Assignment

On

New Product
Development

Prepared By :

Arshia Iqbal

MBA 3.5 (2018)

 EP18104006

Table of Content

 Introduction

 Product

 Idea Generation

 Screening of New Ideas

 Concept Development and Testing

 Marketing Strategy

 Business Analysis

 Product Development

 Product Testing

 Commercialization
Introduction:

Consumer goods are products purchased for consumption by the average

consumer. They are divided into three different categories: durable, nondurable
goods, and services. Durable goods have a shelf life of three years or more while
nondurable goods have a shelf life of less than one year. Fast-moving consumer
goods are the largest segment of consumer goods. They fall into the nondurable
category, as they are consumed immediately and have a short shelf life.
Nearly everyone in the world uses fast-moving consumer goods (FMCG) every
day. They are the small-scale consumer purchases we make at the produce
stand, grocery store, supermarket, and warehouse outlet. Examples include
milk, gum, fruit and vegetables, toilet paper, soda, beer, and over-the-counter
drugs like aspirin.
As mentioned above, fast-moving consumer goods are nondurable goods, or
goods that have a short lifespan, and are consumed at a rapid or fast pace.
FMCGs can be divided into several different categories including:
Processed foods: Cheese products, cereals, and boxed pasta
Prepared meals: Ready-to-eat meals
Beverages: Bottled water, energy drinks, and juices
Baked goods: Cookies, croissants, and bagels
Fresh, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots,
and raisins and nuts
Medicines: Aspirin, pain relievers, and other medication that can be purchased
without a prescription
Cleaning products: Baking soda, oven cleaner, and window and glass cleaner
Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap
Office supplies: Pens, pencils, and markers

The COVID-19 pandemic has further complicated the development of consumer

products. Consumer beliefs and preferences will continue to evolve rapidly,
forcing companies to redouble their efforts to embed the voice of the consumer
throughout the product-development process. As Steve Jobs famously noted,
“You can’t just ask customers what they want and then try to give that to them.
By the time you get it built, they’ll want something new.”
In addition, companies must continue to prioritize innovation even as the
pandemic puts pressure on budgets. Such investments can bring significant
benefits, analysis has found companies that invest in innovation during a crisis
outperform the competition on market capitalization by 10 percent , investing in
innovation after a crisis gives them a 30 percent advantage.
Product :

People today are becoming increasingly well-informed in matters of a healthy

lifestyle. Awareness is seen to grow regarding the importance of the impact that
our daily routine has on our bodies. It is now time to funnel that awareness
towards a cause that directly affects millions every year

The significance of the well-being of our bones needs no elaboration – providing

structure, protecting organs, and anchoring muscles are a few of the many
functions that bones perform. In order to come true to these functions,
however, our bones require from us a balanced healthy lifestyle and optimal
nutrition. Along with some other contributing factors, lack of proper nutrition
may lead to the unfortunate development of Osteoporosis.

This is a disease that causes bones to become weak, fragile and brittle if calcium
is not built up at the right age, or not replenished in the right dose. This
development may be followed by side-effects such as chronic back pain,
curvature of the spine, difficulties in breathing and digestion, and fractured
bones. It is quite regrettable that Osteoporosis is one of the most vastly under-
diagnosed and under-treated diseases. This disease can easily go unnoticed and
un addressed as there are no visible symptoms until the eventual bone fracture.

The importance of bone health is all too often underestimated by patients. In

order to counter the effects of Osteoporosis, our bodies require a healthy
balanced diet enriched with milk proteins, calcium, and Vitamin D. Nearly half
our bone mass is formed during our adolescence, and it is vital that we receive
the dietary nutrients required.

Nestlé Nesvita is a low fat milk that contains these very nutrients to help you
maintain healthy bones, muscles, and joints. In fact, 2 glasses of Nestlé Nesvita
contain 64% of your daily calcium requirement and 60% of your daily Vitamin D
requirement improving bone density. Such appropriate nutrition and timely
treatment may help eliminate the risks of Osteoporosis in your later years.

