Introducing a New Product

4886 words (20 pages) Essay

26th May 2017 Marketing Reference this

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Our new product is a toothbrush which is combined with toothpaste. The toothpaste will come out of the toothbrush head when you press a button on the handle. When the toothpaste is finished, you dont have to throw the toothbrush away because it is possible to buy our toothpaste recharge and to combine it with our toothbrush handle. Recharges can easily be filled. One recharge contains 12gm toothpaste and it is for 20 or 30 brushing. We have planned to sell our product Feekul on internet (with our own website), in super- and hypermarket and also in pharmacies.

Nowadays many people have a good education and this lead to a good job/career. Because of the internationalization of many businesses in the hole world, people have to contact for doing their job companies and colleagues in other countries. They have to travel a lot and have to stay for a short time in another country. The toothbrush with toothpaste in one is easy for them to bring it

All these people of today having a busy lifestyle, they need to work, they need to raise kids , they need to travel, they need to study and they have a big social life. Because of this they dont have much time to take care about their selves. Its important to take care about your teeth, everybody knows this. Thats why we offer the new created product Fee-Kul.

The segment growth :

All the segments of the market are growing in the future. It is already very easy to travel, you can enter many countries without problems. In the future it will be more easier and cheaper to travel, this target group will definitely grow. There also will be more and more students all over the world. Because of the good welfare it I will be easier and more important for everybody to have a good education, this segment will grow as well. As last the business people, because of the great internationalization it will be more common and important for companies to have many contacts with companies in other countries. This will also grow, because of the importance of the future well-being of the company.

The knowledge of people are changing. Everybody know how important the health of a human being is and they want to take care about that. It is normal to go two times in a year to the dentist and to brush your teeth twice a day. These are all common facts for people. But they want to have the best teeth and they want to take care about. Thats why people are sensitive to new products for their body which are good for your well-being.

We have seen in the last years a few changes in the toothbrush business. There are many toothbrushes on the market which are good for your teeth, gums, teeth color, challenge bacterium, etc. you can buy a normal toothbrush or an electric one. You can also choose the position of the hairs of your toothbrush. There are many options to choose a toothbrush. The recent changes are a lot, but they are not very different of each other. There are also a lot of different toothpastes, you can buy them in all different using and tastes.

These are all good products but not easy to take and not quick for using. Thats why we will introduce the Fee-Kul. The trend of today is to do everything you can easy and quick, customers will like this thought. Our product is a product which fits in this trend: its a good product which will be proved by dentists, its easy to bring and its quick to use.

Future predictions :

The Fee-Kul is product with a good value, everybody can afford it. Its a fact that everybody needs this product, everybody use it so it is a common product. these facts are important for the future, it means our product will not fail because of there is no demand. There is a demand and it is even easier and quicker in use than a common toothbrush.

Drivers such as demographic changes, economic and legislative factors :

Our product is not sensitive to drivers like demographic changes, economic and legislative factors. Its a common product and everybody use and will use it. There are no factors like this which will fail our product

.Implications for our product :

To outline our product, it is a toothbrush with toothpaste in one, named the Fee-Kul. It is an easy and quick product to use. People like travelers, students and business people, which dont have much time and are many times not at home, will be our target group. We will to aim at people which have a busy lifestyle and which are many times not at home and staying somewhere else, but we will to aim at the most at the target groups which are mentioned above.

Your plans to meet future demands and changes in the market :

We will introduce our product like our idea. If there will be any other demand or customers will have a demand of changing the product, we will do that. If customers are loyal to our product and they want to help us improve, then we want to improve our product for the customer. It will be more successful in the future if we meet future demands and changes in the market.

3) Profile of Competitors

The main competitors and their products? :

If you focus on the really same product there are none competitors. But you have of course other options in the branch of toothbrushes and toothpastes. In this branch there are many competitors, national and international. Many companies selling toothbrushes and toothpastes.

The most popular and known brands all over the world are:

– Aquafresh

– Colgate

– Oral-b

– Sensodyne

– Zendium

The most popular products are:

– Normal Toothbrushes (many different options).

– Electric toothbrushes (many different options).

– Toothpaste (many different options).

All these brands has toothbrushes and toothpastes, but not a toothbrush and toothpaste in one. There is a lot of competition, but we are with the Fee-Kul unique.

