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Npd-Facial Cleanser

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    New products are the lifeblood of any company, fueling its survival and growth in the long run. But the development and introduction of new products that will ultimately be profitable are fraught with the risks of heavy up-front expenditures and uncertain future payoffs.

    A daunting combination of stagnating sales in mature markets, rising costs, and a focus on short term earnings leave management in a very uneasy position. We are a product development team of a company. It is a cosmetic manufacturing company. It produces various kinds of cosmetic products like

    • Beauty soap
    • Nail polish
    • Shampoo
    • Face wash
    • Tooth pest
    • Toothbrush

    Now our company wants to introduce a new product. New product:- It means original products-new to the world, new to the product line, product improvements, product modifications, and new brands that the firm develops through its own research and development efforts.

    A new product includes the greatest cost and risks. Because they are new to the market and the company as well. That’s why most of the companies are devoted to improving the product line. That’s why we are focusing on improving our existing product line.

    Organizing New Product Development

    Stage gate system: it is a process to manage the innovation process and launch new products in the market. In this system, the gatekeeper makes one of four decisions. Go, Kill, Hold, or Recycle. If the new product idea looks promising the gatekeeper decides to GO for it.

    If the idea is bad than KILL it, if the idea needs further analysis then HOLD it and if the idea can be considered in the near future the RECYCLE it.

    Stages of New Product Development Idea Generation

    The idea generation stage is the first stage in the NPD. However, in an organization with a healthy environment for creative thinking, new ideas abound, and only rarely is it necessary to have a formal meeting to generate ideas. New ideas flow from everyday activities within the Organization. Sources of idea generation are:

    • Product attributes and benefits
    • Distributors and suppliers
    • Pricing and advertising

    After brainstorming we focused on the consumers first. We found that It is essential that a company knows its market and its consumers before developing any new product. Lots of questions need to be answered here. It is the starting point that enables brands to fit meaningfully into consumers’ lives. After surveying the consumers we found that consumers not only women but also men are becoming conscious about skincare these days. Especially young executives, students. They are in a need of good facial cleansers that can really clean up their face well without any side effects.

    Then we focused on the competitors. We found that our competitors are also producing beauty soaps, face wash products. Their face wash products are in tube form or plastic bottle form. Their target market mainly focuses on women, their skin type, and to some extent men. We also found that they are providing face wash in different sizes. Now a days small bottle of face wash has demand like 50 ml., 75 ml, etc. but these face washes are not convenient enough to take anywhere. There are also some wet tissues but they are not available enough.

    There are also some issues like napkin tissues and normal tissues treated as facial tissue. We have to educate people about the differences between facial cleansing tissue and facial tissue. The generation of workable ideas is very important to make a business plan. After brainstorming we generated the idea of introducing “Facial Cleanser” which will be easy to use. This tissue will be especially handy for the people who are in a rush. We also have to maintain a very good quality of the product. As such the product has to remove dirt from the skin and so on.

    Idea Screening

    Selected Idea-Facial Cleansers

    Screening new product ideas in order to spot good ideas and drop poor ones as soon as possible. After getting idea generation we have to do idea screening. The first idea-reducing stage is idea screening, which helps sport good ideas and drop poor ones as soon as possible. Product development costs rise greatly in later stages, so the company wants to go ahead only with the product idea that will turn into profitable products. A company should motivate its employees to submit new ideas: We know that the proposed ideas are grouped into three areas. Promising, marginal, and rejects.

    If the idea is promising then it goes to the next phase, if it requires further analysis then the gatekeeper holds it(marginal) and if the idea is bad gatekeeper rejects it. Our idea of facial cleanser is a promising idea and has got the approval from the Gatekeeper and so we decided to develop the concepts on that. The reason behind choosing this idea: As new product development is costly and risky, our product will be an improvement and revision of the existing products. That’s why we are devoting to face wash to Facial Cleansing Category. That is a new product or product feature that provides improved performance.

