new product development plan : organic laundry detergent · new product development plan : organic...
TRANSCRIPT
New product development Plan :
Organic Laundry Detergent
A Digital Space Demonstrative Report: New product development
Table of Contents
The purpose of this presentation,
is to serve as an example to
potential clients of development
action plan for a new product
development Plano.
This Presentation is about
Organic Laundry Detergent.
Business Evaluation:
● Product
● Staffing/ Management
● Marketing/ Sales
● Channels of Distribution
● Manufacturing/Operations
● Finance
● Competitive Analysis
● Marketing Intelligence
● Legal/ Customs
● Culture
Purpose
Product: Organic Laundry Detergent
● Detergent will come in both
powder and liquid forms
● Will be sourced from
completely organic materials
● “Clean” brand series of
organic detergent products
● Focus group to determine
the best Russian names for
product variants
Staffing and Management
● Hope to set up shop in low cost,
central city such as Nizhny
Novgorod or Voronezh
● Recruit locals looking for good pay
and steady work in the area
● Use Russian JV partner to organize
plant management
● Retain outside Western CPG
experts to help with strategic
management
Marketing and Sales
● Build marketing and sales team (Partnership with United Trading System)
● Intelligent lead generation
● Optimized sales-coverage model
● Digital buying/fulfillment
Channels of Distribution
1. Direct Channel ( Online )
PRODUCER -> RETAILER -> CONSUMERS
Self Service sales and distribution system
1. Distributor channel (UTS)
PRODUCER -> DISTRIBUTOR -> RETAILER -> CONSUMER
Manufacturing and Operations
- Manufacture in Russia
- Use high quality blender process and organic/safe ingredients
- Carefully plan alliance to combine our management with their employees
- Consider contracts, manuals, and training in the plant to ensure clear
communication and high standards of production.
Finance
● A joint venture between US and Russian CPG
firms ideal
● 30M USD total needed, 15.3M commitment
from Russian partner (51% of total) and the
remainder from US (49% total)
● US CPG partner provides 80% of US-owned
portion’s funding (39.2% of total)
● Remainder (9.8% of total) comes from bank
debt and partner equity contributions, paid debt
becomes equity stake
● Funds to secure plant, hire/train labor,
distribution setup, advertising campaign
Proforma
Comparable CPG
Firms
Net Income/Revenue
15.08% 16.44% 13.72%
Average Profit
Margin: 15.08%
Loan of 2.2M at 8% interest
for 30 Years requires
~193K in Annual Payments
At 40M in Annual Revenue, Net Income Distributions at a
Profit Margin of 15.08% looks like:
6.032M in Profit
9.8% (591K) distributed to Bank Debt and Our Team
Bank receives 193K per Year
Our Team receives 398K per Year
At 100M in Annual Revenue, our team receives 1.30M per
Year
All stemming from an Initial Equity
Investment of 750K
Competitive Analysis
● Around half of all consumer goods
sold in Russia are local brands
● Procter & Gamble and Henkel
have the biggest market share
● Nefis Cosmetics is the largest
Russian brand
● Information scarce, but seems that
there are few to no organic
laundry detergent producers in
marketplace
Marketing Intelligence – Market Analysis
●Strategy
- Online-Retail, Large Sized marts and Local Distributors.
●Market Share
- 10% of $26B
●Market Size
- Powder detergents, accounting for 41% of the total
market.
- Liquid Detergents accounting for 59% of the total
market.
Marketing Intelligence – Customer Research
●Customer Feedback
- Get Customer Review and Feedback from Ulmart.ru, Ozon.ru,
and KupiVIP.
- Send Survey to Customers.
●Market Segmentation
- Target Customers – Young families with children and One-
person
households living in major cities.
●Customer Preferences
- Strong Clean Power, Environment Friendly,
and Less Water Usage
Marketing Intelligence – Competitor Intelligence
●Technology Trends
– More people want detergents made from organic ingredients, and
competitors have not yet released products for organic detergents
in Russia.
●Manufacturing
– Product manufacturing is an efficient way to manufacture in Russia.
●Pricing
– In order to compete with the leading companies in the market using
the brand power to peel off, we want to sell laundry
detergent with cleaning power, environmental friendly
at a higher price than normal brands.
Marketing Intelligence – Product Intelligence
● Key Product Concerns
1)Russia Payment System
– No Universal system and most of product purchased in
cash deal.
2) Weak Product Brand Power
3) No brand in Powder Detergent
● Brand Loyalty – Free trial Promotion
● Brand Awareness – Direct and Online Advertising.
Legal/Customs/Barriers
The Parliament: State Duma (lower house) , Council of the Federation (upper house)
Council of the Federation - customs
the Russian state consumer protection agency, Rospotrebnadzor including U.S.-based
Colgate-Palmolive, Procter & Gamble, and Clorox, and Germany's Werner & Mertz and Henkel
-- revealed high levels of toxic ingredients”
“dangerous, foreign product” label
Cultural and Social
- 2015 Russia banned western detergent companies that used harmful
chemicals.
- The Russian people were left with few high quality alternatives
- Our organic product exceeds Russian government standards, is 51% owned
by a Russian company, and fills a hole in the market by being the only
organic product available.