Launching a new product

2015

Name - ..

LAUNCHING A NEW
PRODUCT

Launching a new product

Table of Contents
Profile of the company.....................................................................2
Introduction to the launching brand................................................3
SWOT Analysis...............................................................................5
Marketing Information System........................................................6
Buying decision making process.....................................................8
Market Segmentation.......................................................................9
Branding........................................................................................10
Product and Market Analysis.........................................................12
Pricing Strategy..............................................................................13
Distribution Strategy......................................................................14
Promotion strategy.........................................................................15
Conclusion.....................................................................................16
Recommendations..........................................................................16

Launching a new product

Profile of the company

P.G. Martin (Sri Lanka)
P.G. MARTIN welcomes you to our web page with a resume of our
activities since incorporation of the company in 1948. Our leather
goods are designed and manufactured by highly experienced
craftsmen committed towards finished products of superlative quality
Our comprehensive range of products include, inter-alia, Travel Bags,
Back Packs, Portfolios, Attach Cases, Personal Leather goods,
Corporate Gifts, Menu Covers, Bill folders...etc. The confidence
reposed in our numerous corporate customers devolves on the
excellence and reliability of our finished leather products.

Vision
OUR VISON IS TO BE THE LEADER OF BEST QUALITY
AND COMFORTABLE SUITCASES PROVIDER IN THE MARKET

Mission
To make the recognition of our country and company in the
global market through our innovative and unique product,
offered by us in economical price considering the health and
purchasing power of the consumers

Launching a new product

Introduction to the launching brand

P.G. Martin wants to launch a suitcase with a new and ultra modern Masterpiecenology
called Blue ray Masterpiecenology. This Masterpiecenology is until now installed in the
motor vehicles and other tangible fixed assets used by the companies. For the first time
this Masterpiecenology is used in the luggage suitcases. Beside the cost of that suitcase, if
that Masterpiecenology is incorporated these types of suitcases, it will reduce the chance
of theft.
Blue ray Masterpiecenology is basically a chip of Blue ray costing Rs. 50,000. This chip
is inserted into suitcase and that suitcase is scanned through the satellite network all
around the world. The chance of theft is reduced when this type of Masterpiecenology is
inserted into the suitcases. These types of suitcases are purchased by those people who
are traveled abroad many times in a year. The name of this suitcase is P.G.
MASTERPIECE. The features of this suitcase are given below:

Good Quality Leather

Blue Ray Masterpiecenology

Durable

Sensor and Scanning

Good quality

Attractive designs and colours

Comfort

You can purchase only one or a

set (3 suitcases).
Hand carry facility

Basically, this suitcase is very expensive to produce, so no other company can produce
this suitcase solely. So P.G Martin signed a patent to produce these types of suitcases. P.G
Martin will invest in the blue ray chip Masterpiecenology and will manufacture this bag
in Sri Lanka and insert the chip in it. Moreover this chip is inserted in the suitcase that
cannot be detachable but it is conveniently and easily scanned.

Products

Launching a new product

P.G Martin manufactures the following products:

Suitcases (All sizes)

Hand carries (All Sizes)

Hand bags

School bags

Luggage carriers

Wallets

Sleeping tents

SWOT Analysis

Launching a new product

Strengths:
The main strengths of that suitcase are given below:

Lighter wait.
Brighter look.
Easy identification all around the world.
Made of colored molded rigid leather.
Available in various types and sizes and in different textures.
Water proof.

Weaknesses:
The main weaknesses of that suitcase are given below:

Price of that suitcase is very high.

An ordinary passenger cannot afford it.
Unauthorized access
Sniffing
Gaining access to data on a cell phone.

Opportunities:
The main opportunities in that suitcase are given below:

The Price should be decrease in order to deal the issue of affordability.

The Masterpiecenology should be incorporated in the hand bags and valets.
It can be manufactured according to the given specification by other companies in
Sri Lanka for promotion.
There can be opportunity if it the blue ray chip is manufactured by the company
or in Sri Lanka to reduce the cost of import.

Threats:
The main threats in that suitcase are given below:

Threat of copying the Masterpiecenology.

Threat of low cost.
Threat of new entrants in the market.
Threat of environmental factors
Threat of low demand due to economic instability.

Marketing Information System

Launching a new product

The marketing information about the suitcase is collected through the following three
sources:

Internal records:

When P.G Martin is manufacturing the suitcase the company maintain an internal record
for manufacturing, pricing, positioning, and promotion of that suitcase. However, this
information often remains under-utilized because it is based upon the theoretical
assumptions and these assumptions are rarely cope with the practical scenario, either in
the form of an individual entrepreneur or in the functional departments of larger
businesses.
The internal record data includes financial, production, labor, marketing, capital and
logistical data. The main issue is the holding of data, so that this information is not leaked
to the peoples outside the organization. The internal records P.G Martin include the sales
and raw material invoices along with few internal records that can be used by marketing
managers.

