Report

Research Project Marketing

Group Members:
Fasiha Anwar
Waheed Khan
Fahad Mughal

Submitted To: Ma’am

Zaeema Israar
Portable Hanging Neck Sports Fan
 INTRODUCTION

LED Hand free fan is designed as a headphone to free your hands

anywhere; Fashion style makes you look so cool. Hanging around your
neck, suitable for traveling in hot weather, saved you from the
embarrassment of dripping with a sudden sweat in public on numerous
occasions. Neckband fan with powerful airflow can the fast and easy
access to instant relief from hot flashes. Hanging the cooler fan around
your neck and take it everywhere. It's ideal for personal cooling,
camping, outdoor event, trips, office, hot flashes.
Our Mission:
Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions.

 To bring useful innovative alternatives in the market.

 To form a strong bond with the consumers as well as the employees.
 To provide the best and make a difference in the world.

Our Vision:
Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order
to continue achieving sustainable, quality growth.

 To become a place where people would want to work.

 To reach the international market with our sole brand.
 To give what we promised.
 NEW PRODUCT DEVELOPMENT

New Product Development is the development of original products,

product improvements, product modifications, and new brands
through the firm’s own R & D efforts.

Why New Product Development?

 To maintain and build sales through replacement products

 To shape the company’s future
 To fulfil the ever changing customer preferences

When New Product Development?

Once a company has:

 Segmented market carefully.
 Chosen its target customer group.
 Identified their needs / preferences / requirements.
 Determined the appropriate mix of 4P’s for that market.

Then, it is ready to develop / launch suitable new product.

Marketing actively interacts with other departments (such as R & D) for
product development.
How New Product Development?

1. New Products can be added through:

2. Acquisition
3. New Product Development
4. New-to-the-World Product
 5. New Product Lines
6. Addition to Existing Product Lines
7. Improvements/Revisions of Existing Product Lines
8. Repositioning
9. Cost Reduction

NEW PRODUCT DEVELOPMENT PROCESS:

The new product development process includes various steps. Some are
following:

STEP 1

Idea Generation:
New product development process begins with the search of new
ideas.
There are various techniques involved in idea generation such as:
1. Attribute Listing
2. Forced Relationships
3. Morphological Analysis
4. Problem Analysis
5. Brainstorming

In our new product development process, we generated idea

through the following two steps.
1. Attribute Listing:
Attribute listing is an analytical approach to recognize new forms of a
system or product by identifying/recognizing areas of improvement. In our
new product development process we listed down our targeted audience
whom we provide our new product and get their feedback.

2. Problem Analysis:

The purpose of the Problem Analysis is to make adjustments to some parts

of the existing idea or process to reach the best solution. Each problem can
be the source of new idea. In our project, we analyzed the hot summer that
always make people Sweaty, making them feel uncomfortable and smelly.
People want to get fresh air and want to be cool in their daily life while
traveling, jogging or even at home in order to feel fresh. In in order to solve
these issues we decided to introduce “Portable Hanging Neck Sports Fan ”
in the market.

STEP 2

Idea Screening:
The purpose of idea screening is to spot and drop poor ideas as
early as possible. A process used to evaluate innovative product
ideas, strategies and marketing trends. The health, fitness and
wellness industries are booming and it shows in tech too. There are
lots of new fitness trackers, apps and other devices available to buy
that are designed to help you take better care of your physical
wellbeing.
We thought about the idea of “Portable Hanging Neck Sports Fan ”
which can be used while hanging on neck, which is greatly
convenient to carry to anywhere you like. Lightweight, won’t hurt
your neck even for a long time wearing and this fan is also
adjustable, it can be twisted in 360 angle. People can enjoy cool
breeze from any direction.

CONCEPT DEVELOPMENT AND TESTING

STEP 3:

1. Concept Development:
We shall illustrate concept development with the following situation
we get the idea of producing the Smart Hanging Neck Sports Fan
to give a solution of a hot weather. This hands-free neck fan makes
an ideal gadget for patients with COPD. With the help of an
adopted advanced motor, this fan also delivers fast air circulation.
Moreover, the smart design of this USB gadget keeps your hands
free while going outside. The headphone style neckband keeps
your neck pain-free.
With the help of independent switches, you can also switch on or off
the fans individually. Furthermore, the rechargeable battery system
of this fan runs the function for hours. You can use this fan while
cooking, jogging, working, reading, driving and doing other
activities. The fan of this gadget runs with lower operational noise.
Lastly it will also be suitable for people that like to keep track of
everything that happens with their body (such as active people that
practice outdoors).

