a research report on brm final

8/6/2019 A Research Report on Brm Final

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FACTORS AFFECTING NEW PRODUCT SUCCESS

A project submitted to KIIT SCHOOL OF MANAGEMENT, KIIT

UNIVERSITY, BBSR in partial fulfillment of the award of degree

of

MASTER OF BUSINESS ADMINSTRATION

By Group-7

Sec-cCHANDRA SEKHAR DAS -152

PRATIK DASGUPTA-153

TONOY BANERJEE-156

MADHUSUDAN PALO-177

Under the supervision ofDr. Rabi.N.Subuddhi

Dr. Sashmita Mishra

KIIT SCHOOL OF MANAGEMENT

KIIT UNIVERSITY


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STUDENT DECLARATION

This project report entitled The factors affecting new product success has been done by us and

has not been submitted for the award of any degree anywhere.

Signature


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Guide certificate

This is to certify that these above mentioned students has successfully

completed this project work entitled Factors affecting new product

success under my guidance & supervision. This work has been

originally done by them based on the data collection undertaken by them

and has been analyzed by them for the purpose of this study. The work

presented herein has not been submitted in part or full to this or any

other universities for any degree or diploma to the best of my

knowledge.

Guide signature


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ACKNOWLEDGEMENT

We express indebtedness to our guide and supervisor Dr. Rabi.

N. Subuddhi and Dr. Sashmita Mishra, Kiit school of management, Kiit

University for the valuable guidance provided to us for undertaking the

study, on the topic entitled Factors affecting new product success. We

extremely grateful for his painstaking interest in our work in spite of busy

academic activities.

It is a pleasure to thank our friends for constant inspiration for

this study.

Bhubaneswar

Date: 26 april 2011


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CONTENT

SL. NO. TOPIC PAGE NO1 COVER PAGE 1

2 STUDENT DECLARATION 2

3 GUIDE CERTIFICATE 3

4 ACKNOWLEDGEMENT 4

5 CONTENT 5

6 LIST OF TABLE 6

7 LIST OF FIGURE 7

8 EXECUTIVE SUMMARY 8-9

9 INTRODUCTION 10-12

10 REVIEW OF LITERATURE 13-16

11 OBJECTIVE 17

12 HYPOTHESIS 18

13 SCOPE 19

14 METHODOLOGY 20

15 FREQUENCY 21-22

16 RESULT 23-33

17 DEMOGRAPHICINFORMATION

34-35

18 MAIN FINDINGS 36-3719 CONCLUSION 38-39

20 SUGGESTION 40

21 LIMITATION 41

22 BIBLIOGRAPHY 42

23 APPENDIX 43-46


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LIST OF TABLES

SL NO. TABLE PAGE NO1 FREQUENCY TABLE 21-22

2 RESULT 23

3 HYPOTHESIS(1-9) 25-33


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LIST OF FIGURES

SL NO. FIGURES PAGE NO.1 GENDER TABLE 34

2 AGE TABLE 35


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EXECUTIVE SUMMARY

our group has taken up the research to find factors affecting success of a newproduct , in the project we tried to find what are the important factors that

influences success of a new product and causes of fail if any.

Few of important factors that affects success of any product are brand equity i.e.

that what is the image of the brand by which the new product is lunched if its from

a reliable and famous brand then people always tend to try out similarly few other

factors which affects the success are reliability , comparability , price , etc .

We tried to analyze what are such factors from our respondent. We had taken a

sample size of fifty(50) mostly inside KIIT campus hence most of them are fall in

student category but there are also many other respondent like faculty members ,

as the sample unit within are known vicinity its falls in random convenient

sampling.

In our analysis we tried to find the swot and pest for new product and there

successes as there always possibilities of many when a product id lunched .

As from above its clear our research work is based on questioner method so it is

based on primary data collection but to have better understanding of the subject

and gain knowledge we have done a literature review where we have gone through

ten different articles n journals which are mention in our report in concerned part.

Scope of this however remain to some limitations as this research work confined is

confined to the KIIT campus and mainly to the student community only hence the

view expressed may not be same and applicable to out world perfectly.

Methodology as its has been discussed above our work is confined to this campus

so we segregated the data into age group , income , occupation etc then we have

analyzed our data with the help of SPSS and we anaylsed through techniques like

central tendency , correlation ,descriptive statistics, cross tab ect.

We have also taken concerned and related hypothesis which are proven either true

or false according to the result and out of our analysis .


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DATA AND OUTPUT ANALYSIS:

From our concerned sample unit about 94% fall in the age group of 15 to 25 that

indicates most of our respondent are young.

When it comes to annual income 88% fall in not applicable category still they have

say when there family buy any product.

94% of our respondent show their tendency to try out a new product also we found

in our research work 78 % of respondent know about a new product from

advertisements and promotions followed by friends and magazines.

Most of the respondent want their new product to be highly compatible whereas

about 20% of respondent are bothered about price and 34% of respondent think

about durability as an important factor.

So from above data we can conclude younger generation collect most of their

information from advertisement and promotion , hence any new product targeted to

younger generation must be good in communicating to the consumer for their

grand success.

Also 98% of our respondent strongly feel advertisement for any product is

necessary. Also our research shows 67% of respondent from age group of 25 to 40

know about new products from advertisements whereas only 37% from age group

of 15 to 25. Hence that shows people in the age group of 25 to 40 go through

advertisement more.

14% of people buy a product when someone ask them to. 8% buy to gift and 42%

for their personal use.