    Basically facial wash products are sold on liquid form in our country and they are contained in tubes or plastic bottles. Our idea is to improve the face wash product to facial cleanser. We will differentiate it by improved performance and obviously ‘Ease of Use’. This will be handy especially for the people who are in a rush, who are busy and who often forget to remove makeup! We will be introducing the facial cleanser category by offering consumers a softer, stronger, and more soothing facial cleanser that delivers the customers superior value in terms of product performance.

    Facial Cleanser will leave your skin soft and smooth and it is 100% oil and alcohol-free. This advancement in tissue technology will be notable in the category and only offered by us. Concept Development It is important to differentiate between a product idea and a product concept. An attractive idea must be developed into a product concept. From these ideas, we have to create ‘product concepts’. These describe the product benefits and how they will meet the consumer needs. Several concepts were written in different ways. These explained and expressed unique product attributes.

    In the concept development stage we have to find out answers of the following questions:

    • Who are our target customers?
    • What benefit is offered to them?
    • When they will consume the product?

    The Target Customers

    For facial cleansers, our target market can be men and women with all skin types normal, oily, sensitive. But we will mainly focus on students, young executives or travelers above all the people who are busy and who are in a rush.

    Primary benefits: Facial cleansing tissue has all the elements that a face wash provides. It will be formulated to clean your skin deeply for a healthier, softer looking complexion.

    This special tissue works hard to remove unseen dirt, oil and makeups. The result is fresh smooth skin and fresh looks. Other than that it is convenient to use; just wipe your face with a tissue to remove dust and then dispose of it.

    When they will use it:

    • it can be used any time of the day; either in the early morning, afternoon, evening, or even night.
    • it can be kept conveniently in the pocket so any time of the day, people can use this product.

    After testing all these questions we have developed the following concepts:

    • Concept 1: A facial cleansing tissue that can be conveniently kept in the pocket for the YUPPI and travelers.
    • Concept 2: A facial wash for the women who want to take special care for their oily skin.

    Concept Testing

    In this step, the company has to present the concept to target consumers for getting reactions about the new product. Like if we give some samples of the new products to our target consumer then we will easily understand some important factors of our new product which will help us to identify whether the product is acceptable or not to the consumer. We are focusing on future concept testing.

    • Those are Communicability/believability: It means whether benefits are clear and believable to the consumer.

    Because if the customer is not satisfied with the benefits or they don’t have a clear idea about the benefits they will not buy the product. So if they buy our product frequently we will easily recognize that they are satisfied with our given benefits. We are introducing the facial cleansing tissue category by offering consumers a softer, stronger, and more soothing facial cleansing tissue that delivers the customers superior value in terms of product performance. Easy Facial Cleansing Tissue will leave your skin soft and smooth and it is 100% oil and alcohol-free.

    This advancement in tissue technology will be notable in the category and only offered by us.

    • Need level: In the concept testing, we have to identify whether our new product filling the consumer need level or not.

    Because if it fails to satisfy the customer’s need they will avoid this product on the other hand if it satisfies the customer’s needs they will accept this product. Human skin is exposed to various dust and pollutants daily. These pollutants are often irritating to the skin and can lead to even infection. As the skin is the largest organ of the human body, proper skin maintenance is good for health.

    Facial cleansing tissue will help to minimize or prevent skin related problems. Based on this, there is a need for cleaning products. Eassy Facial Cleansing Tissue gently cleanse tones and freshens your skin without drying. Removes dust and impurities from the face gently. It makes you look fresh so that when you are in your office and you have to go to a party, the invitation you can gently use it to look refreshed enough to go anywhere.

    Gap Level

    In the GAP level, we have to identify whether other products are meeting the same need or not. For cleaning up the face there are other products that are also meeting the same need. Basically people use face wash products for cleaning up their faces. These face washes are contained in tube, plastic bottle form but they are not user friendly as our Eassy Facial Cleansing Tissue.

    • Perceived price:- In this step, we have to identify that does the consumer is satisfied with the product price or not.

    In relationship with the benefit provides Eassy Facial Cleansing Tissue provides the price is reasonable. 30 tk. Per pack is obviously cost-effective. The most important thing is that it is very convenient to use than the facewash. So in terms of price, it is offering more value.

