REPORT TITLE : NEW PRODUCT DEVELOPMENT

COMPANY NAME : COLGATE

PRODUCT :SKIN CARE TONER/MOISTURISER

Introduction
Unilever is among world’s leading companies in fast moving of consumer goods(FMCG) It has over 400 products divided in 14 categories. Unilever proudly declares that everyday 150 million people are choosing their products to feed their families and clean their homes. Unilever is one of the world’s top makers of packaged consumer goods and moves countless products like deodorants, fragrances, soap, margarine, tea and other frozen foods all over the world. The corporation sells goods in over 150 countries. Their mission statement is’ meeting the everyday needs of people everywhere’.
Due to the concern of people especially women to their skin Unilever throughout their history have developed innovative products which have been loved by millions of customers all over the globe. Yet once again Unilever is about to introduce another product for women with sensitive skin which combines the features of both the toner and moisturiser in one tube. This innovative product is named Extra Simple and the company wants to promote this under Simple skin care product category. Market research shows there is great potential for this market in the UK. The future of such market clearly states that the market will be driven by the innovative value added products mostly in the skin care markets in UK. It is predicted that the volume for such products will increase up to 12% in 2013.Uniler’s reputation for innovative products has been remarkable throughout their history therefore creating an image of the new product would be much easier.
Distribution and promotion.
Unilever has already established an extensive distribution network throughout UK so that the distribution costs would be much smaller. Unilever spends huge sums for their advertisements to create awareness among early adopters and dealers alike. In addition organising public events involving celebrities would provide much needed brand positioning.
Objectives of the company.
Introduction of sustainable products
Increase market share.
Increase share price
Increase profits
New product development strategies
Unilever product development strategy is continuous improvement of its products by introducing new innovative products at regular intervals. Their research and development is so strong it continually monitors market environment and develops products and introduce them to the market at the right time so that they will never fall behind their competitors.
This new product as in the usual way will be at the introductory stage at the beginning but when at growth stage it will be supplemented with another improved product as happens always with Unilever so that the performance gap is reduced.
As this has been a Unilever product it will have it’s colourful attractive packaging to go with this convenience product. Packaging will have all the information regarding the weight, ingredients, Date of expiry instructions for use, where it is made, company logo and storage instructions and information on recycle.
Pricing structure would be to adopt penetration price strategy. Start with a low price and gradually increase as it catches the market. Please note this may not be case always as sometimes it is possible to keep the product almost at the introductory price depending on other factors like costs, competitive prices etc.
Use Ansoff Matrix as the market strategy. As this is a new product in the existing market it will fall in to product development in the matrix. Use of BCG matrix and GE models. According to BCG matrix ,strategy should be to be cash cows or question marks which means to have large market share in low market growth or have low market share in high market growth conditions.
As per the GE model business strength is measured against the industry attractiveness. If the industry attractiveness is low to medium and the