Advantages and disadvantages of the competitors offerings :

ADVANTAGES DISADVANTAGES

Nobody has the toothbrush and toothpaste in one.

Many different options in toothbrush and toothpaste.

Easy to take with you, the others are big and not easy to take.

Other brands are more known and has the confidence of the customer.

Quick to brush your teeth, by the others your need more time.

4) Competitive Advantage

The Fee-Kul is a unique product on the market. Fee-Kul has toothbrush and toothpaste in one, is easy to take, is quick to use, good for your teeth and its not expensive. Everybody can afford and use it. There are a few competitors in the market which have related products, but not the same product as the Fee-Kul. The Fee-Kul will be offered in shops whit a good marketing campaign and a good value for the customers of 2,95.

5) Benefits to Clients

There are a few important benefits for customers when the buy the Fee-Kul:

– Toothbrush and toothpaste in one.

– Easy to take.

– Quick to use.

– Good value.

This means for the customer:

– they will save money

– they will save time

– they will increase efficiencies.

Because of the good value of the Fee-Kul, customers will save their money. Normally they need to buy a toothbrush and toothpaste, this is a lot more expensive then the Fee-Kul.

When the customer use the Fee-Kul, they will notice how much time they save the use the Fee-Kul. You need a lot of time to put toothpaste on your toothbrush, this waste of time is important for busy people in the morning and the evening.

The Fee-Kul is also very efficient, you can use it easy when you are doing a lot of other stuff. You can just grab it and use it, easier is impossible. It is also efficient when you are traveling, you can put the Fee-Kul everywhere. It is small and compact, so easy to take.

Buying the Fee-Kul will be very efficient for the customer. As the above mentioned benefits, it will save money, time and it will increase the efficiencies. All these benefits with a great marketing campaign are very attractive for customers to buy it.

IV/ MARKETING / SALES STRATEGY

When you are writing a business plan, the marketing and sales strategy section is an important part of your formal business plan. This part essentially involves developing a marketing and sales strategy for your business… Those who are considering lending your small business money or investing will want to know how you intend to reach your target market and attain the market share you feel you can attain, which you’ve already discussed in the market analysis section of your business plan. The marketing plan will help them understand that.

1) Income sources

Concerning the income sources, it’s the first and more important step you have to focus on because it will determinate the viability or not that your company… and the possible launch or not of the product! Will you earn money or go into debt? Do you have minimum resources to launch it? And material?

a) Capital

Before the creation of our company, we wanted to be sure to have minimum resources to launch our product… it’s for that we work two years after studies, to have a capital of 25 000 euro (divided into 25 equal parts of 1 000 euro each for the five associates) cause of the limited liability of the company. This capital is going to serve us for taking the expenses of bringing into service of the society such as the advancement of the deposit, the payment of the 3 first month of rent..

b) Investments

Other persons like our family and friends help us giving two kind of investments:

Materiel

Kevin’s and Anna’s family help us giving computers and printer for a value of 4 000 euro.. and a car for a value of 40 000 As well, we bought 5 desks and 5 chairs for a value of 1 250 euro.

Skills/ tools

All of us can speak two languages, english and the one of our country so it’s an important thing to work and expend our product, in a near future, outside Ireland. In addition, Anna K is polish, so it will be very easy to negotiate with polish companies to have a cheap price and a good quality, during the fabrication of the product.

c) Bank account

We decided to choose the bank of Ireland.. in order to have a loan of 300 000 euro. With a calculator online, we can see that if we borrow 300 000 euro over 60 months, we will have to pay after 5 years 361 000 euro. We enclose our monthly repayment in the appendix number 1.

[ http://www.bankofireland.ie/html/gws/business/finance_your_business/quick_quote/ ].

2) Marketing strategy

It’s very important to have a heavy marketing strategy… in order to target the good customer, to give him what he wants and he need.. but something which is not too full in the actual market of toothbrush!

3) Pricing

The pricing strategies will help us reach our target profit margin. We have to make sure than we have included both fixed expenses and variable expenses, and be sure that our price will allow us to reach our break even point within a reasonable amount of time… having profit. It is very important to give a price which is coherent. Our target are business men who are able to travel a lot and spend more money than others for their comfort, but families and child… in the middle class! Our product is the first of our range and our company is recent (no market, no image etc), so the price should be in consequence. We have to mend a price in the average… to begin the activity, such as:

An ordinary toothbrush: This contain one toothbrush, with two recharges (travel or an ordinary utilisation at home), and a hand bag to travel.. for 7.22euro and 6.52euro for recharge.

