Contents

Idea Generation……………………………………………5-7

Idea Screening……………………………………………...7-
8

Concept Development and Testing…………………...9-

15

Marketing Strategy……………………………………….16-
20

Product Development…………………………………….20

Market
Testing……………………………………………….21

Commercialization………………………………….………21

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2
INTRODUCTION

New products are the lifeblood of any company,

fueling its survival and growth in the long run. But
the development and introduction of new products
that will ultimately be profitable is fraught with the
risks of heavy up-front expenditures and uncertain
future payoffs. A daunting combination of stagnating
sales in mature markets, rising costs, and a focus on
short term earnings leaves management in a very
uneasy position.
We are product development team of a company. It
is a cosmetic manufacturing company. It produces
various kinds of cosmetic product like-
Beauty soap
Nail polish
Shampoo
Face wash
Tooth pest
Tooth brush
Now our company wants to introduce a new product.

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 New product:-
It means original products-new to the world, new to
the product line, product improvements, product
modifications, and new brands that the firm develops
through it own research and development efforts.
A new product includes greatest cost and risks.
Because they are new to the market and the
company as well. That’s why most of the companies
are devoted to improve the product line. That’s why
we are focusing on improving our existing product
line.
ORGANIZING NEW PRODUCT DEVELOMENT
Stage gate system: it is a process to manage the
innovation process and launch new product in the
market. In this system the gatekeeper makes one of
four decisions. GO, KIILL, HOLD OR RECYCLE. If the
new product idea looks promising the gatekeeper
decides to GO for it. If the idea is bad than KILL it, if
the idea needs further analysis then HOLD it and if
the idea can be considered in the near future the
RECYCLE it.

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STAGES OF NEW PRODUCT DEVELOPMENT

1.
Idea
Generatio

8.
n
2.
Idea
Commerci
screenin
alization g

Stage of
3.
7. New Concept
product Develop
Market
Developme me-nt
Testing -nt and
Testing

6. 4.
Product
Marketin
Developme
g
nt
5. Strategy
Business
Analysis

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 IDEA GENERATION
The idea generation stage is the first stage in the
NPD. However, in an organization with a healthy
environment for creative thinking, new ideas abound,
and only rarely is it necessary to have a formal
meeting to generate ideas. New ideas flow from
every day activities within the Organization.
Sources of idea generation are:

⇒ Customer analysis: this steps deal with knowing

consumer need and wants by conducting a
marketing survey
⇒ Competitor analysis: by analyzing competitors
we can develop new product. This can be done
by copying the competitors new product or
introduce a new product better than them.
⇒ Active search: active search is looking at new
product in other categories and adding the
successful ones in our product category.

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⇒ Brainstorming: it starts with a thought, write on
paper, think next thought and link it. We can
brainstorm for a new product evaluating some
factors like
• Potential or targeted customers
• Product attributes and benefits
• Distributors and suppliers
• Pricing and advertising

After brainstorming we focused on the consumers

first. We found that It is essential that a company
knows its market and its consumers before
developing any new product. Lots of questions
need to be answered here. It is the starting point
that enables brands to fit meaningfully into
consumers' lives. After surveying the consumers
we found that consumers not only women but also
men are becoming conscious about skin care these
days. Especially the young executives, students.
They are in a need of good facial cleanser that can
really clean up their face well without any side
affect.

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 Then we focused on the competitors. We found
that our competitors are also producing beauty
soaps, face wash products. Their face wash
products are in tube form or plastic bottle form.
Their target market mainly focuses on women,
their skin type and to some extent men. We also
found that they are providing face wash in
different sizes. Now a days small bottle of face
wash has demand like 50 ml., 75 ml etc. but these
face wash are not convenient enough to take
anywhere. There are also some wet tissues but
they are not available enough.

There are also some tissues like napkin tissues and

normal tissues treated as facial tissue. We have to
educate people about differences between facial
cleansing tissue and facial tissue.

Generation of workable ideas is very important to

make a business plan. After brainstorming we
generated the idea of introducing “Facial Cleanser”
which will be easy to use. This tissue will be
especially handy for the people who are in rush. We
also have to maintain very good quality of the

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product. As such the product has to remove dirt’s
from the skin and so on.

IDEA SCREENING
SELECTED IDEA-FACIAL CLEANSERS
Screening new product ideas in order to spot good
ideas and drop poor ones as soon as possible. After
getting idea generation we have to do idea
screening. The first idea-reducing stage is idea
screening, which helps sport good ideas and drop
poor ones as soon as possible. Product development
costs rise greatly in later stages, so the company
wants to go ahead only with the product idea that
will turn into profitable products. A company should
motivate its employees to submit new idea:
We know that the proposed ideas are grouped into
three areas. Promising, marginal and rejects. If idea
is promising then it goes to the next phase, if it
requires further analysis then the gatekeeper holds
it(marginal) and if the idea is bad gatekeeper rejects
it.