Nestlé Nesvita is a major ambassador for a lifestyle enriched with energy, an

ideal balance of nutrients, and the empowerment of their customers to secure a
healthy and happy future
Flavor plays a crucial role in food and is the most important aspect of milk. Milk
has a pleasant smell and milk flavor can be used in several products. However,
how to recreate milk flavor has rarely been reported. Therefore, the creation of
milk flavor is of great interest. This study focused on the creation and imitation
of milk flavor. The approach to flavor creation involves identifying the attributes
of the flavor and developing an impactful, authentic flavor. Accordingly, to
create a milk flavor, the notes of milk flavour were identified by smelling and
tasting milk. Based on the identified notes, aroma ingredients were selected to
blend into a milk-flavor.

The results showed that the milk flavor has the following notes: milky, acidic,
vanilla-like, caramel-like, aldehydic, fruity, beany, buttery etc. Based on the
developed formula, a harmonious flavor with typical characteristics of milk was
obtained by blending the selected aroma ingredients.

The flavored milk market is as dynamic as the rest of the overall beverage
business. The overarching trends of less sugar, simple labels, higher protein,
nutrient density and ingredients from sustainable sources can all be addressed
by flavored milk products.

With advancements in clean-label ingredients for coloring, flavoring, sweetening

and stabilizing nutrient-dense milk, there’s opportunity for processors to offer
more innovative flavored milks to compete in the beverage business.

Idea Generation :

This is the first step to generate ideas for our product development. In the
very beginning we need to talk to customers, listen to their feedback, what they
are asking for and pay attention to customers using competing products. Once
we know what features are most valued to consumer, the main goal is to obtain,
validate and implement consumer feedback. After that
we need to make a list of customers potential need based on the information we
gathered. We need to identify the gaps in the industry and make a feasible plan
which can easily reach to consumers

We also need to conduct an internal and external SWOT analysis from where we
can learn our strength, weakness and as well as industry’s opportunities and
threat. By evaluating the opportunities of the industry, we can come up with
various ideas to serve customers. While generating new ideas, we need to know
need to our strength and use it as “points of difference.”
As we are required to bring any new product, we have examined our FMCG
industry very carefully. We came to know that with the high pace of food
industry, we need to bring a new concept with customer support. Along with we
wanted to give something back to the society too. Keeping all these matters in
our mind, we came up with couple of new ideas. These ideas were:

Nestle Nesvita in Powder form

Home service for elderly person
Some Changes in Packaging
Nesvita in flavors

Screening of New Ideas:

The second step of product development is idea screening. In our product

development process, our ideas have the ability to take us in many 
different directions. And when teams are faced with prioritizing initiatives, they
often try to come to a consensus or allow leadership to decide what to pursue.
But without knowing which ideas consumers prefer, we could be wasting our
resources on ones that will not succeed in future testing.
 
Idea screening measures our ideas on metrics that we need to understand early
in the development process, like relevance and uniqueness. By getting consumer
feedback early, we will have a simple, yet powerful way to identify ideas with
the most potential for future development. When we are coming up with new
ideas, it can be hard to know where to focus with the effort. We often face limits
on our time and budget that keep us from testing all but a few ideas. After so
many brainstorming, we came up with five ideas which are discuss earlier.

Among these ideas, we choose to do Nesvita in flovours because this will surely
help the people of our country. Basically, we want to do something that is most
needed right now and by which we can help the maximum number of people. As
our main target is to help our people so we will not be taking money from them.
It will be totally a voluntary service.

When packaged milk was first introduced in Pakistan in 1981, the idea wasn’t
welcome. In general, people thought packaged milk was not as healthy as loose
fresh milk. An aggressive campaign was needed to change people's minds. How
many of you remember the documentary aired on national television showing
how free from germs and bacteria
Tetra Pak milk is?
Today, I can say the campaigns succeeded. Lots of people have converted from
traditional, loose, fresh milk provided by dairy farms. The packaged milk industry
has evolved and there are many players in the industry.

Consumers are increasingly looking for healthier options as far as beverages are
concerned. Consequently, the consumption of unhealthy drinks is decreasing,
and has paved the way for the flavoured milk category to grow faster than other
beverages.

