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Acknowledgement :
First of all,
Objectives
The main purpose of this report is to know about the process of new product development
and other purpose with related this process.
However, the objectives of this assignment can be summarized in the following:
 To understand core concept of new product development and marketing.
 To understand critical success factor of new product(why product fail and other flourish)
from a management and from a customer perspective.
 To understand key issue in positioning new product in the marketplace.
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 To enhance cooperation between R & D and marketing in the NPD process.
 To understand how and when firm can benefit from use-centered innovation.
 To understand basic of branding.
 To understand basic principles of marketing communication and advertising in particular.
 Hand-on skill through working on a real life new product development project.
 Get experience
 Innovative idea implementation
 To properly realize marketing Process
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Limitations
 In Market, the ingredient of this oil is not enough available.
 Hindrance in packaging, as we have no machine for making bottles or pack.
 Unavailability of perfume in market to make it more attractive fragnance
 We have no machine to make this mixure automatically .
 Not having enough Sodium benzoate for preservation.
 Taking Customer feedback is not easy.
 Customers are unwilling to use it as they think it may have side affect.
 There are various companies oil in this market and they dominate market.
 Difficulties in Break-Even Analysis.
 Price making problems.
 Many companies dominating market in cheap rate product, it is totally a big Challenge to
us.
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Table of Content
SL.No.
Topics
Page No.
1
Introduction
7
2
Idea Generation
 Internal idea sources
 External sources
8
Idea Screening
 Why Ginger Oil
 Health Benefits of carrot juice
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3
4
5
6
7
Concept Development & Testing
 Concept development
 Concept testing
Marketing Strategy Development
 Target market
 Planned value proposition
 Estimate Sales
 Profit Goals
 Planned price
 Distribution:
 Marketing budget
 Profit goals:
 Planned long run sales
 Marketing mix strategy
Business Analysis
 Break Even Analysis
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15
Product Development
 How to Make?
8
10
Test Marketing




Pricing:
Distribution:
Advertising
Positioning
16
17
7
 Targeting strategy
 Branding and packaging
 Budget level
9
Commercialization
18
10
Conclusion
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Introduction
New product development is the development of original product, product improvements, product
modifications, and new brands through the firm’s own product development efforts. New products
are important to both customers and the marketers who serve them. For companies, new products
are a key source of growth. For customers, they bring new solution and variety to their lives. Yet
innovation can be very expensive and very risky. To create successful new products a company
must understand its consumers, markets, and competitors and develop products which deliver
superior value to customers. Evaluation of present market and consumers perception, we innovate
a new product for serving consumers new expectation. Following various steps, our introducing
new product Ginger Oil .
Idea Generation
Idea generation is a creative process. Business use to generate new idea whether they are tangible
or intangible. It involves gathering ideas, research, testing, editing implementing the plan.
Actually idea generation means the concept of new product. We want to bring a new product into
the market. That’s why we gather many ideas about new product from some sources including
internal and external source.
Internal source: Using internal source we find new idea through formal research and
development. We also get some ideas from our group member about new product. And those
ideas are given below –
1.
2.
3.
4.
5.
Shampoo.
Ginger oil.
Mineral water.
Lemon juice
Dry Food
External source: we Obtain some good ideas through internet, marketing agencies,
publication and journal, exhibition, universities, private institutions and commercial
laboratories. And the ideas are
1. Onion oil.
2. Diet soft drinks.
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Idea Screening
Idea screening is a process that evaluates and contrasts new product ideas to get the most
promising ones for your business. Not every idea is relevant to your company. Most companies
have a idea committee . this committee studies all the ideas very carefully and they select the
good ideas and reject the bad ideas . product development costs rise greatly in later stages ,so the
company wants to go ahead with the product ideas that will turn into profitable products .
From our all internal and external sources of ideas we decided that Ginger oil is profitable for
us , because of nutritional benefits , easy production process , available raw materials, need small
capital , quick market positioning in comparison with others .
Ginger Oil Nutrition Facts:
Ginger oil is one of the ancient and traditional ingredients for medicinal importance. The ginger
root oil benefits is not only limited to the health but also aims for the skin and hair. Ginger oil for
the face helps in reducing scars, blemishes, and acne problems.
Ginger oil is still used as one of the major ingredients in many Chinese as well as Indian
medicines. 1 tablespoon of fresh ginger oil contains:





4.8 calories
1.07 g of carbohydrates
0.12 g of dietary fibers
0.11 g of protein
0.05 g of fat
Benefits of Ginger for Hair Growth
1. Increases Scalp Circulation
Nutrients that help promote hair growth are delivered to hair follicles via a tightly woven system
of blood vessels in the scalp. Improving circulation to the scalp helps ensure that hair follicles
have an adequate blood supply for healthy hair growth. Ginger has long been believed to
increase circulation, and its warming properties invigorate the scalp and stimulate blood flow,
which in turn can improve hair follicles’ function and hair growth.
