Professional Documents
Culture Documents
UNIVERSITY OF MUMBAI
(SEMESTER II)
MCOM I
SUBJECT
MARKETING STRATEGIES & PLANS
A PROJECT ON:
New Product Development Process
ACADEMIC YEAR:
2015-2016
SUBMITED BY:
Sagar Siddhant Sanjay
ROLL NO: 50
PROJECT GUIDE:
PROF. DINESH CHOTRANI
DATE OF SUBMISSION:
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Name of the
Fathers
Mothers
Roll No.
Student
SAGAR
Student
SIDDHANT
Name
SANJAY
Name
SHEFALI
50
Internal
External
Assessment
Examiner
ACKNOWLEDGEMENT
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Principal
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Sr No.
Details
Page No.
1.
Introduction
2.
3.
12
4.
14
5.
20
6.
22
7.
Industry
24
8.
Product Development
30
9.
Conclusion
34
10.
Bibliography
37
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Without a good NPD process firms cannot efficiently manage the inherent risk of
new product development. However, even a good NPD process is inherently
complex to manage. A significant measure of complexity results from the fact
that communications and information management technologies now allow, and
even encourage, the process to be rightfully dispersed both organizationally as
well as geographically. The benefits of managing NPD as a dispersed process are
many.
Organizationally, the NPD process operates best when it is able to capitalize on
key inputs from multiple functional areas within the firm, including marketing,
engineering, production, finance, etc. In general, no single organizational unit
optimally represents at the same time the voice of the customer, as well as all of
the technical, operational, and financial competences of the firm. The
interactions between multiple organizational units are instrumental in influencing
the efficacy of the NPD process and, in turn, the likelihood of introducing
commercially viable products. The process clearly benefits from inputs gathered
from sources outside of the organization from key customers, from important
competitors, and from strategic partners such as the firms principal suppliers. It
is generally accepted that limiting the new product development process to the
insights of only a few people in one certain functional area inside the firm will
generally restrict its long term effectiveness, and have a negative influence on
the firms product portfolio.
The NPD process is also becoming increasingly geographically dispersed. Even
within a given organization, it is entirely possible that employees representing
the important functional areas of the firm may be situated in different locations
around the country and across the world. Key marketing personnel may be
located in California, the finance department may be headquartered in New
York, while the relevant engineering and production personnel for a new product
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Step 7: Commercialize
At this stage, your new product developments have gone mainstream, consumers
are purchasing your good or service, and technical support is consistently
monitoring progress. Keeping your distribution pipelines loaded with products is
an integral part of this process too, as one prefers not to give physical (or
perpetual) shelf space to competition. Refreshing advertisements during this
stage will keep your product's name firmly supplanted into the minds of those in
the contemplation stages of purchase.
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HUL works to create a better future every day and helps people feel good, look
good and get more out of life with brands and services that are good for them
and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents,
shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged
foods, ice cream, and water purifiers, the Company is a part of the everyday life
of millions of consumers across India. Its portfolio includes leading household
brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds,
Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke
Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.
The Company has over 16,000 employees and has an annual turnover of INR
30,170 crores (financial year 2014 15). HUL is a subsidiary of Unilever, one of
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Key competitors in the water purification space, such as Eureka Forbes Limited
(EFL), Ion Exchange, Philips and Whirlpool, were focused at the top end of the
market with UV and RO based purifiers (Exhibit 5 contains product and price
point details). EFL, a consumer durables company set up in 1982, first
introduced UV-based POUs in India under the brand name Aquaguard.
Historically, EFL also had a countertop gravity-fed purifier under the name
Forbes. After Pureit started its test launch, Eureka Forbes improved the
germkill ability of their countertop purifier and changed the brand name from
Forbes to Aquasure. Later, EF also added the more expensive UV and RO
technology-based products under the Aquasure name. In general the prices of the
various models in the Aquasure range were lower than the ones in Aquaguard.
Recently the Aquasure brand was focused into the retail channel, and the
Aquaguard brand was focused into the DTH channel.
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The Eureka Forbes division of EFL, which made a range of consumer durables
such as vacuum cleaners, home security systems and the range of water purifiers
described in the case, was now a $160 million, multi-product and multi-channel
business, boasting Asias largest direct selling network with 7,000 sales
personnel that reached 1.5 million homes in more than 131 cities and 398 towns
across the country. It had 10,000 dealers and over 58 distributors, and was
gradually accelerating its rural penetration through Non-Governmental
Organizations (NGOs). It reported an average gross profit of 5% and a net profit
of 3% over the last several years. It was also considered one of Indias Best
Employers. Eureka Forbes is probably the only company in the world which
exclusively sells water purifying systems, door-to-door, by cold calling. RO
purifiers were introduced in the 1990s by Ion Exchange, a water and
environment management company. These required running water and
electricity, and were priced higher than the UV products. Unlike UV products,
RO products could improve the taste of water if the water happened to be
excessively hard. Other key players in water purifiers included major consumer
durable companies such as Kent, Philips and Whirlpool, all focused on retail
selling.
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Strong domestic contenders from other sectors also entered the fray, such as
Godrej who entered at the upper end of the market with their model Krystal,
and Asian Paints who entered at the lower end of the market with their 650 ml
personal water bottle purifier. As the unorganized sector mushroomed, the
market became highly fragmented with more than 150 national, regional, and
local players.
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The final purifier operated on the principle of gravity and deployed four stages
of purification. First, water filled into the top chamber went through a Micro
Fiber Mesh (MFM) that removed suspended particles. Then the water flowed
quickly through a winding path in the Compact Carbon Trap (CCT) which
physically removed the parasites from the water because they would get stuck
inside the CCT. The CCT had to be designed to take care of two conflicting
technical requirements physical removal of parasites would be easier with
narrow water pathways, whereas the requirement of ensuring good flow rates (a
key consumer need) would be easier with wider water pathways. In the third
stage, the water passed through a Processor which contained a stack of biocidal
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At the other end of the market the growth and higher potential profitability on
Marvella made for a significant opportunity for HUL, but intense competition
was already driving down prices and margins. For Marvella HULs DTH system
needed critical changes, including upgrading their demonstrator profile and
compensation. They wondered how they would straddle both the low and high
ends of the market and create two diverse systems of reaching out to their
consumers. How would they build new competencies at the high end of the
market in order to compete head-on against stalwarts like EFL, Kent and
Philips?
Typical durable companies had a business model wherein consumers would call
them if there was a problem. For Pureit, HUL had tried to reach out and directly
contact consumers. But driving growth and service delivery through DTH was
becoming more difficult as the scale increased. Growth through the retail trade
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Thank You!
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