PIM Group Project 2 PDF

Preview

Summary

Assignment 2...

Description

MKTG 1270: Product Innovation Management LF02: Ms Lim Meng Lee Group Assignment 2 Group 14 Student Name

Student ID

Marc Ryan Lim Da Wei

S3709268

Michelle Low Yan Ling

S3684282

Ong Huay Min Jasmine

S3684388

Tan Hui Lin

S3684725

Yeo Chiu Ping

S3684925

Word count: 4393 Words Table Of Contents

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

1

1. Consumer Insights and Ideation Drivers 1.1 Target Consumer Statement 1.2 Product Innovation Charter (PIC)

4 5 5

2. Ideation and Screening 2.1 Problem-Based Approach (PBA) 2.2 Pool of Problems 2.3 Generate solutions 2.4 Concept Statement 2.5 Product Concept Board 2.6 Full screen (Criteria)

6 6 6 7 10 10 10

3. Final Product Concept 3.1 Product Attributes and Benefits 3.2 Product Branding 3.3 Product Positioning 3.4 Product Design 3.5 Augmentation 3.5.1 QR code 3.5.2 Donation to Non-Profit Organisation 3.6 Competitive Comparison 3.7 Scalability 3.7.1 Product Road Map 3.8 Technology Trends

12 12 13 15 16 19 18 18 19 21 21 22

4. Production Issues & Potholes 4.1 Production 4.2 Potholes

22 22 23

5. Design and IP Considerations 5.1 Design Objectives 5.2 Concept Sketches 5.3 Components 5.4 Packaging 5.5 IP Consideration

23 26 24 25 26 26

6. Financial Business Case 6.1 Product Pricing Strategy 6.2 Marketing Budget 6.3 Sales Potential Estimate 6.4 Assumption Sales Forecast (ATAR Model) LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

28 29 29 30 30

2

6.5 Profit Loss Forecast 6.6 Return of Investment (ROI) 6.7 Payback Period / Break Even Analysis / Sensitivity Analysis

31 31 32

7. Marketing and Launch Strategy 7.1 Channel Strategy 7.2 Integrated Marketing Communication Strategy 7.3 Traditional Marketing 7.3.1 Radio 7.3.2 Magazine 7.3.3 Roadshows 7.3.4 Sponsorship 7.3.5 Digital Billboards 7.4 Social Media Marketing 7.4.1 YouTube 7.4.2 Facebook 7.4.3 Instagram 7.5 Media Schedule 7.5.1 Campaign Execution

35 35 35 36 37 38 39 40 41 42 42 43 44 45 45

8. Conclusion and Call To Action

47

9. Appendices

47

10. References

64

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

3

1. Consumer Insights and Ideation Drivers 1.1 Target Consumer Statement Our target consumer is Australian women between the ages of 35 - 65 with a total segment size of approximately 2.49 million who earn an average annual income of AUD$45,000. Most of them prefer user-friendly products that use natural ingredients due to having experienced undesirable body wash benefit.

Figure 1.1: Consumer Persona

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

4

1.2 Product Innovation Charter (PIC) Our marketing objective is to increase our product brand awareness. Trilogy, The Australian Natural Soap Company and Australian Natural Soap are our major competitors. We focus on using natural ingredients since our consumers are concern about the product’s benefit and packaging materials. We plan to distribute our products in major supermarkets across Australia. The innovation that we will be using are micellar and patented dual-stream ribbon technology which retains skin moisture while removing impurities. In short term, we seek an 11.8% growth in the body wash category. We need to sell 31,277 units to break even and obtain 30% increment of ROI in the 2nd year. Our long-term goal is to be the top Australian body wash within 5 years by actively participating in social media, roadshows and sponsorships. Our product adapts quick-second into the market, following ACCC manufacturing guideline and NICNAS to ensure that our brand stays on the path to our values.

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

5

2. Ideation and Screening 2.1 Problem-Based Approach (PBA) Ideation Process Our product concept was derived from focus group whereby we collected qualitative data from 10 targeted respondents who have resided in Australia for at least 6 months to find out their body wash concern. Problems are ranked in a descending order. From the focus group, we have analyzed their top problems through Bothersomeness Technique.

