New product development report Marketing (perfume)

new product development in marketing
Perfume
Fragrance industry
promotion of product
launching of product
new product launching report
idea generation
idea screening
commercialization
advertisements
marketing mix

2.  Name of the Company:

RACE

 Group Members:

1. Muhammad Usman (16-Arid-767)
2. H. Irfan Akram (16-Arid-)
3. Muhammad Faizan (16-Arid-)
4. Umair Ijaz (16-Arid-812)

 Class:
BSCS-4 ©

 Name of the Instructor:

Sir Ali Haider
 University:

PMAS Arid Agriculture University, Rawalpindi

3. Table of Contents:
 Executive Summary

 Situation Analysis


 SWOT
 Idea Generation
 Screening and Evaluating Ideas
 Business Analysis
 Development
 Test Marketing

 Marketing Goals and Objectives

 Marketing Strategies


 Identification of Target Market
 Commercialization
 Product
 Price
 Place
 Promotion
 Advertisement

 Sales Promotion


 Implementation

 Evaluation and Control

4. 1.1 Executive Summary:
This report explains the marketing plan of new products as fresh perfumes by
the Race Company. These products have been made by the Race Company of Fragrances. In the
very beginning of the report I explained the vision and mission statement of the company and I
have further carried out. It will be introduced in the market with the help of various
promotional displays and advertisement and distribution of the samples to the general public.
The research study includes both primary and secondary research. Primary
research (field research) involves gathering new data that has not been collected before. For
example, surveys using questionnaires or interviews with groups of people in a focus
group. Secondary research (desk research) involves gathering existing data that has already
been produced. The primary study focus on survey of the competitors and the liking and
disliking of people.
For this purpose we have conducted SWOT analysis of the company to see company’s
strengths, weaknesses, opportunities and threats. Then we have explained the purposes,
benefits, and objectives of the product. Then we have made the marketing mix strategy of my
product.
We gladly present you our report on marketing plan. We have prepared the report on the
marketing plan of our new product. This report is prepared on the basis
of both primary and secondary data. Primary data was collected by our group members and
secondary data was collected from useful websites. Although the main purpose of the report is
to describe the whole process of developing and promoting our product in marketing area. We
are to launch our two products. For this, we have marketing and product strategy and created
effective plan and marketing strategy to promote
the product with selling. We have set a reasonable price for the product so that all kinds of
people can afford to buy the product. We would gain a competitive
advantage, as this is a first hit in the market. Since this is a perfume, once the product is well
promoted, we hope that this product will be sold well. We will promote our product through
electronic media, cable, and outdoor sources. I have also conducted customer feedback survey
to know the opinion of public about my product. So that we can develop it accordingly.

5. 1.2 Situation Analysis:
Introduction
Mission statement:
“Be the leader in the customer value.”
Vision statement:
To be a company which optimally combines its people, technology, management systems and
market opportunities to achieve profitable growth while providing fair returns to its investors.
1.3 Industry in which the business lies:
Our product lies in the fragrance industry of Pakistan.
1.2.1 SWOT
Strengths:
o Available input materials
o Low production cost
o Technological and marketing knowledge
o Easy manufacturing process
o Reasonable price
o Quality product
o Specialists available for specialized jobs and tasks

Weaknesses:
o New in fragrance industry
o Small distribution network
o Strong competitor
o No market share
o Limited experience of customers

Opportunities:
o High demand

6. o Increase the distribution network
o Acquiring the newer technology and techniques
o Market is very big and attractive
o Satisfy customers need

Threats:
o Entrance of new product
o Uncertainty of launching a new product.
o Political instability
o New entrance from the competitors
o So many competitors
o Retaining consumers
o Economic instability
o Increase of general sales tax
1.2.2 Idea Generation:
Idea generation is creative process of generating ideas. Our sources of information to
generate ideas are: Social Media, Business Ideas on internet and many useful websites.
Perfume analysis shows that customer needs perfume and it has been used by consumers
throughout centuries.
1.2.3 Screening and Evaluating Ideas:
Idea screening is the process of evaluating ideas to drop as many ideas as possible from
consideration. It is common for creative processes to begin with the optimistic and open
generation of ideas. Idea screening is a complimentary process that takes a pessimistic view of
ideas. These factors should be considered:
o Most prominently identified customer needs
o Product improvements most needed
o The benefits to your target market
o The technical feasibility of the idea
o The level and scope of research and development required
o The profitability of the idea. What is its potential appeal to the market? How would you
price it? What are the costs in bringing it to market - overall and per unit?
o Where the product fits in the market. Is there a gap? How close is it to competitor
products?

