I. Create a product:

1. Idea from group’s member brainstorm:I.1 Restricted water case for the smart phone.

Although with the development of technology, people can produce phones, which one have the function to restrict the water by itself. But there are many people still use an usual phones, which one can be damaged if it interact with the water. The restricted water case will help the consumer to stay out that problem. The customers can use functions of the smart phone in normal ways such as using MP3, watching movie, playing game, chatting, updating facebook. And water is not their worry anymore.

1.2Chocolate Chicken on Fire

Cheese chicken fried was been a successful food last year. Teenagers excited with this food, which one bring them a new taste, unique and maybe sometimes weird. But they still accept that, the curiousness is one of the characteristic of them. They want to have experiences in new things, new food and new place. Chocolate and chicken was two popular foods, and now if we can mix the taste of them, we can create the new food, which one can attract many teen customers.

1.3Deodorant socks

Smelly feet are the problem of many people in Vietnam. Because of the hot weather, the feet sweat a lot. And all of that water is osmosis into the socks. And the socks will have unusual smell, which can make your friends stay away from you 10 meters. Therefore deodorant sock is created to solve that problem. With the material which is used from bamboo, deodorant socks will improve and make your feet in drying.

1.4Make a chair from plastic bottlesIn addition to putting all plastic bottles in the recycle bins after you use,

you can always recycle plastic bottles in a better way. There are many creative ways to repurpose plastic bottles into some useful household items. You can even use them to make furniture for your house with any design you want to do. Nowadays, price for furniture is very high in the market so you can think of using furniture from making it by yourself with your own style. With a little bit of creativity and patience, we can make useful stuffs with something that we are going to discard. The chair is not fancy at all, but it’s something you can make with recycled plastic bottles.

1.5 Produce electricity from Hamster:Nowadays, there are a lot of families and young like to feed a Hamster

as a pet in their house. Besides being a pet, we will make him become a useful

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pet. The Hamster is a animal always active, and we have an idea for making electric from its. We can design a circle for Hamster, when he runs on its, he will produce electricity and storage power into a electric charge and we can use that power for our phone when we need.

1.6 The coat can adjust temperature:

As you know the weather often changes and it affects so much with our health, particularly for those who regularly work outdoors. So we think of making a coat – it can adjust temperature to fit with our body and the weather outside, it will make us feel better in difficult working conditions.

1.7 Raincoat for Laptop

With social needs grow, the demand for laptops is increasing and convenient to move in rainy weather, affecting computer support, document, documents, furniture work. ..San the raincoat backpack is made from special fabric with waterproof capabilities, unique design helps embrace backpack, keep absolutely safe for your luggage when traveling on bad weather days interests. In addition, the product surface gloss, smoothness plus high durability of the fabric outside of the backpack ensure you do not get scratched or torn help users laptop is secure and convenient.

1.8 Anti-drunk

In our country a culture of drinking is indispensable, everything is available to the drink, fun, drink, drinking sad, not happy not sad together, discuss business, the drink, talk in politics, culture chemistry together, dating boys and girls together, but after the fun with friends that are unforeseen consequences, traffic accidents, domestic violence, and can reduce both labor productivity. So we choose to group products intended for gentlemen interested party. And more profound purpose we want to join hands to reduce the risk of traffic accidents, reduce domestic violence, help labor productivity of those who like to drink and not diminished through which we will have a better society and paving the social economy help develop a more sustainable way.

1.9 Versatile cosmetics

Cosmetics multi-utility is the future that the cosmetic company is targeting. Just got a product, you can create application with many different needs, in many different situations.

Only a few years ago, BB cream hit the market and immediately became one of the haunting of her mesmerizing beauty. Because of the convenience as thin enough to have a natural substrate, just enough moisture to nourish the skin, in addition to further combined with a sun protection factor makes BB cream became the first name mentioned trends in cosmetics multifunctional.

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After that success, the cosmetics brand has not missed the opportunity to quickly make available the products with innovative users.

1.10 App reading your meal.

Today there are many who do not have the time and ability to cooking at home. so the dishes are made available in the cafeteria or restaurant that have become extremely convenient. However, not always the food was also notified food ingredients processed to the purchaser. so many people have bought the wrong dishes made from foods cause allergies with their bodies that they did not know. To avoid this situation, a phone app to help reading food ingredients will make them feel more secure in purchasing and enjoying food.

1.11 Rain Bag

With erratic weather like in Vietnam, sunshine one minute, rain the next, when you are on the road but forgot to bring a raincoat is really annoying. so integrated raincoat into bag would be extremely convenient. With dry weather you can use products like bag containing the personal items, but suddenly the rain poured down you can mount raincoat immediately without affecting its contents in.

