find out whether these factors satisfy the company’s

objectives.

Business analysis is done based upon the results of the concept test

and considerable managerial judgment, estimate of sales, costs and

profit that will be made. Marketing analysis is done to produce

sensible figures. This will identify the target market, its size and

projected product acceptance over a number of years. It can be

done through an Income Statement. Our Income Statement is as

follows:

CAR TRACKERS

Income Statement

For the first year



Description Debit (Tk) Credit(Tk)

Sales (50,000×Tk15000)

- Production Cost (50,000×Tk8000)- Advertising & Other Expense

- Net income

400,000,000

100,000,000

250,000,000

750,000,000

750,000,000

750,000,000

PRODUCT DEVELOPMENT

It is developing the product concept into a physical product in

order to ensure that the product idea can be turned into a workable product. The concept of the “Car Trackers” is passed through the

business test. After passing the test the product is finally

developed.

TEST MARKETING

The stage of new-product development in which the product and

marketing program are tested in more realistic market settings is



called Test Marketing. In this stage the actual product is shown to

its customer to find out the demand of the product. It can be done

in the form by participating in a Motor Fair for our product. Our

product successfully passed this stage. We got a huge responsefrom the customers as 500 customers ordered in the first day.

COMMERCIALIZATION

Introducing a new-product into the market is called

Commercialization.

After passing the through all the stages, it is now time for our new

product to go into full scale production. It is a very expensive part

as over here the mass production of our product starts. We need to

be careful as we have to maintain the quality of the to survive in

the market.SUMMARY:

DEVELOPING A NEW PRODUCT

We can say that if we follow all the eight steps for developing a

new product, we will gain success. The eight steps are:

1. IDEA GENERATION: The systematic search for new-

product ideas.

2. IDEA SCREENING: Screening new-product ideas in order

to spot good ideas and drop poor ones as soon as possible.



3. PRODUCT CONCEPT:A detailed version of the new-

product idea stated in meaningful consumer terms.

CONCEPT TESTING: Testing new-product concepts with a

group of target consumers to find out if the concepts havestrong consumer appeal.

4. MARKETING STRATEGY DEVELOPMENT: Designing

an initial marketing strategy for a new-product based on the

product concept.

5. BUSINESS ANALYSIS: A review of the sales, costs, and

profit projections for a new product to find out whether these

factors satisfy the company’s objectives.

6. PRODUCT DEVELOPMENT: Developing the product

concept into a physical product in order to ensure that the

product idea can be turned into a workable product.

7. TEST MARKETING: The stage of new-product

development in which the product and marketing program

are tested in more realistic market settings.

8. COMMERCIALIZATION: Introducing a new-product into

the market.

CONCLUSION

In the end, we can say that the eight steps will help a company to

develop a new product. It is the best way to find out what thecustomers actually require in the market. Success is guaranteed to

come if we all follow these steps.



Thank you!!!!

mkt 207 assignment

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