Generate Ideas Of The New Products Marketing Essay

Generate Ideas Of The bleak crossways Marketing EssayThis is a project for Mr Bean to launch a vernal harvest-home for a sassy segment. The process starts from idea generation, idea screening, business analysis, crossing development, test merchandise and ends at 4Ps.Chosen SegmentThe unsanded elect segment is aiming at families, especially, the group of people who like soya bonce food and do non go to Mr Beans outlets real often.Most of Mr Beans fruits ar with gyp ledge life or difficult to store after selling. Usually, the products are eaten just after being sell. This restricts the sales. The consumers wouldnt acquire a jackpot by unrivalled time. And the products are not available at home. If the consumers do not pass by Mr Beans outlets, the products are not available. So, Mr Bean whitethorn lose a lot of business opportunities.The new-sprung(prenominal) segment pot length the time period for consumers to consume Mr Beans products. It will increase Mr Beans sales simply. But, on the other hand, new products in this segment will affect the sales of existing products. Some consumers may do not buy products from Mr Bean when they pass by the outlets. It may be because that they have just eaten any(prenominal) Mr Beans similar products at home or they would eat at home. Considering the stagger location and time of the consumption, the effect will be slight. Overall, the new segment is expected to drive up Mr Beans sales signifi piece of ass buoytly.The new products are expected to have a long shelf life and be lite to store, so that they are available for the families at home.2 New Product Development2.1 Idea GenerationTo generate ideas of the new products, internal and international surveys were held. The ideas were created by the employees and customers of Mr Bean. They are the followingSoy milk spring Instant soy milk.Dried bean curd Traditional arid bean curd with runage.Soya bean Use complementary branding with a soy milk mak er producer. And sell soya bean as the main material.Vacuum-packed pancake New penchant with package, the product give the bounce be stored at home.Mascot cooky Cookies with diametric shape of Mr Beans mascot.Bagged soy milk oatmeal A mix with soy milk power and dehydrated oatmeal. stock-still steam stuffed bun A traditional and popular food. box deoxyephedrine slam Different to Mr Beans existing comfortable serves.2.2 Idea applicationAfter the idea generation stage, the new product ideas were evaluated through some internal criteria, such as the consistency of the company positioning, of Mr Bean.Soy milk power The production method of soy milk power is complex. And some large equipment is required. Mr Bean stinkert produce it now. Rejected.Dried bean curd Dried bean curd can be produced easily by simple light beams. Accepted.Soya bean Directly sell soya bean takes low expense. Fabrication is not required. Accepted.Vacuum-packed pancake The new taste pancake is very simila r to the existing ones. Low speak to and simple equipment is required. Accepted.Mascot cookie The production process is simple. And tools to cook cookies are easy to get. Accepted.Bagged soy milk oatmeal This new product is based on soy milk power. Since Mr Bean cant produce its own soy milk power, rejected. cold steam stuffed bun zero(prenominal) soya bean related food. Inconsistent to company positioning. Rejected.Boxed methamphetamine hydrochloride cream New equipment is required. But it is small and cheap. Accepted.The cover result is as the table belowNo.New IdeasScreening ResultAcceptedRejected1Soy milk power2Dried bean curd3Soya bean4Vacuum-packed pancake5Mascot cookie6Bagged soy milk oatmeal7Frozen steam stuffed bun8Boxed nut case cream2.3 Business AnalysisAfter the Idea screening, then the residual 5 ideas were examined by some external factors. Cost, sales and profitability need be considered in business analysis stage.Dried bean curdCost The main raw material is soya bean. And only simple tools are required. Cost should be low. sales Its a traditional food with a long history, demand may be high. As a soya bean food related company, the brand can help to get considerable sales.Profitability Considerable sales with low damage makes it be very profitable.Soya beanCost Only some incase fees are required.Sales Lots of Singaporean dont like to cook at home, so the demand may be low. And its a convenience product, Sales may be disappointing.Profitability Even cost is low, Sales may be also low. Its not profitable.Vacuum-packed pancakeCost The cost of a vacuum-packed pancake with new taste is quite similar with the existing ones, just need limited packaging fees.Sales Since the new pancake can store at home, both demand and sales are expected to have a obviously increase.Profitability Net profit margin should be very similar to pancake. Profit should be high with good sales.Mascot cookieCost Cookies are easy to make with simple tools. Raw materials are also cheap. Cost is expected to be low.Sales Most of the mascot cookie lovers should be little children. This limitation restricts the demand. Sales may be low.Profitability Because of the low sales, it cant generate satisfying profit.Boxed ice creamCost The method and recipe are different from existing ice cream, but cost is very similar, both are low.Sales Singapores climate stimulates the demand of ice cream. Sales are expected to be doubled.Profitability High sales and low cost can bring good profit.Based on the profitability, the result is as the following tableNo.New IdeasAnalysis ResultAcceptedRejected2Dried bean curd3Soya bean4Vacuum-packed pancake5Mascot cookie8Boxed ice cream2.4 Product DevelopmentAfter many evaluations, the rest 3 ideas are developing into products.Dried bean curdThe product is cut into small squares and with a lite taste. As the first product in this product line, choose original taste. Choose plastic as the packaging material. Some lead off of the package