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2. Helps Combat Free Radicals
Ginger contains a powerful antioxidant called gingerol. Antioxidants like gingerol neutralize
free radicals that cause damage to hair follicles and strands, slowing hair growth and causing
breakage .
3. Fights Dandruff
Ginger has natural antiseptic and anti-inflammatory properties that can help soothe scalp
conditions like dandruff. Dandruff can cause itchiness. And scratching the scalp can cause
damage to hair cuticles, leading to breakage.
Add a few drops of ginger essential oil to your favorite shampoo for its anti-dandruff benefits.
4. Reduces Inflammation
Ginger root can be used to treat the types of scalp inflammation that cause hair loss.
5. Nourishes Hair
Ginger is loaded with hair-healthy vitamins and minerals, including magnesium, potassium, and
phosphorous. Ginger also contains fatty acids, which can improve hair’s sheen. Moisturize hair
with a ginger hair mask to allow strands to absorb ginger’s benefits.
One marketing expert proposes an R-W-W (real,win,worth it) for new product screening
framework that asks three questions.



Is it real?
Can we win?
Is it worth doing?
Yes, Ginger hair oi is a real product at present market situation.We hope we will win because of
our product potentiality or advantage that we included above.We hope it is possible for ginger
hair oil to capture the market, seek the potential profit and probable growth successfully.
Situation Analysis:
A situational analysis of a product is often called the foundation of a marketing plan. A situation analysis
includes a thorough examination of internal and external factors affecting the product.It creates an
overview of the product that will lead to a better understanding of the factors that influencing it's future.
Our company is going to launch Ginger Hair Oil in Bangldesh's market. We hope that Ginger Hair Oil
will receive a great markat acceptance of the customer and will make success in the market.
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Market analysis:
Ginger Hair Oil has sufficient natural ingredient which is added on the oil based on market and
customer's need,, want and demands.It will help us to offer the right product to right
customer.This oil will meet the customer's satisfaction because this oil will help to remove
dandruff and helps to grow new hair.Also,we have some important Information about customers
which helps us to make them delight largely.
Market demographic :
The profile of Ginger Hair Oil customer consists of the following geographic,demographic and
behavior factor.
Geographic :
First of all, we have some target area where we will sell the Ginger Hair Oil.
We serve our new Product in domestic market.
Demographic:
Any types of or people of all ages can use our product.Basically,, our product is for those types
of people who are greatly facing hair falls,dandruff problem etc.
Behavior Factor :
Consumer wants Product which is available in any where at any time.
Market needs :
Consumer wants that types of oil which are full of nutrition and make their hair shiny and
softer.
High quality :
Ginger rich in minerals and essentials oils, it makes hair more manageable, softer and shiny.
Besides, ginger is a useful remedy for dandruff and dry hair.
Reasonable prices :
Consumer needs a high quality of product at reasonable price. That,s why we will introduce
our product at a reasonble price so that all types of buyer can afford it.
Product availability:
Consumer wants that types of product which are available in local market,, which they can
easily buy.
Market Trends:
Ginger hair oil is a type of oil which is made totally natural ingredient which fulfills a better
quality in a reasonable price. Now,, oil production company is increasing day by day and
more competitors are coming in the market and also customers are more aware about the
product for that reasons they want different types of product.Thus, we make segments for our
product to sustain the market with strong competition.
Market Growth:
Gradually our Ginger Hair Oil is going upward with a strong competition. we hope that our
domestic market growth statistics is increasing day by day.
SWOT Analysis :
SWOT is basically the acronym for; Strengths, Weaknesses, Opportunities, and Threats. It is
a very effective tool used in the business industry to form strategies. We synthesize the data
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from internal factors to find out our strengths and weaknesses. We also use the external
factors to identify the threats and opportunities. SWOT analysis in marketing is almost the
same thing as a normal SWOT analysis. In this case, we do the analysis to form marketing
strategies. SWOT analysis in marketing will help us to decide which marketing strategy we
should use to get the best result for our business. The strategy will help us to capitalize on the
opportunities using all the strengths. It will also help to avoid the threats and minimize the
weaknesses.
Strengths:
We will get market acceptance easily because we are the first company who have introduced
this type of oil in the market even today.
b. Availability of raw materials.
c. Our products will have a beautiful design and durable it will be the favorable oil for all
types of people.
d. Important competitive capabilities in order to its test.
e. we have customer service distributed all over the country.
f. we have made the oil with natural ingredient. This oil is a perfect combination fresh
coconut oil,ginger,methi, aloe vera.
