MKT421 Product Assignment PDF

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MARKETING CONCEPTS AND PRACTICES(MKT421)GROUP ASSIGNMENTNEW PRODUCT DEVELOPMENT AND MARKETING PLANASSESSMENTAll in One Maggi productPREPARED BY:DORICA ELNI ANAK LABANG (2020840402)NURZAFIKA ROSFENDY (2020963643)ELIENA ANAK ELVIS (2020884742)BRENDON ANAK PASANG (2020899164)PROGRAMME & GROUP: BA24...

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MARKETING CONCEPTS AND PRACTICES (MKT421) GROUP ASSIGNMENT NEW PRODUCT DEVELOPMENT AND MARKETING PLAN ASSESSMENT All in One Maggi product

PREPARED BY: DORICA ELNI ANAK LABANG (2020840402) NURZAFIKA ROSFENDY (2020963643) ELIENA ANAK ELVIS (2020884742) BRENDON ANAK PASANG (2020899164)

PROGRAMME & GROUP: BA2402A

PREPARED FOR, DR. MALVERN ABDULLAH

10 JANUARY 2021

TABLE OF CONTENT PAGE 1.0

EXECUTIVE SUMMARY

2.0

THE NEW PRODUCT PROCESS

2-12

2.1 New Product Strategy Development.

2-4

3.0

4.0

1

2.2 Idea Generation.

5

2.3 Screening and Evaluating Ideas.

6

2.4 Business Analysis.

7-9

2.5 Development: Prototype (Sketches)

10

2.6 Test Marketing.

11

2.7 Commercialization

12

MARKETING STRATEGIES

13-18

3.1 Target Market.

13-14

3.2 Product Strategy.

15

3.3 Price Strategy.

16

3.4 Place Strategy.

17

3.5 Promotion Strategy.

18

EVALUATION AND CONTROL

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1.0 EXECUTIVE SUMMARY

After doing some research to develop new products efficiently, we will use a specific steps to make our product ready for market. As our primary purpose is to improve existing products that are produced by Maggi company. Maggi company is a form of business that sells food like instant noodle, seasoning and etc. we are ready to contribute in business. Our product is specially created for elderly, young adults or children. We choose this because they are likely need this thing in daily life. This “all in one” product is suitable for those who have busy life or busy schedule life and to those who live alone. This is because it can easily be preparing without thinking for any other menu. To have a success new developed product in Maggi Company, we have set our new product process and marketing strategies which we hope can gives the good quality of products to our customers to gain as much profit and be able to compete with our competitors. As for new product process, it helps us to acknowledge and shows our new product strategy development, idea generation, screening and evaluating ideas, business analysis, shows our prototype of product, test marketing and commercialization. As for our marketing strategies, it helps us to know our target market, price strategy, place and promotion of our product. In order for our All in One Maggi product to be the success of new product in the market, we will evaluate and control our business thoroughly.

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2. 0 THE NEW PRODUCT PROCESS

2.1 New Product Strategy Development SWOT matrix of Maggi Malaysia

STRENGTH •

Market leader in noodles category with

WEAKNESSES •

Controversy regarding Maggi being

high brand loyalty

unsafe to eat caused a lot of damage to

•

Excellent advertising

the brand image

•

Offers variety of product apart from

•

Many competitors.

noodles •

Easy to cook/prepare

•

Backed by strong parent company

OPPORTUNITY

THREATS

•

Brand extension

•

Price wars with other brands

•

Provide quick food snacks

•

Negative word of mouth

•

Leverage Nestle distribution and brand

•

Strict regulations by food regulatory

name

authorities and government

2

2.1.1 Strength

Maggi is the market leader in noodles category with high brand loyalty as this brand is one of the first brand that has create a long relationship with their customers especially in Malaysia itself. Next, the other factor that made Maggi as a top brand, is their excellent advertising whether it’s a television commercial, print ads, or even online ads. This company also offers a lot of varieties in product. Apart from instant noodles, Maggi also offers sauces, seasoning and etc. Other than that, it’s ready to cook and ready to eat noodles is the reason why it’s very popular among students, youth, or even anyone with a busy schedule. Not only that, being backed by a such strong company like Nestle adds to the strengths of the brand.

