Gregarious

University of Wah

New Product
Development
Final Report of Marketing

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ACKNOWLEDGMENT

We would like to thank few people, because without their help and concern our project
shouldn’t have been completed. First of all, we would like to thank the Almighty Allah
for helping us a lot although the project and for making as capable to complete this
project. Secondly, our Teachers, group members who supported us and guided us
throughout the project and to tell us where we are lacking and what steps, could be taken
to overcome them, so that we’ll get the better results in our project. And, last but not the
least, our Parents who have supported us and have prayed a lot for us that we are here
with the final projects in our hands, after the hard work of few weeks.

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Contents Page
No.
1.0 Company’s Name 1
2.0 Company’s Logo
3.0 Company’s Website
4.0 Companies Mission Statement 2
5.0 Product’s Name
6.0 The BCG growth-share matrix
7.0 Product-Market Expansion Grid 3

8.0 Marketing Research 4

8.1Types of research
8.2 Research approach
8.3 Research instruments
9.0 Product 5
9.1 Types of consumer products
10.0 Building the Right Relationships with Right Customers
10.1 Market segmentation 6
10.2 Geographic segmentation
10.3 Demographic segmentation
10.4 Psychographic marketing
10.5 Behavioral marketing
10.6 Target marketing 7
10.7 Undifferentiated marketing
10.8 Differentiated marketing
10.9 Concentrated (niche) marketing
10.10 Market positioning 8
11.0 Branding

12.0 Packaging

13.0 Pricing

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14.0 Place (method of distribution) 9

14.1 Conventional distribution channel

14.2 Vertical marketing system 10

15.0 Promotion

15.1 Promotion mix 11

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What is marketing? Many people think of marketing only as selling and advertising.
Every day we are bombarded with television commercials, direct-mail offers, sales calls,
and internet pitches. Selling and advertisement are only the tips of the marketing iceberg.
Marketing must be understood not in the old sense of making a sales “telling and sales”
but in the new sense of satisfying the customer needs.
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging values with others.
Marketing is managing profitable customer relationships. The twofold goal of marketing
is to attract new customers by promising superior value and to keep and grow current
customer by delivering satisfaction. Marketing is the methodology to run business.
Marketing
It is defined as “the process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return” we can
say that marketing is to satisfy the customers needs, wants and demands via 4P’s.
Needs: States of felt deprivation.
Wants: The form human needs takes as shaped by culture and individual personality.
Demand: Human wants that are backed by buying power.

4P’s of marketing/ marketing mix

• Product
• Price
• Place
• Promotion
Marketing Concepts:
There are five alternative concepts under which organizations design and carry out their
marketing strategies:
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal marketing concept

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Introduction to the Project

Now by knowing marketing, we are able to continue our project and we will now move
on further to explain our project with respect to our marketing course. In this project we
continue the whole process of marketing i-e 4P’s (product, price, place, promotion),
marketing strategies, environments, research work and all other steps which are essential
in relation with project.

Our Project
We have the project of developing a new product by launching a company and produce a
product and apply the whole marketing process on that.

Our Decision
We have selected to make a pen manufacturing company. The area which was given for
research is within the university and we sought out that the pen is the need of every one
as every one uses it in the particular research area. So in our project we are going to
launch a pen manufacturing company.

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Department of Management Sciences

Project of Marketing

On

New Product Development

Submitted to: Sir Waqas Ahmed

Submitted by: Azeem Bhatti

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1.0 Company’s Name

GREGARIOUS
Maker of Fine Writing Instruments

We have chosen the name “Gregarious” that means very friendly, friend of friends. As
we know that our customers are our supreme bosses and we have to treat them in a good
and friendly environment. So we welcome our customers in our friendly and free
environment.

2.0 Company’s Logo

As we have said that we want to

make a healthy and friendly
environment with our customers so our logo shows our mission that” we care for every
one”.

3.0 Company’s Website

www.gregarious.pk.com

We have launched the web access to our customers

for there more satisfaction. We have put a new
feature in our site that you can customize our pen by
our choice you can use different colors, bodies,
shapes etc.

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4.0 Companies Mission Statement

Gregarious while maintaining leading position in customer satisfaction and by getting
great market share will build up, enhance and improve its value addition with a target to
ensure the possible returns to the share holder as well as to maintain relationship engaged
with nation building by using efficient resources.

