COURSE TITLE: Principles of Marketing 2 COURSE CODE: MKT 305 SEC: 03

REPORT ON

: Marketing Statigy of a new

Submitted to: MD. Ashaduzzaman Lecturer of Principles of Marketing 2 Faculty of Business Administration Eastern University

Submitted by: Al- Mamun- Or- Rashid ID: 091200155 18 th Batch BBA Program Eastern University

Submission Date: 05.01.2012

Table of Contents
1.

Acknowledgement........................pg3 Latter of transmittal........................ pg-4 EXECUTIVE SUMMARY...................... PG-5 INTRODUCTION................... ..PG-6 New products................... .PG-6 Managing the New Product Development Process................... pG-(7-9)
Marketing Strategy Development.................PG-

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Product overview............... .PG-10

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Objective.................................................... .PG-11 Methodology............................................... .. PG-11

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Marketing mix................... . .PG-14 Conclusion................................................... .....PG-15 References.................................................. ....PG-15 Picturs.................................. ..PG-(16)

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ACKNOWLEDGEMENT

At first, I should like to express our gratitude to ALLAH for giving me the strength and opportunity to complete the report in the scheduled time. I also should also like to express our gratitude and thanks to our course instructor of C, Course Code-MKT305, MD. Ashaduzzaman and Senior Lecturer Faculty of Business Administration for his kind guidance, valuable suggestions and advices for making this report. Her suggestions and guidance have made this report in a good manner. My thanks are also parents for every kinds of support.

LETTER OF TRANSMITTAL

5TH JAN 2012 MD. Ashaduzzaman SENIOR LECTURER FACULTY OF BUSINESS ADMINISTRATION EASTERN UNIVERSITY.

Subject: Application on an overview Marketing Strategy of a new product development

Dear Sir,

I am a student of your Principles of Marketing 2 subject section three. After getting advice from you, I should made a Assignment on Marketing Strategy of a new product development. I am prepare this report through contribute different task related to my topic.

I therefore pray and hope that you would kindly grant my report and oblige thereby.

Regards

EXECUTIVE SUMMARY

Introduction

Consumers want new products with better functions and features. A new product which will be totally different in the market with features and functions that no other company has ever been able to provide consumers .Market strategy development of a new product is highly required in order to remain in a good position in the market. My new product is a mobile phone. Its Never so easy to bring a new product into the market .There are many challenges in the mobile market and that too with similar functions and features.

New Products
New-to-the-world products :Product new to the company and the market. New product lines: New products that allow a company to enter an established market for the first time. Additions to existing product lines: New products that supplement a companys established products lines (package sizes, flavors, and so on) Improvements and revisions of existing products: New products that provide improve performance or greater perceived value and replace existing product (Improvements in features and benefits of a product).

Repositionings: Existing products that are targeted to new markets or market segments (to be called a new product there must be some changes in the existing product to suit the new segments targeted). Cost reductions: New products that provide similar performance at lower cost to the company.New product development in various categories mentioned above is very important for any organization because existing products are vulnerable to changing consumer needs and tastes, new technologies, shortened product life cycles, and increased domestic and foreign competition. Organizations have to be on the lookout for new products. Factors That Contribute to Success in New Product Marketing 1. Deep understanding of the customer needs. 2. High performance to cost ratio of the product 3. Being the early entrant into the market 4. Higher contribution margin 5. Larger amount of marketing expenditure 6. Strong top management support

Managing the New Product Development Process

1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Market testing 8. Commercialization

Idea Generation A number of creative idea generating techniques can help individuals and groups generate idea. Some of them are:

Attribute listing Forced relationships Morphological analysis

Need/Problem identification Brain storming Synectics

Idea Screening The purpose of screening is to drop poor ideas as early as possible and allow only promising ideas for further stage in the new product development process. There is likelihood of two opposite types of errors occurring in this process. One, the drop error, results in dismissing a good idea. The other, the go-error, results in moving a poor idea forward. Poor ideas result in product failures. Concept Development and Testing A product concept is an elaborated version of the product idea and it is expressed in meaningful consumer terms so that consumer can visualize the product.Concept testing involves an appropriate group of target consumers giving their reactions to the concept. New Product Marketing Strategy Development After the concept is finalized, marketing strategy needs to crystallized. At this stage the marketing strategy is expressed in three parts.
I.

The first part: It describes the target market's size, structure, and behavior. Product positioning is defined. The sales size, market share and profit goals are expressed.A description of the key target. The second part: The price and distribution strategy and the required marketing budget for the first year are specified. The third part: It describes marketing-mix strategy long term sales and profit golls.