A family pack: Complete, full and economical, this pack offer two toothbrushes (adult and child size), two recharges, a dental thread, and a plastic hand bag.. for the little price of 20.

In addition, we choose a round price for the pack because it is easy to remember… and it vehicle simplicity (our product is simply to use, with a round price).

4) Advertising and promotion

a) Distribution

To launch a product, it is very important to know where your small business will sell its products or services and how it will get those products or services to your customers in your your target market? Delivery terms and costs? If there are any shipping or labelling requirements?

For the two offers, we decided to use tree main interfaces:

Sales forces Costs Where?

Pharmacies / Packaging In Ireland

Internet Website Packaging

Advertising In Europe

Super and Hypermarket Members of the company Packaging

Advertising

Free samples

oil for the car

etc. In Ireland

Pharmacies

Pharmacies vehicle an image of specialization, security and quality… so it is very important for our company to be represented in this kind of store. It is cheap cause we don’t have to spend a lot of money for advertising… and we give a good image of our product. Obviously, we will just choose pharmacies in Ireland in the four main towns which are Dublin, Belfast, Cork and Galway.

Internet

Internet is a sure and clear distributor, and people came to search some of product to sell all the time… in Europe. It is a very lucrative source of income, but we have to be careful… and to have a consequent budget for advertising (lots of competitors). In addition, we have to offer short delivery terms to be competitive. We will promote our product thanks to our website, where people will choose, compare and buy their products. It is a good mean to make profit, without spend a lot of money in advertising and sales force… to absorb costs the first year.

Hyper and Supermarket

Hyper and Super is the communication mean in which we invest a lot (free samples, car, oil, packaging, flyers…), but it’s the more lucrative. It will help us to promote our product and give the image we want, targeting a large panel of population… in Ireland.

b) …and promotion

We have a budget of 500euro each month for promotion, to dispatch in all of our interface (excluded shop online which has his own budget):

Logo and catchphrases

150euro to print the logo, and 250euro to print and publish our catchphrases

We are designing our logo by ourselves and manufacturers will put it on toothbrushes

With Feekul, you are cool An easy catchphrases to remember… and clear, to give a young and nice image of the company.

Calling cards

100euro to print calling cards..

Online shop

Web hosting and domain, a cost of 70 euro/ month (www.feekul.com). Our online shop will cost 1000 euro.

Holidays special promotion

5) Sales strategy

After understand really what the consumer wants and needs… it is very important to create a heavy sales strategy, in order to do what the company needs to make profits, and sales!

We decide to sell our product in 3 kind of stores: pharmacies, online with our website in internet, and in supermarket and hyper in Ireland. It seems to be a good mean to launch and promote our product… to target a large panel of population. 50% of our toothbrush will be sell online, because it is cheaper for us, and it permitted to absorb our cost the first year.. selling all over Europe. 25% of our product will be sell in pharmacies (in order to have an image of quality and security) and 25% in hyper and super markets… the more expensive but the best mean to make our product popular. For these reasons we will have a competition advantage, because we will be represented in lots of stores, in Ireland and in Europe.

We will promote toothbrushes by our own, thanks to our formation… so we don’t need staff to contact hyper and super, to choose the disposition and negotiate, for the creation of flyers and we will assure the delivery with our own car (we recruit one person to drive the car) For this economical choice, we will be cheap…. without make any negligence about promotion and advertising.

Concerning our goals:

pharmacies: 150 toothbrushes for each pharmacy/ month and 100 rechargers every month (2 000 pharmacies)

supermarkets: 300 toothbrushes for each supermarkets every month and 200 rechargers every month (2 000 supermarkets)

Online: First five months 5 000 in total (1 000/month) and after 2 000/month… rechargers 0 the fist month,then 500 until fifth month, and 1 000 until the 12th.

We have a cheap product, innovative and commercialise in 3 different stores to target a large panel of the population.

