Description
A volcano is an opening, or rupture, in a planet's surface or crust, which allows hot magma, volcanic ash and gases to escape from the magma chamber below the surface.
PROJECT REPORT ON NPD (STAGE-1) “VOLCANO KIT” (Named “Blastecano")
SUBMITTED TO: Mrs. Ingita Jain SUBMITTED BY: SwetaMajithiya& Group
PRODUCT LEVEL FOR THE PRODUCT “VOLCANO KIT”
Potential Level Augmented Level
Core Benefit
1. CORE BENEFIT: Playing. 2. BASIC PRODUCT:Volcano kit. 3. EXPECTED PRODUCT:Enjoyment, Give knowledge about volcano.
4. AUGMENTED PRODUCT: Playing dish and clay toys. 5. POTENTIAL PRODUCT:
SEGMENTATION 1. GEOGRAPHIC:
REGION: Ahmedabad
2. DEMOGRAPHIC:
Age: 6-10 years. Family size: Married with children 6-10 years.
Gender: Both Income: Low to high Occupation: No effect Education: No effect
3. PSYCHOGRAPHIC:
No effect.
4. BEHAVIORAL:
Occupation: General Benefits: Enjoyment. Knowledge. User status: 1st time user. User rate: Light.
COMPETITION
? ? There is no direct competition. We have monopoly in providing “volcano kit”. The other indirect competitors who provide same core need i.e. toy manufacturers in Ahmedabad are... ? Umiya toys industry ? Essel toys industry ? Agarsen plastic industry
? Product mix chart for Umiya toys industry Umiya toys industry
Plastic balls
Bowling games
Plastic jars
In many different sizes
For 2 balls
For 6 balls
1 kg.
2 kg.
POSITION mapping
ATTRACTIVE
• Essel toys manufacturing • Agarsen plastics firm • Umiya toys & plastics manufacturing
• Blastecano industry
EXPENSIVE
LESS EXPENSIVE
NON- ATTRACTIVE
POSITION STATEMENT “The volcano kit is knowledgeable and not harmful for children and is available at affordable
prices.”
PRICE
? MRP: Rs. 50(Approx.)
? Mark up pricing strategy. PLACE
? ? Manufacturing place: Narol GIDC. Distribution: Manufacturer Retailer Customers
PROMOTION
Provide free samples in different schools during any events or competition. By providing demo using this kit to initial customers.
Stage-2
PRODUCT DESCRIPTION FOR THE BLASTECANO KIT
Raw materials: ? ? ? ? ? ? ? Glass bottle Vinegar Colourful Soda water Clay Baking soda Playing dish Moulds
Process: ? First of all, wet the clay. ? Put the glass bottle on the playing dish and cover the bottle with the help of clay until the neck of the bottle and make the shape of mountain. ? Pour the soda water inside the glass bottle and mix up the vinegar and baking soda into the soda water. ? Vinegar reacts with baking soda to form carbon dioxide, which erupts as smoke, resembling a natural volcano. Instructions: ? If possible, parents should be present, when the child is making the volcano. ? Make sure that you don’t let any clay inside the bottle. ? The product is not for the children below the age of 5 years.
? Make sure that child does not drink the colourful soda water or
vinegar.
Packaging
Clay moulds
Vinegar Glass bottle
Clay
Playing dish
? Blastecano Kit would be arranged in above shape in thermocol sheet. ? Packaging would contain process for making the toy and instructions given above. ? Packaging would also contain the picture of the volcano.
Baking soda
stage-3
?
DISTRIBUTION CHANNEL:
? ?
Ours would be one level channel as it contains only one selling intermediary. The distribution channel would be like this... Manufacturer Retailers Customers
? FLOW: ? Physical flow:
Suppliers manufacturers retailers customers
? Suppliers ? Suppliers
Title flow:
manufacturers retailers customers
Payment flow:
manufacturers retailers customers
Roles and responsibilities of intermedieries:
? ?
Retailers make the product widely available and easily accessible to the market. They smooth the flow of goods and services and thus they bridge the discrepencies between the assortments of goods and services generated by the producer and the assortment demanded by the consumers.
Expenses and profit margin:
Particulars Cost: Playing Dish Bottle+soda liquid Vinegar Baking soda Clay Moulds Packaging Total cost Plus: Company margin (25%) Plus: Retailers’ margin (10 %) MRP amount 5 5 2 1 8 10 5 36 9 45 4.5 49.5 amount
THE SPREAD OF NETWORK IN TERMS OF NUMBERS:
Region: Gujarat
? ?
