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Marketing plan of new product

This is a marketing plan of a fresh product called CHEW-DEN. Four increasing entrepreneurs have established a new company Leading India Pvt. Ltd. They want to be the market leaders in medical consumer products. The first product that is to be launched is a nicotine gum called CHEW-DEN which wouldn't normally only provide long lasting freshness but provide dental care. Matching to analyze the chewing gum market is India is huge and is growing day by day. You will discover few International companies that are doing very good business India like Wrigley's and Perfetti but our new product has few special things that make CHEW-DEN the healthiest chewing gum in the market. You want to offer very reasonable prices much like other available products on the market.

2. Quest Statement

We want to produce and market health beneficial and high quality products for customers and provide them value for money.

3. Situation Analysis

Internal environment:

Organizational backdrop:

Leading India Pvt. Ltd is a new company established by four rising Internet marketers (Avik, Millind, Mayank, Fasi). The business was create in '09 2009 as an enthusiasm to promote a wholesome India. The main focus of the company is capturing the consumer market with different medical products.

As of now the business is focusing on mouth freshener nicotine gum, CHEW-DEN, which is helpful in controlling teeth decay and bad breathing.

Leading India has its development herb at Uttarakhand and also a distribution middle at Delhi, India.

Product:

Our current product is Chew-Den, which really is a chewing gum specially made for oral care and resilient fresh breathing. Our product is different from all other products in the market because of the addition of few special ingredients that makes our product the healthiest nicotine gum. The product will have a value as mouth freshener and in tooth decay reduction.

External environment:

Markets

Market Research

Indian market includes hard-boiled candies, toffees, sugar-based candies and gum based products.

Market Demand

The global market is growing, despite to the fact that certain sectors of the confectionery industry have reached maturity in many elements of the world. The majority of this recent development has come from developing locations and countries by growing basic of more and more affluent consumers in places such as Russia, China and India. Inside the developed world, a lot of the market's recent development can be attributed to areas, such as low-fat, low-sugar and organic and natural products. New product advancement remains critical to future success within the industry, with many of the world's leading suppliers spending heavily in this field.

Size of the Gum Market in India

India has one of the fastest growing gum categories worldwide. Regarding to AC Nielsen, the size of India's total gum category is around Rs 1, 000 crore. Gnawing gums and bubble gums take into account around 44% and 56% of the category respectively. In India the bubble gum segment is larger than the chewing gum segment, whereas in all of those other world it is the other way round.

According to the Nielsen statement, in 2008 the gum industry in India was growing at about 20% per annum.

pie1

Market Growth

The $122 billion gum market is growing by 3 per cent a year, a reliable rate for food but within that, sales of sugarless gum are increasing by 15 per cent per annum. The magic element in modern sugarless gums is Xylitol, a sweetener created by a Danish company from silver-birch pulp. A study in the Journal of Remedies discovered that Xylitol cuts tooth decay by 70 % by inhibiting growth of dental bacteria. The sweetener is central to a battle in Asia to find the next cure-all gum.

The gum category in India keeps growing at a healthy 20%.

mkt-growth-rates

Market Segmentation (Age wise) pie-area

Market Segmentation (Area smart)

pie6

Market Analysis

If we go through the per-capita utilization of nicotine gum in India it is only 8 per time as compared to 2000 per calendar year in U. S. A & 1000 in Russia. Market show of gums has increased by 20% in 2008. The existing size of the Indian nicotine gum market is estimated to be about 1000 Crores (INR) and it provides extensive opportunities to new arising companies. It includes risen as the new style-of-living market having great market potential.

According to the study, more emphasis can get to the western world zone but the areas are also potential market. The prospective customers are children and our target market also includes people who belong to middle-middle and upper-middle category families as confectionary items specially nibbling gums are usually luxury items.

Competitive environment

Identifying Competitors

After the marketplace segmentation, our next task is to recognize the competitors of the company. After studying the marketplace we came to learn that Perfetti is our major competitor. Because "Happydent" the merchandise made by Perfetti offers some similar substances just as Chew-den at almost same cost.