V/ RESEARCH AND DEVELOPMENT

1) Product evolution

Anybody who uses a toothbrush will say you that it is not the best pleasure of the world and for a lot of people its even a nightmare experience. Consequently our company has to try to develop many projects for the toothbrush moment becomes a pleasure moment for the 6 billion potential users in the world!!!

a) New product

If our product is a success and it will be a big success, we will can to extend our range of product in the health and hygiene:

It would be a very good idea to develop a larger range of perfumes toothpaste to satisfy everybody. We have to diversify to the basic perfumes which are bubblegum for child and fresh mint for adults. So with our product it will be very easy to propose toothpaste kit with different perfume like mango, coconut or chocolate The perfumes list dont have end but we choice, after a market research, the best perfumes for the customers.

So without forgotten the most important perfume, a toothpaste plants-based or/and a bio toothpaste to follow/surf on the eco-friendly wave!!

Develop new perfume its a good idea!! Develop famous new perfume it would be better idea!! Indeed we could ask to the famous food brand like Twix, Mars, Canterbury, Bounty or Kinder

Physical appearance is more and more important in the new way of life and we are specialist in dental hygiene. Also a good dental hygiene dont permit having a great smile with very white teeth, so we could develop a product which permit to go white the teeth. It would a kind of pen which apply on your teeth. The Teeth White Pen

It could be a great thing to do research on a toothpaste tablet. Its the next stage of our product. Indeed the news way of life bring about the increase the outdoor meal and decrease meal time. Our can answers to this new problem with Fee-KUL but a tablet toothpaste without toothbrush and water, it could be a best success in the world.

b) New distribution channel

If our product is a success and it will be a big success, we will develop new distribution channel to send always more Fee-Kul.

You can buy sandwich, drink, pizza in a vending machine but also for any years newspapers, cigarettes, flowers or condoms but why not our toothbrush? Indeed the primary characteristic of our product is this mobility (With FEE-KUL, you can use our toothbrush everywhere and whenever). So we could ask to the hospital, hotel, bus or railway station, airport, motorway area to distribute our product in vending machine. And it would be preferable to do partnership with other hygiene, heath or beauty brand for install together new vending machine.

In the same time our web site launch, we could launch a new website offer. You know, that its already possible for some years buy a lot of product on the web and certainly every products of the world. So why not Fee-Kul??

The theory is very simple: a toothbrush home delivery subscription package. Indeed a very simple report : on average, the European and so certainly Irish people change their toothbrush only twice a year but a good dental hygiene requires a renewal at least every two or three months. So our website will could be offer a subscription so that receive all the two or three month a new toothbrush with a package of toothpaste refill.

Maybe it will be possible to do partnerships with the insurances, dentist or Mutual Insurance Company which propose our subscription website.

c) Promotion

If our product is a success and it will be a big success, we will develop promotion Channel to be always more famous.

The health is big deal for the all countries and so also the dental hygiene; we are a big actor of the dental hygiene. On partnership with different country, we could offer free dental hygiene lesson in the schools. It would be the perfect advertising: we learn the most important hygiene-based with our toothbrush and after the children talk about our product with her parents. We do the good for the family and for our company.

At the beginning, it would be a great thing to do a partnership with a big brand of toothpaste (Colgate, Aquafresh). Indeed to use a famous brand could be increase the fame of our new brand. Of course in compensation we will have to give to this famous brand a percentage of the profits or sales.

But if we choose to do this partnership we wouldnt develop ours news toothpaste perfumes and just accept the offer of the famous brand.

2) Patents and trademark

– Patents

The toothbrush with toothpaste inside already available, however its possible to get a patents license in compensation of money.

To get a license is the operation which consists for the patents owner to give the exploitation rights of its patent to another people. The license is also a legal contract

– Register trademark

Our registration trademark is absolutely necessary. Indeed we have to protect our brand against the potential competitor. This registration is not an obligation in the Irish law but that allowed being the only people who can use the name or the logo.

Registering your trade mark creates an official record of your rights as owner of a particular trade mark and makes it easier to prevent others from using it.

– Trade mark registration grants a statutory right, subject to certain conditions, to prevent others from using the trade mark without the registered proprietor’s permission – i.e. to prevent infringement

.

– Registration confers an exclusive right to authorise others by means of licensing to use the trade mark for the goods and /or services for which the trade mark is registered.

Ireland

The initial application fee is 70.00. If the application is successful, a registration fee of 177.00 is payable. The fee for the renewal of a trade mark registration is 250 payable every ten years from the date of filing the application.

