Executive Summary.....................................................................................................................................

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1 Idea generation:..................................................................................................................................1
2 Idea screening:....................................................................................................................................1
3 Concept Development and Testing......................................................................................................2
3.1 Concept Development:................................................................................................................2
3.2 Concept Testing:..........................................................................................................................2
4 Marketing strategy development........................................................................................................3
4.1 Situation Analysis.........................................................................................................................3
4.2 Market Segmentation..................................................................................................................3
4.2.1 Geographical Segmentation:................................................................................................3
4.2.2 Demographic Segmentation:...............................................................................................3
4.2.3 Psychographic Segmentation:..............................................................................................3
4.2.4 Behavioral Segmentation:....................................................................................................4
4.3 Target Market..............................................................................................................................4
4.4 Positioning...................................................................................................................................4
4.4.1 Choosing a differentiation & Positioning Strategy:..............................................................4
4.5 Marketing Mix:............................................................................................................................6
4.5.1 Product:...............................................................................................................................7
4.5.2 Price.....................................................................................................................................7
4.5.3 Place....................................................................................................................................7
4.5.4 Promotion:...........................................................................................................................8
4.6 Innovative marketing strategies..................................................................................................9
4.6.1 Promotional strategy:..........................................................................................................9
4.6.2 Branding strategy:................................................................................................................9
5 Business Analysis...............................................................................................................................10
5.1 Forecast Sales Value:.................................................................................................................11
6 Product development:.......................................................................................................................11
7 Test Marketing:..................................................................................................................................12
8 Commercialization:............................................................................................................................12

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Executive Summary

This term paper is based on the topic of new product development. According to this topic our
company name is “Midaz Innovative” Company and our product name is “Smart Pen”. While
assigning the market we have identified our various terms and weaknesses in the market and
against our major competitors. Our strengths will comprise of better quality exclusive Pen
(Smart).
Basically our financial objective is to reach breakeven point which is to increase sales & profits.
There are various issues that might influence the attainment of objectives which may include
recessions, unexpected entry of rivals, changing government regulations and so on.
Our marketing strategy will influence the 4P’s which are product, price, place and promotion.
We upon entering 1st into the Bangladesh market, if we successes then we promote all over the
world. We will be using both traditional& digital forms of promotion, for example newspaper,
television advertising, billboard, internet, social media, radio etc. Along with traditional
promotions, we are launching an Inter-College Academic Quiz competition where participants
will be awarded by discount on purchasing Smart pen and provided along with free t-shirt.
And our main target market is students, bankers, employee for data management department
& journalist who perform sensitive works in everyday.
Starting from the launch, all our activities will be done chronologically. During the 1 st 6 month
we are mainly focusing on promotion and positioning and from year 1 we will be focusing on
company goals and vision.

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1 Idea generation:
We are making a report on a new product that is Digital or smart pen for people to make
their easy life. This is specially designed for students, bankers, employees for data
management department, journalists or doing officially activities.
Smart pen have few features like as voice recording, check spelling, & scan the note when
people writes their documents.

Since most people have to write down various notes in their class, meeting, or to record
their fills, in this case smart pen can help them. Like as employee of data management, they
work to record importance data in their website or their particular file, if some word is
missing or wrong the smart pen will warning them to correct it. And when teacher discus
their topic in class students can record that topic through this smart pen which later can re-
listen at home. 0Thus, we have come up with this new concept to make their lives easier.

2 Idea screening:

Screening new product ideas in order to spot good ideas and drop poor ones as soon as
possible.
New product screening framework that asks three question.

The first question- Is it REAL? Yes this product has a real need. Through this product people
can make their documents correct as smart pen have dictionary features

The second question says- Can we win?

The answer is, Yes we can!
As there is no particular brand or product of smart pen in our country, we don’t have any
competition in the market so it’s a win-win situation.

The third question is - Is it worth doing?