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INTRODUCTION

Whenever we go to a market we find some products which are new to us but are attractive butstill we are in a dilemma whether to purchase it or not. Some people purchase it and some not.

There is some kind of fear which catch hold of us while purchasing a new product in a market.

New product success always had been depended upon many factors such as advertisement,

better promotion, considering 4Ps of marketing and proper STP. SWOT and PEST analysis are

also done while bringing a new product in the market.

Things generally considered by market analysts while introducing a new product in the market

are as follows:-

1. 4 Ps of marketing(marketing mix)

a. Price- The price is the amount a customer pays for the product. The business may

increase or decrease the price of product if other stores have the same product. It is

generally a main concern for new product so price is one of the main factors which are

generally being considered while bringing in the market.

b. Promotion- represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements: advertising, public relations,

personal selling and sales promotion. A certain amount of crossover occurs when

promotion uses the four principal elements together, which is common in film

promotion. Advertising covers any communication that is paid for, from cinema

commercials, radio and Internet adverts through print media and billboards. Publicrelations are where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and

events. Word of mouth is any apparently informal communication about the product

by ordinary individuals, satisfied customers or people specifically engaged to create

word of mouth momentum. Sales staff often plays an important role in word of

mouth and Public Relations.

c. Place-Place represents the location where a product can be purchased. It is often

referred to as the distribution channel. It can include any physical store as well as

virtual stores on the Internet.d. Product- It is a tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products

are service based like the tourism industry & the hotel industry or codes-based

products like cell phone load and credits. Typical examples of a mass produced

tangible object are the motor car and the disposable razor. A less obvious but

ubiquitous mass produced service is a computer operating system. Packaging also


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needs to be taken into consideration. Every product is subject to a life-cycle

including a growth phase followed by an eventual period of decline as the product

approaches market saturation. To retain its competitiveness in the market, product

differentiation is required and is one of the strategies to differentiate a product from

its competitors.

2. STP(SEGMENTATION, TARGETING AND POSITIONING)

a. Segmentation Before launching a new product it is generally made to identify the

position where the new product is generally going to sell. Segmentations are

generally made into geographic and demographic. Now when a new product is

launched the main thing which is need to be taken consideration is which is the place

where its demand will be high and who will be its main customers. Which age group

people will it suite, whether they can afford are the main questions which are

generally need to be asked by the organization. It is done for the existence of a

product.b. Targeting -?This is the real goal/objective in market that marketer want to reach

while introducing a new product in the market.

As a simple questions are :

What percent of the population uses the product at all?

What percent uses your brand?

How does that compare to competing brands?

What is the demographic profile of the product category?

Which media reach the users of this category?c. Positioning - Positioning is an essential component -- and skill - in good marketing.

Perceptual maps are used to determine the position of a product, firm, person,

service or idea. Positioning maps, or perceptual maps can be simple, yet very

effective marketing tools. One definition of Positioning Theory is: the science of

perceptual strategy. It is based on a theory that strategy can only be planned in the

mind of the consumer, not the marketplace.

It is important to understand the levels of competition because positioning applies

at all levels of competition. For example:

Product Level (e.g., Pepsi vs. Coke)

Category Level (e.g., Cola vs. Root beer)

Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company)

Industry Level (e.g., Beverage Industry vs. Snack food Industry) .


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3. SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in aproject or in a business venture. It involves specifyingthe objective of the business venture or project and identifying the internal and external factorsthat are favorable and unfavorable to achieve that objective. A SWOT analysis must first start

with defining a desired end state or objective. A SWOT analysis may be incorporated into thestrategic planning model. Strategic Planning has been the subject of much research.

y Strengths: Characteristics of the business or team that give it an advantage overothers in the industry.

y Weaknesses: Are characteristics that place the firm at a disadvantage relative toothers.

y Opportunities: External chances to make greater sales or profits in the

environment.y Threats: External elements in the environment that could cause trouble for the

business.

Identification of SWOTs is essential because subsequent steps in the process of planning for

achievement of the selected objective may be derived from the SWOTs.

4. PEST ANALYSIS

y Political factors are how and to what degree a government intervenes in the economy.

Specifically, political factors include areas and political stability. Political factors may

also include goods and services which the government wants to provide or be providedand those that the government does not want to be.

y Economic factors include economic growth, interest rates, exchange rates and theinflation rate. These factors have major impacts on how businesses operate and make

decisions.

y Social factors include the cultural aspects and include health consciousness, populationgrowth rate, age distribution, career attitudes and emphasis on safety. Trends in social

factors affect the demand for a company's products and how that company operates.

y Technological factors include technological aspects such as activity, automation,technology incentives and the rate oftechnologicalchange. They can determinetoentry,minimum efficient production level and influence outsourcing decisions. Furthermore,

technological shifts can affect costs, quality, and lead to innovation.

So these are the factors which are generally being considered for success of a newproduct. Now in this research we will see how far this factors are applicable for success

of a new product.


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REVIEW OF LITERATURE

Before our actual research we have taken into consideration of some previous research on

this or related topic. These research articles by eminent scholars will help us to carry outof our project successfully by carrying out their results and findings. The methods they

adopted and procedures taken will help us to compare about their findings with us.

The articles which are taken into consideration are as follows:

1) Controllable Factors of New Product Success: A Cross-National Comparison.

2) An Examination of Organizational Factors Influencing New Product Success in

Internal and Alliance-Based Processes.

