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An Assignment On Marketing Of A New

Product Development

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C ourse: Principles Of Marketing

(IB-205) International Business (5th Batch)

University of Dhaka Prepared By : GROUP NAME : VISION QUEST

CAPTAIN : Mahboob Elahi Noor (13)

GROUP MEMEBERS :

Name Roll No.Mahfuza Chowdhury 01Mahboob Elahi Noor 13

Shamona Rattila 24 Fariza Binte Mahbub

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Nizamuddin Alamgir

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Shaika Sharmin 53

Afsana Arifin Monia

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Supervised By :

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Mansura Akter

Lecturer (Dept. Of International Business)

University Of Dhaka

Table of Contents

Tiltles Page No

1) Executive Summary 4

2) Current Marketing Situation 5-6

3) Threats and Opportunities 6-9

4) Objectives and issues 9-13

5) Marketing Strategy 13-19

6) Action Programs 19-21

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7) Budgets and Controls 21-23

8) References 24

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Executive Summary on Apogee

Apogee is a shoe which is completely made from old, unused soccer balls. After using a soccer ball for quite sometimes it becomes unworthy to use. So people throw out the old soccer ball to buy a new one. But what they don’t realize is how harmful this plastic material can be for our environment. To remove this problem and also to make brand new merchandise we are going to produce trendy shoes from these unused soccer balls. These shoes can be worn by the people of all ages. These are also going to be stylish so fashion concerned people can feel attractive in them.

Next comes the huge issue of environment safety. There are many products in the market which are very useful but there deathly for our environment. But this shoe is completely made from recycling old soccer balls. So it does no harm to our environment. In fact it works to protect the environment.

The third issue is price. People want to wear new and fashionable shoes. But most of them can’t afford such expensive products. As apogee is made from old soccer balls it is really cheap to produce. So we can offer people new and trendy shoes at a minimum price.

Reviewing all the features of apogee we can assertively say that this product is going to be popular, environment friendly and last but not the least inexpensive.

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Current marketing situation

We are planning to produce shoes from recycled soccer balls. In the current market people of all classes need shoes. They want more trendy & sturdier  shoes. Furthermore people are now more conscious about the environment they live in. So we choose this idea of making shoes from recycled soccer balls keeping in mind the environment as well as the customers both at international and domestic level. Our customers:  In today's modern world there is a craze about sports, particularly about football.Soccer mania is here and everyone seems to be riding high on the popularity wave. Everyone watches football now a days, so what if they could use a product that not only served their purpose but also indicate their love for the game and that’s how we came up with the idea of making shoes from recycled soccer balls. Football is popular around the globe , specially in Europe and south america. As we are planning for a global launch of our product we will concentrate particularly on these region. The youths of Bangladesh are quite interested about sports and of course football, so we are developing our product keeping in mind their taste and preferences. We are hoping we can go global with our product after we are successful in making it a success in our domestic market.Market segmentation: We are planning to divide our market on the differences of our customers trend,style and fashion. We will develop these shoes for both boys and girls. For Boys and girls who are aged from 10 to 15, we will asses their current demand for new shoes and also we will customize them according to their needs. We will use the same strategy for customers aged 16 and above. Thinking internationally, we may think about the international preferences of our global customers. We will also give our customers the alternative to customize their product according to their need and taste. Size of the market: There are millions of teenagers roaming around the streets of Bangladesh looking for the ultimate sport shoe that will serve their purpose. But at the same time they don’t have the budget to satisfy their need as high quality shoes costs a lot. Our goal is to target this market and supply them with one of the best if not the best shoes that will be in style as well as give them the extra performance boost they need to take their game to the next level. We need to comprehend the

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size of our target market and need to capitalize by providing the best answer to their problems where others will fail.  Current market competitors:  currently adidas and nike are dominating the sports accessories business by providing state of the art merchandises specially sports shoes. But what we want to do is we want to create an positive image of our product by creating the ultimate soccer shoes that is available and most importantly affordable for the customers. Furthermore we are using recycling material to make this product that will also create a positive image. As they say “ first impression is the last impression” and that’s exactly what we are planning to do. We wan to make a global impact.

OpportunityWe cannot sustain our consumerist lifestyle without getting inundated by garbage and exhausting the earth’s resources. Solid waste disposal experts engage in an uphill struggle to contain this virtual avalanche of garbage we produce every day. It is apparent that digging a hole, a landfill, is clearly not the answer. Sooner or later, the waste becomes uncontainable and will spill into our farming areas, forests, and water sources. Here we have shown some opportunities of producing shoes from recycling football soccer-

Good raw material:

As football is an international game and it is produced for international purpose, we are getting almost best quality of product. If we recycle the soccer and if we produce shoes from this waste material, ultimately we are getting good quality material for producing shoes.