The idea of Add flavours in Nesvita came from the research through some
women around us and from customer feedbacks in secondary resources.

Concept Development and Testing:

Concept development involves coming up with a detailed description of the

product, explained from the perspective of the consumers. This method would
typically highlights the best features of the product in terms of:
 

Taste

Quality

Aroma

Price

Packaging
 
Concept testing helps to assess the consumer reaction to flavor introduce in
Nesvita to introducing it to the market. How much do they like the product?

How desirable do they want flavours in Nesvita?

 
What flavour do they like most/least?

How well would the compare to other brands or similar ?

What price point would they find appealing?

What would they like to change about the product?

In the past, the stability of milk and milk products was the primary consideration
but is no longer the principal objective due to the evolution of modern sanitary practices,
as well as pasteurization. Today, the manufacture of dairy products of consistently
good flavour and texture is crucial. In early flavor studies, researchers identified
hundreds of volatile compounds, with little or no attention paid to their sensory
contribution to the overall flavour of the products.

In the past, the stability of milk and milk products was the primary consideration
but is no longer the principal objective due to the evolution ofmodern sanitary practices,
as well as pasteurization. Today, the manufacture of dairy products of consistently
good flavour and texture is crucial. In early flavor studies, researchers identified
hundreds of volatile compounds, with little or no attention paid to their sensory
contribution to the overall flavour of the products.

In the past, the stability of milk and milk products was the primary consideration
but is no longer the principal objective due to the evolution of modern sanitary
practices, as well as pasteurization. Today, the manufacture of dairy products of
consistently good flavour and texture is crucial. In early flavour studies,
researchers identified hundreds of volatile compounds, with little or no attention
paid to their sensory contribution to the overall flavour of the products.

Benefits of concept development and testing

Concept testing will help you evaluate objectively which ideas are likely to yield
the best results. It may also help you to:

Estimate the concept market potential

 
Prove the viability of the concept

Eliminate poor concepts

Identify features that customers find most desirable

Develop and further test your prototypes

Segment your potential customer base

Identify the appropriate price point and position for your product

Estimate sales and potential return on investment

Marketing Strategy:

Product:

Size: On the basis of product sizes of competitors and information

obtained from survey, we have decided to introduce our product in the market
in following size:

Color: As far as the colors are concerned, most of the people have
showed their interest in bright colors without naming particular color, but
majority has agreed on the following colors to be the part of labeling product:
Brown (Chocolate)
Pink (Strawberry)
White (Vanilla)

Packing: Product units are packed in a 6-layered Tetra Pack Aseptic

Packaging.

Every marketing activity including pricing should be directed towards a goal.

Thus on should decide on its pricing objectives before determining the price
itself. We have decided to enter in the market by focusing on sales oriented
objectives and demand our strategy accordingly. In accordance to our strategy
we have decided to offer the product to customers at the price o

Place: We have decided to place the product in urban and rural areas of
Pakistan , but we are more focused in urban areas. We have also decided to
place the product in the of all the famous Super Store and general grocery store
and tuc shops of Hospital and Pharmacies. We have acquired the services of
large and organized distribution network of Pakistan.

Promotion: Effective promotion paws the way for the product's success.
There are many different ways through which we can promote our product. We
have planned a very wide promotion strategy that covers almost every part of
the society. We have also paid serious attention to the span of intensive
promotion in the initial stage. We have supported our promotional strategy with
the use of electronic media, print media, internet and other sources and also
with the help of some schemes such as lucky draws. Our promotion strategy in
details is as follows:

Television Channels:
Geo
Express News
Aaj TV
Hum TV
ARY Digital

Cable Ads:

Newspapers:
Dawn
Express
Jang

Magazines:
Akhbaar-e-Jahan
The Mag
Family

Pamphlets:
Banners:
Billboards:
Internet:

Segmentation:

The market consists of many types of customers, products and needs. We made
the market segments on the following basis:
• 25 to 60 years
• Gender Male and Female
• Occupation: Students , Employed , House wives & Retired
• Social Class :Upper Class , Middle Class , Lower Class

Targeting:

After market segmentation now we evaluate market segment's attractiveness

and selecting one or more segments to enter.
We will target the following customers:
Men and Women
Belongs to middle Class / Upper Class

Differentiation:

We will differentiate our product on the following basis:

Comparatively less price
New Taste
Effective Distribution
Attractive Packaging

Positioning:

We have to position our product in the minds of the customers and

consequently in the market with the help of effective and customer oriented
market strategies.