Weakness:
a. The Ginger hair oil is a new product in market.
Opportunities:
a. Our product’s nutrient, determined price should be comfortable for all classes’ people.
b. A product for all classes of people.
c. Easy distribution through own distributors.
d. We would get fast feedback from the customer's because we are the first company which
have introduced Ginger Hair Oil
e. We can sustain in the market fir a long with competiton.
Threats:
a. We can lose the market.
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b.Distributer will create problem in distribution process.
c. Other company’s new techniques.
d. Changes in consumer choices.
e. Uncertain domestic economic condition.
Competitive Environment:
The competitive environment, also known as the market structure, is the dynamic system in
which one business competes. The state of the system as a whole limits the flexibility of one
business. World economic conditions, for example, might increase the prices of raw
materials, forcing companies that supply in industry to charge more, raising overhead costs.
At the other end of the scale, local events, such as regional labor shortages or natural
disasters, also affect the competitive environment.
Competitor Analysis:
The Company is confronted by aggressive competition in all areas of its business.
Nowadays oil market in our country for the consumer is highly competitive. This market is
characterized by nutrition and variety of natural ingredient advances as new products with
competitive price, feature, and performance characteristics. Over the past several years, price
competitions in these markets have been particularly intense. The Company’s competitors
who sell oil based on their own feature have aggressively cut prices and lowered their
product margins to gain or maintain market share. The Company’s results of operations and
financial condition can be adversely affected by these and other industry-wide downward
pressures on gross margins. The principal competitive factors include price, relative
price/performance, product quality and reliability, design innovation, availability, product
features, marketing and distribution capability, service and support, and corporate
reputation.
The Company believes it currently retains a competitive advantage from innovation and by
more effectively integrating the entire solution including the hardware, software and
distribution of content. Some of current and potential competitors have substantial resources
and may be able to provide such products and services at little or no profit or even at a loss to
compete with the Company’s offerings. The Company attempts to mitigate these potential
risks by working closely with these and other key suppliers on product introduction plans,
strategic inventories, coordinated product introductions, and internal and external
manufacturing schedules and levels.
Our competitors are very strong and dynamic in this kind of market. But we will compete in
the market by the Ginger Hair Oil as we are the leader in this field. The oil market now is
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stable and recovered from the financial crisis, and already we are targeting a high level of
customers. Our Main competitor areParachute
Jui coconut oil
Emami 7 oils in 1
Technology:
Technological innovation also affects the competitive environment, hindering those who
don’t adapt. Technology in develping our product will be more affective for our product to
exist in competitive market. And we are working on it
Marketing strategy development:
Marketing strategy development designing an initial marketing strategy for introducting our
ginger hair Oil to the market.
The marketing strategy statement consists of three parts. The first part described the target
market, the planned value proposition and profit goals for three five years.
Target market:our target customers are Young boys and girls. Hair stylies person. Middle class
family...
Planned value proposition :we desire our oil is helpful to remove the dandruff. Strong and
shining the hair.
Estimate sales: Our estimate sale for the first 12months is to 3000 units of 200ml cup at Tk
100 tk with profit.
Profit goals :During 1st year we are trying to stay in Break-even point. We doesn’t want large
profit in 1st year. Our first profit goal is tk 90000 to 100000 tk
The second part of the marketing strategy statement outlines the products planned price,
distribution and Marketing budget for the first year.
Planned price: we consider the middle class families and our target customers to plan the price.
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Distribution :During the first year we offer the retailer to encourage launch our product in
market. then we distribute our product by salesman, local store, department store and others
ways.
Marketing budget : For the first year our marketing budget must be high because it is new
product in market. Our Marketing budget for first year is tk. 200000 tk .we will try to reach our
target customers the information of our product.
The third part of marketing strategy statement described the planned long run sales, profit goals,
and marketing mix strategy.
Planned long run sales: we believe our product capture a 10% long run of total market in
Bangladesh. We also hope it will capturer 30% market share after 7-10year.thus we increase our
sales volumes.
Marketing mix strategy : We have take some strategy because the marketing environment is
changeable. Demography, political situation, Technology, Environment changeable. If we have
more marketing strategy we will cope with any situation.
Business Analysis
We decided on our product concept and marketing strategy, it can evaluate the business
attractiveness of the proposal. Business analysis involves the review of the sales, Costs and
profit projections for a new product to find out whether they satisfy the company’s objectives. If
they do, the product can move to the product development stage.