II.

III.

Business Analysis At this stage, marketing department has finalized its market understanding and converted it into sales revenues and related marketing costs. The next stage is analysis of operating costs and profit analysis. Product Development If the business analysis clears the product, actual product development work is given to the research and development department

Test Marketing or Market Testing

High investment/high-risk products, where the chance of failure is high must be market tested. The cost of the market tests will be an insignificant percentage of the total project cost. Various types of market testing are: o Standard test marketing o Simulated test marketing o Controlled test marketing

Commercialization Based on marketing, if the company decides to go for the manufacture and sale of the product, capacity decisions are to be made. The timing of the launch, the geography of the initial launch, the niche market within the target market and how to launch the product become important decisions.

Marketing Strategy Development

Marketing Strategy Development is a part of the new product development process .Decides basically of the introduction of a new product in the market .Define where we are and where we want to be? Customer satisfaction Customer perception Customer needs and expectations Generating income or profit Making satisfactory progress Be aware of the environment

Product overview

Umberto

French word, Color Of the Earth slim mobile in a range of black, silver, blue and maroon color. operated in both Bangla and English Other than the normal menu Umberto has additional features along with the normal features

Umberto Features

Slide shows of Pictures Quadruple Sims usage

 One touch to Internet Camcorder Voice changer 16 G.B. Memory Mini Microsoft Power point to prepare presentations Live sports Channel Live News Channel Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) Waterproof Objective

Broad objective : Develop the initial marketing strategy for introducing our new mobile phone named Umberto to the market Specific objective: Our basic focus is on how to achieve the broad objective in terms of Part 1, Part 2 & Part 3

Methodology

both primary and secondary the current mobile market of Bangladesh emphasized on what new additional features would make the mobile hit name of the mobile phone what it is bringing to its consumers in the mobile market budget of the mobile phone
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 price profit and expected losses

Analysis or Marketing Strategies Part 1 Target Market Generation Mobile

Phonetics

Practical Parents Smart Connected Fingers & Thumbs

Silver Cynics

o Product Positioning: more entertainment for all and less complicated to use
o o

Sales: 300 Thousand units Market Share: 30 percent share

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80 percent share o Profit Goals: thrice the loss amount as profit for the second year

Part 2

Cost Based Pricing Variable cost Fixed cost Tk 1,500 Tk 43, 50,000 8,000 78%

Expected unit sales Markup on sales

Unit cost = Tk 2,043.75 Markup Price = Tk 9,289.77 Profit = Tk 7,246.02 per unit
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 Budget = Tk 7,43,18,160 Sold at a retail price of thirty thousand taka per month at ten percent off the list price to dealers Dealers who sell sale more than 100 phones per month will get five percent off the list price to dealers Advertising budget of three lakh fifty thousand will be split between national media and local media Around one lakh and thirty thousand taka will be spent on marketing research

Part 3

Long-term Sales: capture a eight percent long-run share of the total mobile phone market and realize an after-tax on investment of ten percent Profit Goals: will start high and improve from feedbacks , more profits will be aimed by simply increasing price as demand will increase with time.

Marketing Mix

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Product: extra special features to fill the loop holes in consumers satisfactions and need Price: a sensitive issue unless the market demand is very high, will be set as per the benefits provided, access of the competition, the market, potential customers, long term sales goals, and the product characteristics, advertisement budget will be raised each year by twelve percent (12%) &marketing research will be reduced to fifty thousand taka Place: from business to consumer via retailers, channels will be local and national media, Discounts Promotion: totally based on what is going on in the media, Regular advertisements will be forecasted . Conclusion

target Market is all the stages of the generation ninety six thousand units are to be sold in the first year Loss will be faced but the losses will be gained in the second year in terms of additional profit distributed via retailers and special discounts for those who sell more than hundred units per month dealers will be charged 9289.77 Taka per mobile phone

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a profit of 7246.02 Taka per unit

The budget for the mobile phone is 7, 43, 18,160 Taka

Advertising as well as marketing research will be conducted to bring promotion of the mobile phone. aim of capturing eight percent long-run share of total market

realizes an after tax return of ten percent.

References BOOKS
Principal of Marketing (Eleventh Edition) Part III Chapter# 9 Page # 257 To 276. Website http://learnmarketing.net/product.htm http://en.wikipedia.org/wiki/New_product_development

New product Umberto mobile Phone pictures

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