    • User target: Men and Women with all skin types Normal, Oily, Dry, Dehydrated, Sensitive can use this facial cleansing tissue.

    But we are mainly focusing on young executives, students, and travelers. Because most of the time of the day they remain outside and becomes busy. So they don’t get much time to take care of their skin or face. And it’s a problem for them when remaining at office, school, colleges or universities if they have to go to a party. Eassy facial cleansing tissue can be conveniently packed in the pocket and they are easy to use so they will be benefited more by using this product.

    Carrying tubed or bottled facewash in the pocket is troublesome. So it is the best solution for their busy routine life. The concept is selected based on: We have analyzed the concepts based on the competitors and target market.

    Concept Selection

    From the above mentioned 2 concepts we have to find out our direct (head to head) competitors and indirect competitors. In our country, the major face wash selling brands are LAKME, GARNIER, L’OREAL, and POND’S. These brands will be the head to head competitors for concept 2 that is the face wash. All our competitors mentioned here are strong.

    That means our barriers to entry there will be high. People especially women are sensitive about skincare products and most of them are brand loyal. So convincing them to switch will be a very difficult choice. So we have decided to choose concept 1 as it is targeting a very new market segment that are the YUPPIE. In this segment, there is no such facial cleansing tissue available. Because our product’s main feature is cleaning the face as well as it is simple and convenient to use. Most of the time of the day they remain outside and busy.

    So they don’t get much time to take care of their skin or face. And it’s a problem for them when remaining at the office if they have to go to a party from the office. Eassy facial cleansing tissue can be conveniently packed in the pocket and they are easy to use so they will be benefited more by using this product. Carrying tubed or bottled face wash in a pocket is troublesome. So it is the best solution for their busy routine life. Again traveler’s who travel often need this product very much. After a journey, they are in a need to be refreshed because when they travel by train dust impure their faces more.

    Though they might take their trusting face wash on their bag our facial cleansing tissue’s conveniences and effectiveness will meet their need most. So they are in the need of this facial cleanser tissue most. So after the above discussion, we have decided to choose “facial cleansing tissue for young urban executives and traveler’s” as our product concept. Because customer need for this product is very strong, consumers have purchase intention and there is no such competition. We also went for testing various name ideas for the product and developed different designs for the packaging.

    Packaging design plays a very important role in helping to communicate the image of the product. Effective and ease of use needed to communicate essentiality and convenience. For this, we have decided on the name “Eassy Facial Cleansing Tissue” as the product name. we will position this facial cleansing tissue “anytime” due to its convenience.

    Marketing MIX Strategy

    Our marketing strategy will be to develop brand equity, increase customer awareness of ‘Eassy facial cleansing tissue’ and build the customer base. The strategy will use several different methods to achieve these goals.

    Our marketing objective is:

    • Increase repeat customers
    • Offering quality product at a moderate price
    • To obtain a large market share
    • Develop brand awareness and acceptance.

    The marketing strategy stage consists of three parts.

    PART 1 Target Market Size, Structure and Behave

    Men and Women with all skin types Normal, Oily, Dry, Dehydrated, Sensitive can use this facial cleansing tissue. But we are mainly focusing on young executives and travelers. Around 15% of the population falls under this market. But they will be profitable if they can be convinced to make a repeat purchase.

    To do so we have educated them about the convenience of using this product. After that, they have to be habituated for using this product. It is difficult to judge how many people fall under this market. Once they buy they will be convinced about the product and they will surely buy it. Product positioning strategy: this is going to be a value-based product for the consumers. We will position our facial cleansing tissue quality product at a reasonable price at anytime consumer want. Projected sales, market share, and profit goals: e expect that our projected sales revenue will be 3 crores after 3 years. Within three we will capture 15% of market share. After 6 years we will capture 25% of the market share. We hope our estimated profits will be like this in the next three years.