Less expensive:

Many of we have the tendency to buy pure leather shoes. Sometimes we desire to buy but we step back when there is a question of money. If we use the useless soccer we will be able to reduce the cost of soccer and so ultimately we will reduce the purchasing price also.

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Save animals life:

As we are using football soccer as our raw material which people consider as wastage, we are helping our environment to keep sound. When we are using animal leather, animal lives are in danger. So if we use the soccer we will be able to protect the life and it will be environment friendly.

Proper utilization of resources:

We are using the proper use of resources which is also good for environment.

Environment friendly:

Football is made with plastic, synthetic paper, leather and rubber. We know plastic, synthetic paper, plastic are discomposed material. When we get the utility, we throughout the ball in the dustbin that may causes problem to the environment. It may stick in the drain and can create problem in drainage system. So if we use the ball in producing shoes it will be a good idea to keep our environment safe and sound.

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Threats:

All it takes is for the public to question the harmlessness of a waste associated with the material for recycling and the public authorities may be willing to make sweeping changes in the organization of the collection and processing of the relevant materials and wastes, with the consequent degradation of the modes of procurement and access to the recycler's scrap resources. If the recycler cannot act effectively and preventively to reduce the risks associated with such wastes, this will increase his external economic contestability. There are some threats of recycling-

Shape of materials:

It is easier to cut a portion of leather or plastic from a large smooth piece of leather. But here we are using wastage of football soccer as our raw material, so there we may face a problem.

Scarcity of resources and market growth of business:

As we are only using football soccer we have to ensure that we are going enough material or not. We may face scarcity of resources. We have to depend for the football user. If we fail to serve the customer and if we fail to serve the customer ultimately we will fail to hold our position. It will send us to dog position.

More expensive:

When we are thinking for a new product we need human resource, machine and technological experience. Then human resource needs training which requires a huge amount of money. That may seem costly.

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Child labor:

Pakistan is the largest manufacturer of footballs on the planet. About 80% of association footballs are made in Pakistan. 75% of these (60% of all world production) are made in the city of Sialkot. Child labor was commonly used in the production of the balls before the 21st century. Not only Pakistan but also Bangladesh is using child labor which is strictly prohibited. The problem was largely due to highly skilled but uneducated class of labor force who would prefer to have their children learn the craft as opposed to going to school.

If fails:

Last of all if this business fail to fix itself in a satisfactory position , investor may face a huge loss which may affect the economy also.

Objectives and Issues of APOGEE:

Marketing plans are written documents that help us

communicate our marketing efforts for the following year. One of the

most important parts of the marketing plan is the objectives and issues

section, which helps internal employees or external stakeholders

understand the marketing goals.

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1. To save our Environment

Our main objective is to save our environment through recycling.

We will prepare shoes by recycling footballs.

The environment is something we are very familiar with. It's

everything that makes up our surroundings and affects our ability to live

on the earth—the air we breathe, the water that covers most of the

earth's surface, the plants and animals around us, and much more.

In recent years, scientists have been carefully examining the ways that

people affect the environment. They have found that we are causing air

pollution, deforestation, acid rain, and other problems that are dangerous

both to the earth and to ourselves. With the help of recycling we can

protect our environment to some extent. 

Recycling  is a process using materials (waste) into new products to

prevent waste of potentially useful materials, reduce the consumption of

fresh raw materials, reduce energy usage, reduce air pollution (from

incineration) and water pollution (from land filling) by reducing the need

for "conventional" waste disposal, and lower greenhouse gas emissions as

compared to plastic production.

When a football gets old and rusty, it has no use. We often throw it

into the dustbin or somewhere else. It is polluting our air and land.

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With the help of recycling we can convert these footballs into shoes.

We hope it will reduce air and land pollution and thus we can protect our

environment.

2. Sell quality shoes with low price:

Another objective is to sell quality shoes with low price. People

now are very concern about quality and price. They want high quality

product with low price. So we will sell high quality products with low

price.

3. Increase market share :

Another objective is to increase our market share. With the help

of marketing strategy we can increase our market share. In this case we

have to invest a lot of money in promotion and distribution of the

product. We are expecting to increase our market share up to 10% in the

next year.

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4. To be the number one in the existing market:

One of the most important objective is to be the number one in

the existing market. For these reason we have to implement our market

strategies properly which have been discussed later.

Issues that can affect our objectives:

1. Environmental issue : Environment means everything that makes up

our surroundings and affects our ability to live on the earth. Today

environmental issue is very important. There are many organizations

who are working to protect the environment. They are creating

pressure on the companies.

So we will sell environment friendly product. We will not

use any synthetic leather or any other chemicals that may cause

harm to our environment.

APOGEE shoes are environment friendly product or we can say that

APOGEE is a green product.