Cost Plus Pricing :
Fixed Cost
= 2000000
Variable Cost =500000
Total cost = 2500000
Unit cost= (variable Cost + Fixed Cost)/ Unit sale
=(500000+2000000) / 30000
=2500000 / 30000
= 83.33
We want to earn 10 percent markup on sales in 1st year.
Markup Price = Unit cost / (1- Desire return on Sale)
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= 83.33 / (1-.10)
= 92.59
We can price it per pack 90 tk
Profit will be pack 6 tk.
Break Even Analysis:
We also hope our product pack will sell 30000 unit and it will sell tk 83 per its
fixed cost is 500000 and variable cost 200000 . This statement said that our break
even volume for product
= fixed cost / ( price – variable cost)
=500000 / (90-83)
=500000/ 7 =71428 unit
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Product Development
For new products concepts the product may have existed only as a word description, a drawing
or perhaps a crude mock up. If the product concept passes the business test it moves into a
product development. Our research and development develops the product concept into a
physical product. The product development stage calls for a large jump in investment. It will it
will show weather the product idea can be turned into a workable product. Now we show how to
make a product concept into a physical product.
How to make ginger hair oil
Ginger hair oil is the simplest hair oil that it is made with Ginger , fresh coconut oil , aloe vera
gel , fenugreek seed , mint paste , vitamin E .
This oil is made into 2 stages .
1st stage
1. First we have to take proper amount of ginger .
2. Then take some fresh coconut oil
3. Remove the aloe vera gel from aloe vera
4. Take 1 tablespoon of fenugreek seed
5. Take mint leaves to make a fine paste
6. Take 1 table spoon of vitamin E
2nd stage
1.
2.
3.
4.
Take a pan and pour all the ingredients together
Boil them minimum 15 – 20 minutes
Let the oil cold
Then pour the oil into the bottle .
Concept Development & Testing
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Test Marketing :
If the product passes concepts and product tests, the next step is test marketing, the stage at which
the product and marketing programs are introduced into realistic market settings. Test marketing
gives the marketer experience with marketing the product before going to the great expense of full
introduction. It lets the company test the product and its entire marketing program, targeting and
positioning strategy, advertising, distribution, Pricing, branding and packaging and budget level.
 Targeting strategy: Targeting means select a target market from various market segments
for our product. Our country in mainly weather sustain dry season. As a result ,people of
different ages faces many hair problem such as :-Hair fall, Dandruffs etc. Naturally our
countries woman more concise about it. So we target them.
 Positioning: Positioning means set our products to the consumer’s mind. Using product
differentiation, we are positioning the high Quality Rampage Ginger Hair Oil as the most
versatile, convenient. Our marketing will focus on the quality product with low price &
highly distribution.
 Advertising: Rampage Ginger Hair Oil is a new product at present market situation that’s
why we use heavy promotional tools for it. We promote our product through newspaper,
radio, television, banner, and posturing.
 Distribution: Rampage Ginger Hair Oil is a consumer and low price product that’s why
we use intensive distribution for our product. Our distribution goal is too available the
product everywhere..
 Branding and packaging: Our brand name is Rampage .We form our brand based on our
7 members. We hope this brand name attract our target market. We packaged our product
in initially 100 ml pack.
 Pricing: Our raw material cost is low for that we use penetration pricing strategy. We also
follow penetration (Age and Sex) pricing for attract large number of buyers and a large
market share.
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Commercialization
Commercialization is the process of introducing a new product into the commerce
making it available on the market. Test marketing gives us the information need to make
a final decision about whether to launch the product. Commercialization is the vast
process. This stage face high cost. So in this step we introducing our Ginger oil into the
market. We mainly focused on product quality with low price, sales promoting, high
distribution and other marketing efforts for the first year .
This stage consider some stages:
1. When to launch: We want to launch our Ginger oil first decide
introducing time February 11, 2019.
2. Where to launch: At first we decided to launch our product in Camilla
region and some near by places. After achieving our first year goal we
will launch our product each and every place of our country.
Conclusion
RAMPAGE GINGEGR OIL – is most useful hair treatment which have no side affect as we are
using all natural element . We are using Aloe vera ,Mehadi, Coconut Oil, Vitamin E, Ginger Oil
as Ingredient . This ingredient haven’t any side affect . Aloe vera help to make hair silky and
dandruff free also provide vitamins A (beta-carotene), C and E, which are antioxidants. It also
contains vitamin B12, folic acid, and choline. Ginger help to new hair growth and it contains
Ginger root nutritional content includes vitamins B and C. So, we can say that it is full hair
treatment pack. We had various idea to develop a new product. When we were screening level
we choose this product .After other formalities we came to know our project will profitable. We
are determine that our product will lead our country market with in 10 years . It will received
public acceptance and we believe that we will reach our goal.