Marketing Intelligence:

A marketing intelligence system is a set of procedures and data sources used by

marketing managers to sift information from the environment that they can use in their
decision making. P.G Martin Company set different types of procedures and sources from
where they get the data about their competitors.
Like every company P.G Martin company also maintain the system for collecting the
information about the competitors and their environment. This system is working
continuously and helps the company to add the new features in the current products. The
P.G Martin Masterpiece suitcase is a living example of the efficient working of the
marketing intelligence system.
Basically this type of system is used by the senior management of the company or the
owners of P.G Martin Company to study the current market trends. The working of that
system includes the study of newspapers, trade magazines, business journals and reports,
6

Launching a new product

economic forecasts and other media. Therefore it is shown that this system is working on
the secondary data. This data can also be gathered from producers, suppliers and
customers, as well as to competitors.

Marketing Research:

For the making of P.G Martin suitcase the marketing department of P.G MARTIN
Company conducted a marketing research in which they are perform different activities
that are given below:
Making a questioner about the demanding features of suitcase.
Filling the above questioner from tourists, travelers, people belong to elite class, and
other social classes {up to some extent}.
Put the data into research software along with secondary data and conclude the
attributes or features that P.G MARTIN Company provides or offered in the P.G
MARTIN Masterpiece.
The final decision is to make the P.G MARTIN Masterpiece suitcase on the basis of
the information gathered.

Buying decision making process

7

Launching a new product

In order to sale the P.G MARTIN

Masterpiece suitcase, the management of P.G

MARTIN Company argued that there are two different types of buying behavior shown
the consumers that are given below:

High involvement purchasers:

These are the individual consumers that purchase that suitcase. They might be purchase a
single bag or a set according to their needs. The individual customers are the main
customers of buying the suitcase. As you know the cost of this suitcase is very high so
that it is affordable to the high elite class people. These customers of this bag includes the
people belong to elite class, travelers, and foreigners etc. the company also target the
people of other social classes by reducing the cost in the near future.

Low involvement purchasers:

These are the business customers. As we explained earlier that P.G MARTIN
Masterpiece suitcase is a newly launched product of P.G MARTIN Company. So the
company did not want to share this Masterpiecenology to the other businesses at this
time. This type of purchases is very low. Moreover there might be an opportunity that P.G
MARTIN

Company will share that Masterpiecenology with the other Sri Lankan

companies.

Complex Buying Behavior

In the case of P.G MARTIN

Masterpiece suitcase, the buying behavior of the

consumers is Complex buying behavior. It occurs when the consumer is highly involved
with the purchase and when there are significant differences between brands. This
behavior is also applicable on the purchasing of P.G MARTIN Masterpiece suitcase.

Launching a new product

This buying behavior is complex because the risk is high (significant financial
commitment), and there is a large differences among brands or products thats why the
consumer purchase these types of suitcases rarely.

Market Segmentation
Market segmentation is the process of dividing markets comprising the heterogeneous
needs of many consumers into smaller parts or segments comprising the homogeneous
needs of smaller groups of consumers. There are four basis upon which the marketing
department of P.G MARTIN Company creates segments that are given below:

Geographic Segmentation

Demographic Segmentation

Psychographic Segmentation

Behavioral Segmentation

The P.G MARTIN Masterpiece suitcase serves approximately all the segments of the
markets. The detail of the serving each segment is given below:

Geographic Segmentation

The geographic segmentation represents the market divided by location. The P.G
MARTIN Masterpiece suitcase is very costly and the company firstly targets the people
belonging to elite class. The concentration of these people is living in the big cities like
Islamabad, Lahore, and Karachi etc. Moreover all the persons which afford that type of
luxurious suitcase also residing in these cities. So the people in these areas share some
similar needs and wants and these needs and wants are different from the people who are
living in the small cities of the country.

Demographic Segmentation

Launching a new product

In the demographic segmentation, the population is divided into age, gender, income, and
family lifecycle amongst other variables. For the suitcase industry this segmentation does
not exists.

Psychographic Segmentation

In Psychographic segmentation, the market can be broken down according to lifestyle,

social class, and personality characteristics. This segment holds strongly in the sales of
P.G MARTIN Masterpiece suitcase because the persons who have a modern lifestyle,
belongs to elite class afford these types of luxurious suitcases.

Behavioral Segmentation

In Behavioral segmentation, the market is broken down according to the benefits, usage,
and on occasion that a consumer seeks from purchasing a product. The P.G MARTIN
Masterpiece suitcase is bought by the people occasionally because it gives them benefits.
Competitors:
P.G MARTIN Company used this technology first time. But the other companies like
Nike, Addidas, etc may also launch this type of suitcases in order to compete it.

Branding
The features of P.G MARTIN Masterpiece (which is also a brand name) suitcases are
given below:

Good Quality Leather

10

Durable

Launching a new product

Good quality

Comfort

Hand carry facility

Blue Ray Masterpiecenology

Sensor and Scanning

Attractive designs and colours

You can purchase only one or a

set (3 suitcases).

Lighter wait.

Brighter look.

Easy identification all around the

world.

Made of colored molded rigid

leather.

