Individual Assignment

Course Title : Operation Management

Course Code : MGT 517
Section : 01
Submitted To:
Farzana Akter
Faculty Member ,SBS
Southeast University
Submitted By:
Name :Md Abu Bakar Siddique
ID:2021010004025
Batch 38
Program : MBA (1 Year)
The Design of Product
There are probably as many varieties of new-product development systems as there are types of
companies, but most of them share the same basic steps or stages. They are just executed in
different ways. Below, we have divided the process into few stages, Many of the activities are
performed repeatedly throughout the process, but they become more concrete as the product idea
is refined and additional data are gathered. For example, at each stage of the process, the
product team is asking, “Is this a viable product concept?” but the answers change as the product
is refined and more market perspectives can be added to the evaluation.

➢ Concept Generation And Ideas

It’s a new product for the whole country. This product is highly healthy, halal and effective
for humans body. Major segments are basically those people who take this drink daily and
those people who take weekly and those who take less often are always there as well. So, their
basic segments are those people who take this drink regularly. The world is changing all
around us. To continue to thrive as a business over the next ten years and beyond, we must
look ahead, understand the trends and forces that will shape our business in the future and
move swiftly to prepare for what’s to come. We must get ready for tomorrow or today. It
creates a long-term destination for our business and provides us with a “Roadmap” for winning
together with our bottling partners.

➢ Preliminary Design
Market Analysis

The market analysis investigates both the internal and external business environment. It is vital
that Zing cola carefully monitor both the internal and external aspects regarding it’s business as
both the internal and external environment and their respective influences will be decisive traits
in relation to Zing’s success and survival in the soft drink industry.
 ➢ Target market

Zing Drinks commercials basically based on young generations, so, the young generation is the
target market of Coke because we want to represent Coke with the youth and energy but we also
consider about the old people they take then as a co-target market.

➢ Selecting target market

Once the situation analysis is complete, and the marketing objectives determined, attention turns
to the target market. The soft drink market is very large, and the business cannot be “all things to
all people”, so it must choose which market segments have the greatest potential. The target
market is the group of customers on whom the business focuses attention. The target market is
where ZING Cola focuses its marketing efforts as it feels this is where it will be most
productive and successful. The target market for Zing cola is very wide as it satisfies the needs
for many different consumers, ranging from the healthy diet consciousness through Diet Zing
cola to the average human through its best selling drink regular Zing cola. Most of the products
satisfy all age groups as it is proven that most people of different age groups consume the Zing
cola product. This market is relatively large and is open to both genders.
There are four broad ways which Zing Cola can segment its market:
1. Mass marketing
2. Concentrated marketing
3. Differentiated marketing
4. Niche marketing
5. The most apparent method used by Zing Cola is with no doubt the differentiated
marketing method as Zing Cola satisfy’s a range of different markets. Diet Zing cola
satisfy’s the weight consciousness regular Zing cola, the average human, Each group of
beverages satisfy a particular group of people but majority the average human.

➢ Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business
in the future and move swiftly to prepare for what’s to come. We must get ready for tomorrow
today. That’s what our 2025 Vision is all about. It creates a long-term destination for our
business and provides us with a “Roadmap” for winning together with our bottling partners.

➢ Concept screening
Product
Many Products are physical objects that you can own and take home. But the word product
means much more than just physical goods. In marketing, product also refers to services, such as
holidays or a movie, where you enjoy the benefits without owning the result of the services.
Businesses must think about products on three different levels, which are the core product, the
actual product and the augmented product. The core product is what the consumer is actually
buying and the benefits it gives. Zing Cola customers are buying a wide range of soft drinks. The
actual product is the parts and features, which deliver the core product. Consumers will buy the
Zing Cola product because of the high standards and high quality of the Zing products. The
augmented product is the extra consumer benefits and services provided to customers. Since soft
drinks are a consumable good, the augmented level is very limited. But Zing Cola do offer a
help line and complaint phone service for customers who are not satisfied with the product or
wish to give feedback on the products.

➢The feasibility Study

Promotional Strategies:
To acquire a strong position in the market, we need to give special emphasis on effective
promotional activities. In order to get the maximum market share we will have to use all four
tools of marketing promotion. Specially, advertising through mass media will support us a lot.

