Assignment on new product development

Magic Foam

Department of Bachelor of Business Administration Bangladesh University of Business & Technology (BUBT) Bangladesh

Assignment on new product development Magic Foam

Supervised by: Aslam Uddin Lecturer in Marketing Department Bangladesh University of Business & Technology (BUBT) Dhaka, Bangladesh

Submitted by: Md. Humayun Kabir ID: 33 14th Intake, Section-1 BBA department

This assignment is submitted to the department of Bachelor of Business Administration of BUBT for the partial fulfillment of requirement Marketing
2

Acknowledgements
We would like to take this opportunity to express my deepest gratitude to the Allah Almighty, and also gratitude to Bangladesh University of Business & Technology which provided the facilitates and help in this project. I would like to acknowledge the valuable help of my assignment supervisor, Md. Aslam Uddin lecturer in Marketing Department, for his keen interest, valuable suggestion, proper guidance and supervision throughout the assignment work, in improving the quality of this works.

BUBT April, 2009

Dhaka

Letter of transmittal
3

To Aslam Uddin Lecturer in Marketing Department Bangladesh University of Business & Technology (BUBT) Dhaka, Bangladesh Subject: report on marketing plan of Magic foam.

This report is making on marketing plan and analysis of a new product. In making this report we got familiar with the process of creating a marketing plan which is going to launch in to the market. We typically attempted to illustrate the major area namely- situational analysis, marketing strategy, financial plan, control etc. Moreover we namely alternative plan & contingency plan. My report also includes the SWOT analysis. We are pleased to provide you this report with necessary notes, tables, references and shall be available for any clarification, if required.

Yours truly Md. Humayun Kabir

s
4

Executive Summery
H.K Chemical ltd. Is the only local manufacturer of building and any other
construction oriented chemicals and materials with extra ordinary properties which are claimed better ones in comparison with respective fields. H.K Chemical company ltd. produced many types of products but Magic foam is one of the special chemical products for seawater concrete admixer. It has the specific characteristics. The latest invented product Magic foam manufactured to ensure better qualities and performance under any severe environmental conditions. Magic foam is multipurpose admixer. Magic foam is unique because of its specific characteristics. There are several admixers available in the market but they serves as multipurpose so they are not especially of good use, in this respect my product Magic foam will specially help to construct under cold weather or sea water structure. Magic foam approximately white in color, liquid to pest like mass depending on temperature, dispersed and soluble in water, work as very good concrete lubricant, excellent monolithic bonding with magic foam cement grout to avoid water stopper and other concrete joining problems of concrete casted at different times. It uses in Seawater concreting(port, jetty, gas well etc), cold weather concreting, piling works, under water constriction, foundation of bridge (coffer dam, piling etc.), and so on.

The Ultimate cold seawater concrete admixer solution

5

Magic Foam
Product Name: Magic foam Company Name: H.K Chemical Company Ltd.

Product Logo:

Product Container:

TABLE OF CONTENTS
6

Acknowledgements Letter of transmittal Executive Summery The Importance of the report Literature Review New Product development/ Marketing Plan Feature of magic foam: Ingredient of Magic foam Situation analysis: Market demographics: SWOT Analysis: Marketing Strategy: Marketing mix: Financial analysis: Implementation and control:

3 4 5 8 9 10 10 11 11 11 12 13 14 15 16

The Importance of the report:

The new world is waiting for construction wonder. So we want to decorate how world with wonderful construction.
7

Again with the passage of time the vacant land is becoming limited to develop. So to develop such kind of land we have to fight against weather and environment ultimately condition.

The new maker of civilization dreams to open new doors of civilization. Now man dreams to construct structure on moon as well as mars. So, to carryon such kinds of construction we have to invent on develop new kind of construction material.

We are surrounded by a lot of things. Among them a few are valuable. So the study which brings a new useful material is also important and helpful to mankind. This study will be fruitful to develop marketing career.

At first we made a literature review after that we focused on our present survey.

Literature Review
The nature and contents of a marketing plan/ product plan: Marketing plan: A marketing plan is a written document that summarized what the marketer has learned about the market place and indicates how the firm plans to reach its marketing objectives. Contents of the marketing plan:
8

1. Executive summery 2. Situation analysis 3. Marketing strategies 4. Financial projection 5. Implementation Situation Analysis:
Market summery (target market) Market demographics Markets needs Market trends Market growth SWOT Analysis Competition

Marketing strategy: Mission Marketing objectives Financial objectives Target market Positioning Strategies Marketing Mix: Pricing Distribution Advertising &Promotion
9

Customer service

Financial projection: Break even analysis Sales forecast Expense forecast Implementation & Control: Difficulties and Risks
Conclusion

New Product development/ Marketing Plan

A new seawater concrete admixer that is more cost-effective, stronger and durable over time than conventional fresh water concrete has been introduced by H.K Chemical Company. ltd. The cornerstone of this technology is the use of the company's treated sea (salt) water with existing concrete mixes. The resulting concrete is referred to as Concrete. The treated seawater does not require removal of the salt element from the water. A decade in the making the new technology offers faster drying time and greater resistance to harmful elements than conventional concrete, the most widely used construction material in the world.

10

Feature of magic foam:

Approximately white in color Dispersed and soluble in water. Helps in perfect compaction
Create better creeping. Easy mold releaser; work as good concrete lubricant.