should be hyaline, so that the consumer can see the dried bean curd inside. Net weight is set at 150 universal gravitational constant per pack. So the consumers can eat up one pack one time. The label should show the flavor.Vacuum-packed pancakeThe new taste pancake was designed as a jam taste. It retained the soft texture of the existing ones. To reduce pressure on the product, the space inside the package should be fixed. So it can have a good appearance. As many other vacuum-package, use plastic as the material. Use specific color to show the flavor. Single pack can fit customers behavior.Boxed ice creamBoxed ice cream is different to Mr Beans existing soft serve. The new product has a relatively high hardness and low storage temperature. Its more adapted for transportation and storage. Strawberry taste is a common taste my other competitors use, and is very suitable to be chosen as the taste for the new product. Choose paper as packaging material. And the package sho uld embody the flavor by color. Net subject matter is 1L, a common quantity on the market.The label should highlight the new feature it can be store at home.2.5 establish MarketingTest marketing is to try to infer the response of a full-scale launch by a small regional test. The result may be not reliable (McDonald Christopher 2003, p.180). So choosing an ideal region can mitigate the reliability of the test result.Singapore is a very small country. This can help improve the accuracy of the test marketing. And the convenient public transportation makes the movement of mass very active, especially in MRT stations and bus interchange hubs. So choosing the outlets in these places to launch the prototypes can get a relatively reliable data. The outlet in Toa Payoh Hub is an ideal place to conduct the test. In location, it is at the center part of the country. And the passenger flow is high.Price is one of the considerations for the consumers in their consuming behavior. So the pric es of the three products were based on the variable cost. And the contribution margin was set at 30% of the variable cost. So the selling prices are the followingDried bean curd 0.9 SD per packVacuum-packed pancake 1.2 SD per packBoxed ice cream 4 SD per boxAt the same time, the customers who bought the new product were asked to take part in a survey. Customers voted to their favorite new product.The test lasted for a month. Then the data was collected and analyzed by Mr Bean. The result is as the following graphsFrom the graphs, the sales of incase-in(a)-in(a)-in(a) ice cream were far ahead to the other two. And in customers choice, dried bean curd failed to get a good acceptance by most customers. The degree of vacuum-packed pancake and boxed ice cream among the customer is very similar. Boxed ice cream got a slight lead.Combining with data from all aspects, the result of test marking is as the following tableNo.New IdeasAnalysis ResultAcceptedRejected2Dried bean curd4Vacuum-pack ed pancake8Boxed ice cream3 commercializationMarketing mix is very often used in complex marketing strategies. It involves both targeted customers and companys objective (DIMCC 2008). Boxed ice cream should be categorize as a product, so the marketing mix should base on 4Ps.3.1 ProductProduct is the most important part in the 4Ps. The whole marketing mix bases on the products.CharacteristicsThe new boxed ice cream is classified as a kind of regular ice cream. Its quite different from soft serves in recipe, hardness, taste, storage, process, etc. So it is a new product in a new product line in Mr Bean. And the taste is hemangioma simplex, a very common flavor on the market. So it is more probable to be accepted by the consumers. Regular ice cream is appropriate for many kinds of flavors. So it is possible to translate it into a series of products to length the product life circle. Different to many other regular ice cream on the market, Mr Beans boxed ice cream uses soya bean as on e of its raw material.PackagingPackage is an important part of the product. It has many functions. Contain the core product is the basic function of a package. For the boxed ice cream, paper box with cap is an ideal container. The design capacity is 1.1 liter. Since the net weight was decided to be 1 liter, the design capacity of the package must have some cushion. But the cushion mustnt be too much, or the customers may have a wrong impression that the product is short in actual weight. The paper must accord with food hygienic standard. And material quality must be waterproof paper. The package must have the ability to bear some situation that the ice cream melted. It can avoid leakage. The package protects the ice cream from external impurities and protects consumers from touching the ice cream, even when it melted. Piling method was considered to make sure the package is burly enough to bear the pressure. The design of the package must contain the information of the ice cream to consumers. Slight pink was chosen as the background color of the box, and strawberry was added into the design. So the consumer would know that it is a strawberry flavor. And Mr Beans trademark was designed on the striking area of the box. And some necessary information, such as ingredient, shelf life, was added on the package.LabelingLabel is used to persuade or inform consumers. For the new boxed ice cream, the label was design to show the difference from Mr Beans existing products. The slogan on the label is designed as make happy simple pleasure at home. The background color was designed to be deep brown, a contrast color to slight pink. It can catch consumers attentions and land up interests on the product.3.2 PriceTo make a set strategy is very complex. There are too many aspects can affect the decision. There can be 6 steps in the process of setting a price (Kotler Keller 2006). A simplified process was used to set the price for this new product.Step 1 Choosing a pricing objectivePricing objectives can be