2.2 Pool of Problems Bothersomeness Technique Frequency of Occurrence (A)

Bothersome-Ness of Problem (B)

AxB

1. Products are too drying for skin that strips off the moisture

69.4%

70.6%

0.49

2. Product packaging is not eco-friendly

66.6%

71.5%

0.48

3. Product design is not user-friendly (difficult to carry the product around)

56.7%

72.3%

0.41

62%

59.7%

0.37

66.1%

52.4%

0.35

Problems

4. Limited skincare products 5. Expensive natural skincare products

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

6

Figure 2.1: Problems consumers face (Bar chart)

The top problems identified are that the body wash is too drying for the skin, not eco-friendly packaging and product design is not user friendly. We infer that Australians are seeking for moisturizing skin care which does not contain harmful chemicals. And since most of them are eco-friendly individual, they prefer eco-friendly packaging which are also convenient to carry it around.

2.3 Generate solutions SCAMPER

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

7

Questions Can I use other packaging that is ecofriendly? Substitute

Combine

● ● ● ●

Are there different sizes available?

● Travel Size ● Personal Use (500ml) ● Family Use (1 litre / 2 litre / 3 litre)

What other ingredients can be

● Jojoba Beads ● Sea Salt/ Himalayan Salt

combined?

provide high moisture level?

Magnify

● Biodegradable plastic ● PCR container ● Amber Glass

Are there other scents ?

What ingredients can be combined to

Adapt

Answers

What should I adapt from the

Lavender Lemongrass Body Butter Vanilla Camomile

● Vitamin E oil ● Jojoba and grapeseed oil ● Chaga Extract

product?

● Product packaging ● Scent

What aspect of the product can add

● Incorporate nutrients. (Vitamin E)

value to the product?

Put It To

Is it suitable for different skin types?

● Yes, we aim to only use ingredients that are hypoallergenic.

Is the product suitable of all ages?

● No, it may sting the eyes of children

Other Use Eliminate

Is it possible to simplify the packaging for easier access?

Rearrange

What other factor could be arranged

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

Family Size Bottle Body Wash ● An appropriate size of dispensing pump. ● Product handle to ease way of carrying ● Prolong shelf-life ● Use of dark-coloured glass to filter out

8

to improve this product?

ultraviolet light as light exposure can cause loss of antioxidants. (Olive Oil Times, 2012).

To come up with a novel product, our body wash will incorporate organic ingredients such as Chaga extract and moisturizing ingredients such as jojoba oil, vitamins and lavender. Amber glass will be used for the bottle due to its ability to filter out UV light which prevents the components in the contents from changing (mjspackaging, 2018).

Generating Ideas(s) New Product Idea

What is the problem being solved?

How does it solve the problem?

1. Develop a low PH body wash

Products are too drying for skin that ● Replenish skin's moisture

between 4.5 and 6.5

strips off skin moisture

● Cleanses and moisturizes.

2. Use eco-friendly packaging

Product packaging is not eco-friendly

● Eco-friendly individuals would purchase products that are 100% biodegradable

3. Create a handle to ease the

Product design is not user-friendly

● Easier to grip onto the product which reduces the needs of

way of carrying

plastic bags 4. Expand product range for different skin types

Limited skincare products for

● More options available

various skin type

5. Lower cost/Frequent

Natural skincare products are

promotions

expensive

● Affordable pricing

We have decided to solve the third problem by innovating a bottle handle to ease the way consumer carry the product. Besides, our product are environmentally friendly as it reduces the needs of plastic bags which in turn decrease the environmental pollution.