1.12 Table integrated with board

Nowadays, rapidly growing population of the Earth, but the Earth does not increase enough size for everybody. Therefore, the current living space is becoming significantly problem, customer would like to purchase furniture that saving space. This is a table which not only has less area but also has added more properties using. It is not just a table that can turn into a small board to remember the work or brainstorm. In addition, the table can easily removable and the table will be disjoined and put in order a small box to store in the warehouse. That is so easy to transport and store.

2. Formation Ideas Process Based on the needs of life, our team has a great deal of ideas about

what products can help life more convenient. However, not all ideas can develop products to be commercialized. So we rely on the Barney’s VRIN Framework to evaluate and select ideas suitable for development.

Barney’s (1991) VRIN framework can determine if a resource is a source of sustainable competitive advantage. To serve as a basis for sustainable competitive advantage, resources must be:

Valuable (V): meaning that they must be a source of greater value, in terms of relative costs and benefits, than similar resources in competing firms. It can help a company well exploit the opportunities to create value for customers in order to satisfy the demand or nullify the threat of business environment.

Rare (R): rareness implies that the resource must be rare in the sense that it is scare relative to demand for its use or what it produces. The key things to build a strong brand’s image are create the points of

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difference. In addition, that is the reasons why customers have to buy products of our company.

Inimitable (I): it is difficult to imitate. It was created as the leader in market, difficult to identify, require complicated combination of many elements, so the competition is difficult to detect and imitate.

Non-substitutable (N): other different types of resource cannot be functional substitutes. This is the most difficult factor to achieve. However, once achieved this level, the company will create sustainable relationships with customers.

(Source: http://www.createadvantage.com/glossary/vrin-framework )

No Idea V R I N Chosen

1 Restricted water case for the smart phone

X x

2 Chocolate Chicken on Fire

X

3 Deodorant socks X x x

4 Make a chair from plastic bottles

X

5 Produce electricity

from Hamster:x X

6 The coat can adjust

temperaturex x X X X

7 Raincoat for Laptop x x x

8 Anti-drunk x X X

9 Versatile cosmetics x x X

10 App reading your meal.

x x x x X

11 Rain Bag x

12 Table integrated with board

x x x X X

Table 1 Evaluate ideas with VRIN model

Although we have many unique and interesting ideas, through assessment based on VRIN model we have 3 ideas for further development: The coat can adjust

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temperature, App reading your meal and Table integrated with board. And then we describe 3 ideas in general:

Idea 1:

Name of product The coat can adjust temperatureBasic description about product Balance body temperature with climate,

warm winter, cool summer.Picture

Table 2: Description of idea 1

Idea 2:

Name of product App reading your mealBasic description about product Analyze ingredient of dishPicture

Table 3: Description of idea 2

Idea 3

Name of product Table integrated with boardBasic description about product As table as board, transport and store

simplyPicture

Table 4: Description of idea 3

3. Choosing and ranking the factors in evaluating the ideas

3.1 Easy using (20%)

The product need uncomplicated with the user, because almost customer has not the patience, knowledge and accept explore to learn how to use. In addition, consumers do not want to trouble in the next using because they forgot how to use the product or when they want to use, they have to read the guide book.

That is the important reason to determine the survival of the product as well as the success of the company. So scoring 20% should be a correct.

3.2 Meet demand (20%)

The needs of the customer is always the first criterion of the company producing the goods, if you manufacture a product that consumers do not have any reason to buy the product, or they do not see the need to own it but it make them waste money, definitely the company cannot sell the product.

Forecasting and creating products based on the demands of customers helps us be more active in the finance, the ability to maintain earnings and long-term fixed profit. So it can score 20% .

3.3 Convenience (25%)

The product need to make the customer's life becomes more

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convenient and easy. When using product, it always creates a comfortable for the customer. This is a very important reason to help customers make decisions to buy products company. This factor account at 25%

3.4 Cost (15%)

There are many ideas to produce products that meet consumer demand but the cost to produce high over the financial viability of the company. If reducing production costs, the products will be reduced the quality. As the result, customers easily lose confidence in the company's reputation. Therefore, companies must choose the ideas produced in accordance with its financial capability. We evaluate this aspect make up 15%.

