MARKETING PLANNING FOR NEW PRODUCT

Product Name : Natural Anti-insect

For developing new product successfully, we must understand our consumers, markets and
competitors and develop products that delivers superior value to consumers and take plan. The
systematic source for our products idea. We have developed our product by using both sources.
Internal idea sources:
•R & D
External idea sources:
•Customers,
•Competitors,
•Distributors,
•Suppliers. New products are important to both customers and the marketers who serve them.
For companies new products are a key source of growth. In this report we are showing our new
product development idea. Our new product development idea is about a “Natural Anti-
insect”.“Natural Anti-insect” is one kind of insecticide but it is different from insecticide because
“Natural Anti-insect” protects the crops from insect but it does not kill insect. There are various
insecticides in the market. They have different categories and different prices. But our new
“Natural Anti-insect” is totally different from all the insecticides in the market. “Natural Anti-
insect” is environment supported.“Natural Anti-insect” is produced from mahogany seeds or
fruits.

Strategic planning
Objectives

We have steady but a reachable objectives for the first six month to make a brand image for
“Natural Anti-insect”.
First Six month’s Objective
: We are aiming at making our product a brand toward farmers, and agricultural persons. In this
regard, we make several campaigning.

Company’s objectives and goals

Mission turned into detailed supporting objectives and

goals for each level of company management.
For instance:
 Spend 15% of Profits into R & D to achieve best quality.
 Sell more or reduce costs to cover costs = Marketing Goal.
 To provide farmers 100% environment friendly and effective solution for the natural enemy
of food crops.
 To raise a global claim for “from poison to purity”.
 To reach 80% of farmers within first 2 years.
 To educate farmers regarding the comparative health and financial benefits of using the
natural products

Designing the business portfolio

There are two steps to plan the portfolio:

1. Analyze your current business portfolio

2. Develop strategies for growth and downsizing

1. Analyzing the Current Business Portfolio

It's at this time during our strategic planning that we need to evaluate the products and businesses
that make up our company. This is called "portfolio analysis". We need to put strong resources
into our more profitable businesses and phase down (or drop) weaker ones.

Step One: Identify key businesses that make up our company and call them "SBUs" Strategic
Business Units. These SBUs can be: a) company divisions; b) product lines within a division; or
c) single product or brand.

Here our single product is “Natural Anti-insect”.

Step Two: Assess the attractiveness of these SBUs and decide how much support each of them
should get.

Add and support products and businesses that fit closely with our company's core philosophy and
competencies.

The attractiveness of our SBUs market or industry and the strength of your SBUs position in that
market or industry are two important features of portfolio analysis.
The most popular portfolio planning method was designed by The Boston Consulting Group .
In this method, we would classify all of our SBUs into a "growth-share matrix".

On the vertical axis: market growth rate. On the horizontal axis: relative market share. Now,
there are four types of SBUs:

1. Stars: High-growth, high-share businesses or products. Sometimes, stars need heavy

investments to finance their rapid growth but eventually, growth will slow and they'll turn
into cash cows.
2. Cash Cows: Low-growth, high-share businesses or products. Produce a lot of cash that
we can use to pay our bills and support other SBUs.
3. Question Marks: Low-share business units in high-growth markets. They need a lot of
cash to hold their share.
4. Dogs: Low-growth, low-share businesses and products. They could generate cash but
they don't promise to be large sources of cash.

Once we've classified all of your SBUs, analyze what role each of them will play in our
company's future. we can pursue one of four strategies for each SBU:
2. Developing Strategies for Growth and Downsizing

If we want to compete more effectively, satisfy our stakeholders, or attract top talent, we need
growth. But don't let growth be our sole objective. Our objective should be to manage profitable
growth and marketing is the main way to achieve this. We need to identify, evaluate, select
market opportunities, and establish strategies to capture them. One way to do this is by using a
portfolio planning tool that helps us to identify company growth opportunities through market
penetration, market development, product development, or diversification.

 Market Penetration: Making more sales of current products to current market segments
without changing the product.
 Market Development: Identify and develop new market segments for current products.
 Product Development: Offer modified or new products to current market segments.
 Diversification: Start-ups or acquiring new businesses outside our company's current
products and markets.