5.0 Product’s Name

FLIMSY
Flimsy means light weight, smooth, nice and strong. So from the survey that we have
done for this new product development we have come to know that people in the
particular area need a strong but light weight pen with nice smooth writing and for the
fulfillment of this desire we produce “Flimsy” which is the solution to all the problems.

6.0 The BCG growth-share matrix

Now to check the dependability, value, strength, and performance of our business unit we
will use the Boston Consulting Group (BCG) approach, we classify our SBU according to
growth share matrix. On the vertical axis we have market growth rate and on the
horizontal we have the market share. The growth share matrix defines four types of SBUs
(strategic business units).
• Stars
• Cash Cows
• Question Marks
• Dogs

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Stars Question Marks

Cash Cows Dogs

As we have a new business so form the BCG growth-share matrix we come to know that
our SBU lies at Question Marks as growth rate is high but the market share is low. But
we will struggle hard to get it up in to stars.

7.0 Product-Market Expansion Grid

A portfolio-planning tool for identifying company growth opportunities through
• Market Penetration
• Market Development
• Product Development
• Diversification

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Market Product
Penetration Development

Market Diversification
Development

As we have a new product (flimsy) but the market of this product is not new there are
many other companies treating in it from a long time so by seeing the product-market
expansion grid we had the product development.

We have also studied the demographic of the particular area that has given to us that is
within the campus so we study the age, gender, and education. We have also found the
economics of this area. We study our competitor. We checked the natural environment
for our product.

8.0 Marketing Research

The systematic design, collection, analysis and reporting of data relevant to a specific
marketing situation facing an organization

8.1Types of research

• Exploratory research
• Descriptive research
• Causal research

8.2 Research approach

• Survey approach
• Observation approach

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• Experiment

8.3 Research instruments

• Questionnaires

In our project of identifying the needs and wants of people, we used exploratory approach
i-e we gathered preliminary information through using survey approach, by using
questionnaires as research instrument. In addition to all this, we used university as
sample. The students were given questionnaires to let us know about their needs and
wants about using a pen.

9.0 Product

Anything that can be offered to a market attention, acquisition, use or consumption that
might satisfy a need or want. Our company is offering FLIMSY pen.

9.1 Types of consumer products

• Conveniance product
• Shopping product
• Speciality product
• Unsought product
• Industrial product

Flimsy is a convenience product because its frequent purchase item, shopping effort and
comparison rate is low. Its price is also not very high, and if we see from distribution
point of view, it is widely distributed at various locations.

10.0 Building the Right Relationships with Right Customers

Companies today recognize that they cannot appeal to all buyers in the market place or at
least not to all buyers in the same way. Buyers are to numerous, to widely scattered, and

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to varied in their needs and buying practices. More over, the companies themselves vary
widely in their abilities to serve different segment of the markets. Instead, a company
must identify the part of the market that it can serve best and more profitably it needs to
design strategies to build the right relationship with the right customers. In order to do
that or target the market in a best manner it leads us to three steps:
• Market segmentation
• Target marketing
• Market positioning
10.1 Market segmentation
Dividing a market in to small group of buyers distinct needs, characteristics, or behaviors
who might requires separates product or marketing mixes is called market segmentation.

10.2 Geographic segmentation

Geographic segmentation can be said as dividing a market into different geographical
units such as nations, states, regions, countries, cities, or neighborhood.
We are offering the convince product to the market so we are not going globally. Our
main purpose is not to go globally but our purpose is to attract those which are suitable
for our convenient product that we are introducing to market.

10.3 Demographic segmentation

Dividing the market in to group based on demographic variables such as age, sex, family
size, family life cycle, income occupation, education, religion, race and nationality. We
have no concern with demographic segmentation because our product is for every one.

10.4 Psychographic marketing

Dividing market into different groups based on social class, life style, or personality
characteristics. The product is basically made for all the pen users who belong to all the
classes, because it is a convenient product with affordable price and suits every one
personality because we have deeply focused on its style to suit with almost everyone
personality.

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10.5 Behavioral marketing

Dividing a market into group based on consumer knowledge, attitude, use, or response to
a product. The behavior variables are the best starting point for building markets
segments.

10.6 Target marketing

The process of evaluating each market segments attractiveness and selecting one or more
segments to enter. Now through target marketing we target the most suitable market
segment to enter and to do this we selected market segment of students because they are
the most appropriate segment and our reasonable actual and potential consumer of our
product.