2. Concept Positioning:
It helps to understand the position so that its real competition would be
understood. Our product position is in existing market of fan we just
modified it through some technology so we placed it in the medium-priced
category so that most of the people can easily afford them.

3. Concept Testing:
The definition of concept testing is the process of getting an idea evaluated
by your target audience before it becomes available to the public. It
includes anything from product concepts to ad campaigns. Before
launching the product we will conduct a survey in school, colleges, offices,
homes and parks. The survey based on the following questions:

1. Are the customers interested in the Hanging Neck Sports Fan to get
cool breeze
2. How much do customers like the advancement in Hanging Neck
Sports Fan?
3. How desirable do customers find the product’s comfortability?
4. Which thing about the Hanging Neck Sports Fan do they like
most/least?
5. What price point would they find appealing for Hanging Neck Sports
Fan?
6. What would they like to change about the Hanging Neck Sports Fan?
 MARKETING STRATEGY DEVELOPMENT

STEP 4:
An organization strategy that combines all of its marketing goals into one
comprehensive plan, a good marketing strategy should be drawn their
market research and focus of the right product mix in order to achieve the
maximum profit potential and sustain the business.

Marketing Plan we are producing “Consumer Goods” which are purchased

by ultimate user from outlets for their own personal usage. Within the head
of consumer goods, we are producing “Convenience Goods” – most of the
time these goods are purchased in small quantities and have not a very
high value. The profit margin on convenience goods is not so much as like
other kinds of goods.

Marketing Strategy when we want to launch our product in any area of the
Pakistan, then this initial strategy for marketing & promotion will be
implement for the penetration into the market as soon as possible. Before
10 days to launching the product in any area, we will start our promotional
activity which includes, pamphlets, Banners, FM Advertisement, Cable
Advertisement, Social Media Advertisement and Sign Boards Flexes. The
quantity for this promotional budget will vary with respect to the specific
area & our promotional budget. All of this promotional campaign will
manage by Marketing Manager.

When we launch our product into the market, then we will never target to
the distribution network of this specific area, we will directly target to
retailers & consumers who provide us value. This penetration strategy wills
breakdown the monopoly of distributor regarding our product. We will
introduce our product at initial level to offices, college & universities of the
specific area.

To introduce a major new product like Portable Hanging Neck Sports Fan
into the national market, the company may have spend between twenty
million and eight million in advertising and promotion in the first year. In the
introduction of the new product, marketing expenditure typically represents
57% of the sale during the first year. Most new products comparing relay
on a sequence mix of market communication tools. In the business,
companies make a launch “Portable Hanging Neck Sports Fan” costing 75
to 100 million dollars each without spending much on marketing research.
 BUSINESS ANALYSIS

STEP 5:

BUSINESS ANALYSIS:
Review the product sales, cost and profits projections to see if they meet
company objectives.

If no, eliminate product concept.

If yes move to product development.

The starting point of our project (Portable Hanging Neck Sports Fan) is a
thorough exploration of its background information. This includes new
technologies and trends, as well as some external factors.
Then we identify all the people interested in the product like stakeholders,
future customers, actually this product Portable Hanging Neck Sports
Fan is design for offices, colleges, homes, parks and universities of the
specific area.

Then we do next step to set the objectives of our product is to make sure
that fulfill the need of a customer.

It's time set main development goals ( a list of items to develop the product
and their integrations).

ITEMS THAT WE NEED TO DEVELOP OUR PRODUCT:

Plastic
Neckband mini fan

We are introducing a new product into the market, we do not found any
competitors of our product yet.

ESTIMATING SALES:
Total number of sales per year
50,000 units per year

Average number of sales per month

5,000 units per month

Calculation of cost per unit

Material costs = Rs.500
Labor costs = Rs.250
Overhead = Rs.250
Total Costs = 1000
Add markup 50% which is standard (1000×1.50=1500) final product price
ofRs.1500

Average cost and profit estimation

Per month
(5,000×1500)=Rs.7,500,000

MARKETING TESTING

STEP 6:

The test marketing is a tool used by the companies to check the viability of
their new product or a marketing campaign before it is being launched in a
market on a large scale.
The test marketing of the product based on:
1. Consumer-Goods Market Testing
2. Industrial-Goods Market Testing

1. Consumer-Goods Market Testing:

This test is conducted to know the consumer behavior in terms of:

Trial: Whether a consumer will try a product, at least once.
Repeat: Whether the consumer will repurchase it after the trial.
Adoption: Whether the consumer accepts the product and will purchase it
again.
Purchase Frequency: How often the consumer will buy the product.