3.6 size of market (10%)

You need to know how size of your target market to evaluate whether to implement or not. If the market is small but consistent, ideas that may lead in small markets and can generate more profit when you compare the ideas occupy only a small part of the vast market. This feature worth about 10%

3.7 Differences (10%)

Merchandises on the market today can easily be imitated. Competitors can create products with similar features and shapes that prices may also cheaper because they do not have to spend money to research and create new products. So the research is able to invent products with the features hard to imitate will provide a major sustainable competitive advantage for the company. We assess it gain at 15%

After evaluating the idea with VRIN model we chose three ideas can be implemented. However, we need to come up with only one idea. So we need to measure the idea that according to the criteria set out above in order to find the peak idea to develop it

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Table 5: Evaluate the ideas

Finally, after measuring the idea with the different aspects, we can recognize the most feasible idea. It is not only consistent with the ability of the company but also can attract the target customers.

Next, we will analyze this idea with the R-W-W (“real, win, worth it”) screen, originated by Dominick (“Don”) M. Schrello, of Long Beach, California, can be used to evaluate individual projects. Versions of the screen have been circulating since the 1980s, and since then a growing roster of companies, including General Electric, Honeywell, Novartis, Millipore, and 3M, have used them to assess business potential and risk exposure in their innovation portfolios.( Source: https://hbr.org/2007/12/is-it-real-can-we-win-is-it-worth-doing-managing-risk-and-reward-in-an-innovation-portfolio)

Table 6: Evaluate the best idea with RWW model

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4.Type of new product:

Table 7: Type of the idea

After evaluating the ideas, we recognize that the idea of developing integrated a table and a board is the most feasible. The idea regard to segment: the old demand but use new technology. The table is a simple item but almost all the families as well as the offices are demand. However the area of space is increasingly shrinking today, the production of the table with new techniques to increase more than the benefit to the customer, can save space area as well as financial the maximum.

II. Product innovation charter ( PIC ) :

1. Overview idea: Name of product “ TABO “ ( Table integrated with board ). Basic

descriptions of product: The table is integrated with the board and it

has a fixed rotation axis and the height can be customized according to

customer needs. Besides, it also have scroll wheel.

Main market (primary market): People live or work in small and limit

spaces.

Departments (related to new product process ): In the process of

researching and creating products to launch the products to the

market, it have to coordinate to work of all the parts together so that

may be carried out smoothly and the least risk.

2. Management Organization Chart:

8

This is an organizational chart of the company. It includes 3 levels from

high to low.

Table 8 Management Organization Chart

• Executive Manager: The person in charge of operating the group.

The vice gerent and decision-making for the project and solve the

difficult problems.

• Sales Department: Main functions of this room are deployment and

implement programs to achieve sales goals of directors. Customers of

sales department includes two types: Business to Business (B2B): they

are they are organizations, the business… and Business to Customer

(B2C) : individual customers and directly purchase products.

• Marketing Department: Roles of marketing department are: market

research, identify target markets, customer segmentation, product

positioning and makes marketing plan 4Ps to develop the products.

• Engineering Department: Responsible for technical issues, product

quality, innovative ideas…

In the process of researching and creating products to launch the

products to the market, it have to coordinate to work of all the parts together so

that may be carried out smoothly and the least risk.

3. Timeline:The whole process from exploring ideas to launching a new product is a

long time. We divide the period into 5 stages (from 1/1/2014 to 5/5/2016)

Stage 1: Brainstorm for new product

Stage 2: Develop the new product

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Stage 3: Research response of customers for prototype

Stage 4: Set up the marketing plan and implement it

Stage 5: Communicate the new product

2/9/2015 is the day we are going to launching the new product to market.

III. NEW PRODUCT PROCESS:

1. Opportunity identification:Ho Chi Minh City is an urban area growing with time. The number of

companies grow more and more involve land area is shrinking. So, finding rent

for households and office for companies become very difficult because the cost is

too high, but the area is limited and they need things can arrange to neat or

integrated in features to save area for housing or office.

Foreseeing this hot issue, we have researched and produced a product

very useful and it can save space. It is the TABO - a table is integrated with a

board, can customize the height and move easily.

1.1 RoleThis product has not yet appeared on the market so we believe that the

introduction of it will help a lot of people in the use and save space, especially

during the "All land all gold" today.

1.2 AdvantagesUpgrade the brand image: Lead to market with new product and meet

the needs of customers compare competitors.

1.3 Make profits Because the product is a new product in market and it is very

convenient. Besides, it also meet the need of customer so when we produced the

products, it will bring back good profits for company.

2. Concept generation

2.1 Creation process:

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The concept was created from choosing the best idea. To make the good

concepts, we should start from placing benefit of product on top. This product

was created to meet the needs of customers, so that it was a product with many

features that can be more comfortable to use.