As there is no competition in the market for our product, we will be able to gain profit
easily. It is affordable and beneficial for people. The price will start around 1000-1500 taka

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as the target will be student, banker, employee for data management department,
journalist. The company will also be able to break its break-even point soon.

Therefore we have all the positive results for the R-W-W (real, win, worth it) questions.

3 Concept Development and Testing

3.1 Concept Development:

The market's current pens are only focused on general purpose but smart pen have more
dynamic function which all classes people can use it and will prefer it. That’s why we, first
time in Bangladesh are introducing smart pen which are come with different colours, style,
fancy design and technologically advanced.

3.2 Concept Testing:

Concept testing calls for testing new-product concepts with groups of target consumers. The
concepts may be presented to consumers symbolically or physically.

Here we can ask these questions.

1. Do you understand the concept of a smart pen?

2. Do you believe the claims about the pen performance?

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3. What are the major benefits of the smart pen compared with a general pen?
4. What are its advantages compared with a normal pen?

5. What improvements in the smart pen would you suggest?

6. For what uses would you prefer a smart pen to a conventional pen?

7. What would be a reasonable price to charge for the pen?

8. Who would be involved in your decision to buy such a pen? Who would use it?

9. Would you buy such a pen (definitely, probably, probably not, definitely)

However, the answer to such question will help us to decide which concept has the
strongest appeal.

4 Marketing strategy development

4.1 Situation Analysis

People have always been discouraged to be on when they write their note on important meeting or
class.

When a data manage operator do a mistake to recode their file or accounts and that’s create
numerous problem. And this problem is happing day by day in our particular life.
In our education institution, when a teacher deliver a topic students sometime can’t give proper
attention to their lecture, if the student keep a smart pen she or he can re-listen that lecture at their
home, as the smart pen have voice recording system.

4.2 Market Segmentation

The company has segmented the total market based on these factors-
Geographical Segmentation
Demographical Segmentation
Psychological Segmentation
Behavioral Segmentation

4.2.1 Geographical Segmentation:

World region: 1st of all we introduce our product in Bangladesh, if would succeed then will
promote all over the world
City: Dhaka, Reason behind selecting only Dhaka is that most of people live here.

4.2.2 Demographic Segmentation:

Gender: Men, female,
Age: Between 15-45 years old.

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Occupation: job holders, Students, teachers, journalists etc.
Religion: Al classes.

4.2.3 Psychographic Segmentation:

We will consider total market for our product:
Middle Class: This class includes people with moderate kind of earnings. They can neither put free
hand category nor less buying category. This people usually consider the taste and affordability. So
our product will be affordable with benefits for them.

Upper middle Class: It includes people who want a stylish, quality product with safety and price
will be balanced according to their buying capacity.

Lower to uppers class: This people have medium capacity to buy this pen.
Upper to Uppers class: This people have strong capacity to buy this pen.

4.2.4 Behavioral Segmentation:

Consumer response is very important for a product. To ensure customer response we will segment
our market based on behavioral variables. In this segment we will focus on customer benefits & user
status.
User status: Those who are busy or need urgent take notes they can use this pen
Benefits: This pen gives most quality, service, speed etc

4.3 Target Market

As the product is new, so the price of our products will be close to high or medium. So, our product
will under consumption ability of lower, middle & upper class people in Dhaka. If we target other
cities then the cost of transportation & advertisement which will effects our product and as we are
entering the market 1st time with this product.

4.4 Positioning
The company must decide how it will create differentiate value for targeting segment and what
positions it wants to occupy in this segment. The place the products occupy in consumer minds
relative to competitive product is called product positioning.

Brand creates in people mind. Our product slogan is that’s “Be smart & save your time”

4.4.1 Choosing a differentiation & Positioning Strategy:

Now, we try to differentiate & positioning strategy. There are three steps for Choosing a
differentiation & Positioning Strategy.