3) Determination of Critical Success Factors for your organization.

4) An exploration of organizational factors in new product development success.

5) Effectively creating a product is not childs play.

While the new product literature suggests that manageriallycontrollable factors most strongly

affect new product success,few studies have examined how these factors differ across countries.

The objectives of this article are:

1. to develop a model ofmanagerially controllable factors associated with newproduct

success,

2. to directly compare the factors that managers perceiveto be associated with newproduct success in the United Statesand China, and

3. to demonstrate the application of variousstatistical analyses for increasing theconfidence. To accomplish our objectives, we develop a model of managerially

controllable factors related to new product success. The model is tested using data

collected on 142 new products launched in the United Statesand 470 new

products launched in China. Our findings provide important managerialguidelines- First, firms are advised tobuild appropriate new product development

resources and expertise. Second, a higher proficiency in marketingand technical

activities leads to a higher level of new productsuccess in both countries. Third, it

is important to collect and assess market and competitiveinformation in order to

understand customers' needs, wants,and specifications for the product.

An exploration of organizational factors in new product development success-This studysurveys a broad spectrum of new product development (NPD) projects with the purpose of


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exploring the role of the organizational activity factors in the NPD success.Drawing on theresource-based view of the firm, the authors present a set of hypotheses concerning the

relationship between the people resources, development resources, testing resources, and launchresources committed to NPD projects and their financial success. In addition, the effect of the

firm's international market involvement on the NPD project success is considered the. The

findings of this study show that: the involvement of a strong champion, use of a multi-disciplinary team, and focus of a dedicated team are key factors for NPD project success amongthe people resources This study provides several guidelines like, It offers critical insights into the

identification of firm resources that influence the NPD project success, Understanding the role ofmarket diversification in the NPD project etc.

Steps In Launching Your Product- Effectively creating a product is not childs play. It is a

difficult task for you to understand your competitors success and strategy. Optimizing thesurvey results is important for a good start to your project. Make use of the right product mix and

position them well. Launching a new product is a daunting task as consumers are apprehensiveabout a new product in the market. It is important to drive home the positive aspects of the

product and Make the customers realize that it provides a competitive advantage over the othersin the market so that consumers welcome it with open arms. A look at competitors marketing

collaterals will give you ideas about how to market your product. To study your competition isalso necessary before you launch your product. Attractive and appropriate product packaging is

also important to attract targeted customers The competition marketing strategies should beconsidered before you launching your product. You should have a clear understanding of what

you must offer to differentiate your product from the others. The bottom line is that your productor service should be unique and meet the needs and desires of your best prospects.

Assessing New Product Development Success Factors In The Thai Food Industry-

The aim of this paper is to measure new product development (NPD) success factors in the Thaifood industry The quantitative research was designed based upon qualitative analysis,i.e. A total

of 114 questionnaires sent to medium and large food companies were returned (17.5 percent ofcompanies). Manager perceptions of what factors are important do not match actual practice very

closely, but they do report what is actually done in the NPD process consistently NPD is context-specific. The food industry is strongly market-driven, so rapid adaptation to customers is critical.

Strategy and planning is less important than an ability to remain flexible and move quickly inresponse changing consumer tastes. This paper demonstrates that what managers involved in the

NPD process believe to be the important success factors cannot always predict NP success rates.

Determination of Critical Success Factors for new product.-

The principle of identifying critical success factors as a basis for determining the informationneeds of managers. Five key sources of Critical Success Factors are The industry, Competitivestrategy and industry position, Environmental factors,Temporal factors, and Managerial position

(if considered from an individual's point of view).


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There is also different methods for CSFs. There are four basic types of CSFs according toRockart. They are:

(1)Industry CSFs resulting from specific industry characteristics;

(2)Strategy CSFs resulting from the chosen competitive strategy of the business,

(3)Environmental CSFs resulting from economic or technological changes,

(4)Temporal CSFs resulting from internal organizational needs and changes .

While the new product literature suggests that manageriallycontrollable factors most strongly

affect new product success,few studies have examined how these factors differ across countries.

The objectives of this article are:

(1) to develop a model ofmanagerially controllable factors associated with new product

success,

(2) to directly compare the factors that managers perceiveto be associated with new product

success in the United Statesand China, and

(3) to demonstrate the application of variousstatistical analyses for increasing the confidence

that maybe placed in empirical findings and outline methods for assessingwhether significant

estimation biases exist in cross-sectionaldata.

Our paper should be of interest to new product researchers

and international comparativemarketing researchers. The implicationsof our results should also be of considerable value and

interestto executives faced with the complex task of selecting and managingnew productdevelopment projects as well as to those firms experiencing

international competition.

To accomplish our objectives, we develop a model of manageriallycontrollable factors related to

new product success, which includesvariables related to the organization, the new product

developmentprocess, and the product itself. The model is tested using data

collected on 142 new

products launched in the United Statesand 470 new products launched in China. We conductcase studies

to examine the appropriateness of the data collection methods,

to establish the

content validity of the concepts, and to assessthe usefulness of the measures and constructs in a

Chinese context.

The model was tested using EQS with covariance matrices as input.We tested the measurement

model before assessing the structuralrelationships. Once the measurement issues were

satisfactorilyresolved, the structural model was tested for each country individually.

Since the

results of the individual models for the United Statesand China were satisfactory, we performed

a two-group simultaneouspath analysis in order to test for similarities and differences

in the


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factors of new product success between the United Statesand China. We tested whether or not

the path coefficients wereinvariant across the two countries using a Lagrangian Multiplier

test.