Different size

Ingredient of Magic foam: all chemical are mix in various ratiosLime Alumina Iron oxide Magnesium oxide Sulphur Trioxide Alkalies Dicalcium silicate Emulsion Clinker Fly ash

Situation analysis:
Magic foam is a totally new product in the market and entering market 1st time. Magic foam offers multipurpose usable concrete admixer. Magic foam is the complete solution for sound
11

seawater construction. Worldwide tremendous in cold seawater construction sector those can be easily and permanently solved by using Magic foam Market summary: Magic foam possess better information about new market and have great deal to our valuable customer. Our research and development department has been analyzing, improving and adapting new invented technologies to keep our product magic foams range always intentionally latest ones for customer. Magic foam always finds out the customers specific needs and always communicates with the customer.

Geographic:

Magic foam has no geographic target area. And magic foam can serve both domestic and international customers.

Market demographics:
developer:

o residential building o commercial complex

LGED:

o Pavement slab o Concrete block o Culvert o Bridge

Roads and high way: o Pavement slab o Concrete block o bridge

Port authority:

o Hydraulic structure
WASA:

o Sewerage network
12

 Water development board: o Dam ,barrage , weir

SWOT Analysis: The following SWOT analysis captures the key strengths and weaknesses within the producer, and describes the opportunities and threats. Strengths : dispersed and soluble in water work as very good concrete lubricant Excellent monolithic bonding with magic foam cement grout to avoid water stopper and other concrete joining problems of concrete casted at different times. liquid to pest like mass depending on temperature

Weaknesses: There is risk that the customers would not accept the chips at the initial stage.

Opportunities: Easy to mix

It has special feature for seawater concrete

structure. Creating more employment opportunity.

Threats: Price is moderately high. Competitor ( foam lub)

13

Marketing Strategy:
The key to the marketing strategy is focusing on the better qualities and performance under any constructional work. Magic foam can cover 99% of the admixer market because of its specific feature that produce only for seawater concrete structure. Mission: Magic Foam is working for sound Seawater constriction & healthy environment and its mission is to provide the quality product and achieved long run business relationship with our honorable Clients. Right from the moment magic foam is committed to making your construction with us a true delight. Marketing Objectives: Magic foam maintains the positive strong growth each quarter seasonal sales patterns. Achieve a steady increase in market penetration. Magic foam creates the good customer value. Financial Objectives: Marketing decisions are guided by the overall objectives of the company. While we will discuss this in more detail when we cover marketing strategy in a later tutorial, for now it is important to understand that all marketing decisions, including price, work to help achieve company objectives. The four main marketing objectives affecting price include: Return on Investment (ROI): A firm may set as a marketing objective the requirement that Magic foam attain a certain percentage return on the organizations spending on marketing the product. To fulfill return on objectives we take some initiative step. Cash Flow: We set prices at a level that will insure that sales revenue will at least cover product production and marketing costs. This is most likely to occur with new products where our objectives allow a new product to simply meet its expenses while efforts are made to establish the product in the market.

Market Share: Our product magic foam is totally new product so, new products under this objective we set the price artificially low in order to capture a sizeable portion of the market and will be increased as the product becomes more accepted by the target market

Maximize Profits:
14

One of the most objectives is to maximize profit. objective requiring the price be set at a level that optimizes profits This is often the case when the marketer has little incentive to introduce improvements to the product (e.g., demand for product is declining)

Target market:
Land owners National department such as LGED, roads and high way, water development board, PDB, WASA, bridge department, port authority. Developer company construction company

Marketing mix:
Magic foam marketing mix is comprised of the following approaches to pricing, distribution, advertising, and promotion and customer service. Pricing: When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job. Pricing decisions can have important consequences for the marketing organization. Some reasons pricing is important include:
Most Flexible Marketing Mix Variable: For marketers price is the most adjustable of all

marketing decisions. So, the price of magic foam is most flexible.

15

 Setting the Right Price: Pricing decisions made hastily without sufficient research,

analysis, and strategic evaluation can lead to the marketing organization losing revenue. Prices set too low may mean the company is missing out on additional profits that could be earned. So, we set the price of magic foam is not so high that can lost target customer.

Important Part of Sales Promotion: Many times price adjustments are part of sales

promotions that lower price for a short term to stimulate interest in the product.

Distribution: Initially we will use a direct to consumer distribution model. We have no dealer. We sales the product directly to our customer. Advertising and promotion: We use different types of methods such as printed material, media advertising, web site activity, door to door.

Financial analysis:
The financial overview of Magic foam related to marketing activities. Magic foam feels that it will steadily increase sales as the advertising budget allows. The expense forecast will be used as a tool to keep the department on target and provide indicators when corrections and modifications are needed for the proper implementation of the marketing plan.

Sales forecast: sales Government department Developer Company Construction company Land owners % 40% 30% 20% 8%

16

Others Total

2% 100%

Implementation and control:

The purpose of Papaya Chips marketing plan is serving as a guide for the producer. Revenue: monthly and annual Expenses: monthly and annual Customer satisfaction New product development. We have the millstone that identifies the key marketing program it is important to accomplish each one on time and on budget. We think that magic foam strongly fulfill the all customers needs and wants.

17