It's important that we not only develop strategies for growing our business, but also strategies for
downsizing. If our company has grown too fast or entered into an area where we don't have the
experience, these are good reasons for downsizing. If we find a brand or a business that is
unprofitable or doesn't fit the overall strategy any longer, think about pruning, harvesting, or
divesting them. Don't allow these issues to take up our management's time. They need to focus
on growth opportunities and not waste time trying to salvage fading ones.

"They always say time changes things, but you actually have to change them yourself." - Andy
Warhol

Planning marketing and other functional strategies

The relationship of marketing to the other business functions is often misunderstood.

* Marketing alone cannot produce superior value for the consumer. All company departments
must work together to accomplish this.

* Each department is a link in the value chain (a major tool for identifying ways to create value
for the customer).

* A company's value chain is only as strong as the weakest link.

* Marketers are challenged to find ways to get all departments to "think customer."

In its search for competitive advantage, the firm needs to look beyond its own value chain and
into the value chains of its suppliers, distributors, and ultimately customers. This "partnering"
will produce a value delivery network.
 Marketing mix (4P’s)

Pri
ce

M a r k e ti n g m i x

Pla
ce

Product
Natural Anti-insect‟s target market is the consumers who are aware of environment andeffect of
insecticides. Natural Anti-insect will help them to grow crops without polluting environment and
side effect. Under this strategy we will provide unique quality, attractive packaging, easy to use
and environment friendly product at an affordable price which would be lower than our
competitors‟ price. We are also going to start with four different types of product in our product
range. This will be according to differentiations of consumers‟demand and need.
Price
For entering the business we will follow market penetration pricing policy by charging low price
so that we get huge excess to the existing market. We will also provide quality anti insect but at
less price compare to our competitor‟s price like other insecticide‟s company that we will follow
same for less positioning strategy. Moreover we will give variety of product in a same price so
that we can keep our sales steady during an entire year.Our new product is produced by natural
resources So the price of product may be low than our competitor‟s price like other insecticide‟s
company.
 Price
List price
Discounts
Product Allowances
Variety Payment
Quality Target period
Design Customers:
Features
Aware Farmers
Brand name
Packaging

Place
Channels
Promotion Coverage
Advertising Assortments
Personal selling Locations
Sales promotion Inventory
Public relations Transportation

Place
For distributing our product, we are using person to person sales and also engaging some
channels for expanding our sales and market coverage. And we also want to distribute our
product in localmarket, delar shop and general stores around Dhaka and other division of
Bangladesh. Our target is to make our product available in all area within 6 or 8 months by our
distributors in whole Bangladesh. To remove channel conflict we will do some activities, for
example our distributors will be selected and limited because of having some control over the
product. There may be more than one distributor but their area of distribution will be strictly
maintained. There will be no chance of charging extra price by the distributors since strict
monitoring will be done on a regular basis.
Promotion
Some others organization will create an advertising campaign for Natural Anti insectto build
brand awareness and differentiate the product from competitors; emphasizes on trade sales
promotion to support distribution strategy and to develop a high-profile product-launch strategy
to generate publicity and media coverage.

Marketing strategy
Target Market:
“Natural Anti-insect‟s market consists of consumers that mean farmers who want reasonable
price, easily using, variety in products, quality and freedom to choose the product of their
preference. We aimed our consumers based on their benefit & usage rate. We differentiated each
and every possible user on the basis of their preference to deliver the highest value. Each of the
farmers wants to protect their crops from insects but in different ways or wants special benefits
while using a product to give natural anti-insect on different crops. So we targeted all types of
farmers above and planed to do a differentiated marketing by lunching different versions and
sizes of our product.