To ascertain these variables the following test are conducted:

i. Sales-wave research

We will go for the sale-wave research for our new product “Portable
Hanging Neck Sports Fan” to check the willingness of the customers to use
our when it is offered.
Under this test, the most commonly used method is to offer the new
product to customer at their doorsteps free of cost to enhance their interest
in the product and to check viability of our product.
But in our case we cannot use sales at home method instead of this we will
introduce our product in package with other goods commonly used product,
such as with sports goods and related appliances, as the product is costly
and we cannot offer its free samples to everyone, so in our view this is the
best possible option to deliver our product at every home

ii. Simulated Test Marketing:

Under this method certain customers are selected and invited to the store
where they can buy anything. In our case we will place our product in a
store and check whether people buy the product or not. When some
customers buy our product from the stores we will contact them within 2 to
3 days to get their valued feedback, as there is always room for
improvement so we can further works on our market strategies to make
them better according to their feedback.
iii. Controlled Test Marketing:

In this method we place our product well-renown marts or superstores in

return for a fee, to check the customer willingness to buy our product. In
this method we controls the shelf positions, displays, promotions points and
pricing.

iv. Test Markets:

After testing our products under Controlled Test Marketing, Simulated Test
Marketing, Sales-wave research, Methods within a city we will take our
product to the next level i.e. Test Markets in different cities whether the full-
fledged launch of our product. Once it is successful we go for the national
launch.
 DECISSIONS FACING MANAGEMENT IN
SETTING UP TEST MARKETS

How many test cities?

Most test used between 2 and 6 cities. If we use larger number of cities the
maximum possible loss and / or the probability of loss from going national,
the greater the regional differences, and the greater the chance of
calculating test market interference by competitors.

Length of test?
Test market the last anywhere from a months to several years sometimes
the longer the test period necessary to observe repeat-purchase rates but
sometimes this period should be cut down due to the competitors.

What information?
We must decide on the type of information to collect in relation in value and
cost. In our product we need to know which type of people are buying our
product and we should know the attitude of the customers and satisfaction.

What action to take?

If the test market shows a high trial and a low repurchase rate the
customers may not satisfied so, we need to improve our product through
advertising, sales, promotion and other marketing mix. If the trial and
repurchase are both low the product should be dropped.
2. Industrial-Goods Market Testing

There are two types of market testing:

Alpha testing (within the firm)
Beta testing (with outside customers)

Alpha Testing:

The alpha testing is done within the firm by test engineers or employees
who check the marketing mix of a new product and fix the issues arising in
any steps of launch.

Beta Testing:

The Beta Testing is done with the customers where they are asked to use
the product and give their feedback on its usage. The other way to test the
business goods is to introduce it to the trade shows and observe the
reaction of customers to it. Also, these goods can be tested at distributors
and dealers showrooms the attention of the customers can be gained.
 PRODUCT DEVELOPMENT

STEP 7:
Improving products and rolling out new ones provides companies with a
competitive advantage. Major companies spend a large part of every
annual budget on research and development. Not every product in the
research and development phase is rolled out to market.

Research and development is a huge brainstorming concept, creating

division of companies where market data is reviewed, new innovations are
considered and prototypes are created. In research and development, a
company will survey the market, develop a product concept, and will create
prototypes to test and get consumer feedback via focus groups.
Development can be stopped at any stage for a number of reasons, such
as a change in the market needs, pricing issues, proper function or
negative feedback of consumers.

• Product:
Through our in-house design and product development team, we have
developed a coordinated, creative and broad merchandise assortment.
Raw material to finished good. We believe our product is new and a unique
design and fashionable nature of our products greatly enhances our
brand’s appeal to our customers.
• Price:
Portable Hanging Neck Sports Fan marketing strategy is to position itself
as an innovator and a maker of quality products which enable it to sell its
product. It will consistently adopt an aggressive price discounting strategy
on its product, the market that Hanging Neck Sports Fan targets expectedly
shown to be actively seeking value for money.
With its upcoming product in future the cost cutting strategy will be taken to
remain competitive in the market, this will certainly help to maintain its
market share and also help to increase in sales volume.

• Place:
Place is the key factor of marketing tool therefore we select those place
where our product will create positioning in the mind of customer. This is
our first product in the market therefore currently we deliver the product to
the customer. However after creating maximum profits and gaining
customer satisfaction we plan to open our outlets in various area of
Pakistan. We plan to follow the ownership vertical marketing system. Our
product will be provided to the customer through our own outlets or
delivered to customer.