1. Identifying a set of differentiating competitive advantages upon which to build a position.

2. Choosing the right competitive advantage

3. Selecting an overall positioning strategy.

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 1. Identifying a set of differentiating competitive advantages upon which to build a position:

a) Product differentiation: Our product performance, style, design will be better than other
competitors normal pen in the market.

b) Service differentiation: Our product gives speedy, convenient & it will be available for any time for
the customer.

c) People differentiation: We will behave well with our customer, employees & competitors.

d) Channel differentiation: Make our channels well, so that customer can get easily the service.

e) Image differentiation: We create an image for our product.

2. Choosing the right Competitive Advantages:

a) How many differences to promote: We don’t promote only one difference of our product. So
that, competitor don’t copy it from us easily. Our product is mainly pen but we design our product
exclusively for all classes people based on their preferences.

b) Which differences to promote: After that, we compare these with the seven criteria & get
positive result. The seven criteria are:

 Important
 Distinctive
 Superior
 Communicable
 Pre-emptive
 Affordable
 Profitable

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 3. Selecting an overall Positioning Strategy:

We make a matrix for selecting an overall positioning strategy:

PRICE

More Same Less

M/M M/S M/L

More

S/M S/S S/L

B Same
E

L/M L/S L/L

Less

As our product is new and we are now in the introduction period, so we select an overall positioning
strategy more for less. We give our customer more benefit at fewer prices so that people can buy it
easily.

4.5 Marketing Mix:

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 4.5.1 Product:
Product mission: Our mission is to make our life easier through our product. That’s why our tag line
is “Be smart through smart pen”.

Product objectives:

1. Provide quality products

2. Gaining customer delight
3. Achieve the highest market share in Bangladesh.

Product Goals:

 Building good customer relationship

 Satisfying the target market
 Achieving a high quality brand position
 Providing best quality service
 Finally we can say, if we achieve a position in our target market then we will try export to
other countries.

Product Characteristic:

 Rechargeable ( can use it up to 12 hours )

 Voice recording
 USB drive
 Dictionary ( mini)
 Scanner
 Smoothness
 Soft touch grip
 Replaceable Ink Tip
 Memory storage

4.5.2 Price

As marketer should consider carefully about the price so that all class people can buy it

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The price would be around 1000 taka to 1500 taka, its depend on product design since we are
designing 4 types of pen.

4.5.3 Place
Place refers to how it will make the offering available to target customers.

For our smart pen we have to choose various places as we are introducing new products to the
target market. In this case we can choose:

 Doorstep at college, school, university

 Most density cities
 Different stations such as bus station, railway station etc.

4.5.4 Promotion:

Email Marketing:

Email is one of the most consistently effective channels for acquiring new customer and while
channels like search can take a while to start generating organic traffic, email marketing can start
working right away. There’s no need to spend all the time to writing and sending emails. It can
easy  by setting up a collection of automated email campaigns that are designed to increase the
revenue.  There are many options available, such as:

Emailing new subscribers and offering them an incentive to shop.

Emailing new customers a post-sale email to up sell and delight.

Emailing visitors who abandoned their cart and reminding them to finish their purchase.

Affiliate Programs:

Affiliate marketing programs enable other people to promote the product for a commission. Affiliate
programs typically work by creating a custom URL for each person promoting the products.  They
can share this link on social media, in a blog post reviewing the product, or even in a YouTube
video where they’re showing it off.
Blog Posts:

Blogging is a great way to promote our product. With the right approach, blogging can be an
effective way to drive traffic and promote the lifestyle around our products. Use our own blog to
drive traffic and promote our products. When done effectively, blogging drives search engine traffic,
attracts customers, and captures the attention of the media and high-profile bloggers who could
write about us. Blogger outreach is a great way to build prestige around your product and get it in
front of interested shoppers.

Facebook and YouTube advertising:

Billions of people are on Facebook, and as an advertising platform, it offers very targeted options for
advertise a product. We can take our Facebook marketing a step further by adding a Facebook Shop
Section to our Facebook page. This option makes it easier for people who discover our products on

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Facebook to buy them. We’ll be able to create our own Shop Section on our Facebook page where
fans can learn about our products, look at pictures, and click the buy button to make a purchase.