As we distribute our product to the few outlets, we follow the selective distribution. We will distribute our product to the 40 retail outlets in Gujarat at initial level.
Time utility:
Customer waiting time: ? There would be no waiting time for customers as they can purchase the product on the spot. Company-stock out cost: ? 250(safety stock) ? Stock out cost : 180 Competition: service level provided. ? We provide our product to the retailers as per their suitability and the credit period provided to them is also flexible so as to sustain in the competition. ? The retailers do not have to wait much for getting our product.
Place utility:
? We give our product to those retailers whose outlets are near to the customers’ location.
Reach: By sales promotion
CRITERIAS FOR CHOOSING INTERMEDIARY: ? Number of years in business ? Growth and profit records ? Financial strength ? Co-operativeness
Stage-4 Determination of price
Particulars
Dish Soda bottle Clay Vinegar Baking soda Moulds Packaging +Additional cost Total+company’s margin(25%) + Retailers’ margin(10%) Total MRP 5 5 10 2 1 10 3 36 4 40 10 50 5 55
Rs.
»We are using mark up pricing in our project. »Reasons for using mark up pricing:
1) Cost plus pricing is fairer to both buyers and sellers. 2) As our product is new so to recover our costs rapidly, this method is better.
Promotional strategies:
1) 2) 3) 4) We are providing demo using this kit to initial customers. We display our product at our retailers’ premises. We are providing our brochures to retailers and in schools also. We are opening the stalls in the schools as a sales promotion strategy.
Marketing Communication
Objective:
Our main objective is to provide knowledge and entertainment to kids.
Message media tools:
1) Brochures 2) Outdoor media
Financial resource allocation:
Criteria:
1) Stage in product life cycle: As our product is in the introductory stage, the promotional expenses are high. 2) Market share: The share of our product is very low in the market, so our budgetary cost will go high.
3) Competition: As our product is facing high indirect market competition, so cost will go high. 4) Product Substitutability: There are many substitutes available in the toys industry, so our cost will go high.
? We are making a brochure which will cost around Rs. 50.
doc_212340882.docx
A volcano is an opening, or rupture, in a planet's surface or crust, which allows hot magma, volcanic ash and gases to escape from the magma chamber below the surface.
PROJECT REPORT ON NPD (STAGE-1) “VOLCANO KIT” (Named “Blastecano")
SUBMITTED TO: Mrs. Ingita Jain SUBMITTED BY: SwetaMajithiya& Group
PRODUCT LEVEL FOR THE PRODUCT “VOLCANO KIT”
Potential Level Augmented Level
Core Benefit
1. CORE BENEFIT: Playing. 2. BASIC PRODUCT:Volcano kit. 3. EXPECTED PRODUCT:Enjoyment, Give knowledge about volcano.
4. AUGMENTED PRODUCT: Playing dish and clay toys. 5. POTENTIAL PRODUCT:
SEGMENTATION 1. GEOGRAPHIC:
REGION: Ahmedabad
2. DEMOGRAPHIC:
Age: 6-10 years. Family size: Married with children 6-10 years.
Gender: Both Income: Low to high Occupation: No effect Education: No effect
3. PSYCHOGRAPHIC:
No effect.
4. BEHAVIORAL:
Occupation: General Benefits: Enjoyment. Knowledge. User status: 1st time user. User rate: Light.
COMPETITION
? ? There is no direct competition. We have monopoly in providing “volcano kit”. The other indirect competitors who provide same core need i.e. toy manufacturers in Ahmedabad are... ? Umiya toys industry ? Essel toys industry ? Agarsen plastic industry
? Product mix chart for Umiya toys industry Umiya toys industry
Plastic balls
Bowling games
Plastic jars
In many different sizes
For 2 balls
For 6 balls
1 kg.
2 kg.
POSITION mapping
ATTRACTIVE
• Essel toys manufacturing • Agarsen plastics firm • Umiya toys & plastics manufacturing
• Blastecano industry
EXPENSIVE
LESS EXPENSIVE
NON- ATTRACTIVE
POSITION STATEMENT “The volcano kit is knowledgeable and not harmful for children and is available at affordable
prices.”
PRICE
? MRP: Rs. 50(Approx.)