classified as profit-oriented, sales-oriented and status quo. To the boxed ice cream, status quo pricing objectives are the optimal choice. Firstly, its a convenience product, the price must be competitive. Secondly, to Mr Bean, its new product line in a new market. And its still at the base stage. Surviving is the primary task. So, the pricing strategy should meet competitions prices.Step 2 PositioningAfter deciding to meet competitions prices, the question became to which competitor should be chosen to follow. On the market, there are many kinds of ice cream with different positioning. Analysis Mr Beans existing pricing strategy and the value of boxed ice cream to get the positioning. Then compare with the existing products on the market. Some competitors on the market are listed in the table belowBrandProduct/FlavorNet ContentPriceHaagen-DazsMango1LS$13.90Haagen-DazsStrawberry1LS$14.45NestleLa Gremeria1LS$4.80WeisSorbet1LS$9.15KINGSVCRM SWT CO RN1L resemblingPositioningS$3.57KINGSVCRM R BERRY1LS$3.57WallsCRM-PADD RAINBOW1.5LS$5.00WallsCRM-CHOCLOLATE1.5LS$5.00So, the price of Mr Beans new boxed ice cream should be around S$4.80 per liter.Step 3 Estimating costs and adjustingCost is an important factor to be considered in the process of setting price. It directly affects the contribution margin. The price should be set with a collateral profit. The contribution margin was compared with the target profit, and the price was adjusted to S$4.60, a more competitive price with satisfying profit.3.3 PromotionThe role of promotion can be summarized as DRIP, Differentiation, Remind, Inform and Persuade (Ho 2012). As its in the introduction stage, the main objective should be Inform.Mr Bean is good at promote its product in many different ways. As boxed ice cream is a convenience product at the introduction stage. Combining with Mr Beans methods, the chosen tools are advertising, public relations and sales promotion.AdvertisingOvera ll, the purpose of advertising is to increase sales and profit. But it can be subdivided into different communication objectives (Jobber 2004, p.423). As this is the introduction stage of a new product, the communication objective is to create awareness. The following are the tools usedPoster and leafletEnjoy Simple PleasureAt HomeSince the new segment is to length the time period for consumers to consume Mr Beans products, the main group of the targets is Mr Beans existing customers. Putting up a poster and distributing leaflets around Mr Beans outlets can get a good effect to create awareness. And most of the innovators should be Mr Beans loyal customers. And comparing with many other traditional advertising media, the total cost is very low. Good design of the poster and leaflet also can increase customers interest on boxed ice cream.InternetOn the homepage of Mr Beans prescribed website, there is a striking space for the companys star item and new products. This space is big en ough to show a detail of product. Put boxed ice cream on the space. The visitor can aware it at first glance.Public RelationsPublic Relations is a good tool to build up a good image for a company and introduce new products to public.Mr Bean is very good at using this tool. For example, in the last few years, Mr Bean continually worked as a principle sponsor of National Day Parade.Such events are good opportunities for the introduction of boxed ice cream. The remarkable events can help boxed ice cream get awareness effectively. And by using public relations, many new consumers may be attracted.http//www.mrbean.com.sg/cmsresource/Events/NDP%202011/NDP2011_W243.jpghttp//www.mrbean.com.sg/cmsresource/Events/NDP%202011/NDP2011_W7.jpgSales PromotionAfter consumers getting the awareness and reason for purchasing on boxed ice cream, sales promotion gives consumers the incentive to buy it. The short-term but obviously effect can help shorten the introduction stage and lead boxed ice cream to the growth stage.In the introduction stage, coupon is a very useful tool. It can stimulate the consumer behavior and increase the sales significantly. Since leaflets are used to advertise boxed ice cream, coupon can be distributed with the leaflets.3.4 PlaceA place strategy affects the accessibility of the product to consumers and the profit of the originations in the marketing channel.Mr Bean defines itself as a retailer. Actually, it is also a producer. The company produces all the products by itself. So, the company uses direct channel for consumer products. Without the intermediaries, Mr Bean can get a significant profit from the sales.One of the reasons why does Mr Bean only use direct channel is the feature of the existing product. Most of Mr Beans products are made and sold on the spot. They are with short shelf life and are not convenient to transport and store. So other market channels are not suitable to Mr Bean.The new product, boxed ice cream, doesnt need to be restrict ed to the existing channel strategy. The new features make it possible to be sold by third parts. But, by considering the stage in product life circle and the capacity of the company, boxed ice cream was decided to launch by the existing channel strategy. As a new product, Mr Bean managed its capacity at low level in the introduction stage. And there are more than 60 Mr Beans outlets in Singapore. Its enough to offer a good accessibility to the consumers. Centralized production mode was selected for the new product. So the outlets didnt need to add any new equipment. Boxed ice cream was sold in all Mr Beans outlets.The channel strategy decision is a temporary one. With the increase of acceptance of the product, Mr Bean will increase its capacity. Other channels are possible to be used to increase the sales.4 ConclusionsAfter going through many screening and well planned by Mr Bean, the new product, boxed ice cream, came to the market. But whether it is a successful new product or no t, is still waiting for the examination by the market.