YouTube  has become one of the world’s largest search engines for finding fresh content. What’s
more, YouTube videos can also rank in traditional search engines like Google. This presents a huge
traffic opportunity. we can still promote your products with interesting or helpful videos. Many
people may already be looking for our products or brand on YouTube. By creating a branded
channel, with our own videos, we can control the narrative.

Television advertisement:

Television commercials are seen and heard by anyone tuned into the television channel at the time
of airing. We are selecting four most admired and mostly viewed television channels which are NTV,
Channel I, ETV and ATN Bangla. We will present 20 sec advertisement in all the four channels, 4
times a day, 12 days per month. Through which are covering large number of our target market.

Billboard Advertising:

The name billboard is derived from the term "billing board," and is a large outdoor advertising space
designed to capture the attention of motorists and pedestrians. Advertising on billboards, bus stops,
taxis and train stations is well within the budget of most small businesses and can be highly effective.
Typically placed around high traffic areas (both automotive and foot traffic), billboards are meant to
be simple, striking, and creative. Billboards are dominating advertising medium that cannot be
turned off, ignored or thrown away and remains the true form of advertising. For this reason we are
promoting our product through the billboard. We will put our billboards in high traffic areas like
Gulshan-1 circle, Mougbazar signal, Motijheel circle, Farmgate over bridge, Mirpur-10 circle,
Dhanmondi etc. There are regular billboards and there are 3D billboards that really go above and
beyond to attract the attention of the viewer. We will also use 3D billboard.

Mall Advertising:

Today's malls are busy and upscale advertising environments full of excellent opportunities to make
contact with our target audience. Mall advertising can put our message in front of people from all
walks of life as they head to these popular retail destinations for shopping and entertainment. We
are targeting the most popular shopping malls for our promotion. For our promotion we are
selecting Bashundhara City shopping mall at Panthopath, Rapa Plaza at Dhanmondi, Mascot Plaza at
Uttara and Baily Star at Baily road. From Bashundhara City mall we can cover the panthapoth,
Kawranbazar and green-road area, from the Rapa plaza we are covering Dhanmondi,
Mohammodpur Shahabag etc, from the Mascot plaza we are covering Uttara, Baridhara residential
area and from the Baily Star we are covering Baily road, Shanti nagor, Kakrail etc.

4.6 Innovative marketing strategies

4.6.1 Promotional strategy:

For Promotional Strategy we will set up a website which offers advantage better than web. By using
our website, Customer can interact with site, provide their feedback and write blog about their
experience. We can use this site to offer wealth of information about benefits content of our
products.

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 4.6.2 Branding strategy:

Branding strategy is the sum total of all the steps taken to add value of brand. As brands the major
and most powerful assets of a company, we need to develop and manage our branding strategy in a
more effective and chronological manner.

The main purpose of branding are-

1. Identification

2. Differentiation from other product.

4.6.2.1 Identification:

A brand is identified through the name of camera, audio recorder, and a built-in computer that
enables users to record, save, and upload data, Bluetooth, powerful processing capabilities, and
substantial built-in storage, sensor and combination of smart pen. We give our Brand of smart pen
“The smart pen provides both audio and visual feedback”.

The smart pen integrates several components and technologies. It also uses firmware and
application software to support the interaction of all of its components and to enable built-in
handwriting recognition, and applications such as Paper Replay, among many others. Being one of
the latest and useful gadgets on the market, this practical tool’s only purpose is to make our life
easier. It is small and compact, it is helpful in more than one way and it can be used by just about
anyone.