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Our idea of facial cleanser is a promising idea and
has got the approval from the GATEKEEPER and so
we decided to develop the concepts on that.

Reason behind choosing this idea:

As new product development is costly and risky, our
product will be an improvement and revision of
existing product. That’s why we are devoting into
face wash to Facial Cleansing Category. That is a
new product or product feature that provides
improved performance. Basically facial wash
products are sold on liquid form in our country and
they are contained in tube or plastic bottle. Our idea
is to improve the face wash product to facial
cleanser. We will differentiate it by improved
performance and obviously ‘Ease of Use’. This will be
handy especially for the people who are in rush, who
are busy and who often forget to remove makeup!
We well be introducing the facial cleanser category
by offering consumers a softer, stronger and more
soothing facial cleanser that delivers the customers
superior value in terms of product performance.

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Facial Cleanser will leave your skin soft and smooth
and it is

100% oil and alcohol free. This advancement in

tissue technology will be notable in the category and
only offered by us.
CONCEPT DEVELOPMENT

It is important to differentiate between a product

idea and a product concept. An attractive idea must
be developed into a product concept. From these
ideas we have to create 'product concepts'. These
describe the product benefits and how they will meet
the consumer needs. Several concepts were written
in different ways. These explained and expressed
unique product attributes.

In concept development stage we have to find out

answers of following questions:
• Who are our target customers?
• What benefit is offered to them?
• When they will consume the
product?

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The Target Customers: For facial cleanser our
target market can be men and women with all skin
types normal, oily, sensitive. But we will mainly focus
on students, young executives or travelers above all
the people who are busy and who are in rush.
Primary benefits: Facial cleansing tissue has all the
elements that a face wash provides. It will be
formulated to clean your skin deeply for a healthier,
softer looking complexion. This special tissue works
hard to remove unseen dirt, oil and makeups. The
result is fresh smooth skin and fresh looks. Other
than that it is convenient to use; just wipe your face
with a tissue to remove dusts and then dispose it.
When they will use it:- it can be used anytime of
the day; either in the early morning, afternoon,
evening or even night. It can be kept conveniently in
the pocket so anytime of the day people can use this
product.

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After testing all this questions we have developed
following concepts:
Concept 1: A facial cleansing tissue which can be
conveniently kept in the pocket for the YUPPI and
travelers.
Concept 2: A facial wash for the women who wants
to take special care for their oily skin.

Concept testing;- In this step company have to

present the concept to target consumers for getting
reactions about the new product. Like if we give
some sample of new product to our target consumer
then we will easily understand about some important
factors of our new product which will help us to
identify whether the product is acceptable or not to
the consumer. We are focusing on future concept
testing. Those are:-
Communicability / believability:- It means
whether benefits are clear and believable to the
consumer. Because if the customer are not satisfy
by the benefits or they don’t have clear idea about
the benefits they will not buy the product. So if

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they buy our product frequently we will easily
recognize that they are satisfy with our given
benefits. We are introducing the facial cleansing
tissue category by offering consumers a softer,
stronger and more soothing facial cleansing tissue
that delivers the customers superior value in terms
of product performance. Eassy Facial Cleansing
Tissue will leave your skin soft and smooth and it
is 100% oil and alcohol free. This advancement in
tissue technology will be notable in the category
and only offered by us.

Need level:- In the concept testing we have to

identify whether our new product filling the
consumer need level or not. Because if it is fail to
satisfy the customers need they will avoid this
product on the other hand if it is satisfy the
customers need they will accept this product.
Human skin is exposed to various dusts and
pollutants daily. These pollutants are often
irritating to the skin and can leads to even
infection. As skin is the largest organ of human
body, proper skin maintenance is good for health.

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Facial cleansing tissue will help to minimize or
prevent skin related problems. Based on this, there
is need for cleansing product. Eassy Facial
Cleansing Tissue gently cleanse tones and
freshens your skin without drying. Removes dusts
and impurities from the face gently. It makes you
look fresh so that when you are in your office and
you have to go to a party, invitation you can gently
use it to look refreshed enough to go anywhere.

GAP LEVEL: In the GAP level we have to identify

whether other products are meeting the same
need or not. For cleaning up the face there are
other products that are also meeting the same
need.. basically people use face wash products for
cleaning up their face. These face wash are
contained in tube, plastic bottle form but they are
not user friendly as our Eassy Facial Cleansing
Tissue.