As register trademark are territorial, indeed an Irish trademark is only valid in Ireland, we feel, that because are target market for our product expands beyond Ireland, it would be necessary to apply for patent protection abroad beyond the Irish jurisdiction.

The following options are available to us:

Europe

We can register our brand like a Community Trade Mark, which will provide registration in the 27 Countries of the European Union with the OHIM (Office for Harmonisation in the Internal Market ). Its quite easy because its necessary to ask just one registration for to be valid across the European Union. For the registration of a Community trade mark, there is a unique fee to be paid, 900 (online) or 1050 (paper). In a Word, as in Ireland a registered Community Trade Mark is valid for ten years and it can be renewed indefinitely for further periods of ten years. Of course, they are also tax to renewed the CTM.

World

We can also register a international brand with the International Bureau of the World Intellectual Property Organisation (WIPO) but its still more difficult and more difficult. In addition, contrary for a european trademark, its not possible to register our brand in the world. Before we must choose each country that we want integrate this national market.

– It wont be necessary to register a design because our product doesnt have a particular design.

3) Research and development

To constitute Research and development department in a new company be very expensive. Indeed that includes a big rise of expenses (personnel, material, patents or license). And secondly, our product our product don’t have a technology stock and dont require a high technology.

However technology develop very fast and have got a research and development center will be essential in the future to stay a competitive company on the healths market. Firstly, this centre will develop product in dental hygiene like the toothpaste tablet or the teeth White Pen.

But after some we could develop other products for the Hygiene, Beauty or Health market.

4) System Overview Diagram

We follow the procedures below when developing a new application or solution for one of our clients.

This diagram shows how M.A.S.K.A. get an idea, develop it and eventually implement it. We are always striving to improve and looking at new ways to develop. All our departments work together to come to solutions. We test the feasibility and try to integrate and eventually industrialize the product before implementing.

Introduction phase Begins when a client initiates a need or an opportunity.

System Concept phase Defines the scope boundary of the concept

Planning phase Includes Project Management Plan and other planning documents.

Requirements analyses phase Analyzer user develops user requirements.

Design phase Transforms detailed requirements into complete detailed system design document.

Development phase Converts a design into a complete information system.

Integration and testing phase Demonstrates that the developed system conforms to the specified functional requirements document.

Implementation phase Implementation of the system into a production environment, and resolution of problems indentified in the last phase

Operation and maintenance phase Describes tasks to operate and maintain information systems in the production environment.

VI/ STAFFING AND OPERATIONS

1) Staffing

We need just an employee who is responsible printing the logo on your product. This job dont require a particularly qualification.

2) Operating plan

Product description

Fee-kul is a toothbrush with toothpaste inside. Head brush has snap-on cap that protect bristles and toothpaste already inside in the brush handle. To dispense the toothpaste onto the brush head only need to twist the wheel on the side of the toothbrush.

Location

Our companys headquarter take place in Athlone because we know very good this town and also this is the centre of Ireland and all road go to Athlone. At the beginning our office is renting.

Communications facilities:

Internet, fax and phone, www.feekul.com , [email protected] , 090-6498115.

Equipment

A vehicle, furniture (desks and chairs), laptops, printers, phones, lamps, video projectors, kitchen facilities, coffee machine.

Costs involved:

Oil, sheets and furniture, wages, tax rates, rent and charges bill, maintenance, business expenses, goods.

Manufacturing

To produce our product we decide to outsourcing. Goldcredit Oral Care manufacturer will produce toothbrush and toothpaste. They will also focus on packing, but everything is designed by our company.

Quality Assurance

Goldcredit Oral Care manufacturer as an ISO9001:2000 certified supplier they provide exquisite quality.

Product Delivery

Our partnership in distribution is Beatties Distribution Services Ltd. They will organise the safe and efficient movement of goods.

Storage

From the beginning we are invest in buying our own warehouse to get in the future profit from letting

Selling

We are starting with online shop and buying a domain www.feekul.ie for 69 (excluding VAT) annually. Cost of designing a web application is 500.

Product delivery

We have agreement with courier that in every Friday will take our packages. We can give discount to customers who will buy more than 5 toothbrushes.

VII/ FINANCIAL PROJECTIONS

1) Product prices

To fixe our prices we include our costs .

2) Cashflow

3) Cashflow projections : summary

4) Income statement

5) Balance sheet

6) Loan

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