The challenge for all cross-sectional studies is to reject thehypothesis that many of the

parameters associated with the dependentvariable are biased by "omitted" firm level effects and

other

specification errors. We examine these possible biases within

the structural equationsframework by examining the robustnessof the parameters with and without the measurement

error interactionsfixed and an examination of nominological validity for each

country. In

addition, since we collected two observations perfirm in our Chinese sample, we also examine

whether bias existsdue to omitted firm effects by comparing within and betweenestimates. The

stability of the within and between estimatesalso suggests that our findings are robust to omitted

firm effects.

Our findings provide important managerial guidelines concerningappropriate managerial actions

to take in the new product developmentprocess for new product managers. First, firms are

advised tobuild appropriate new product development resources and expertise.In both countries,

our findings suggest that adequate marketing

research, sales force, distribution, advertising, andpromotionalresources and skills are required for proficiently conducting

market assessment

studies, testing products, and introducingproducts. Furthermore, technical resources and skillsare positively

linked with proficiency in conducting technical activities.

Sufficient R&D and

engineering resources and skills arerelated to proficiency in performing technical assessments,

designing products, and manufacturing products.

Second, our results reveal that a higher proficiency in marketingand technical activities leads to

a higher level of new productsuccess in both countries. The level of proficiency of technical

activities appears to relate more to the level of new productsuccess than do marketing activities.

Third, it is important to collect and assess market and competitive

information in order tounderstand customers' needs, wants,and specifications for the product; to know customers' price

sensitivity; to understand customers' purchase decisions; andto learn about competitors'

strategies, strengths, and weaknesses.In China, product quality is the second most highly

correlatedfactor of new product success. Therefore, firms competing in

China should direct their

marketing and technical efforts towarddeveloping quality products.


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OBJECTIVE

The objective of our research is to find whether the factors which are generally been adopted by

industries while introducing new products in the market is reliable. The factors which aregenerally been considered by business while introduction of new product in the market are:

1) Segmentation, targeting and positioning.2) 4 ps3) SWOT analysis of industry.4) PEST analysis, and5) Porters five forces model.

In this research we will find out whether these approaches are reliable and are major factors forsuccess of a new product. The findings will be based on literature review of five articles by

eminent research scholars .

This research uses the research design in which the event under research is described and thenhypotheses are produced to explain it. The objective of the research is based on positivism is

within the scope of the research sampling frame to look for correlations describing relationshipsbetween properties. The goal is primarily to show causal or at least correlative relationships.

Sampling frame is collected from a wide population and it will be dealt with statistical methods.The results are statistical averages and other statistical measures and thus an individual company

might be totally different from the average.

Our research will have the following objective:-

1. To indentify influencing factors which customers considered while purchasing thenew product.

2. To find out perception of a customer toward a new product.3. To indentify the influence on choice of a customer on different variable like age,

sex, income.


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HYPOTHESIS

1)H0 : There is no relationship between occupation and reason for purchase of a new product in

the market.

2)H0: There is a no relation between annual income and want from a new product.

3) H0: There is a no relation between gender and necessity for advertisement for a new product.

4)H0: There is a no relation between annual income and most important factors of new product as

a price.

5)H0: There is a no relation between annual income and most important factors of new product asa quality.

6)H0: There is a no relation between annual income and most important factors of new product as

a brand.

7)H0: There is a no relation between occupation and most important factors of new product as a

price.


place


promotion


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SCOPEOur project confined to Kiit School of management campus only. We have collected primary

data from MBA student and faculty in the campus. As we all know that students and faculties ofMBA are aware of marketing concept for the success of a new product. Therefore it was easily

collect the primary data through questionnaire. So there is minimum error occurred whilecollecting the data. We are expected to get a rational decision from this research.

There are also some limitations of this research we have been confined to just student and

faculties. We didnt get other section of people who may have different views.


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METHODOLOGY

Our research is based on primary data that is collected in Kiit School of management. So our

sample includes students and faculties of the MBA College. This sample is divided into various

segments

1) According to gender e.i male or female

2) According to income group

3) According to profession

We have collection 50 respondents feedbacks through questionnaire. 50 respondents include 38

students of MBA 1st

year which is further segmented into male and female. Rest 12 respondent

are the faculties of MBA which is also segregated into different income group. Among facultiesthere is also a segmentation of male and female.

As we had collected the data through questionnaire, it contains two kinds of question. We have

open ended questions and close end questions in questionnaire.

Data analysis method

We have use the standard software SPSS to compute various statistical techniques. We have

calculated the central tendency (mean median and mode), measures of dispersion and other

descriptive statistics.


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FREQUENCY

We have taken a respondent of 50 persons in KIIT School Of Management in which 40 are

students and 10 are teachers. Out of which 10 are female respondents. We have selected few

frequency distributions which are as follows:-

1. age

Frequency Percent Valid PercentCumulative

Percent

Valid 15 to 25 47 94.0 94.0 94.0

25 to 40 3 6.0 6.0 100.0

Total 50 100.0 100.0

From the above table we see that from 50 respondents 94% of them are from a age group 15-25

and rest 6% are from a age group of 25 to 40. So the respondents selected by us are in age of 15

to 40. From this age group we will see how many people are generally prefers to buy a new

product.