Analysis of Perfetti

Strategy

The Indian confectionery market is divided in three categories: Candies and toffees, gums and mints. Perfetti's benefits is that it's the one company with products for every of the three categories. Perfetti puts humour (Mentos and Centre Fresh), feelings (Alpenliebe), bizarreness (Happydent and Chloromint) and fun in liberal options in all its commercials. A method to create a difference in your brain of consumers, Perfetti has noticed, is to coin taglines for those its flagship products. Like, you can find "Zubaan par rakhe lagaam" for Centre Fresh, "Dobara mat puchna" for Chloromint and "Dimag ki batti jala de" for Mentos. These are all expressions lent from everyday use of the youth, who are bulk of the confectionery purchasers. Perfetti have also done a clever thing giving its products to merchants in cheap jars. This makes life convenient for the merchant and gives the business the chance to place its brands prominently at the store.

Objective

The Perfetti is looking for maximizing its revenue, sales progress and market share. Perfetti also intends to help children, to provide health service and also to impart vocational training. Their purpose is also to focus on the youngsters through advertisements that involves a great and happy-go-lucky attitude.

Strength

The biggest strength of Perfetti is that it has already broadened its market by releasing products in several categories. The other an example may be so it has more market knowledge and a good position in market. The company already has a founded name in market and holds a 40% of market talk about of confectionary portion.

Weakness

The company is providing all the huge benefits to the customers but their product struggles to protect one's teeth from teeth decay and mouth area odour.

Competitive strategy

As we could new in the market so we do not have a wide array of market share. Thus we will be looking to make our market share. That is why we come under the market follower category. Our company comes under the category of imitator because we provides our product with some differentiation factor of product packaging and advertising. So our principal aim is to make a value in the market and making the utmost profit by create our product by acquiring customer satisfaction.

Competitive forces

Threat of extreme portion rivalry: Wrigley's, Perfetti

Threat of new entrants: both entrance and exit are high

Threat of alternative products: chocolate like chloromint, Mintofresh

Identifying challengers: Wrigley's, Perfetti vehicle de melle, Cadbury and many more

Economic environment

In our business a customer can easily switch the brand because the merchandise price is not high. So our primary motive is to keep healthy connection with customers by giving them best quality product and services in this segment.

Customer identified value

It is the difference between the potential customer's expectation of all the benefits and all the costs of an offering and the recognized alternatives.

We will offer price as per the marketplace and add cloves, Xylitol and cardamom as substances which assists with tooth decay and breathe freshening. We will maintain source chain management to make a value delivery network. We can do survey on regular basis initially to learn the customer belief about our product.

Other Macro-environmental Forces

Demographic environment

People from all generation in terms of size, location, years, gender, occupation, ingest NICOTINE GUM.

Social and Cultural environment

Made up of corporations and other pushes that have an impact on a society's basic ideals, perceptions, preferences and behaviours.

Technological environment

Allows the existing products to be produced more cheaply and in doing so expanding the marketplace for such products by minimizing down prices.

Allows new and easy methods of distributing goods. It also provides new opportunities to talk to the targeted customers.

Political environment

Consists of regulations, government companies and other organizations that affect or limit various organizational activities.

SWOT evaluation:

Strength:

Oral Care and attention.

Long Lasting Freshness.

Strong SCM (Source Chain Management).

High Quality and Affordability.

Weakness:

New on the market.

Opportunity:

Growing nicotine gum market of India.

People have become more health conscious.

Threat:

International rivals like Wrigley's and Perfetti.

Popularity of substitutes like candies like Chloromint.

New market entrants.

Critical issues:

Internal factors:

Penetration into the marketplace - we have to use promotional tools like personal offering tools, participate in school fairs to spread understanding and advertise in health newspapers such as avoidance, men's health.

Financial stability - we have contingency plan in case we run out of funds, additional $ 2, 000, 000 is in the reserve to keep carefully the company moving.

Human source of information factors - Loss of key personnel can postpone the goals of marketing plan. In fact, we ought to add an additional member to the marketing intend to ensure success.

