Name: Shavneet Sharma

ID: S11086654
Table of Contents
1.0 PRODUCT DETAILS .............................................................................................................. 3
1.1 Product Name ........................................................................................................................ 3
1.2 Product Description ............................................................................................................... 3
1.3 Product Raw Materials .......................................................................................................... 3
1.4 Positioning............................................................................................................................. 3
1.5 Uniqueness and Benefits ....................................................................................................... 3
1.6 Shelf life\expiry ..................................................................................................................... 4
1.7 Packaging .............................................................................................................................. 4
1.8 Labels .................................................................................................................................... 4
2.0 Price .......................................................................................................................................... 4
3.0 PLACE/ DISTRIBUTION DETAILS ...................................................................................... 5
4.0 PROMOTION ........................................................................................................................... 6
Appendix A: Product Label ............................................................................................................ 8
Appendix B: Promotion .................................................................................................................. 8
Part 1: Newspaper Advertisement ............................................................................................... 8
Part 2: Face book Page ................................................................................................................ 9
Part 3: Poster ............................................................................................................................... 9
1.0 PRODUCT DETAILS

1.1 Product Name

The name of the product is “Fijilander”. It takes this name because the design and composition
of raw materials that the product is made up of and its association with the culture and traditions
of the Fijian people. The name simply means belonging to Fiji. This name would also
particularly be attractive for tourists who buy this product as a souvenir to take back to their
home country to remember Fiji by and also for the locals who to feel a sense of belongingness to
their country.

1.2 Product Description

This product is a souvenir item. This is because of the material used in the production is closely
associated to the Fijian culture. The materials used are available throughout the year. The
product demonstrates the Fijian culture, creativity and how natural components can be combined
together to create a unique product which tourists can take back to their respective countries as a
remembrance of their travel to Fiji. The product is made by weaving the masi and voivoi
together with a thread. Weaving is defined as the process of interlacing (threads, strips, yarns and
fibrous material, etcetera) to form a material or fabric. After this, shells are glued around the
tissue box cover. In the end the final product is put inside a plastic wrapper and the label of the
product glued to it.

1.3 Product Raw Materials

The raw material used in the production of this product includes the printed masi, Pandanus
(traditional Fijian name Voivoi), shells, needle, cotton thread, glue and scissors. Through the
process of weaving and the use of glue, all the raw materials are brought together to create the
final product. The product is then wrapped n clear plastic. Once it is sold it is placed in a brown
paper bag which has a simple masi design and given to customers.

1.4 Positioning
The product is aimed to create an image in the minds of the customers about the Fijian culture
and a sense of belonging to Fiji. The masi designed product will create a traditional aspect into a
modern product and enforce the idea of the product being related to the Fijian culture. As the
idea of such a product is new to the market the customers are expected to be very much attracted
towards it. As yet, there does not exist a competitor with a similar product in terms of using
local materials to create a souvenir sort of product thus there will be the advantages associated
with being a first mover. With respect to the target customers (audience) it is suitable for the
general customer and not restricted by geographical or demographical factors like race and
gender. It is designed for anyone who owns a tissue box. It would be very appealing to the
tourists who visit Fiji as a good souvenir item to remember Fiji by.

1.5 Uniqueness and Benefits

There are many tissue box covers available in the market. However, most of these covers are
imported from outside countries. The product is unique because according to the research carried
out, there is no other tissue box cover available in the market that has been differentiated in such
a manner that it associates itself with the Fijian culture. The feature of the product that adds to its
uniqueness is that materials and the designs used to make this product that is closely associated
with the Fijian culture which differentiates it from all the other tissue box covers available in the
market. Due to this reason it will be a fitting souvenir for tourists. The benefit of this product is
to beautify and give a personal touch to the cardboard tissue box. It also gives us the first mover
advantage over any competitors who may comes up with a similar product in the future. This
will make the customers eager to buy the product as it will be striking to them. Also, in terms of
durability the product is made in such a manner that it is durable, ergonomic and aesthetic
enabling it to serve its purpose while being appealing to the eye.