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Perceived price:- In this step we have to identify
that does the consumer are satisfied with the
product prize or not. In relationship with the
benefit provides Eassy Facial Cleansing Tissue
provides the price is reasonable. 30 tk. Per pack is
obviously cost effective. The most important thing
is that it is very convenient to use than the
facewash. So in terms of price it is offering more
value.

User target: Men and Women with all skin types

Normal, Oily, Dry, Dehydrated, Sensitive can use
this facial cleansing tissue. But we are mainly
focusing on young executives, students and
traveler’s. Because most of the time of the day
they remain outside and becomes busy. So they
don’t get much time to take care of their skin or
face. And it’s a problem for them when remaining
at office, school, colleges or universities if they
have to go to a party. Eassy facial cleansing
tissue can be conveniently packed in the pocket
and they are easy to use so they will be benefited
more by using this product. Carrying tubed or

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 bottled facewash in pocket is troublesome. So it is
the best solution for their busy routine life.
Concept is selected based on:
 Strong consumer appeal
 Who are the competitors?
 Which consumers are the best target
 Need gap level analysis
 Purchase intention
We have analyzed the concepts based on the
competitors and target market.
CONCEPT SELECTION
From the above mentioned 2 concepts we have to
find out our direct (head to head) competitors and
indirect competitors. In our country the major face
wash selling brands are LAKME, GARNIER,
L’OREAL, and POND’S. These brands will be the
head to head competitors for the concept 2 that is
the face wash. All our competitors mentioned here
are strong. That means our barriers to entry there
will be high. People specially the women are
sensitive about the skin care products and most of
them are brand loyal. So convincing them to switch
will be a very difficult choice. So we have decided

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to choose concept 1 as it is targeting a very new
market segments that is the YUPPIE. In this
segment there is no such facial cleansing tissue
available. Because our product’s main feature is
cleaning the face as well as it is simple and
convenient to use. Most of the time of the day they
remain outside and busy. So they don’t get much
time to take care of their skin or face. And it’s a
problem for them when remaining at office if they
have to go to a party from the office. Eassy facial
cleansing tissue can be conveniently packed in
the pocket and they are easy to use so they will be
benefited more by using this product. Carrying
tubed or bottled face wash in pocket is
troublesome. So it is the best solution for their
busy routine life. Again traveler’s who travels often
need this product very much. After a journey they
are in a need to be refreshed because when they
travel by train dusts impure their faces more.
Though they might take their trusting face wash on
their bag but our facial cleansing tissue’s
conveniences and effectiveness will meet their

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 need most. So they are in the need of this facial
cleanser tissue most.
So after above discussion we have decided to choose
“facial cleansing tissue for young urban executives
and traveler’s” as our product concept. Because
customer need for this product is very strong,
consumers have purchase intention and there is no
such competition.

We also went for testing various name ideas for the

product and developed different designs for the
packaging. Packaging design plays a very important
role in helping to communicate the image of the
product. Effective and ease of use needed to
communicate essentiality and convenience. For this
we have decided the name “Eassy Facial
Cleansing Tissue” as the product name. we will
position this facial cleansing tissue “anytime” due to
its conveniency.

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 MARKETING MIX STRATEGY

Our marketing strategy will be to develop brand

equity, increase customer awareness of ‘Eassy facial
cleansing tissue’ and build the customer base. The
strategy will use several different methods to
achieve these goals. Our marketing objective is :

• Increase repeat customers

• Offering quality product at moderate price
• To obtain a large market share.
• Develop brand awareness and
acceptance.

The marketing strategy stage consist of three parts.

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 PART 1

TARGET MARKET SIZE, STRUCTURE AND

BEHAVE:

Men and Women with all skin types Normal, Oily,

Dry, Dehydrated, Sensitive can use this facial
cleansing tissue. But we are mainly focusing on
young executives and travelers. Around 15% of the
population falls under this market. But they will be
profitable if they can be convinced to make repeat
purchase. To do so we have educate them about the
convenience of using this product. After that they
have to be habituated for using this product. It is
difficult to judge how many people falls under this
market. Once they buy they will be convinced about
the product and they will surely buy it.

Product positioning strategy: this is going to be

value based product for the consumers. We will
position our facial cleansing tissue quality product in
a reasonable price at anytime consumer want.

Projected sales, market share and profit goals:

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we expect that our projected sales revenue will be 3
crore after 3 years. Within three we will capture 15%
of market share. After 6 years we will capture 25% of
the market share. We hope our estimated profits will
be like this in next three years.