Competitors:

The flavored milk market of Pakistan currently has a number of players like
Pakola flavored milk by Mehran Bottlers (Pvt) Ltd, Owsum by Engro Food Limited
and OOLALA by Shakarganj Food Products Limited .The growing potential of the
flavored milk market has attracted a number of companies into this market with
many small scale manufacturers functioning along with others in the organized
large scale sector.

Market Leader:
Pakola flavored milk by Mehran Bottlers (Pvt) Ltd and
Gul Bottlers (Pvt) Ltd is the most popular brand in the flavored milk segment and
is undoubtedly the market leader in this segment, it presently holds the
maximum of the market share.

Market Followers:
As of now there are two followers present in the flavored milk segment. One is
Owsum by Engro Food Limited (Olpers) and OOLALA by Shakarganj Food
Products Limited (Good Milk)

Competitor's strategy:

Our competitors have a good market share because they are adapting following
strategies:
Less Price
Effective Promotion
Intensive Distribution
Quality Products
Customers Research
Attractive Packaging

Business Analysis:
In the past, the stability of milk and milk products was the primary consideration but is no
longer the principal objective due to the evolution of modern sanitary practices, as well as
pasteurization. Today, the manufacture of dairy products of consistently good flavour and
texture is crucial. In early flavor studies, researchers identified hundreds of volatile
compounds, with little or no attention paid to their sensory contribution to theoverall
flavour of the products.

Flavored Milk Industry 2020 Global Market research report provides key analysis
on the market status of the Flavored Milk manufacturers with market size,
growth, share, revenue, marketplace expanding, and technological innovations,
as well as industry cost structure. Also, magnify the decision making potentiality
and helps to create an effective counter-strategy to gain a competitive
advantage.

The global flavoured milk industry is in its nascent stages, and is projected to
grow at a compound annual growth rate (CAGR)of more than four percent in
between 2016 and 2020.

In Pakistan, the liquid diary market is primarily divided into four segments:

Plain dairy milk (72.8%)

Tea whiteners (22.3%)
Flavored milk (2.4%),
Cream (1.7%)
Low fat milk (0.8%)

The main players within the flavoured milk segment are Pakola (60% market
share), Dayfresh (20%), Oolala (Good Milk) and Milo (10% each).

Approximately 49.8 million litres of flavoured milk have been consumed in

Pakistan in 2017 so far, and this figure is considerably higher than the previous
year.
Our product will be for Male and female consumers and Women who are over
30 and don’t want to drink milk because of dairy smell and taste would be prefer
this product

Product Development:

Product developing is showcasing of unmistakable products. Substantial

products or items incorporate things that can be touched, felt and seen. In
straight forward words the execution of unmistakable products can be seen and
caught on by gatherings of people you need to offer your items to. Modern item
improvement could be a handle of taking a product or benefit from conception
to showcase. The method sets out an arrangement of stages that modern items
regularly go through, starting with ideation and concept era, and finishing with
the product's presentation to the showcase

Deficiency of calcium is a growing problem which women are facing these days.

This is mainly due to improper diet, insufficient calcium intake and lack of proper
timings of food. Long-term calcium deficiencies have serious effects on the body.

National Osteoporosis Foundation states “calcium plays an important role in

building stronger, denser bones early in life thus keeping bones strong and
healthy later in life”. Around 99% of calcium is present in the bones and teeth of
human body.