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

9

2.4 Concept Statement “Amber glass with a handle for an easy grip, our choice to maintain quality, freshness, and easy accessibility of N♥Aura body wash. It is 100% biodegradable and filters out UV light to prevent ingredients from changing. Treat your skin well and your skin will treat you well.” 2.5 Product Concept Board

2.6 Full screen (Criteria) Concept Variants Selection Criteria

Score range 0 - 10 N♥Aura Body Wash

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

10

9

Congruence

Business Fit

The concept variants have a strong strategic fit in relation to N♥Aura’s statement of developing a product that provides customer benefits. 9

Technical Gap

Existing science of technology for producing body wash and hygiene products. Machineries Probability of Technical

are readily available in the industry. Availability of People and Facilities

8

Success Manufacturing factory would be located in the industrial area of Melbourne and we will hire both local and foreign labour to reduce the overhead cost. 8

Proprietary Position

Protected through innovation, trademark and design patent to prevent competitor from Strategic

retrieving high concept similarity.

Leverage

6

Platform for Growth Further improvement is possible such as incorporation of automatic soap dispenser. Market Need

8

Large market exist for people that seeks for a 100% biodegradable products. Market Maturity

8

Rapid growth in biodegradable body wash market. Brands such as “Biohome” produces 100% Probability of Commercial

biodegradable dishwashing liquid. With this trend, we decide to produce biodegradable solution to body wash. Competitive Intensity

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

3

11

Success

Highly competitive market as our competitors focus on delivering natural formulations with top quality ingredient. Our competitive advantage is that we innovate an user-friendly handle while staying environmental friendly. 4

Payback Period

Sales estimate is $1,412,000. As such, payback period will be approximately 5 years (On the assumption of initial investment: AUD$2m). Reward

7

Time to commercial

Our body wash is a “put together” of readily available ingredients which allow us to start the production fast.

3. Final Product Concept 3.1 Product Attributes and Benefits Product Key Dimensions Product Component:

Material Composition:

Product

Product Benefits:

Function:

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

12

Dispenser

Stainless Steel: Nozzle, Closure and Spring

To pump out content

● Prevent rusting ● 100% recyclability ● Biodegradable plastic

Storage Space

● ● ● ● ●

Aesthetically pleasing Prevent chemical leaching 100% Recyclability Filter out UV light Increasing shelf life

Moisturises skin

● ● ● ●

100% Natural Repair skins cells Provide hydration Hypoallergenic

Biodegradable Plastic: Piston rod, Gasket, Housing, Piston Seat, Piston and Ball

Amber Glass Bottle

Ingredients

● ● ● ● ●

Iron Nickel Sulfur Carbon Manganese

● Water ● Oils (Olive, Almond, Soybean, Coconut) ● Goat Milk ● Jojoba Beads ● Chaga Extract ● Sodium Hydroxide

3.2 Product Branding N♥Aura

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

Concept:

13

Our brand concept is to affiliate natural ingredients, hoping to spread the environmental concerns and show how beneficial using natural ingredients is. 1. N♥Aura (pronounce as Nora), N = Nature, Aura = Environmental friendly vibe 2. ♥ = Users’ benefit is our main concern hence we only use natural ingredients. 3. Leaf = Represent each and individual trees we plan to save 4. Roots = Connection with nature

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

14

3.3 Product Positioning Perceptual Map

Figure 3.3: Perceptual Map N♥Aura’s key competitors are Trilogy, ANSC and Australian Natural Soap. These brands were evaluated based on pricing and product availability. Trilogy is the most expensive (X : $53) while ANSC is the least expensive (X: $22). Trilogy operates worldwide while Australian Natural Soap has 2 retail outlets. N♥Aura will be priced slightly above the average due to advantages discussed in the later parts of this report.

Positioning Statement For Australian women aged 35 - 65 seeking hydrating products while exfoliating, N♥Aura produces body wash that helps to nourish the skin. Unlike our competitors, N♥Aura uses 100% natural ingredients with Chaga extract.

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

15

3.4 Product Design Specification ➢ Bottle Dimension

Units Nil

Details Weight: 60g Bottle Opening: 32mm Without pump: 18 cm (H) x 7 cm (L) With pump: 21.4 cm (H) x 7 cm (L) Benefits to our user: The handle to makes it convenient to carry.

