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ENT 601NEW PRODUCT DEVELOPMENTF LAME & GLOW CANDLEFaculty : FACULTY OF HOTEL AND TOURISM MANAGEMENTProgram Code : HMGroup : 5ACourse : ENT601 (ENTREPRENEURSHIP WORKSHOP 3)Semester : SEMESTER 5Group Name : PINGGAN PUTEHGroup Members :Submitted to: DR MOHD NAJIB MD SAADSubmission Date: 25 TH D...

Description

ENT 601 NEW PRODUCT DEVELOPMENT

FLAME & GLOW CANDLE

Faculty

: FACULTY OF HOTEL AND TOURISM MANAGEMENT

Program Code

: HM252

Group

: 5A

Course

: ENT601 (ENTREPRENEURSHIP WORKSHOP 3)

Semester

: SEMESTER 5

Group Name

: PINGGAN PUTEH

Group Members

: NURFADZILLAH BINTI ABDUL WAHAB (2018413942) IZYAN ‘IZZATI BINTI ASH’ARI (2018401738) NUR DIANA BINTI NOR HAPANDI (2018437168) SITI NOORHAS KHADIJAH BINTI ABDULLAH (2018439236) NURAIREEN SYAHIRAH BINTI MOHD KHAIRA (2018439638)

Submitted to: DR MOHD NAJIB MD SAAD

Submission Date: 25TH DECEMBER 2020

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TABLE OF CONTENT

CONTENTS

PAGE NO.

3 EXECUTIVE SUMMARY

1.

INTRODUCTION

4

2.

CONSUMER TRENDS CANVAS (CTC)

8

3.

NEW PRODUCT DEVELOPMENT 3.1 Definition

10

3.2 Classification of NPD

11

3.3 New Product Development

13

3.3.1 Process Research & Development 3.3.2 Product Design/Features 3.3.3 Concept Testing

16 20 24

3.3.4 Build Prototype (2D or 3D) 3.3.5 Test Marketing

27

4.

CONCLUSION

28

5.

REFERENCES

29

6.

APPENDICES

30

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EXECUTIVE SUMMARY The report was the theoretical part of the subject entrepreneurship of our Foodservice Management and Entrepreneurship (Hons). The sole objective was to familiarize the students with the practical manipulation of business organization. This report had been written to know about the causes that lead to the launching of a new product. I n t h e f i r s t p h a s e o f t h e r e p o r t , t h e r e w a s a ge n e r a l i n t r o d u c t i on t o t h e n e w p r o d u c t development. In this part, the problem statements or issues, methodology, and limitations were discussed in this report. Besides that, the problem statements can be divided into 3 categories which are marketing, technology, and capital. The objectives and scopes were also mentioned on the part of the problem statement. In the next phase of the report, the definition, classification, and process of new product development were also mentioned in this report. They are two classifications of the new product which are improvements and revisions to existing products, and repositioning of the products. On top of that, the process of new product development can be classified into five processes which are research and development, product design features, concept testing, build a prototyp e an d l astl y test ma rk eti n g. From this assignment, we been go through doing research about aromatherapy candle which is a general term for candles that contain an indefinite amount of essential oils. Essential oils are concentrated substances that come from plants and resins. Because there is no single definition of what makes something an aromatherapy candle, products can vary in quality and potency. Some contain only essential oils, while others mix essential oils and artificial fragrances. Aromatherapy candles contain essential oils, some of which may help with stress and anxiety. In Malaysia, there are a lot of brands that been selling aromatherapy candles which mostly have the similarity of the quality and fragrance. Because of that, we decide to develop an idea on the new aromatherapy candles compare to the brands that been selling in Malaysia.

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1.0 INTRODUCTION

1.1 PROBLEM STATEMENT

My group and I already identify the problem about this aromatherapy candle and supported with the fact. The existing product that we choose were aromatherapy candle. Aromatherapy candle is a general term for candle that contain an indefinite amount of essential oils. Essential oils are concentrated substances that come from plants and resins. There are various type of aromatherapy candle on sale in the market now. All aromatherapy candles are made of wax but they can feature several different types. The aroma from the candle fragrance is released through the evaporation of the fragrance or essential oil from the hot wax pool and from the solid candle itself. The aromatherapy candle that uses essential oils for the candle fragrance is not necessarily safer than those candles with synthetic fragrances as some essential oils are extremely toxic when heated which can be one of the problem of aromatherapy candle. This aromatherapy candle has some problems after being studied and discussed.

The first problem is the price. Because people’s perception of candles are that they are just wax, wick and a bit scent in a candle holder. Branding plays a part in the cost, as a rule when brand names becomes popular, the price of the product will increase. Clever marketing also is a big part of this and can make a product even when there is no foundation or legitimate reason for the product to be successful. The second problem arise is about relieve stress. There are many people questioning and doubting about how this aromatherapy candle works. Researchers have not fully investigated the potential health benefit of essential oil candle. Although there had a few evidence a small group study about this aromatherapy, these studies had a low number of participants and did not use candles as a method of inhalation.