7. o The resources it will require in development
o The marketing potential of the idea
o The fit with your business profile and business objectives

1.2.4 Business Analysis:
Our product BLU WATER will definitely meet customer needs. We have included
natural ingredients along with few artificial smells. Now a days customer has become addicted
to fragrances. They use it on every special occasions along with daily routine.
This product is the logical addition to the company as our company represents
fragrance industry. We are happy to launch new product in our portfolio.
Initially we are developing, producing and marketing our product domestically. After
a few success we will go on to acquire new technical ways for the marketing of our product.
1.2.5 Development:
Ingredients:
o Vodka (the higher percentage alcohol )
o Essential oils
o Fragrance oils
o Distilled or spring water
o Citral
o Geraniol
Other stuff:
o Pretty glass bottles to put the finished product in, preferably coloured glass, reuse
bottles.
o Glass jar for mixing fragrance in
o Measuring cup/spoons
o A dropper if you have one
o Funnel
Packaging:

8. We used glass bottles for the packaging of perfume. Along with we have also used
colorful stickers of our product and a company logo. We believe that our outlook as attract
all type of customers as it is more attractive.
Brand Name:
Our product have the same brand name as of our company name. Our company
name is our brand name for all products in the markets.


1.2.6 Test Marketing
Test marketing is an experiment conducted in a field laboratory (the test market)
comprising of actual stores and real-life buying situations, without the buyers knowing they are
participating in an evaluation exercise. It simulates the eventual market-mix to ascertain
consumer reaction.
Our product will be tested under special group of people that is teenagers. We know
they follow the new daily style trends and happenings all around the globe. So they are best
suitable for our perfume product to test.

1.3 Marketing Goals and Objectives:
Objectives:
Following are some of the objectives of the company;
o To increase the 25% market share
o To increase the length of product line
o To increase profits
o To face strong competitors
o To increase company sales by 25 percent
Goals:

o To become leading luxury brand in the perfume market
o To provide customers with full satisfaction

9. 1.4 Marketing Strategies:

1.4.1 Identification of the target market:
o Age group: 18 to 60 years
o Gender: Male and female
o Class: Middle, upper middle and upper class
Primary Market:
Our primary market is upper middle class people which lives in luxury
houses and are economically strong enough. They are also the consumers of perfume market.
So our primary market includes mainly the consumers of perfume industry in all over Pakistan.

Secondary Market:
In secondary market we are interested in lower class people by decreasing
the price of our product that could be affordable by the people.

1.5 Commercialization:
1.5.1 Product:

Blu Water is a product by Race Company Ltd. It has qualities:
o High quality availability
o Large range of flavors
o Standardized and attractive packing
o Large promotion and market coverage
o Available in various weights packing

1.5.2 Price:

Minimum price of perfume start from 200.

1.5.3 Place:

Places to launch our product are all the big cities of Pakistan; Islamabad, Lahore, Karachi,
Peshawar and Faisalabad.
1.5.4 Promotion:
We promote our product through
o Electronic media
o Print media
o FM radio
o Sales promotion

10. Sales promotion:
We believe there are some areas that company can look upon when going for sales promotion.
 The company can make short term incentive to increase sales. This can be done through
sweepstakes that include lucky draws. Sweepstakes are used in marketing promotions
to reward existing consumers and to draw attention to a product. Moreover, the prize
cannot be a car for example. This is because you need to be realistic. Consumers are
also well aware of the marketing dynamics and you cannot just fool them by selling
them a Rupee 200 item of perfume and in return giving them a car.
 The company can also do contests. The difference between sweepstakes and contests is
that sweepstakes are games of chance whereby contests are games of skill. Hence Race
can conduct a small show where they gather teenagers of age 15-20 and arrange a
performance contest. This way they will participate as well as get to know about the
brand. In this, whoever delivers the best performance will be awarded with Blu water
product.
Personal Selling:
The perfume can be promoted through personal selling and promotion. Following are
the some key points through which we can increase the demand of Race’s Blu Water in
market :
1- Town to town for advertisement:
Vehicles are often used for advertisement hence if we use colorful animated vehicles or
vans which can attract teens.
2- Legacy card:
Legacy card is a new idea. Lets say I am the sales person and I bring the perfume at your
door and ask what memory does the perfume back to you from childhood?

11. You can obviously tell me at least one memory .
Yes! Guess what it is back with a better fragrance. You shall give it a try.
Tried, you can have some to gifts for your friends or siblings or cousins as well.
3- Stalls in malls on different events:
We can also sell our product through open the stalls on different occasions in malls.
Company uses sales promotions to attract new customers. RACE sales promotions
especially during holidays or events in which a lot of perfume is expected to be sold such
as Eid ,get togethers, school parties.
4- Through different surveys:
Through different surveys we correct our errors for example in surveys we can ask
different question from customers about our product like:
 Do you think Blu Water perfume is easily available in market?
 Do you think this product is available at affordable price?
 What do you feel when you use our product?
Through these types of question we can know and correct our flaws.
ADVERTISEMENT:

o Direct Mail
o Online advertisement
o Social Media
o Youtube Channel

12. Facebook Posts

14. Implementation:
o We will launch our product in all the big cities of Pakistan through different
distribution channels.
o Our distributors will be responsible for getting it off the ground.
o Once we got the familiarity by product then we will hire sponsorships.
o For building relationships with the consumers we have our facebook page and
a complaint cell to listen complaints of the consumers. And finally we will work
on our flaws.

References:
o www.scribed.com
o http://www.instructables.com
o https://simplicable.com
o https://www.business.qld.gov.au
o https://www.businesswire.com
o https://www.imarcgroup.com
o www.slideshare.com