➢ Body Wash Gel

Nil

Volume: 1000 ml Benefits to our user: 1000 ml can last 4 weeks for a family of 5.

(istockphoto, 2018) ➢ Actuator

1

SAE 304 stainless steel; 2.75cm

➢ Gasket

1

LDPE; 32mm

➢ Closure

1

HDPE; 30mm

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

16

➢ Stem

1

HDPE; 30mm

➢ Piston

1

HDPE; 28mm

➢ Sub-Stem

1

HDPE; 15mm

➢ Spring

1

SAE 304 stainless steel; 1.50cm

1

Aluminium 0.5 diameter

1

HDPE; 13.0cm

(Review, 2015)

(AliExpress, 2018) ➢ Ball

(Hobbies et al., 2018) ➢ Dip Tube

Exit hole diameter: outer = 5.9mm,

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

17

3.5 Augmentation 3.5.1 QR code

QR-code will be pasted on the bottle as a feedback channel. Upon scanning, this will automatically direct user to our website, allowing them to track and redeem reward. We will implement loyalty program for users to keep track purchases through our webpage. Users will be able to redeem rewards after obtaining enough points. 3.5.2 Donation to Non-Profit Organisation

Image Source: (KAP, 2018) N♥Aura’s aims to contribute 2% of profit and “Keep Australia Beautiful”, a non-government organisation that keeps Australia litter free. Hoping to encourage customers to join us in this environmental-saving journey.

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

18

3.6 Competitive Comparison Mushroom Kingdom (MK)

Positioning

Mushroom Kingdom supply only to the highest standard of food quality to consumers.

Price

Price range: ● Fresh products: $1.50 - $5.35 ● Grow kits: $17.90 - $372 ● Snacks: $8.50 - $25.50

Distribution Place

● Corporate website, Retails stores.

Product Offering

● ● ● ●

Grow kit Mushroom chips/soups/essence Black jelly fungus Mushrooms (Portobello, Shiitake , Grey oyster and Royal abalone)

Product Benefits

● ● ● ● ●

Antioxidant Pesticide-free High in vitamins, fibre-irons Low carbohydrates 100% natural ingredients

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

19

3 Main Competitors

Positioning

Trilogy delivers natural skin care formulations that are concentrated, effective and unique for customers.

ANSC uses plant oils to create a range of natural soaps and skincare products that fit all types of skin.

Australian Natural Soap provide customers with the most affordable natural soap

Price (AUD)

$29 to $76.

$5.95 - $39.95.

$10.90 to $77.

Corporate Website Distribution Place

● Multiple retails stores globally

Product

● ● ● ● ● ● ● ● ●

Offering

Product Benefits

Cleanser Shampoos Conditioner Body wash Hand cream Lip balm Serums Masks Face cream

● Non GMO ● NATURE approved preservative ● Cruelty free ● Biodegradable

● 2 retail stores within Australia ● ● ● ● ● ● ●

Liquid soaps Shampoos Shaving soaps Exfoliating soaps Pet shampoos Washing powder Essential oils

● Soap bars and boxes ● Soy candles ● Diffusers

● ● ● ● ● ●

Vegan All natural Palm oil free Paraben free Cruelty free Biodegradable

● ● ● ● ●

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

Cruelty free Paraben free Petro-chemicals free Propylene glycol free No sodium lauryl sulphates

20

3.7 Scalability 3.7.1 Product Road Map

Figure 3.7: Product Road Map Product Attributes and Reasons Main Concern: Generation 1 (35 - 45 y/o)

Product Accessibility Time constraint due to hectic work and family commitment.

Future Product Attribute: - Provide delivery service. - Show fast skin improvement within 4 week of application.

Product Benefit Seeking for anti-ageing products. Generation 2 (55 - 65 y/o)

Product Accessibility Due to their ageing health, they are not able to travel far away from home.

- Input manual sonic cleansing devices with our product to improve skin firmness.

Product Benefit Anti-aging formula.

LF02 | Group 14 MKTG 1270 Product Innovation Management Sem 2 2018

21