Available in various types and

sizes and in different textures.

Water proof.

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Launching of a new product

In near future, P.G MARTIN Company will also launch this Masterpiecenology in the
hand bags for females and valets.
The Product Life Cycle (PLC) is based upon the life cycle of the product. It has four
different stages which are given below:

Introduction

Growth

Maturity

Decline

P.G MARTIN Masterpiece suitcases are in the introductory phase of the Product life
cycle because the other phases depend upon the buying behavior and feedback of the
consumer.

Product and Market Analysis

The marketing department of P.G MARTIN Company conducts a product and Market
Analysis before launching the P.G MARTIN

Masterpiece suitcases. This analysis

includes the following fundamental requirements:

First of all the market department of P.G MARTIN Company Analyze the critical
success factors in order to ensure that they are ready to compete and the suitcase
they produce is of good quality and gain the good market share.

Second step in that analysis is the Customer identification and profiling. In this
step the marketing department of P.G MARTIN Company finds the place where it
launches its product in order to get maximum profitability. This can be done by
forecasting the sales.

Launching of a new product

Third

step

is

the

evaluation

of

Masterpiecenology,

sales,

existing

products/services, distribution, product development and other trends affecting the

market of the P.G MARTIN Masterpiece suitcases in future.

Fourth step is the identification of partners/distributors or other facilitators to

assist the progress of the company. A company ca not sell their products solely. It
needs a partner or distributor for sale. So P.G MARTIN Company practiced the
same thing.

At the end P.G MARTIN Company identifies its competitors, and done the
continuous research on the new product development or to make its market
expand.

Pricing Strategy
It is the strategy of establish a high price for a new product. A skimming strategy is
adopted by the P.G MARTIN Company because they launch a new kind of suitcases that
contains the new technology and the demand of those suitcases is uncertain. The
company wanted to take the maximum price from the targeted customers. In near future
if the P.G MARTIN Company faces the competition, then it made the new and similar
products but the market for this product is expected to mature very slowly.

The P.G MARTIN Company holding the monopoly in Sri Lanka because there is
no competitor that made this type of suitcase.

As the price of P.G MARTIN Companys product is very high, so that the elite
class is the main target of their suitcases. This high price strategy (Price skimming
strategy) will support the indented positioning.

If the P.G MARTIN Company started to produce the tracker chips itself, then the
cost and ultimately the price of the P.G MARTIN Masterpiece suitcase will
change.

As the raw material for P.G MARTIN Masterpiece suitcase is very costly, so the
price of that suitcase is strongly related to the cost of production.

Launching of a new product

Distribution Strategy

The company has various outlets or franchises through the country in which these
suitcases are available. As P.G MARTIN Masterpiece suitcases are very costly
so the company sells it on their authorized outlets and franchises.

The P.G MARTIN Company, when selecting the dealer for the franchise, firstly
they conducted a detailed interview supporting with references. If the interview
successful and the references are valid then the persons as a dealer.

The key terms of contract with the dealers and the channel members are given
below:
Work with loyalty
Provide the better services to the customers and handle the Customers
Complaints
Maintaining the work environment

Special Transport vehicles are used to deliver the suitcases to the authorize dealers
and franchises.

Our authorize dealers are located in the following cities

Colombo
Galle
Hambantota
Hikkaduwa
Nuwara Eliya
And launching soon in other cities

P.G MARTIN Company is responsible for the loss or damage for during transit

Launching of a new product

Promotion strategy

The tools used for promoting the P.G MARTIN Masterpiece suitcase are

Advertisement on newspapers and bills broad

Direct marketing
Broachers
TV and Internet

Our targeting consumers are elite class but the P.G MARTIN Company planning
to launch for other social classes by reducing cost.

The upcoming models of P.G MARTIN s suitcases are

P.G MARTIN ultra Masterpiece-I

P.G MARTIN ultra Masterpiece-II

The advertisement of these suitcases is broadcasting on Television Channels.

This will enhances the promotion of the

Launching of a new product

Conclusion
In Sri Lanka, P.G.Martin is introducing a very latest and advance Technology first time.
Having a pricing strategy in our mind initially we are charging high prices from our
targeted customers who are willing to pay us.
But in future to increase the market share and our number of buyers, we will adopt a new
pricing strategy to sell our products and we also bring new innovations in a existing
Technology and we will open our outlets in other major cities.

Recommendations
Being a Head of P.G MARTIN Company, we have following suggestions:
1. We launch and promote the product through campaigns, advertisements and
documentaries.
2. We will sell our product not only in the new markets but also in existing markets.
3. We should give the awareness to both targeted and potential customers.
4. We should reduce the cost, in this way we can reduce the prices.
5. We should capture not only Sri Lankai market but also to the foreign markets.
6. Through having the knowledge of strategies adopted by our competitors.
7. Right marketing for the right segmentation.
8. Taking the complains and suggestions of our customers through calls and internet.
9. Giving the extra benefits to our customers.

Launching of a new product

10. We will give the assistant in case of any failure in the working of machinery