2.2Creation concept:Concept 1:The table is integrated with the board:

The product focuses on the accessibility of customer using it. With only

the table or the board, we just use them for one function in small houses or tiny

offices. With this product, we can save cost to buy many different sizes of table

and a board. It is not only helps us use two function in a product but also save

spaces where small area.

Benefits: A product with two functions. It can move easily, customize

the height with demand and save spaces for office or house.

Form: The table is integrated the board with the height can customize

to 40cm – 1,4m for house or offices have small area.

Technology: The product is designed with a fixed rotation axis and the

height can be customized according to customer needs. Besides, it also have

scroll wheel.

Concept 2: Dining table stow:

If you have a house with limit area, this product will help you save more

space for your house with smart design and convenient.

Benefits: Save spaces for small area

Form: The table make by wood and can contain 4 folding chair under

the table.

Technology: The products are designed with two space underneath

dining table and it may contain 4 folding chair.

Concept 3: The smart table:

The product is used smart technology. It has a small touch screen at

the right corner of the table and allows real-time display and can set the timer. It's

really very useful for those busy and forgetful.

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Benefit: It is very helpful for those busy, it help them note and remind

time for important appointment in work.

Form: The table has a small touch screen at the right corner of the

table.

Technology: It has a small touch screen allows real-time display and

can set the timer by Smart touch technology

3.Concept evaluation:

Items Ratio Concept 1 Concept 2 Concept 3

Rank Mark Rank Mark Rank Mark

Easy for using 15 3 45 2 30 1 15

Easy for

transferring

15 2 30 1 15 1 15

Durable 10 3 30 2 20 2 20

Save money 5 3 15 3 15 2 10

Save space 5 3 15 3 15 2 10

Flexible for using 25 3 75 2 50 3 75

Easy for Producing 15 2 30 3 45 3 45

Meet demand 10 3 30 3 30 3 30

Total 100 270 220 220Table 9 Evaluate Concepts

4.Concept testingAfter evaluating concepts, we identify concept 1 is the best choice for

the company. However, we still are precarious about the profit of this project, we

continue to test this concept through NPV index.

The company is going to invest in this project up to 800.000.000VND

1st Year 2nd year 3rd year

fixed cost (1 month) 11615500011615500

011615500

0variable cost (1 table) 1200000 1320000 1452000selling volume (1year) 2000 2200 2420

selling price 2200000 2420000 2662000Table 10 Concept 1 Sale Forecast

When we have a table forecast about cost and sale volume, we can

calculate turnover, cost and profit. Based on these data, our group are able to

decide whether company should to continue pursue this project.

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r=10% 1st 2nd 3rd

Turn over440000000

053240000

0064420400

00

cost379386000

042978600

0049077000

00

profit 60614000010261400

0015343400

00Table 11 Concept 1 forecast profit

Year

0 -800000000 r10%

1 6061400002 10261400003 1534340000NPV $1,592,598,456.39

Table 12 Concept 1 NPV

NPV = 1592.598.546 > 0

As the result, we decide to perform this project. The company will

research and design a new product that is not only good for health, more

convenience but also help customers save more their money and their space

living.

IV. Product description:

1. Benefit:1.1 For health

The new product can bring a new dimension to our daily lives as this

unique furniture seems to bring positives to our health. Therefore investing in

these products is equivalent to investing for our good health. Based on the

research on the people, who use the table not fit with the user’s height, they are

complain more back pain and neck pain. In fact the tables suitable to user can

help enhance the blood flow and even assist in burning calories by appropriating

a person’s posture allow their metabolism to remain active while sitting restfully.

In addition more crucially, using the correct height of the table reduces stress

levels to a great extent.

1.2For Saving

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In human life needs to use different types of high and low tables in

different cases, customers must purchase many various items. With just a table

with adjustable height as well as one additional function helps customers save a

lot of cost and storage area.

1.3 For productivityInterestingly furniture with the new product are known to be a

innovative product of the modern life, which not only bring ergonomics, but also

carry great effect. This table offers such a dual benefit (adjustable height and

function of board) to the users and assists them to carry high productivity

wherever they use in the working environment.

2. Chunks and functionThe new product has 4 chunks:

Tableleg

Pillar

Rotation axis

Tableface

Chunks Picture Function

Table leg It hold the stand on a

flat surface, can move

anywhere easily with

castors and connected

with pillar of table.