2. annual income


Percent

Valid below 100000 1 2.0 2.0 2.0

100000 to 250000 1 2.0 2.0 4.0

250000 to 500000 5 10.0 10.0 14.0

500000 or more 1 2.0 2.0 16.0

not applicable 42 84.0 84.0 100.0

Total 50 100.0 100.0

From the above annual income table we see that from 50 respondent only 2% of candidates have

an annual income of below 100000. 2% lies between annual income of 100000 to 250000. 10%

lies between 250000 to 500000. 2% lies between 500000 and more and rest 84% are in not

applicable region which means that 84 % of our respondent are students who study in KSOM.Now from different income groups we will find out how different they behave on new products

in the market.

3. do you feel to buy a new product?


Percent


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Valid yes 47 94.0 94.0 94.0

no 3 6.0 6.0 100.0

Total 50 100.0 100.0

From the above 50 respondent we see that 94% of the people feels to buy a new product in the

market which means that maximum respondents feels to take the risk in the market when the newproducts are launched.

4. how you discover about a new product?


Percent

Valid advertisement(tv,newspaper) 39 78.0 78.0 78.0

friends 5 10.0 10.0 88.0

magazine 4 8.0 8.0 96.0

others 2 4.0 4.0 100.0

Total 50 100.0 100.0

Again the question was asked to know how people generally know about or discover about a new

product in the market. From the above table we see that 78 % of our respondents generally

discover about a new product through advertisements and there are few who gets information

from friends, magazines and others. So we can say that advertisement plays a better role to reach

to customers when an organization comes up with a new product in the market. Promotion of

products are generally done through newspapers and advertisements and then they make people

aware about their new entry in the market.

5. what do you want from a new product?


Percent

Valid compatibility 20 40.0 40.0 40.0

price 10 20.0 20.0 60.0

durability 17 34.0 34.0 94.0

others 3 6.0 6.0 100.0

Total 50 100.0 100.0

Again the question asked whether they prefer compatibility, price , durability or others while

buying a new product in the market. From the above table what we find is the mix response from

the respondents but still we see that 40% of our respondents generally prefer compatibility on anew product. Price which is an important factor was seen important only with 20% people.So what we can see is that people today are more quality conscious than price. They prefer

compatibility and durability of a product more than a price.


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RESULTSDemographic information

In our primary data collection we have taken faculties and student of MBA as sample. We have

segmented into following manner:-

According to age

15-25

25-40

40-60

60-A

According to gender

Male

FemaleAccording to income group

Below 100000

100000-250000

250000-500000

500000 or more

Not applicable

According to occupation

Student

Faculty

We have calculated the mean median and mode above mention segments and we found out that

average income of respondents is more than Rs 500000. Maximum number respondent falls in

the category of not applicable group means they are not earning anything. The average age of

respondent is 15-25 years. This show most of respondent belongs to student group.

While calculating the frequency table for the question whether people thinks before buying

before the new product we found that 94% of respondents think before buying a new product.

We also discovered that 88% of respondents believe that innovation is necessary for a new

product and 4% respondents feel it is not necessary. Rests of respondents are unable to decide.

Again we have found that most of respondent get to know about new product through

advertisement in TV and newspaper (78%), 10% get to know from their friends and 8% from

different magazines

40% respondent believes compatibility is most important factor for new product success, 20%

think it is price and 34% thinks it is durability.


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The last observation in this table is 98% of respondents believe advertisement is necessary for

the success of new product.

We are trying to analyses the age group with how to discover a new product available in

the market .

For that we have taken the help of cross tab in SPSS. In this age group includes only15-25 and

25-40. From this we get a number of observations which are as follows:-

1. Total 78% respondents get to know that about new product from advertisement in tv and

newspapers..

2. 10% respondents get to know from their friends. This also includes same age group.

3. Rest 8% and 4% get to know from their magazine and others sources respectively.

4. Age group of 15-25 gets information different ways.

y From advertisement- 37%

y

From friends -10.6%y From magazine -6.4%

y From other sources-4.3%

5. And in age group 25-40 includes

y From advertisement- 66.67

y From friends -0%

y From magazine -33.33%

y From other sources-0%

Again we have created a cross tab with annual group and reasons for purchasing a new product.

Same above cross tab we again certain observation which are as follows:-

1. 14% respondents buys new product when someone ask them to purchase. This 14%

includes various income group like 40% from income group 250000-500000, 26.62%

from income group 500000 or more and rest belong to those who have no income.

2. 8% respondents purchase new product for presenting a gift to someone. Among them

20% belongs to 250000-500000 income group and 16.7% belongs to no income group.

3. 42% respondents purchase a new product just because they had seen it in a store. Out this

42%, 40.5 belong to of no income group, 100% from both below 100000 and 100000-

250000 .

4. Last observation in this cross was in relation of price of a new product is only 14%.in thiscase only 16% respondents of no income group have this opinion.


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Hypothesis 1

H0 : There is no relationship between occupation and reason for purchase of a new product in the

market.

H1 : There is a relationship between occupation and reasons for purchase of a new product in the

market.

Now according to Chi-square

occupation * what is the one reason you purchase a new product in a market? Crosstabulation

what is the one reason you purchase a new product in amarket?

Total

some one

asks for it

make a

great gift saw it in store priceoccupation faculty Count 3 1 3 0

% within what is the onereason you purchase a newproduct in a market?