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Lastly, the problem that arise is candle container. Whenever people buy an aromatherapy candle, some of it come with unsuitable container such as tin. The wick and the wax are both sealed properly onside the candle. So most people usually just light up the candle within the container. But, there are time where the candle container will start turning black and broke. This is slightly because some of the material used for making the candle container is not heat resistant and very fragile.

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1.2 METHODOLOGY

In order to analyze the problems and come out with the business solution, the first step that has been done was we do our own research on internet due to this pandemic COVID -19 we are not allowed to meet people as we may exposed to this disease. We tried to get as much information as possible about this aromatherapy candle. The process of data collection about analyze the problems been done well because each member need to find at least 2 sources. We also do a survey on the feedback given from customers to business that sell this aromatherapy candles. From that we can get more information and find out the problems.

Apart from that, we also did survey to the fans of this aromatherapy candle. The aim of this survey was to find out the problems facing by aromatherapy candle users and indirectly identify the solution to the problems occurred. The information from the survey is obtained through inquiry and recorded by our group. We had prepared the question that we distributed by social media to the fans only and it’s based on several things which are:

1. Which type aromatherapy candle is preferred? 2. What problems that are often encountered? 3. What improvement that you want to do?

The survey questionnaire were distributed to the 11 respondent who are aromatherapy candle user. The respondent required to answer the questionnaire.

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1.3 LIMITATIONS

As for the data collection process, due to the several constraints such as limited time, the difficulty of findings the respondents for the survey sessions. Although this data collection process was carefully prepared, there were still limitations and shortcomings. The process of survey was done on a small scale involving only 11 respondents. Since the population was small, the finding presented may not be applicable as general representations. To do so, a larger sample would be required.

On the other, we assume that there still lacking of updated information and some of the information had not been found in order to develop this product. Much more our movement are also limited because MCO is still running in Malaysia.

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2.0 CONSUMER TREND CANVAS

1. More secure 2. Not

harmful children

SHIFT

Introduce the

1. Help for calmness

product that more

and release stress

secure, affordable and

to

TRIGGERS

provide

tranquility

1. In the era of aromatherapy is basic

need

YOUR INNOVATION

Renew in term of security,

1. They want to put this

space, container

product anywhere

We find some

2. Increase the calmness and enjoy the smell

ideas and information from

3. People who love Bath and body works as inspiration

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Based on preliminary surveys

aromatherapy candles gro hou ouse sewif wife 4. A gr oup of h ou se wif e 5. Wo rk ers Work rkers

Consumer Trend Canvas is an easy-to-follow framework that will help the developers or business planners not only unpack and understand any consumer trend, but also help them apply it to launch successful consumer-facing innovations. From our understanding and initial reading , there are two steps involved in order to use CTC, the first step is analyzing the customer needs and the second steps is to apply the customer needs to the new products that will be constructed.

For our product, the basic needs that they customer want are more secure and not harmful to children. The current product (common aromatherapy candle in market) is less suitable when children have in the house. Majority of the respondent want something new that more secure and suitable even have children. Then, the drivers of change from the current system can be divided into two categories; the shift (long term) and triggers (short-term). The second category, it is more focusing on the recent and the short term changes or technologies. From our observation, the aromatherapy can be as the basic needs one day. It is the era aromatherapy will be basic needs. Based on the previous survey that has been conducted, we want to fulfill the customer expectation which are they want to put this product anywhere and increase the calmness and enjoy the smell. The inspiration are we find some ideas and information from instagram and internet, a part of that we make Bath and Body Works as inspiration.

For innovation potential we come out with expectation of customer about the product. We want to introduce the product that more secure, affordable and provide tranquility. For who, the target users of this product is people who love aromatherapy candles, a group of housewife and whoever people who are work or student. Lastly, our innovation are renew the product in term of security, space, the container and the smells.

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3.0 NEW PRODUCT DEVELOPMENT

3.1 DEFINITION

New product Development is the process of bringing new product into the market. It involves the steps to design and create something new that will be offered to customers to solve their issues as well as to satisfy their needs or desires. The process of developing new products can involve the work of inventing something totally new or innovating and improving on existing products. The Small Business Encyclopedia (2019) defines product development as: “The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product”.

Most companies regardless of size will make efforts to introduce newness in their products. The level and intensity if their engagement in the new product development endeavor may differ depending on their resources. In Malaysia, big and established companies like Proton Holding Berhad and Sime Darby Berhad have research and development (R&D) centers to focus on the development of new products. At the other end, smaller companies also engage in new product development through various means; structured and unstructured; formal and informal. Companies that do not pursue new product development seldom can sustain in the market. These become more crucial if they are in technology-related industries.

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3.2 CLASSIFICATION OF NEW PRODUCT DEVELOPMENT (NPD)

1) New-to-the-world products: These types of new products create an entirely new market. For example, introduction of products like laptops and palmtops has created a new market of mobile computing.

2) New product lines: ADVERTISEMENTS: New products may allow a company to enter an established market for the first time. Philips has developed flat TV to target a new segment of already crowded CTV market.