10.7 Undifferentiated marketing

Market coverage strategy in which a firm decides to ignore market segments differences
and go after the whole market with one offer.

10.8 Differentiated marketing

Market coverage strategy which one firm decides to target several markets segments and
design separates offers for each.

10.9 Concentrated (niche) marketing

A market coverage strategy which one firm goes after a large share of one or a few
segments or niches.

Now-a-days most company have moved away from mass marketing and towards market
segmentation and targeting – identifying market segments, selecting one or more of them,

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and developing products and marketing program tailored to each. Instead of scattering
their marketing effort firms are focusing on the buyers who have greatest interest in the
values they creates best. Company’s haves not always practices market segmentation and
targeting for major consumer product companies held fast to mass marketing—mass
production, mass distributing, and mass promoting about the same product in about the
same way to all consumers and for our convenient product we also go for the mass
marketing because offering product with mass marketing we came to know about the
higher sales and the stronger results as mass marketing is now days the best.

10.10 Market positioning

The way the product is defined by consumer on important attributes-the places the
product occupies in consumer minds relative to competing product.
A products position is the complex set of perceptions, impression, and feelings that
consumers that have the product compared with competing product. Our customers mark
our product in good grades because it has all the qualities wanted by the customers.
11.0 Branding
A name, term, sign, symbol, design or a combination of these intended to identify the
goods or services of one seller or a group of seller and to differentiate them from those of
competitors.

GREGARIOUS

Our company name and logo is showing our branding that how much we care for our
customers.

12.0 Packaging

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The activities of designing and producing the container or wrapped for a product. We
have done no packaging with a single pen but there is a cylindrical shaped container
which contains 12 pens.

13.0 Pricing

The amount of money charged for a product or a service, or the sum of the value that
consumers exchange for the benefits of having or using the product or service.

The price of Flimsy pen is quite suitable, affordable and reasonable for every one that is
10 Rs per pen which we think every one can pay. We have use market penetration as a
tool for pricing.

14.0 Place (method of distribution)

Place simply refers to how you will sell your products to your customers. Depending on
what it is you are selling will directly influence how you distribute it, and it affects
mainly those businesses that are in production. If for example you own a small retail
outlet or offer a service to your local community then you are at the end of the
distribution chain so and will be directly supplying a variety of products directly to the
customer.

However, if you are a producer, the method of distribution is extremely important as it

could effect how their product is received you may decide to have a combination of all
the distribution methods to maximize your level of distribution. Whatever, you decide
you should consider the best method which you believe would work for you. Consider:

• Where do my customers live?

• What would be the easiest, cheapest and quickest way I could get my product
to them?

There are two distribution channels

• Conventional distribution channel

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• Vertical marketing system.

14.1 Conventional distribution channel

A channel consisting of one or more independent producers, whole sellers and retailers,
each a separate business seeking to maximize its own profits even at the expense of
profits for the system as a whole.

14.2 Vertical marketing system

A distribution channel structure in which producers, whole sellers and retailers act as a
unified system. One channel member owns the others has contracts with them, or has too
much power that they all cooperate.

In case of FLIMSY we have used conventional distribution channel because it is a

product used on routine basis and distributed widely at convenient outlets.

15.0 Promotion
Postioning involves disseminating information about a product, product line, brand, or
company. It is one of the four key aspects of the marketing mix. Promotion is generally
sub-divided into two parts:

• Promotion in the media (e.g. TV, radio, newspapers, Internet) in which the
advertiser pays an advertising agency to place the ad
• All other promotion. Much of this is intended to be subtle enough that the
consumer is unaware that promotion is taking place. E.g. sponsorship, product
placement, endorsements, sales promotion, merchandising, direct mail, personal
selling, public relations, trade shows

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The specification of these four variables creates a promotional mix or promotional plan.
A promotional mix specifies how much attention to pay to each of the four subcategories,
and how much money to budget for each. A promotional plan can have a wide range of
objectives, including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image.

15.1 Promotion mix

It is also known as communication mix. It involves following concepts.

• Advertising.
• Sales promotion.
• Public relations.
• Personal selling.
• Direct marketing.

We will go through advertisement concept by advertising flimsy on TV, newspapers etc.

The given research area to us was in campus, so we promoted it through many
communication concept that are advertisement in our campus through banners,
pamphlets, and through personal selling and sales promotion. We placed a special offer
by giving a discount during the inauguration.

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