• Promotion:
In the month of launching, we will actively communicate the customers
through media tools.
 COMMERCIALIZATION

STEP 8:
Our company will go ahead with the commercialization and it will face the
largest cost to date. We will have to contract for manufacture or we will rent
a full scale manufacturing facility. Plant size is a critical decision for us.
When Quaker odds launched its 100% natural breakfast cereal it will build
a smaller plant then called for the sale forecast. The demand so exuded the
forecast that is about for year. It could not provide snugly to the stores.
Although quake odds are gratified with the response for the lower forecast
cost. It is a considerable amount of profit. Another major cost is marketing.
To introduce a major new packaged good into the national market, the
company may have spend between twenty million and eight million in
advertising and promotion in the first year. In the introduction of the new
product, marketing expenditure typically represents 57% of the sale during
the first year. Most new products comparing relay on a sequence mix of
market communication tools.
In the movie business, companies make a launch “New Product” costing 75
to 100 million dollars each without spending much on marketing research.
 THE ADAPTION PROCESS

STEP 9:
Adoption process is a series of stages by which a consumer might adopt a
NEW product or service.
There are numerous stages of adoption which a consumer goes through.
Awareness – This is the area where major marketers spend billions of
dollars. Simply speaking, if you are not AWARE of the product, you are
never going to BUY the product.
Individual consumer becomes aware of the innovation. We exposed our
customers regarding the innovation. Our customer becomes aware of
either by discussion with friends, relatives, salesmen, or dealers. They will
get idea about a new product “Portable Hanging Neck Sports Fan” from
various means of advertising like newspapers, magazines, Internet,
television, outdoor media, etc.

Interest and Information Search – Once you are aware, you start
searching for information. Whether it be your daily soap, your car or for that
matter your home, you won’t buy it unless you Know about it.
In this stage, the consumer becomes interested in innovation and tries to
collect more information. So, our customers will collect information from
advertising media, salesmen, dealers, current users, or directly from
company. They try to know about qualities, features, functions, risk,
producers, brand, price, availability, services, and other relevant aspects.
Evaluation / Trial – Evaluation is wherein you test or have a trial of the
product. At this stage, we will give a trial demonstration to our consumers.
This is an important stage because at this stage consumers decides
whether to buy it or not.

Adoption – The actual adoption of the product. Where in the consumer

finally decides to adopt the product.
Although this is a well scripted adoption process, however consumers
might tend to skip over the whole process. For example, your wife asks you
to buy a product for her. Would you go through the process of actually
collecting information, evaluating it and then making a decision??? I don’t
think so!!! So in this case (Word of Mouth) the consumer tends to directly
adopt the product rather than going through stages. This is one of the
primary reason word of mouth is so much in demand.
If trial produces satisfactory results, finally the consumer decides to
adopt/buy the innovation. He decides on quantity, type, model, dealer,
payment, and other issues. He purchases the product and consumes
individually or jointly with other members.

Post Adoption Behavior Stage -This is the last stage of consumer

adoption. If a consumer satisfies with a new product and related services,
he continues buying it frequently, and vice-versa. He becomes a regular
user of innovation and also talks favorable to others.
 Neck Fans Buying Guide

Despite the numerous neck fans, you can still find the ultimate pick by
checking for things like:

Battery: The neck fans have been equipped with different batteries that will
determine the runtime. There are fans with a 2000mAh battery while some
have up to 18650mAh batteries. For a longer runtime, you need to consider
a neck fan that has a more powerful battery that can provide up to 12 hours
of runtime. For such a fan, consider a pick that has large batteries up to
2000mAh and above.

Adjustable Speed: It is also necessary to check for the speed of the fan
you wish to buy. An ideal neck fan should have adjustable speeds to
choose from. You, therefore, need to look for a neck fan that has three
adjustable speeds of the low, medium, and high. With such a neck fan, you
can adjust to the required speed for better performances.

Design: The design of the fan neck will determine how to wear it and
remove it. For a perfect design, you need to consider a fan with a hands-
free design that you can easily wear. In addition to this, it needs to have a
sleek and portable design for use in different places.

Other necessities to check out for include the color, cost, rotation, USB
system, and warranty if provided.
Conclusion

A neck fan is a necessity during the summer when you need to keep cool.
The neck fans have been designed to suit personal use when traveling or
indoors. Apart from this, they have hands-free designs, which allows for
easy wearing and removal. The fans are also in different colors for easy
selection of the perfect pick. The good news is that the fans have
adjustable speeds so you get to adjust it to the required speed. In addition
to this, the fans also come with built-in powerful batteries, which offer
longer runtimes. This is why they are appropriate for both indoors and
outdoors use. They have USB recharging systems for quick and efficient
charging when needed. Apart from this, they also rotate to 360-degrees for
efficient performances. To get the best neck fan, you can now check for
any of these above reviews and buyer’s guide.