3) Additions to existing product lines: New products can supplement a company’s established product lines. For instance, McDonald’s introduced pudina flavored burgers for Indian consumers.

4) Improvements and revisions of existing products: ADVERTISEMENTS: These are the new products that replace existing products by providing improved performance or greater perceived value. For example, Microsoft replaced its MS-DOS by Windows as an improved, user-friendly GUI (Graphical User Interface) based operating system. They also updated Windows regularly and launched the versions of Windows 95, 98, 2000 and XP. 11 | P a g e

5) Lower priced products: New products may be developed that provide similar performance at lower cost. The mobile service providers like Airtel, Hutch and Reliance India Mobile are introducing new post-paid schemes with low rental and outgoing facility.

6) Repositioned products: Existing products can be targeted to new markets or market segments. For example, Sahara Airlines is revising its fares to target the railway AC 2/3 tier passengers.

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3.3 NEW PRODUCT DEVELOPMENT

3.3.1 PROCESS RESEARCH & DEVELOPMENT

Idea Generation Every product is aimed to solve consumer problems. Product embodies tangible form of an intangible idea. Idea is the basis of product development. New product ideas can come from several sources including customers, competitors, employees, Internet web pages, sales personnel, and complaint websites. One of the keys to ensure constant supply of ideas is to build a culture of openness. Firms that keep their sensors shut and do not allow flow of information from various sources are unlikely to exploit potential new product development ideas. Power to observe subtle and explicit trends in the macro and micro business environment can provide clues about possible product and service introduction opportunities.

There is a few ideas that we come out with before we decided to do the aromatherapy candles. We have been doing a few survey to ensure that the idea that we will come out with will be support by the others. We also have been searching a good and great recipes and also modified a few recipes so that it will be accepted by the others. This candles is to help people who have trouble with their sleeps, love to smell good in their room and also helps with their stress. We will try our best to give out the best. This ideas will help people feel more relax and feel loved. Who doesn’t love a good smell? Everyone does. This idea is not just help people but also pretty in terms of packaging, candles and etc.

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Idea Screening Ideas can flow from all directions and end up creating a large pool. The next concern in the new product development process is to separate good ideas from the bad ones. Bad ideas must be dropped. This is not an easy process because poorly executed idea screening can cause a good idea to get filtered and at the same time allow a poor idea to move on. Screening out a good idea implies potential loss of sales, market share, and competitive advantage opportunity. However, when a bad idea is pushed forward, the firm may end up spending precious resources in pursuing a bad product. An idea must be worth pursuing. This is the good and bad that will happen with the ideas. We never know whether this idea will be accepted by all generations or not. But we already conducting a survey to see whether this product can be accepted or not. This is the time to try out our idea and accept the fact if it is acceptable products for the others. We will try to do our very best to ensure people only received the best from us! All of the recipe to make the candles, we already been trying it out so that we didn’t make the wrong choice. You’ve probably noticed that most soy or beeswax candles are infused with some type of flowery or herbal scent. So, we decided to make a candles from our favorite dried herbs for candle making that you can make from your own garden. Our candles use various scents and designs to create different experiences. This eliminates the difficulty that customers face when selecting the appropriate candle for the occasion. We hope that this ideas will be accepted by all generations.

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Market Survey

Market surveys are tools to directly collect feedback from the target audience to understand their characteristics, expectations, and requirements. Market surveys collect data about a target market such as pricing trends, customer requirements, competitor analysis, and other such details. The reason for doing this market survey is to survey and analysis of the market for our products that includes all the investigation into customer inclinations. We have been doing website surveys, it is a templates that are customizable as per application consist of questions pertaining to customer feedback, visitor profile information, online retail information etc.

The main purpose of doing this survey is for us to gain all the information about the consumers so that we know what to improve in terms of our products. The survey is so important because we can understand more about the demand and supply chain of the target market. Once we know what customer expectations and needs than we can accurate the time of launching our products. This help us understand where to test new products. It helps us in analyze the scope of success of what upcoming product or what we can improve and make changes in strategizing the product according to the feedback they receive.

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3.3.2 PRODUCT DESIGN/FEATURES

For your information, product features are a product’s traits or attributes that deliver value to end-users in order to differentiate a product with other competitors. Product features can include any of the application's functionalities, capabilities, and even its visual characteristics.

Wick

Herbs and spices

Soy wax

Candle Holder

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MEASUREMENT

75 mm

80 m m

70 mm



SOY WAX

Wax is a very important element in making your own candle. These waxes have been developed from a variety of fats, oils and waxy-like substances derived from animals, insects, plants and rocks. Their unique characteristics towards heat make them a suitable substance to be include in making a candle. However, choosing a better type of wax is really important in order to reduce the released of chemical substances. The most safest type of wax is soy wax. This is because soy wax is derived from natural vegetables while other waxes are a refined gasoline by-product. Not just that, soy wax is also 100% biodegradable.

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

HERBS AND SPICE

The reason why we choose herbs and spice bec...