4.6.2.2 Differentiation from other product:

In our country there is no particular smart pen or digital pen for people. The Smart Pen is able to
write, to record, to replay audio files and also to transmit information to other devices. The smart
pen has an OLED screen, microphone, and speaker on the pen so the top section of the pen is
marginally thicker. This models capture audio directly onto the pen whereas the live scribe 3 models
require the use of a companion device (Smartphone or tablet). Technology used to transfer notes
from smart pen. Using the Live scribe, we were able to write repetitive data such as long shipping
numbers, sender and receiver information, purchase-order data and job numbers once on a form,
and then automatically transfer that data to a PC with little or no errors. This types of facilities are
differentiate from other product.

5 Business Analysis
A new product idea that survives the screening stage of new product development (NPD)
requires a more sophisticated and detailed business analysis. A business analysis will help us
to determine the costs involved in our proposed NPD, and forecast the profits you may
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make from the product in future financial years.

Business analysis carrying out following:

 Help us to estimate sale: Our target to sale 1000 pen for 1st 6 month
 To estimate minimum & maximum sale: Minimum-200 & maximum 1000
 To estimate the expected costs & profit: Per pen cost would be around 800 taka but
we will sell our product at 1000 (per)
 To estimate price: As we are new that’s why we have to set lower price as much as
possible.

5.1 Forecast Sales Value:

6 Product development:

Developing the product concept into a physical product in order to enhance that the
product idea can be turned into a workable market offering.

At this stage, it show whether the product idea of the smart pen can be turned into a
workable product.

So, our product development department will develop and test one or more physical
versions of the concept of smart pen.

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For the test we will need our employees to use sample of our product. So, they can use the
smart pen and give their reviews of smart pen. They judge the smart pen on it’s advantages,
disadvantages, trueness of the product offerings and satisfactory ability. And most
importantly where the product needs to improve. So for, developing a successful test it can
take days, weeks or more time depending on the product and its test methods.

If they found any necessity of improvement, then we need to modify our product features
according to the test of our customers. Then we need to test again to confirm the new
develop product is actually improved. After confirmation of improvement, then we can go
for the test marketing.

7 Test Marketing:
As we are introducing including new features smart pen in the market. So before
introducing our product we have to test the current market to know whether our product
provides best quality services with efficiently and effectively.

For this we will choose standard test marketing:

Using standard test markets, actually company finds a small number of representative test
cities, conducts a full marketing campaign in these cities.
For now we will select a small area or cities where have all classes people like as students,
bankers, journalist etc. And we will provide a few samples to our target market. If the target
market satisfied to use our product then we promote the product all over the country. If
they are not satisfied to our product then we have to do survey to see where the particular
problem. After that we again develop our product for modification.

8 Commercialization:
Commercialization the process of launching a new product; it may involve heavy promotion
and filling the distribution networks with the product.

We have to follow three steps that must be implemented during the commercialization of
our product smart pen.

 The timing of the launch should coincide with a good economic situation to
maximize sales. So we should think the introducing time would be the begging time or
end of the year. Since our product is new, so should take ending time for the year. In
this time people get more vacation & they travel around the whole world.
 We must decide which location’s to launch, depending on target markets,
capabilities, and marketing strategy. Where do we first introduce our product? In this
case we have to decide most important city around our country. As we choose ending

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 period of the yaer. during this time people have more money for their consumption &
they usually go for shopping various place like as Jamuna Future park, Bashundhara
city shopping mall etc.

 By targeting the primary consumer group (which includes innovators, early adopters,
and opinion leaders), we can ensure adoption by other buyers in the market place
during the product growth period.
Commercialization of Smart Pen:

The process of introducing our smart pen into the market. At last our smart pen is ready to
go. It has survived the development process and it is now on the way to commercial success.
In this process we will introduce our smart pen or production method of our smart pen into
the market. In this stage, the product is launched, advertisements and promotional activity
begins and increases heavily, and the distribution pipeline is filled with the product. The
actual launch of our smart pen is the final stage of new product development, and the one
where the most money will have to be spent for advertising, sales promotion, and other
marketing efforts.

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