2.1.2 Weaknesses

In 2017, the news broke when the Health Ministry issued a notice to Nestle Malaysia ordering them to withdraw all instant noodle products from supermarket shelves because of the controversy stating that Maggi was tested positive for high lead content which can cause damage to the human’s health. But shortly after, the Ministry came up with the statement saying that Maggi noodles in Malaysia are safe and the news that has been circulating around is false as it is a news that resurface, which actually happen in India back in 2015. This has affected the company as many people during that time are reluctant to consume Maggi products, especially noodles and MSG. Next, this company is in a high risk of over depending on Maggi noodles. Next, Maggi has to face many competitors such as Mamee, Ibumie and many other new brand, as monopolistic market is easy to entry and exit.

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2.1.3 Opportunity

Maggi have the opportunity to expand their product categories as they already have a strong base. For example, they can come up with chips, new flavored noodles, or any other cooking enhancement ingredients. Other than that, coming up with a new packaging can also help the brand to grow with their existing customers. Next, Maggi can provide quick, ready to eat snacks and tied up with schools or colleges. By making full use of their parent company, they can leverage on Nestle distribution and brand name and become a global brand.

2.1.4 Threats

With the existing of competitors, there will surely be a price wars between Maggi and other noodle brands. There are many noodle companies who sells their product at a much lower and cheaper price than Maggi, and this can highly affect the business as consumers have variety of choices to choose from. The next threat is the negative word of mouth from consumers resulted from the related controversies that Maggi have been in. WOM is a vital marketing tool because consumers are able to influence their friends and family, it is a free form of advertisement or promotion. Furthermore, strict regulations by government and food regulatory authorities can affect their business if the manufactured of product do not undergo stringent manufacturing conditions that meet the safe standards of consumption. Hence, Maggi should always be careful and practical.

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2.2 Idea Generation

Idea generation is defined as the process of creating, developing and communicating abstract, concrete, or visual concepts. To put it simply, it’s the process that requires finding new solutions for practical problems in all fields of life and work. Our group came up with this idea of doing this product by doing numerous of brainstorming through our group chat. We work together to figure out solutions to our problems where the primary purpose is to come up with creative but simple answers in order to improve existing products that are produced by Maggi. By using our experience as a university student who used to stayed in the dorm, we all agree that our tastebud is easily sick and tired consuming only one flavor of noodles. As a university student who are always on a tight budget, not all of us can afford to buy 5 different flavors of noodles at once. By using our experience, we have come up with the idea to include 5 different flavors of noodles to be sell in one packet at the same price of the existing set of noodles. Instead of coming up with a new product, we decided to improve the existing product and marketing strategy. With the simple problem that we faced during our dorm days; we are sure that 7 out of 10 of the unprivileged society out there especially people with a tight budget would appreciate this solution. To sum up, our group has used the method of thinking of our self-experience, brainstorming, and interpreting our problem as the society’s problem.

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2.3 Screening and Evaluating Ideas

Idea screening is a process that is used to evaluate innovative product ideas, strategies and marketing trends. While screening and evaluating ideas, the many ideas are reduced to a smaller number and eventually to the on-product concept, prototype product, processing method and even advertising plan. The biggest question that we ask among us is that, will the customer in the target market benefit from the product. Other than that, the cost of making this product into realization is not that high compare to if we come up with a new product that are new to the market. The research and development (R&D) expenditure that helps company to develop, design, and enhance our product, and processes can be pursue because our ultimate goal of innovation is to provide sustainable profit where we must carefully weight the costs versus the benefits of this product. For instance, Maggi can focus solely on marketing the new set variety of noodles and packaging because most of the consumers are already familiar with the existing flavors. Before we get into the screening and evaluating stage, we used the method of SWOT analysis as it is a widely adopted method to evaluate products, industries, organizations, and may also be used to evaluate ideas and it helps us to identify internal and external factors that are favorable and unfavorable to monetize an idea. The general idea of us using this method is to assess the strengths of the idea, its weaknesses, as well as investigating if other opportunities or threats exist in the landscape which may cause an idea to be more powerful than the other idea.