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2. Health issue : Today people are very health conscious. They want to

know everything about the product. If they feel that the product they

are using are not safe, they will not use the product.

APOGEE shoes are really safe because it is a green

product. We will not use any chemical product in producing the

shoes.

3. Social issue : We have to work in our society. So we have some social

responsibilities. We have to think about our society and produce

products according to their needs and wants. We should keep a

friendly relationship with the people of our community.

4. Child labor issue : Another important issue is child labor issue.

According to the labor act policy in 2006 child labor has been banned

from all the industries. Showing respect to the law we will not use any

child as our labor.

5. High quality with low price issue : People now are very concern

about quality and price. They want high quality product with low price.

So we will sell high quality products with low price. We will also give

some discount to our customers.

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Marketing Strategy Of Apogee :

Introducing a new product to the market can be a challenging task for a business. No matter how much confidence you have in the value of the product or how unique it is, there are still things to consider before unleashing it on the public. The marketing concept of building an organization around the profitable satisfaction of customer needs has helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well-developed marketing strategy is required. Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the mark.

Customer Driven Marketing Strategies for Apogee :

Making strategy decisions need to be customer driven as your end customers are the ones who will be making purchase to our products and services. The topic of Customer Driven Marketing is how to divide up the identified market into meaningful customer groups, choose which customer groups to serve, create market offerings that best serve targeted customers and position the offerings in the minds of customers – referred to market segmentation, targeting, differentiation and positioning.

The reason for having customer driven marketing strategies is companies today cannot appeal to all buyers in the marketplace. Buyers’ behaviors are difficult to predict, too widely scattered and too varied in their needs and buying practices. Companies must design customer driven marketing strategies that build the right relationships with the right customers.

Why Customer Driven Marketing for Apogee :

In a nutshell, with proper application of a customer driven marketing strategy, the we can focus our efforts on meeting distinct needs of individual market segment & to target segments in which it can profitably generate and sustain customer value. It can then communicate & deliver

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the chosen position with its resources available for an effective strategic marketing plan.

With a customer driven marketing approach, the company has clearer direction to maintain its desired marketing position on targeted market segment(s) through consistent performance & communications. Nonetheless, for larger companies such as Unilever and P&G, they can offer complete range of products to serve all market segments to meet customers’ needs.

We must divide up the total market ,choose the best segments and design strategies for

profitably serving chosen segments. This process involves market segmentation ,market targeting , differentiation and positioning .

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Market Segmentation :

As we are making shoes from recycled soccer balls and its for everyone ( Boys,girls,Childrens) we can divide our markets into 2 types –

1. Customers Aged 10-15.2. Customers Aged 16 and above.

We will also give our customers an option to customize shoes according to their needs. We will focus on both national and international markets of our product.

Market Targeting :

Footwear sales have been falling in developed countries and slowing in emerging countries due to lower income levels; and therefore, less spending on apparel and footwear. Consumers are focusing increasingly on value for money, looking for simple, hard-wearing shoes that last . As children and young people are passionate about stylish shoes we are focusing them as our target market .

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Positioning :

We will make our shoes more attractive than our market competitors . We will sell our shoes at a reasonable price . We will give them longer lasting shoes and will guarantee them for a certain period. We will use our distinctive shoe logo or Brand name so that we can hold our market for a long time . At the beginning we will give advertisements to acknowledge them about our products .We will give discounts for our special customers .

Our shoe logo

Differentiation :

We will serve our customer a different service compared better than our competitors on

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the following basis :

I. We will make our Shoes attractive.II. We will sell our shoes at reasonable price.III. We will give discount to our customers .IV. Will give them guarantee for our products .V. Will take orders from customers to make customized shoes .

Marketing Mix :

This section outlines how we will make strategies for each marketing mix element of our Apogee shoes and how each responds to the threats , opportunities and critical issues .

Product :

In order to outdo our competitors we will take specific strategies for our product .The strategies will be –

1. We will make a variety of products on some specific categories such as for boys shoes ,Sandals , Sport shoes for girls we will make clogs ,lace ups, heel shoes etc.

2. We will always promise them 100% best quality for our product .

3. We will follow Fendi ,DIESEL ,Armani , Burberry ,Moschino designs to make our shoes .

4. We will use clear shoe box, ,paper shoe boxes in packaging our shoes .

5. We will make it eco -friendly.

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paper shoe boxes plastic shoe box clear shoe box

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Price :

We will always try to give customers good quality shoes at a reasonable price .For this we need to take some sort of incentives , they are –

1. We will give price tag on each of our shoes.2. We will give 5% discount on our shoes at the starting of

our business in order to get consumer attention on our shoes.

Place :

1. We will open our branches in home and abroad.

2. We will try to open our branches in U.S.A , Canada , South-Africa .So we will obviously try to make an influence on consumers to buy our product.