    PART 2

    The second part indicates the planned price, distribution, and marketing budget for 1 year. Planned price: we decided to follow value-based pricing for our cleansing tissue. This is because we wanted to charge a moderate price for our target market. We cannot go for penetration pricing as skincare products are the sensitive product. Charging lower prices means consumers might perceive lower quality. We will charge 30 tk. per pack for our product. We will provide 3 tissues in a pack. So in terms of price, it will provide superior value.

    To determine the value we have taken into account the benefits, quality of our product. Advertising strategy: Our Company plans to expand the new tissue technology product lines in 2009. To support the launch of the enhanced

    Eassy Facial Cleansing Tissue

    we will roll out a point of purchase marketing and consumer sampling campaign to enable consumers to physically feel the softness in the product. Elements of the campaign include the consumer product sampling effort samples to consumers. In addition, the campaign will utilize TV advertising and in-store promotions. We are committed to driving sustainable growth of our brand by launching new product and marketing innovations and we believe that enhanced Eassy Facial Cleansing Tissue will create customer and consumer excitement in the facial tissue category. Our marketing efforts are designed to engage consumers at every touchpoint – in-stores, in-homes, and in-market. We will cover our advertisement in print media like magazines and newspapers, billboards. We also intend to use television commercials to advertise the product.

    Distribution Strategy

    It Is about the channel, we will handle our own warehouse center and provide our cleanser tissue to the retailer and at last our product will go to the consumer’s hands. We will start our distribution from the Chittagong region. We have to make the product as available as possible. We have identified some renowned departmental stores in Chittagong such as kamal store, Lolen, in superstore like Walmart, Khushi mart, Meena bazaar where we will provide sample of our facial cleansing tissue as part of the promotional strategy.

    We will distribute this by using our own pick-up vans from store to store to know about the consumer feedback. We have chosen this distribution line because we think in this way we will be able to do better communication with our consumers. And by this communication, we will able to know about the acceptability of our products to the consumers.

    PART 3

    It describes the planned long run sales, profit goals, and marketing strategy.

    Long Run Sales

    After a one-year sales report, it is possible to say actually how much sales growth rate will be possible. But we have an intention to capture 25% of the market share in 6 years.

    Profit Goals

    Our return on an investment after tax will be 15%.

    Marketing MIX Strategy over Time

    We will maintain our higher and improved quality and benefits for the next 3 years. Our pricing will also be the same. But if any competition forms we will change the pricing of the product. We will make adjustments in our promotional activities by increasing advertising cost and decreasing marketing research costs in the next 3 years.

    Product Development

    This stage involves developing the product concept into a physical product in order to assure that the product idea can be turned into a workable product.

    From concept testing, we have identified the need of the consumers. Now we have to make a working prototype. It will be as same as the new product. We will make it to check the market response. If it is succeeded then we will go for a full-fledged production.

    Market Testing

    In this stage, we will test the product on actual customers. Many product launches fail, despite great advertising. A big reason is that the product fails to live up to the promises made. We will conduct a product usage test. A de-branded sample of the proposed new product will be given to the target consumers in retailer shops, offices.

    De-branded means the facial cleansing tissue was in a blank packet so that the consumers did not know who made the product or what type it was. Very often consumers form opinions about products and services from advertising and packaging. This can sometimes be very strong and creates a preconception in what they think of a product before trying it.


    If we succeed in the test marketing then we will go for commercialization of the product nationally. It means we will introduce our Easy facial cleansing tissue in the market.

    We have to consider one thing here and that is the right time to enter the market. Fast-entry will give us a fast move advantage. This can lead to a monopoly advantage and ultimately the advantage of being the market leader in the future. So we decided to enter the market next spring season. Obviously our target market is the young executives and travelers. In this way, we will commercialize the product.


    So new product development is not an easy task. But it is essential to maximize profit. New product development should start with an insight based on consumer needs.

    Being an international company, it is essential for every company to develop new products using the insights of consumers across markets and cultures. This ensures the products are relevant to a large number of global consumers and will deliver the maximum return when launched. This maximizes the return on investment for the company and results in happy, satisfied, and loyal consumers.

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