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2.4 Business Analysis

2.4.1 How will the product meet definite customer needs?

There are several ways for Maggi new product to meet the customer needs. Customer like students love to try a new type of purchasing especially it meet their needs such as purchasing different flavours of Maggi instant noodles in one packaging. One of the ways for the Maggi new product to meet customer needs is the product attribute. Maggi noodles is a consumer product that bought by final consumer for personal consumption. Maggi noodles recognized the need of consumers with provide quality food and convenient at once. It is a fast relief from hunger product. Maggi noodles have settled at standard flavours such as curry, masala, tomato and chicken and more. Because of different taste by consumer, why don’t Maggi pack all the different flavours of Maggi noodles into one packaging sell at once to the customer. Besides that, to meet definite customer needs is by giving a good branding. Maggi noodles are a brand of instant noodles manufactured by Nestle. The advantages of branding to buyers are easier for them to identify. For sellers, branding provides legal protection for its company and help to segment market. Our target market for the Maggi new product is the teenagers such students. Maggi should come up with tagline “All in 1” or “different flavours in 1 packets” for the instant noodles. By this it can attract the teenagers to buy the new product of Maggi instant noodles. The brand of Maggi noodles also positioned as a healthy and convenience product. After that, creating a good packaging also can meet the customer needs. Nestle should developed a good package for the new product of Maggi noodles. They should increase the thickness of the plastic sheets used Maggi noodles packets to make the product more strength and allow easy and safe to open. To allow the packets to be store easily, they should provide a Zip-Seal facility along with the existing sealing. Buyers like students would love to buy the new product of Maggi instant noodles because the packaging is well packed.

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2.4.2 How will the product be a logical addition to the company’s product mix?

Maggi set price steps between various item in a product line since there are wide price differences among maggi stocks, soups, 2 minute noodles and ketchup. The mix and types of flavour of Maggi noodles sold will affect the average selling price of their products and have a substantial impact on their revenue and gross margin. For instance, Maggi 2 minute noodles and Cup-O-Maggi have differences of their selling prices. In addition, Maggi uses products the same package such as five packages of Maggi noodles are packing together sell at once to the customer. The product mix of Maggi is divided into various categories such as noodles, sauces, soups, Maggi Pichko, Maggi Soup Sanjivni, Maggi Bhuna Masala, Maggi Magic cubes and Maggi Pasta. The company has launched various products under each category as mentioned below. In noodles category, Maggi has Maggi 2-Minute Noodle such as Masala, Chicken, Curry and Tomato, Maggi Dal Atta Noodles such as Sambhar taste, Vegetable Atta Noodles, Maggie Rice Noodles such as Lemon Masala, Chilly Chow and Shahi Pulao, and Maggi Cuppa mania such as Masala yo and Chilli chow yo. In sauces category, it has Teckha masala, Tomoto Chatpat, Imli khata mitha, Tomato ketchup, Hot and sweet, Tomato pudina, Ginger, Garlic and Coriander, Maggi Oriental Chilli Garlic and Ginger, Garlic and Coriander. In soups Healthy it has Chef Style such as Cream Mushroom, Sweet Sour Tomato Noodles, and Tangy Tomato Vegetables. Besides that, it also has Home Style such as Creamy Chicken, Mixed vegetable, and Rich Tomato. After that, Maggi has Chinese Style such as Chinese Hot Sour Chicken, Chinese Sweet Corn Chicken, Chinese Sweet Corn Vegetables, and Chinese Hot and Sour Vegetables. In Maggi Pichko it has Tomato and Imli. In Maggi Soup Sanjivni it has Amla, Badam, Spinach, Dal, and Tomato. In Maggi Bhuna Masala it has Bhuna masala for gravy dishes and Bhuna masala for Vegetable Dal. In Maggi Magic cubes it has Chicken and Vegetarian masala. In Maggi Pasta it has White and Red.