Advertising:
We initially will give more emphasis on paper ads and TV commercials. Because, advertising
through these media is the most effective way to reach the customers and position our product in
their mind. We are anticipating that this will have a massive impact on the teenagers and other
enthusiasts. Few neon signs and bill boards of “coconut juice” also can be set up in some core
points of the city. We hope to reach 75% of our customers through effective advertising.

Personal Selling:
Though personal selling skill is not that much effective for convenient products like “Fruit
energy drink”, we will inspire and train the sales persons of the retail stores to convince people to
buy our product when they will come to buy any drinks item. The sales persons will inform the
consumers about the cool refreshing taste of “Energy drink” and about the nutritious aspects. We
hope that will play a significant role to increase our sales.

Promotional Tools:
We have also planned to apply some promotional tools. Initially for sometimes we will distribute
our product at 50% discount just make our new product familiar with the customers. This will be
the market-testing period for our product. Later, we may apply the strategy of giving gifts, lucky
coupons, tour tickets depending on the market and competitive situations.

➢ Pricing Strategies
We have decided to set a reasonable price for our product when we will develop it. We
considered many factors in setting the pricing policy. We will describe a six-step procedure:
Setting the pricing objectives:
Our company has decided where it wants to position its market offering. We have chosen our
objective to maximize market share. We believe that a higher sales volume will lead to lower
unit costs and higher long-run profit. We have set the lower price because we assume that the
market is price sensitive. Our overall objective is to capture the maximum market share by
setting lower price.

➢ The acceptability
Determining Demand:
Each price will lead to different level of demand and therefore have a different impact on
company’s marketing objectives.
Estimating costs:
We have estimated the cost and want to charge a price that covers the cost of production,
distribution and selling the product, including a fair return for its effort and risk.

Types of cost and level of production:

There are two types of cost: a) fixed and b) variable. In our new product development project
fixed cost is 2, 00, 00,000 taka. Fixed cost includes- machinery, monthly bills, and salaries of
employees and so on, regardless of output.

There are some variable costs like-cost of bottle, packaging and so on. These costs tend to be
constant per unit production. We have estimated that per unit variable cost is Tk. 6.3 for 250 ml,
Tk. 12.6 for 500 ml and Tk. 24.4 for 1 liter.

Analyzing competitor’s costs, prices and offer:

We have analyzed our competitors’ price and found that Pran charges tk.10 for 250 ml bottle,
Starship charges tk. 12 for 250 ml Pac.

Selecting a pricing method:

We have chosen the target costing method to set price for our product; pricing that starts with an
ideal selling price based on customer considerations, then target cost will ensure that the price is
met.

➢ Prototype and final design

Branding
It is often hard to say exactly why we buy one company’s product over another. Companies such
as Nike and Adidas spend large amounts of money trying to win consumers away from their
competitors who make products that are very similar. The popularity of the brand is often the
deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting
their brand name, resulting in world wide recognition. ‘Coca-Cola’ is the most recognized
trademark, recognized by 94% of the world’s population and is the most widely recognized word
after “OK”. Coca Cola’s red and white colour and special writing are all examples of world-
wide trademarks.
So the Zing cola try the same things which coca cola do .actually every soft Drinks companies
do the same things ,, but the things the business do that same things in the different way. There
are a number of branding strategies: Generic brand strategy, Individual brand strategy, Family
brand strategy, Manufacturer’s brand strategy, Private brand strategy and Hybrid brand strategy.
Zing Cola utilizes the Individual brand strategy as zing Cola’s major products are given our own
brand names e.g Fruit , Water lemon, Zing Cola etc although its maybe presented as different
lines it operate under the name of Zing Cola

Packaging
Packaging, which is not as highly perceived by businesses, is still an important factor to examine
in the marketing mix. Packaging protects the product during transportation, while it sits in the
shelf and during use by consumers, it promotes the product and distinguishes it from the
competition. Packaging can allow the business to design promotional schemes, which can
generate extra revenue and advertisements. Zing Cola has benefited from packaging the product
with incentives and endorsements on the labeling as a promotional strategy to increase it’s
volume of sales and revenue.