1.6 Shelf life\expiry

In terms of the self-life of the product it can be said that it is not limited and cannot be
forecasted. Due to the fact that none of the materials used to make the product is perishable or
have a limited life, the product can be kept for an indefinite time frame provided it is looked after
well. Despite the product being a souvenir it is also serves it purpose as a tissue box cover.
Keeping this in mind the product has to be cared for and looked after as the materials are
delicate. If the customer spills water on the product or does not handle it gently, the chances of
the product being damaged are very high. It is made to be used for careful use and display as the
case with any souvenir product.

1.7 Packaging
The packaging of the product is intended to be both functional as well as promotional. That is, it
should protect the product while also promoting the product. The product will be wrapped in
clear plastic which will enable it to be protected and also enable the product on the inside to be
seen by customers during purchase. It terms promotion; the clear plastic will have a label on it
stating the details of the product. Once the product has been purchased by the customer it will be
packed in a brown paper bag which will have a simple masi design. This will make the
packaging more presentable. The reason for the brown paper bag as opposed to a plastic bag is
that brown paper bags are more environmentally friendly (July Recyclable of the Month, 2013).

1.8 Labels
For the label see Appendix A.

2.0 Price

The pricing of “FijiLander” will be done using the cost-plus method. This method “Cost-plus:
adds a standard percentage of profit above the cost of producing a product. Accurately assessing
fixed and variable costs are an important part of this pricing method.” (Ehmke, Fulton, & Lusk,
2012)

Price Determination of the Product (Method: Cost-Plus pricing)

Cost budget per Quantity per Cost per unit
half year half
year (units)
VARIABLE COSTS
Direct material
Printed Masi $30000 10000 $3.00
Shells $4000 10000 $0.40
Pandanas $10000 10000 $1.00
Cotton Thread $200 10000 $0.02
Plastic wrapper (clear) $1000 10000 $0.10
Packing bag (with $10000 10000 $1.00
design)
Direct Labor
Manufacturing Labor $20000 10000 $2.00
Selling labor $15000 10000 $1.50
Total Variable Cost $90300 10000 $9.02
FIXED COST
Transportation $1000
Rent $1800
Advertising $3000
Total Fixed Cost $5800 10000 0.58
Total Cost $96000
Total Unit Cost $9.60
Plus: 25% mark-up on $2.40
cost
Selling Price $12.00
As the company is in the start-up phases of establishment it is advisable not to product too much
or too little for the first half of the year as the consumer demand is unknown. Therefore, 10000
units are produced. Based on the feedback received from customers and sales outlets future
production will be determined for the second part of the year. This information will determine
the expansion required. In terms of the advertising expense, this is decrease as the people being
to be aware of the product. The technique of market penetration pricing is being employed as this
is the new product (Market Penetration Pricing, 2014). This is to attract more customers to buy the
product which will have its benefits in terms of word-of-mouth advertising by people who have
already bought this product. As the product becomes more popular, the mark-up percentage can
be increase.
Looking at the competitors, the product is unique in terms of being made of locally available
material and no similar product is available in the market. However, other tissue box covers are
available in the market which is imported from overseas countries. Shops like “New Home”,
“Morris Hedstrom City Center” and “Rups Big Bear” sells tissue box covers between the ranges
of $5.00 to $15.00. The “FijiLander” price of $12.00 is competitive in the market.
Looking at sites like EBay, it sells many different types of tissue box covers. The average price
for fabric material tissue box cover is $13.00 American dollars which would be about $23.00
Fijian dollars based on the exchange rate at the time this project was done (Ebay, 2014).