21.4% 12.5% 14.3% .0% 14.0%

student Count 11 7 18 7 4


78.6% 87.5% 85.7% 100.0% 86.0%

Total Count 14 8 21 7 5


100.0% 100.0% 100.0% 100.0% 100.0%

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 1.798(a) 3 .615

Likelihood Ratio 2.695 3 .441N of Valid Cases 50

a 4 cells (50.0%) have expected count less than 5. The minimum expected count is .98.

so from the above table we see that from Pearson Chi-Square we see that significance level is.615 where accepted significance level is .50 . so there is a chance of 39% that there will be a

relation between occupation and reason for purchase of a new product. As the Pearson Chi-

Square is above the significance level the above null hypothesis is rejected.

So there exists a relation between occupation and reason for purchase of a new product in the

market.


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Here we see that maximum age group of below 25 get information from advertisement of a new

product in the market.

HYPOTHESIS 4

H0

: There is a no relation between annual income and most important factors of new product as aprice.

H1: There is a relation between annual income and most important factors of new product as a

price.

Now from the Pearson Chi-Square:

annual income * most important factor for new product.. Crosstabulation

most important factor for new product.. Total

price 2 3 4

annual income below 100000 Count 1 0 0 0 1

% within most importantfactor for new product.. 4.8% .0% .0% .0% 2.0%

100000 to 250000 Count 1 0 0 0 1

% within most importantfactor for new product.. 4.8% .0% .0% .0% 2.0%

250000 to 500000 Count 2 1 1 1 5

% within most importantfactor for new product.. 9.5% 6.7% 12.5% 16.7% 10.0%

500000 or more Count 0 1 0 0 1

% within most importantfactor for new product.. .0% 6.7% .0% .0% 2.0%

not applicable Count 17 13 7 5 42



% within most importantfactor for new product.. 100.0% 100.0% 100.0% 100.0%

100.0%

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 5.631(a) 12 .934

Likelihood Ratio 6.388 12 .895Linear-by-Linear

Association.504 1 .478

N of Valid Cases50


As the Chi-Square value came as .934 which is much more than the significance level of .5.

So the null hypothesis is rejected.


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So there is a relationship between annual income and most important factors of new product as a

price.

Hypothesis 5

H0

: There is a no relation between annual income and most important factors of new product as aquality.


quality

Now according to Pearson Chi-Square

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 7.143(a) 8 .521Likelihood Ratio 6.815 8 .557Linear-by-Linear


N of Valid Cases50


now according to chi square we see that the result of annual income to quality is .521 which is

more than the significance level of .5.

so there is 48% chance that there will be no relation between annual income and important

factors of new product as a quality.

Hence the null hypothesis is rejected.

So alternative hypothesis is accepted.

So there exists a relationship between annual income and important factors of new product as a

quality.


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Hypothesis 6

H0: There is a no relation between annual income and most important factors of new product as a

brand.


brand.

Now according to Pearsons Chi-Square.

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)Pearson Chi-Square 11.996(a) 12 .446

Likelihood Ratio 10.495 12 .573Linear-by-Linear


N of Valid Cases50


so according to the chi square we see that there is a 54 % chance that there will be no relation

between annual income and most important factors of new product as a brand.

Hence the null hypothesis is accepted.

So there exists a relationship between annual income and important factors of new product as a

quality.

So what we see is that people now a days do not prefer brand with their annual income. There

may be other factors they look for while purchasing a new product in the market.


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HYPOTHESIS 7

H0: There is a no relation between occupation and most important factors of new product as a

price.

H1: There is a relation between occupation and most important factors of new product as a price.

Now according to Pearsons Chi-Square.

occupation * most important factor for new product.. Crosstabulation

most important factor for new product..

Totalprice 2 3 4

occupation faculty Count 3 2 1 1 7% within most importantfactor for new product.. 14.3% 13.3% 12.5% 16.7% 14.0%





Chi-Square Tests

Value df Asymp. Sig.(2-sided)

Pearson Chi-Square .057(a) 3 .996

Likelihood Ratio .056 3 .997N of Valid Cases 50


So according to Pearson Chi-Square we see that there is a 99.6% chance of significance between

occupation and a price of a new product.

Hence as it is more than the significance level of .5

The null hypothesis is rehected

Hence the alternative hypothesis is accepted.

So there exists a relationship between occupation and important factor of a new product as a

price.


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HYPOTHESIS 8


place.

H1: There is a relation between occupation and most important factors of new product as a place.



Total1 place 3 4

occupation faculty Count 2 3 2 0 7

% within most importantfactor for new product.. 16.7% 30.0% 10.0% .0% 14.0%





Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square3.765(a) 3 .288Likelihood Ratio 4.462 3 .216

N of Valid Cases 50

a 4 cells (50.0%) have expected count less than 5. The minimum expected count is 1.12.

now according to Pearson Chi-Square we see that there is 28.8% relationship between most

important factors of new product as a place.

Hence the null hypothesis is accepted.

Hence there exists no relationship between occupation and most important factors of new

product as a place.


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HYPOTHESIS 9


promotion.

H1: There is a relation between occupation and most important factors of new product as a

promotion.



Total1 2 promotion 4

occupation faculty Count 2 1 2 2 7






Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)Pearson Chi-Square 5.816(a) 3 .121

Likelihood Ratio 4.799 3 .187N of Valid Cases 50


so according to Chi-Square we see that there exists 12.1% chance of significance beween

occupation and promotion of a new product.

As .121 is less than .5 so the null hypothesis is accepted.

Hence there exists no relationship between occupation and promotion of a new product.