Segmentation
Environment aware farmers :
Environment aware farmers are generally aware about Environment so they use natural anti-
Insect and the price of this product is low so they take it easily and it is benefit for us.
General farmers: They are not aware about environment and health. So our aim is to aware
them.
Professional farmers: They use insecticide huge carefully. It is important with us to target them
because they are important consumer with us. Educated farmers: As they are educated so they
are aware about this product and use it easily.
Uneducated farmers: We must careful to them. We Arrange workshop and awareness
campaign for them and give extra advertisement
Positioning:
Natural Anti-insect provides dual function of protecting insect and not harmful for health and
environment. Not only that, it is safe than other insecticides and nature. It does not require extra
Fertilizer for crops, thus it saves fertilizers too.
Differentiation
 The 5 Market Differentiation Strategies User Experience Differentiation, Customer Service
Differentiation, Product Differentiation, Market Penetration Price/Quality Differentiation,
Technology Differentiation.
1. Technology Differentiation : A new technology may provide sufficient value for
differentiation in the market. Natural Anti-insect make liberal use of this strategy.
2. Price/Quality Differentiation : The use Price/quality differentiation fosters a calculative
behavior where customers continually shop for the next best deal. This in turn leads to
customer churn and increased acquisition costs.
3. Product Differentiation : Long used by the farmers Natural Anti-insect, this strategy is
designed to overwhelm the consumer with features and specifications to provide the
value proposition. Product differentiation often leads to market confusion which can
 paralyze customer spending. Also, too many “big new” things can freeze spending as
consumers fear buying something that may be quickly obsolete.
4. Customer Service Differentiation : Moving up the differentiation scale and focusing on
superior customer service is a way to avoid the limitations of a product/service play.
Differentiating on customer service may be more costly for the brand in that it requires
the infrastructural support and continual advertising or messaging to remind the potential
customer of the service offer.
5. User Experience Differentiation : In a commoditized market, differentiating based on an
emotional bond with the customer is both very powerful and difficult to do successfully.
The brand that is able to build emotional or social connections will have fiercely loyal
customers with low churn.

SWOT Analysis
Our major is that as a new product,anti-insect is a new invention in farm product an environment
supported, but our major weakness is lack of much awareness and lack hand wash user
people.The major opportunity is that there is no competitor and lower price than insecticide. As a
result we might capture a huge portion of the market. We also face a threat of lack of Brand
value.
Strength:
 Innovative feature: Anti-insect is a product which has innovative feature. It offers
different features for different product of its range.
 Different offering for different market: Anti-insect is providing different offer for
different market such as differentiating products for rice, jute,fruits etc.
 Competitor less: In Bangladesh, there is no company is in anti-insect market. So, it is a
great advantage for anti-insect to enter and take a place in the market.
 Lower price than competitor: Anti-insect is going to offer lower price than insecticides.
 Large range of product: Anti-insect is offering different types of product.
 Security: Anti-Insect maintains proper security for manufacturing process.
 Packaging: Anti-insect maintain and use colorful and various designed packages with
strong technology for different crops.
 Harmless: There is no side effect in anti-insect but other insecticides are harmful.
 Environment supported: Anti-insect does not pollute environment.
Weakness:
 Lack of knowledge about anti-insect: Consumer has less knowledge about anti-insect
as it is a new type of insects ‟protector like insecticide.
 Brand name: As it is a new product so it has not a popular brand which can be an
advantage for Competitors Consumers’ cautiousness for the new products: Anti-insect is
a new product. So consumers are always cautious to buy new products.
 Lack of Consciousness: Most of the people in Bangladesh are not willing to or
conscious for using anti-insect.
 Using limitation: Anti-insect is not used on all kinds of crops.
Opportunity:
Positive Market Growth: Anti-insect market is still new in Bangladesh. So, there is
opportunity for anti-insect to make a positive market growth.
Lack of variety in existing products: In market existing product has less variety than
anti-insect.
Variation of wants: Consumers want changes day by day. With anti-insect different
range of product, it can fulfill consumer wants.
Increasing Demand: Peoples are getting aware day by day for the necessity of
environment supported anti-insect.
Lower Technology Cost: Dove Hand Sanitizer use the technology which costs less.
Branding: As a new product anti-insect has opportunity to create a brand image.
Threats:
o Irregular purchase of the product: Consumers‟ might not purchase this kind of product
regularly.
o More Competitors: Other large insecticides manufacturers might come to this market.
o Downward Pressure of Pricing: There can be pressure for downward pricing.
o Irregular Purchase: There have a possibility for irregular customer.