3.0 PLACE/ DISTRIBUTION DETAILS

The product “Fijilander” will be sold directly to the customers in its own shops as well as
through distributors. That is, the company will open shops at the Suva Curio & Handicraft
market and Nadi Handicraft centre. The reasons for opening shops here is because these are
populated and popular areas where tourists as well as locals can easily buy the product.
In terms of selling to overseas customers, this will be done through the use of popular sites like
EBay and Amazon. The reason for using this sites rather than creating a websites is because
these are already popular sites which has a lot of traffic (people visiting the site). Another
important reason is that these sites have a secure payment system like PayPal with which
customers are feel secured. This will enable more sales of the product. Once the product is
purchased, it will be mailed to customers.
Distributors and retailers will also be engaged as they are already established and have a bigger
network which means that the product will be available and accessible to customers in more
places. The marketing and advertisement made by these retailers and distributors will also help
in making the product more known to the people.
Some of the retailers and distributors that will be approached to sell the product would be Prouds
Fiji, Tappoo and Jack’s of Fiji. Shops like Prouds Fiji will enable the product to be available at
the airport duty-free shops which will generate sales from tourists buying the product as
souvenirs.

4.0 PROMOTION
It is important to make customers aware of the new product that has entered into the market and
to this proper marketing and promotion efforts are required. The marketing and promotion
methods that will be chosen will take into consideration the limited marketing budget.

Firstly, the various forms of mass media (newspaper, television, radio and internet) will be
employed to build awareness of the existence of this new product. Television advertisements will
not be used due to budget constraints. Advertisements will be put on various radio channels like
“FM 96”, “Radio Fiji Two” and “Bula FM” few times a day. The Fiji Times and Fiji Sun are the
two popular local newspapers which will be used for promotional purposes. It will not be
advertised everyday of the week due to budget constraints. Advertisements will be placed in the
respective newspapers on every first and last Saturday and Sunday of the month. This is because
these are days people tend to buy the newspapers more. In terms of size, the advertisement will
not take a large part of the page due to it being costly. Refer to Appendix B part 1 for
advertisement. Also, as awareness increases the frequency of advertisements will decrease as
the products become more popular.
Due to the fact that the product being a souvenir both local and international awareness is
necessary. The most cost effective way to do so is through the internet. More specifically,
through social media sites like Face book, Tweeter and MySpace. A page will be created on Face
book about the product which will contain its descriptions and where it is sold as well as images.
Refer to Appendix B: Part 2 for advertisement. This will also serve as a good platform to get
customer feedback as this is an essential part of marketing.
As the demand and popularity of the product increases, a website will be created which is solely
dedicated towards the sales of this product. It will be used to give product descriptions, images
and also allow the customers to purchase the product online. This is particularly useful for
international buyers but locals can benefit from this as well. This will enable a “click and
mortar” type of business to exist.
In terms of sales promotion techniques, the customers will be offered the option to purchases two
of the tissue box cover at a discounted price.
Another sales promotion technique that will be employed is to enter the buyers of the product
into a draw to win attractive prices. This will give customers an incentive to purchase the product
and eventually will lead to increased sales volume. The 1st price will be one night stay with
meals for two at the Novotel. The 2nd price will be a dinner for two at Holiday Inn and the 3rd
price will be a gift hamper (Pure Fiji). Refer to Appendix B: part 3 for advertisement.
Bibliography
Ebay. (2014, April). Tissue Box Cover. Retrieved April 20, 2014, from Ebay:
http://www.ebay.com/sch/i.html?_sacat=0&_from=R40&LH_ItemCondition=3&LH_BIN=1&_nkw=tissue
+box+cover&_dcat=25452&Material=Fabric&rt=nc

Ehmke, C., Fulton, J., & Lusk, J. (2012, August). Marketing's Four P's: First Steps for New Entrepreneurs.
Purdue Extension , pp. 1-12.

July Recyclable of the Month. (2013). Retrieved April 10, 2014, from Wellesley:
http://www.ci.wellesley.ma.us/pages/wellesleyma_dpw/rdf/Recyclable%20of%20the%20Month%20-
%20July%2011%20Brown%20Paper%20Bags.pdf

Market Penetration Pricing. (2014, March). Retrieved April 19, 2014, from Business Dictionary:
http://www.businessdictionary.com/definition/market-penetration-pricing.html
Appendix A: Product Label

Appendix B: Promotion
Part 1: Newspaper Advertisement
Part 2: Face book Page

Part 3: Poster