? Mark up pricing strategy. PLACE
? ? Manufacturing place: Narol GIDC. Distribution: Manufacturer Retailer Customers
PROMOTION
Provide free samples in different schools during any events or competition. By providing demo using this kit to initial customers.
Stage-2
PRODUCT DESCRIPTION FOR THE BLASTECANO KIT
Raw materials: ? ? ? ? ? ? ? Glass bottle Vinegar Colourful Soda water Clay Baking soda Playing dish Moulds
Process: ? First of all, wet the clay. ? Put the glass bottle on the playing dish and cover the bottle with the help of clay until the neck of the bottle and make the shape of mountain. ? Pour the soda water inside the glass bottle and mix up the vinegar and baking soda into the soda water. ? Vinegar reacts with baking soda to form carbon dioxide, which erupts as smoke, resembling a natural volcano. Instructions: ? If possible, parents should be present, when the child is making the volcano. ? Make sure that you don’t let any clay inside the bottle. ? The product is not for the children below the age of 5 years.
? Make sure that child does not drink the colourful soda water or
vinegar.
Packaging
Clay moulds
Vinegar Glass bottle
Clay
Playing dish
? Blastecano Kit would be arranged in above shape in thermocol sheet. ? Packaging would contain process for making the toy and instructions given above. ? Packaging would also contain the picture of the volcano.
Baking soda
stage-3
?
DISTRIBUTION CHANNEL:
? ?
Ours would be one level channel as it contains only one selling intermediary. The distribution channel would be like this... Manufacturer Retailers Customers
? FLOW: ? Physical flow:
Suppliers manufacturers retailers customers
? Suppliers ? Suppliers
Title flow:
manufacturers retailers customers
Payment flow:
manufacturers retailers customers
Roles and responsibilities of intermedieries:
? ?
Retailers make the product widely available and easily accessible to the market. They smooth the flow of goods and services and thus they bridge the discrepencies between the assortments of goods and services generated by the producer and the assortment demanded by the consumers.
Expenses and profit margin:
Particulars Cost: Playing Dish Bottle+soda liquid Vinegar Baking soda Clay Moulds Packaging Total cost Plus: Company margin (25%) Plus: Retailers’ margin (10 %) MRP amount 5 5 2 1 8 10 5 36 9 45 4.5 49.5 amount
THE SPREAD OF NETWORK IN TERMS OF NUMBERS:
Region: Gujarat
? ?
As we distribute our product to the few outlets, we follow the selective distribution. We will distribute our product to the 40 retail outlets in Gujarat at initial level.
Time utility:
Customer waiting time: ? There would be no waiting time for customers as they can purchase the product on the spot. Company-stock out cost: ? 250(safety stock) ? Stock out cost : 180 Competition: service level provided. ? We provide our product to the retailers as per their suitability and the credit period provided to them is also flexible so as to sustain in the competition. ? The retailers do not have to wait much for getting our product.
Place utility:
? We give our product to those retailers whose outlets are near to the customers’ location.
Reach: By sales promotion
CRITERIAS FOR CHOOSING INTERMEDIARY: ? Number of years in business ? Growth and profit records ? Financial strength ? Co-operativeness
Stage-4 Determination of price
Particulars
Dish Soda bottle Clay Vinegar Baking soda Moulds Packaging +Additional cost Total+company’s margin(25%) + Retailers’ margin(10%) Total MRP 5 5 10 2 1 10 3 36 4 40 10 50 5 55
Rs.
»We are using mark up pricing in our project. »Reasons for using mark up pricing:
1) Cost plus pricing is fairer to both buyers and sellers. 2) As our product is new so to recover our costs rapidly, this method is better.
Promotional strategies:
1) 2) 3) 4) We are providing demo using this kit to initial customers. We display our product at our retailers’ premises. We are providing our brochures to retailers and in schools also. We are opening the stalls in the schools as a sales promotion strategy.
Marketing Communication
Objective:
Our main objective is to provide knowledge and entertainment to kids.
Message media tools:
1) Brochures 2) Outdoor media
Financial resource allocation:
Criteria:
1) Stage in product life cycle: As our product is in the introductory stage, the promotional expenses are high. 2) Market share: The share of our product is very low in the market, so our budgetary cost will go high.
3) Competition: As our product is facing high indirect market competition, so cost will go high. 4) Product Substitutability: There are many substitutes available in the toys industry, so our cost will go high.
? We are making a brochure which will cost around Rs. 50.
doc_212340882.docx