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DEMOGRAPHIC INFORMATION

MALE FEMALE

.So according to the above table we see that in all total of 80% respondent are male and 20% are

female.these data have been taken from students and teachers of Kiit School Of Management in

Bhubaneswar.

.

femalemale

gen er

80

60

40

20

0

Percent

gen er


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15-25 25-40

From the above bar graph we see that total of 90% of the total respondent are from a age group

of 15 to 25 and rest 10% are from the age group of 25 and above. Which means total of 90% of

population are students and the rest are teachers.

25 to 4015 to 25

age

100

80

60

40

20

0

Percent

age


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MAIN FINDINGS

From the above tables and graph and hypothesis we find different results. Our main research is

on of factors affecting new product success. We have taken into account on different frequency

tables , hypothesis to know what are the factors which are generally responsible for the success

of a new product.

From the frequency table the following results were derived which are as follows as under:-

y 94% of the people feels to buy a new product in the market which means that maximum

respondents feels to take the risk in the market when the new products are launched.

y 78 % of our respondents generally discover about a new product through advertisements

and there are few who gets information from friends, magazines and others.

y There is a mix response from the respondents that 40% of our respondents generallyprefer compatibility on a new product. Price which is an important factor was seen

important only with 20% people.So what we can see is that people today are more qualityconscious than price. They prefer compatibility and durability of a product more than a

price.Again we have created a cross tab with annual group and reasons for purchasing a new product.

Same above cross tab we again certain observation which are as follows:-

1. 14% respondents buys new product when someone ask them to purchase. This 14%

includes various income group like 40% from income group 250000-500000, 26.62%from income group 500000 or more and rest belong to those who have no income.

2. 8% respondents purchase new product for presenting a gift to someone. Among them

20% belongs to 250000-500000 income group and 16.7% belongs to no income group.

3. 42% respondents purchase a new product just because they had seen it in a store. Out this

42%, 40.5 belong to of no income group, 100% from both below 100000 and 100000-

250000 .

Last observation in this cross was in relation of price of a new product is only 14%.in this caseonly 16% respondents of no income group have this opinion.

We have also derived several findings through use of hypothesis. Pearson Chi-Square helps us to

get findings from the 9 hypothesis we have conducted. The different results from the hypothesisare as follows:

y There exists a relation between occupation and reason for purchase of a newproduct in the market.

y There exist no relation between annual income and want from a new product.


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y There exists a relation between age and necessity for advertisement of a newproduct.

y There is a relationship between annual income and most important factors of

new product as a price.

y There exists a relationship between annual income and important factors of new

product as a quality.y There exists a relationship between annual income and important factors of new

product as a quality.

y There exists a relationship between occupation and important factor of a newproduct as a price.

y There exists no relationship between occupation and most important factors ofnew product as a place.

y There exists no relationship between occupation and promotion of a new product.


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CONCLU

SIONour group has taken up the research to find factors affecting success of a new product , in the

project we tried to find what are the important factors that influences success of a new product

and causes of fail if any.

Few of important factors that affects success of any product are brand equity i.e. that what is the

image of the brand by which the new product is lunched if its from a reliable and famous brand

then people always tend to try out similarly few other factors which affects the success are

reliability , comparability , price , etc .

We tried to analyze what are such factors from our respondent. We had taken a sample size offifty(50) mostly inside KIIT campus hence most of them are fall in student category but there

are also many other respondent like faculty members , as the sample unit within are known

vicinity its falls in random convenient sampling.

In our analysis we tried to find the swot and pest for new product and there successes as

there always possibilities of many when a product id lunched .

As from above its clear our research work is based on questioner method so it is based on

primary data collection but to have better understanding of the subject and gain knowledge we

have done a literature review where we have gone through ten different articles n journals which

are mention in our report in concerned part.

Scope of this however remain to some limitations as this research work confined is confined to

the KIIT campus and mainly to the student community only hence the view expressed may not

be same and applicable to out world perfectly.

Methodology as its has been discussed above our work is confined to this campus so we

segregated the data into age group , income , occupation etc then we have analyzed our data with

the help of SPSS and we anaylsed through techniques like central tendency , correlation

,descriptive statistics, cross tab ect.

We have also taken concerned and related hypothesis which are proven either true or false

according to the result and out of our analysis .

From our concerned sample unit about 94% fall in the age group of 15 to 25 that indicates most

of our respondent are young.


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When it comes to annual income 88% fall in not applicable category still they have say when

there family buy any product.

94% of our respondent show their tendency to try out a new product also we found in our

research work 78 % of respondent know about a new product from advertisements and

promotions followed by friends and magazines.

Most of the respondent want their new product to be highly compatible whereas about 20% of

respondent are bothered about price and 34% of respondent think about durability as an

important factor.

So from above data we can conclude younger generation collect most of their information from

advertisement and promotion , hence any new product targeted to younger generation must be

good in communicating to the consumer for their grand success.

Also 98% of our respondent strongly feel advertisement for any product is necessary. Also our

research shows 67% of respondent from age group of 25 to 40 know about new products from

advertisements whereas only 37% from age group of 15 to 25. Hence that shows people in the

age group of 25 to 40 go through advertisement more.

14% of people buy a product when someone ask them to. 8% buy to gift and 42% for their

personal use.


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SUGGESTIONS

From our research we can suggest different points which will help the success of a new product:-

y Companies should be more concern with reliability and durability of new product rather

than depending on to just price of the product. As in our research we found that price is

important factor but is much more important.

y Brand image of companies should be good because it put positive impact in promotion of

the product and its success. It is essential for a company to create a good image.

y People get to know from advertisement in television. So it is suggested that a new

product should introduce by television.