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2.4.3 Will product increase revenue by reaching new market segments?

Maggi instant noodles is already associated with conveniece and taste and is currrently accepted as a valid filling snack between meals. Maggi will continue to leverage its brand equity and target the following segments for this product. The main target for the Maggi new product is the students. Instant noodles have been a college staple since instant noodles were created. They’re a quick and easy meal for many students who are short on time but need to fill their stomachs. Plus, instant noodles are cheap. Mostly students are tired of the food served at their cantin or dining hall and sometimes they also don’t want to go out in the weather just for a quick meal. This new Maggi product could increase the revenue by reaching its new market segment.

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2.5 Development: Prototype (sketches)

10

2.6 Test Marketing

It is important for a company to undergo a test marketing process by putting marketing variations in front of the consumers as a business experiment. Furthermore, this can also be used to reduce risk by testing marketing strategies in an inexpensive way before scaling them. The first step is to experiment with the pricing structure and strategies. For instance, by selling this new improved product at a lower price than usual in order to attract people for buying it. Next is by selling product on a limited basis before a full product launch. For example, by limiting the distribution only in a few regions or supermarket on a trial basis. Promotional experiments such as testing variations of an advertisement is also important before deciding on splurging money on a major campaign. This is where social media and internet ads comes in handy. By this, we can see how many favorable respond and feedback we will get from the online advertisements.

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2.7 Commercialization

Commercialization is divided into stages, beginning with the initial launch of the product through its mass production and acceptance.

Considerations should be made on the

manufacturing methods and quantities, the distribution networks to be used, the marketing strategies to be adopted and the criteria for sales and customer service.

If Maggi offering the different flavours in one packet, it will be nice and will have response from customers because it is more convenience and interesting part where customers does not have to buy every packet for every flavour. If Maggi develop this kind of product, it will increase the stock of Maggi and it will satisfy their customers, because we heard that a lot of people want Maggi to come out with this kind of idea. It is interesting because there is still no other brand done this idea. If Maggi started developing this idea, then in my opinion, other brands will possible to follow and create all flavours in one packet.

Maggi is the most popular brand in Malaysia because their product is somehow complete. Plus, their instant noodle is famous among others product because consumer like to eat their instant noodle because it is easy to cook, it only needs 2-3 minutes to cook it. Besides, it is easy to find these brands or this product because it is available everywhere.

.

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3.0 MARKETING STRATEGIES

3,1 Target Market

Target marketing involves breaking a market into few segments and then concentrating with marketing efforts on one or few key segments consisting of the customers whose needs and desire most closely match with the product or service offerings. It can be the key to attracting new business, increasing sales and making the business success. There are few segmentations for target market such as demographic segmentation. This segment included gender, age, income level, marital status, education, race and religion. Demographic segmentation is usually the most important criteria for identifying target markets which means that knowledge of demographic information is crucial for many businesses. The next segmentation is psychographic segmentation.

This segment categorizes

customers by factors that relate to their personalities and characteristics. These are the few segmentations for example, personality traits, values, attitudes, interests, lifestyles, motivations and priorities.

Psychographic segmentation factors are slightly difficult to identify than

demographic because they are subjective. They are not data-focused and require research to uncover and to understand. Move on to the next target market segmentations, behavioural market segmentations focus on how customers act, and it requires for us to know the customers action. These activities may relate to how a customer interacts with your brand or to other activities that happen away from the brand. The example of behavioural market segmentation is purchasing habits, spending habits, user status and brand interactions. Last one is geographic segmentation where it is a simple type of market segmentation, it categorizes customers based on geographic boarders for example ZIP code, city, country, climate and urban or rural areas. The marketing platform might focus their marketing efforts around urban, city centres where their target customer is likely to work.

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For our product, our target is for elderly, young adults or children.

We choose this

because they are likely need this thing in daily life. This “all in one” product is suitable for those who have busy life or b...