Osteoporosis is more common in females as compared to men. According to

international osteoporosis foundation, osteoporosis affects about 200 million
female worldwide. Generally women loses one fourth of the bone density than
males who loses one-third between the age of 20-80. One of every two women
in their lifetime after the age of 50 suffers from osteoporosis related fracture.
Women reach their peak bone mass at an age of 18 while men at 20. After that,
both continue to build small amounts of bone mass, but men add more. By 30,
bones are fully stocked. Women have higher fracture risk as compared to men.

The lifetime risk of fracture for 60 years old female is approximately 44% nearly
double the risk of 25% males. Osteoporosis is more common in white and Asian
women, especially slender women. About 80%of osteoporosis occurs in women
and 20%occurs in males.
NESVITA FLAVOURED milk is not a medicine. It does not cure osteoporosis, but
can prevent its onset. Osteoporosis is a condition in which bones start losing
calcium due to lack of calcium in regular diet. Regular use of NESVITA can
conserve the calcium already present in bones and prevent further loss by
providing sufficient calcium that the body requires daily.

NESVITA’s CALCILOCK formula is a unique combination of calcium, phosphorus,

magnesium and vitamin D to help absorb and lock calcium in your bones to
make them strong.

Product Testing:

The last stage before commercialization in the new product development

process is test marketing. In this stage of the new product development process,
the product and its proposed marketing programme are tested in realistic
market settings. Therefore, test marketing gives the marketer experience with
marketing the product before going to the great expense of full introduction. In
fact, it allows the company to test the product and its entire marketing 
programme, including targeting and positioning strategy, advertising, distributio
ns, packaging etc. before the full investment is made.
 
The amount of test marketing necessary varies with each new product.
Especially when introducing a new product requiring a large investment, when
the risks are high, or when the firm is not sure of the product or its marketing
programme, a lot of test marketing may be carried out.

For the given business idea, we will be launched in main cities like Karachi ,
Lahore , Islamabad and Peshawar where the market of Nesvita Flavour Milk
tends to be very high. We will promote our product through different health
care , Dietician , Nutrition to aware the local people. If anything thing goes
wrong then our team will be reached. We will train the volunteers. We will have
area wise volunteer team who will be trained by expertise. When any incident
will happen then, people can contract with us through customer care and our
team will reach.
Target Market:
Our target markets will the people of above 25 age and geographic based

Commercialization:
 
Commercialization is the process of introducing a new product or service into
the market. It means making a concept or idea into a real business opportunity.
To go through the commercialization process, they need to undergo a process of
market research and consultation, development, prototyping, drawing up
business, marketing and distribution plans, and protecting their intellectual
property before it becomes commercially available. There are some steps
involved in it. They are:

Launching and commercializing new products:

Introducing a new product into the market is a significant business achievement.

Deciding when, how and where to launch product will determine its early
impact on the market. How our product will add value to the emergency
need for health is priority to focus on advertising.
 
Develop a direct marketing campaign:

 Direct marketing methods such as direct mail, email marketing and social media
marketing can help you get straight to the customers in your target market. Here
for our marketing campaign, we will use social media like Facebook / Instagram
mostly as now a day people spend a good amount time of their daily activities.

Create advertising plan:

 Analyzing where our target market customers get their product information. We
will broadcast regarding our product on media like TV, radios, road side posters,
in build application advertisement etc. We will also take help from doctors and
paramedical staff to use their own platform to promote volunteer service.
 

Create communications materials:

 To support our launch we will create a product brochure and point of sale
posters to draw attention to the new product.
 
Develop a public relations and news media strategy:
Use of public relations (PR) is our advantage. Main stream media often pick up
innovation stories. We will launch a print and online news media campaign and
target interested industry journalists.
 
Developing a pricing strategy:

Our product will be price competitive as it is easy to available for buy.

Conclusion:
 
The eight stages of product development may seem like a long process but they
are designed to save wasted time and resources. New product development
ideas and prototypes are tested to ensure that the new product will meet target
market needs and wants. There is a test launch during the test marketing stage
as a full market launch is expensive. Finally the commercialization stage is
carefully planned to maximize product success, a poor launch will affect product
sales and could even affect the reputation and image of the new product