Last point the companies can target the mass of age group in 15-25. Young people are moretentative toward new products


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LIMITATIONS

The research project made by us are from the data which we have collected from KIIT School Of

Management. We have not collected any data from outside the campus so the results or findingsare restricted to this campus only. Whatever the results or findings we got are of this college

only.

Other reasons of not collecting data from others is because of unavailability of funds.


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BIBLIOGRAPHY

y Michigan state university journal.( Controllable Factors of New Product Success: A

Cross-National Comparison by Roger J. Calantone, Jeffrey B. Schmidt,X. Michael Song .y Process, Management, Vol. 11 Iss: 1, pp.14 42(Determination of Critical Success

Factors for new product,by pollaphat nitithamyoung (School of the Built and NaturalEnvironment, Glasgow Caledonian University, Glasgow, UK).

y Research paper by Property Management, Vol. 29 Iss: 2, pp.195 212 written by sadi assaf.

y Book by Philip Kotler of marketing management.

Internet sites

1.www.emerald.com2.www.businessanalyst.com


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APPENDIX

Group 7 sec-c

NEW PRODUCT SUCCESS

1.QUESTIONNAIRE

(Tick the following options given below)

1. GENDER

A) Male B)Female

2. AGE

A) 15To 25

B) 25To 60

C) 40 To 60

D) 60 above

3. OCCUPATION

---------------------------------------------------

4. What is your annual income?

A) Below Rs 100000

B) Rs 100000 to 250000

C) 250000 to 500000

D) 500000 or more

E) Not applicable

5. How important are the following characteristic when purchasing a new product? ( Give tick the

following)

Extremely important Very important Important Not at all important

Quality

Price


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Usage

Brand

6. Do you feel to buy a new product?

A) Yes B) NO

7. How you discover about a new product in a market?

A) Advertising (TV, Newspaper )

B) Friends

C) Magazine

D) Billboard

E) Others _________________________ (please specify)

8. What is the one reason you purchase a new product in a new market?

A) Someone asks for it

B) Make a great gift

C) Saw it in store

D) Price

9. What do you want from new product?

A) Compatibility

B) Price

C) Durability

D) Others_______________________(please specify)

10.Do you think innovation is must for a new product?

A) Yes

B) No

C) Cant say

11.What is the most important factor for new product?

A) Price

B) Place

C) Promotion

D) People


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12.Do you think a good advertisement is necessary for success of a new product?

A) Yes B) No

13. Do you think after sale services is an important factor for success of a new product?

A) Yes B) No

14. Do you look for new products to buy whenever they are first launched in market?

A) Yes B) No

15. Do you think before buying a new product?

A) Yes B) no

2. KEY WORDS AND ITS MEANING

1)New product research- Successful new products are essential to a company's growthand survival. We believe "new products" to be one of the most important applications of

marketing research, but one of the most difficult to execute in practice. New products canbe concept-driven orproduct-driven. The implicit model that underlies the following

paragraphs is concept-driven (i.e., concept followed by product), but keep in mind thatwe can also start with a product and work "backward" to build a concept and positioning.

2)International marketing-refers to marketing carried out by companies overseas or

across national borderlines. This strategy uses an extension of the techniques used in thehome country of a firm.

[1]It refers to the firm-level marketing practices across the border

including market identification and targeting, entry mode selection, marketing mix, andstrategic decisions to compete in international markets According to the American

Marketing Association (AMA) "internationalmarketing is the multinational process ofplanning and executing the conception, pricing, promotion and distribution of ideas,

goods, and services to create exchanges that satisfy individual and organizationalobjectives." In contrast to the definition of marketing only the word multinational has

been added. In simple words international marketing is the application of marketingprinciples to across national boundaries. However, there is a crossover between what is

commonly expressed as international marketing and global marketing, which is a similarterm.

3)Ommited variable estimation- The parameter estimates based on an econometricequation are biased and can also be inconsistent when relevant regressors are omitted

from the equation or when included regressors are measured with error. This problemgets complicated when the `true' functional form of the equation is unknown. Here, we

demonstrate how auxiliary variables, called concomitants, can be used to removeomitted-variable and measurement-error biases from the coefficients of an equation with

the unknown `true' functional form. The method is specifically designed for panel data.


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Numerical algorithms for enacting this procedure are presented and an illustration isgiven using a practical example of forecasting small-area employment from nonlinear

autoregressive models.

4) Critical success factors-is the term for an element that is necessary for an

organization or project to achieve its mission. It is a critical factor or activity required forensuring the success of a company or an organization. The term was initially used in theworld of data analysis, and business analysis. For example, a CSF for a successful

Information Technology (IT) project is user involvement.[1]

"Critical success factors arethose few things that must go well to ensure success for a manager or an organization,

and, therefore, they represent those managerial or enterprise area, that must be givenspecial and continual attention to bring about high performance. CSFs include issues vital

to an organization's current operating activities and to its future success.

5)linear probability model-In statistics, a linear probability model is a special case of

a binomial regression model. Here the observed variable for each observation takes

values which are either 0 or 1. The probability of observing a 0 or 1 in any one case istreared as depending on one or more explanatory variables. For the "linear probability

model", this relationship is a particularly simple one, and allows the model to be fitted by

simple linear regression.

a research report on brm final

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