3. We will always try to sell the shoes that were produced first.

4. As shoes will be produced in Bangladesh we need to transport them across national boarder and in home .We prefer

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to transport shoes to abroad by air and in home by our private transport .

Promotion :

1. We will advertise our shoes on newspaper, magazines , and on t.v.

2. We will open our own branch in home and abroad .

3. We will show the positive sides of our products such as its durability, comfort ability , up to date with latest designs and customer choices .

ACTION PROGRAMESA Marketing Action Plan is a way of putting in place a structured series of activities to get a predictable result. Here are the basic steps:

1. Define the service we want to offer.2. Define our Target Market for the service.3. Define additional outcomes4. Plan the resources required5. Plan of costing

Step 1: Define The Service We Want To Offer

We want to produce shoes both for woman and men using the soccer ball as a raw material. People just though out the soccer ball using it or after it is punctured we collected this ball and recycle them and produce shoes.

Step 2: Define our Target Market For This Service

Our target market is the customer of the market who wants to use stylish shoes but at a affordable price. currently adidas and nike are dominating the sports accessories business by providing state of the art merchandises specially sports shoes. But We want to give them this kind of facilities at lower price then others compititors.

Step 3: Define additional outcome:

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Our additional outcome will be the profit that we get by using the resource because we do not pay any extra charge for the resource as we just using the punctured ball . The only cost s the recycling cost and at minimum price we can sale them. Our by this we will get our additional outcome.

Step 4:Plan the resources required:

Our plan is to use the scare soccer ball. After a period of time the punctured ball are useless for use so we can get that ball and use them valuably.

Step 5:Plan of costing:

As we focus on both man and women shoes mens shoes like

Leather shoes men: cost-500 tk but we have to produce at least 1000 pairs and sold them at a cost of 1000-1200.

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Roller skate shoes : cost-520 tk but we havo to produce at laast 800 pairs and sold them at a cost of 1000-1200.

We see both in the case we can get a huge profit cause of that is that we do not have any cost on resource again in recycling we need a small amount of money.

Financial PlanOur financial plan is based on receiving several

loans to purchase/fabricate the production equipment, provide initial

operating capital, and establish the customer value. We will achieve

profitability early in the first year and due to the expected high growth

rate, we will realize strong profits on sales by net year. APOGEE shoes are

made with recycled soccer ball and produced in fair-trade factories. We

also sell only to independent retailers worldwide in order to cycle money

back into local economics. Our hope is that people with similar

philosophies will be inspired by our experiment in grassroots capitalism

and start their own business ventures.

This company pretty much focuses on one thing: recycled material. In

making shoes, we use 80% recycled material and other things. Our

principles underlie on low cost, but effective marketing strategies.

Budgeting

Apogee develop and make use a effective budget plan that will make

sure to achieve expected profit rate. The following is an estimate of the

sources of our principal costs:

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Capital costs

• Land fees

• cost of special equipment and

• Cost of set-out containers.

Operating Costs

• Labor;

• Supplies;

• Administrative and Overhead;

• Truck Maintenance;

• Fuel, Maintenance;

• licenses, insurance, registration fees;

We also determine other thing for making shoe. As it is making from torn

football o the production cost will not be higher than the existing product.

These areas-

• The quality of the used material;

• The shipping costs of the supplier;

• The available monthly supply;

• The mix of raw material;

• Production costs; and

• Sales price of finished goods.

Cost of Production

WE will establish a minimum cost estimate for producing hoe. As we use

the useless soccer ball for producing hoe the cost will not be high than

using the material. Recycling less energy and generate less pollution than

using less material. So here we have low energy cost.

Promotion cost

Our budget include marketing cost. Because e need to advertise.issue pre

release, and make calls to potential customer. We will determine the cost

of each marketing element.

Labor cost

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In Bangladesh, the labor cost is not high. Here at first e hire some labors

who are expert in this work. We analysis that this cost will not exceed our

budget. We will make sure that we can get maximum output from labor.

Distribution cost

Apogee first launch some testing product and when it reached at higher

growth rate then it ill export it product to other country.

Controlling

Apogee practice a constant marketing control process. First it set specific

marketing goal. Then we will measure it performance in the marketplace

and then evaluate the cause of any difference between expected and

actual performance. Finally it takes corrective action to close the gap

between it goal and it performance. This may require changing the action

program or even changing the goal.

(RESOURCES)

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Recycling Benefits - A Recycling Revolution www.recycling-revolution.com/recycling-benefits.htm

Threats on scrap sources accessibility: the loss of access and a new ...www.institut.veolia.org/...recycling.../recycling.../recycling-threats.as...

Photos - National Geographic Kids kids.nationalgeographic.com/kids/photos/