External factors:

Competition - You can find powerful competition in the nicotine gum market as international brands like Perfetti and Wrigley's already can be found.

Imitations - In India, duplication and adulteration of brands are present. Our product packaging will have a unique hologram that will control duplication.

4. Marketing Objectives

Evaluate the needs and requirements of consumers through different surveys

Select targeted market (consumers)

Increase product consciousness one of the targeted audience by 20-30 % annually through effective promotional tools.

Inform the targeted consumers about the features and great things about our gum products

Maintaining healthy competition in the perfect competition market.

5. Marketing Strategies

a. Concentrate on markets

Our main goal is the fast growing gum market in India. You want to target the key metropolitan towns in India like Mumbai, Delhi, Kolkata, Bangalore, Chennai, Hyderabad, Ahmedabad and Pune.

b. Product strategies

Our main target is to give you a product that might be having all basic attributes of the chewing gums available in market plus it would also offer dental care. The product would be available in 6gm in form of whitening strips and 2 gm in pouch form.

c. Pricing strategies

We would offer real affordability for our customers. We'd offer 9-10% margin to the vendors and 12 to 14 % to the wholesalers.

The product will be available in cushion packets at Rs. 1 and in 6 pieces load up of Rs. 5.

d. Promotional strategies

For promotion of CHEW-DEN we wish to start consciousness through newspaper, posters, hoardings, tv set advertising and F. M radio broadcasting.

We are also seeking to connect up with Indian Top Cricket Little league and other sporting events in India.

6. Financial Projections

Break-even Analysis

Break-even research is a method, mainly employed by development management and management accountants. It really is a method of categorizing creation costs between your changing costs that change based on the number of models produced and fixed cost which is in a roundabout way related to the volume of creation.

Here, total changing costs and set costs are weighed against total sales revenue in order to determine the degree of total sales volume at which the business enterprise neither makes a earnings nor a loss. It is called break-even point.

4th. JPG

Sales Forecast

Sales forecasting is the most critical process in business. It is one of the very most difficult regions of marketing management. A couple of mainly two types of forecasting that may be referred to as macro and micro. Macro forecasting is more concerned about evaluating the present level of marketing demand for the prevailing products and forecasting the marketplace demand of the same in future. Micro forecasting is concerned with determining today's number of systems produced and forecasting sales of units in future. It is also about deciding product's market talk about on the market and forecasting the position of market talk about in future. Sales forecasting process is mainly used to help make the decisions regarding,

Labour drive requirement

Investment required for increasing the development capacity

Evaluate the future demand of the prevailing products

Additional investment necessary to meet the bills of new promotional activities for marketing the merchandise in future.

Determining exactly what will happen to the market share of the product in future.

Expense Forecast

Expense forecast is crucial for every firm to evaluate the present investment on creation cost and forecasting the relative increase in various costs to be able to improve the production volume. Salaries, raw materials, business taxes, office hire, equipment leases, telephone bills, postage and other expenses are associated with owning a business. It mainly includes the forecasting of the following costs

Start up costs such as deposits, office furniture, leasehold improvements, signage, licenses and permits.

Variable costs such as recycleables, supplies, packaging and transportation. Direct labor costs, such as sales commissions, also fall into this category.

Fixed costs such as taxes, office rent, utility bills, phone charges, insurance, legal and professional fees, postage, supplies, salaries and marketing and advertising costs.

Implementation Plan

8. Evaluation and control

Evaluation

Leading India Pvt Ltd evaluations depends primarily on meeting sales and market share expectations as explained in the report. We are conducting sales research after every three months to ensure that we are not deviating from our goals and consequently changes will be made to our promotional budget. For every zone, sales team will be given fixed targets to achieve in order to keep up high criteria within the business. Company's promotional agenda will be examined quarterly to meet its deadlines.

Control

It is very important to Leading India Pvt Ltd to meet total quality control. Leading India Pvt Ltd works

in accordance with government rules in order to meet quality requirements.

Such standards will be found through employees checking out 2 in every 15 packets about similarity in tastes and hygiene expectations are managed. Quality in charge and management personnel will document improvement in

order to continuously improve quality of most production units.

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