Particular Amount Amount

Sales (10,00,000 x 30 tk. per 30000000
unit )
(-) Cost of production 150000
(10,00,000 x15 tk. per unit) 00
(-) Employees salary 500000 20000000
0
Profit before tax 10000000
(-) 15% tax 1500000
Profit after tax 8500000

PART 2

The second part indicates the planned price,

distribution and marketing budget for 1 year.

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Planned price: we decided to follow value based
pricing for our cleansing tissue. This is because we
wanted to charge a moderate price for our target
market. We cannot go for penetration pricing as skin
care product are sensitive product. Charging lower
price means consumer might perceive lower quality.
We will charge 30 tk. per pack for our product. We
will provide 3 tissues in a pack. So in terms of price it
will provide superior value. To determine the value
we have taken into account the benefits, quality of
our product.

ADVERTISING STRATEGY: Our Company plans to

expand the new tissue technology product lines in
2009. To support the launch of the enhanced EASSY
FACIAL CLEANSING TISSUE we will roll out a point of
purchase marketing and consumer sampling
campaign to enable consumers to physically feel the
softness in the product. Elements of the campaign
include the consumer product sampling effort
samples to consumers. In addition, the campaign
will utilize TV advertising, and in-store promotions.
We are committed to driving sustainable growth of
our brand by launching new product and marketing

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innovations and we believe that enhanced Eassy
Facial Cleansing Tissue will create customer and
consumer excitement in the facial tissue category.
Our marketing efforts are designed to engage
consumers at every touch point -- in-stores, in-homes
and in-market.
We will cover our advertisement in the print media
like magazines and newspapers, billboards. We also
intend to use television commercial to advertise the
product.

DISTRIBUTION STRATEGY: It Is about the channel,

we will handle our own warehouse center and
provide our cleanser tissue to the retailer and at last
our product will go to the consumer hands. We will
start our distribution from Chittagong region. We
have to make the product as available as possible.
We have identified some renowned departmental
store in chittagong such as kamal store, Lolen, in
super store like wellmart, khulshi mart, meena
bazaar where we will provide sample of our facial
cleansing tissue as part of the promotional strategy.
We will distribute this by using our own pick up vans

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from store to store to know about the consumer
feedback. We have chosen this distribution line
because we think in this way we will be able to do
better communication with our consumer. And by
this communication we will able to know about our
products acceptability to the consumers.

PART 3
It describes the planned long run sales, profit goals
and marketing strategy.
LONG RUN SALES:
After one-year sales report it is possible to say
actually how much sales growth rate will be possible.
But we have an intention to capture 25% of market
share in 6 years.

PROFIT GOALS: Our return on investment after tax

will be 15%.

MARKETING MIX STRATEGY OVER TIME: We will

maintain our higher and improved quality and
benefits for next 3 years. Our pricing will also be the
same. But if any competition forms we will change
the pricing of the product. We will make adjustment
in our promotional activities by increasing

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advertising cost and decreasing marketing research
costs in next 3 years.

PRODUCT DEVELOPMENT

This stage involves developing the product concept

into a physical product in order to assure that the
product idea can be turned into a workable product.
From concept testing we have identified the need of
the consumers. Now we have to make a working
prototype. It will be as same as the new product. We
will make it to check the market response. If it is
succeeded then we will go for full fledged production.

MARKET TESTING

In this stage we will test the product on actual

customers. Many product launches fail, despite great
advertising. A big reason is because the product fails
to live up to the promises made.

We will conduct a product usage test. A de-branded

sample of the proposed new product will be given to

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the target consumers in retailer shops, offices. De-
branded means the facial cleansing tissue was in a
blank packet so that the consumers did not know
who made the product or what type it was. Very
often consumers form opinions about products and
services from advertising and packaging. This can
sometimes be very strong and creates a
preconception in what they think of a product before
trying it.

COMMERCIALIZATION

If we succeed in the test marketing then we will go

for commercialization of the product nationally. It
means we will introduce our Eassy facial cleansing
tissue in the market. We have to consider one thing
here and that is the right time to enter into the
market.

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Fast entry will give us fast move advantage. This can
lead to the monopoly advantage and ultimately the
advantage of being the market leader in the future.
So we decided to enter the market in next spring
season. Obviously our target market is the young
executives and travelers. In this way we will
commercialize the product.

CONCLUSION

So new product development is not an easy task. But

it is essential to maximize profit. New product
development should start with an insight based on
consumer needs.

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Being an international company, it is essential for
every company to develop new products using the
insights of consumers across markets and cultures.
This ensures the products are relevant to a large
number of global consumers and will deliver the
maximum return when launched. This maximizes
return on investment for the company and results in
happy, satisfied and loyal consumers.

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