Pillar it can adjust the height

of the table from 0.4cm

to 1.6 m

Rotation axis it can adjust the

direction of the table,

rotate from horizontal to

vertical table

Table face While in a horizontal

state it was on the

table, which is used to

put something on it.

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While in the state it is

vertical side panel, it is

used as a board to

note, sketch on it.Table 13 Elements and function

3. The details and parameters

Figure 1 Technical Drawing 1

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Figure 2 Image of product 1

Figure 3 Technical Drawing 2

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Figure 4 Image of product 2

Figure 5 technical Drawing 3

17

Figure 6 Image of product 3

Figure 7 Technical Drawing 4

Figure 8 Image of product 4

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:

Figure 9 Table face with parameter

Table 14 Dimension of tableface

Element of product

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No Item Picture Material Unit

1 Table leg STAINLESS STEEL

1

2 Castor

PU plastic castor with locking swivel steel core

4

3 PillarSTEEL 1

4 Rotation axis

STEEL 1

5 Table face Mica plastic 1

6 Rank steel 1

7 Fasteners Steel

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4. Package

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Figure 10 Package of product

Products are packaged in a cardboard box with the vertical size is 85cm,horizontal

size is 65cm and thick is 25cm. When opening the box, the top of box is table face

and under it is the table leg which in the middle, the right is rotation axis and the left

is pillar. All parts are arranged neatly to make transportation and storage in

warehouses easily.

5. The logo and slogan of product

Figure 11 Logo and slogan of product

V. Marketing Plan:

1. Sample survey Surveys direct customers in the store thought the supermarkets,

condominium, school and public places Methods: direct and online survey Object: The customer is always interested and has used the product Purpose: To collect and analyze feedback from customers and evaluate

customer satisfaction, thus improving the product.

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Tools: Provide questionnaires, surveys, measure satisfaction, showing samples of products

Execution time: 3 months before launching

Questionnaire

STATEMENT (1) (2) (3) (4) (5)1. Breakthrough design (package)2. Eye-catching design3. The convenience of the height adjustment4. Supporting the notes5. Easy assembly6. Quality of products7. Reasonable price8. Will to buy this table9. Will introduce people to use this table10. You think you will buy again after use the product

Table 15 Questionnaire

2. Market segmentation for new product

Families, schools need a handy desk a table can raise or lower the easy to protecting the health and prevent diseases of the spine due to sitting height tables inappropriate

The family lived in a small apartment, small and medium sized businesses with office work area affordable. Need a table can cum multiple jobs (Working notes of things to note, easy disassembly and moving easily)

These students can place small area, especially students attending universities and colleges in big cities where they rent space is limited to a table can be many functions and especially easy to move.

3. Target customers

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We chose the 2nd segment families live in small apartments, small and medium enterprises.

Customers TABO goals are families and businesses in the area and work area small and narrow. Families and businesses that mainly live and work in six major cities such as (Ha Noi, HCMC, Hai Phong, Hue, Da Nang, Can Tho)

With eye-catching design and youthful designs we choose for their customers with an active lifestyle and modern

Their income is the average income. They need an affordable product quality and meet multiple functions in order to save space and cost.

After the attack is successful market we intend to attack the second segment 3. Student accommodation with small area, especially the students are attending college. We will focus on trying to make them aware of the special functions of the products and the convenience of the product extremely easy to move.

4. Difference:

Difference is at the heart of the positioning model. Points-of-difference

(PODs) are formally defined as attributes or benefits that consumers strongly

associate with a product, positively evaluate, and believe that they could not find

to the same extent with a competitive product.

This product is the new ones on the market, it has lots of different

things that make it unique than the same category products has existed.

However, it is also the upgrade version of the old products that focus on the

convenience, impressive and save space for customer.

Points-of-difference (PODs) Points-of-parity (POPs)

Save spaces

2 function in 1 product

Can be customized to match the

high with demand

Can move

Good for heath

Small and compact

Can contain items

Table 16 POPs and PODs

5. Positioning of product

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Positioning is at the heart of marketing strategy. It is the “act of

designing the company’s offer and image so that it occupies a distinct and valued

place in the target customer’s minds.” (Source: Kevin Lane Keller, Strategic

Brand Management, 4th, 2013)

Deciding on a positioning requires determining a frame of reference (by

identifying the target market and the nature of competition) and the optimal

points-of-parity and points-of-difference brand associations. In other words,

marketers need to know (1) who the target consumer is, (2) who the main

competitors are, (3) how the brand is similar to these competitors, and (4) how

the brand is different from them.

Positioning statement: The TABO is a product which integrated with

two functions are: table and board. It suit for people who live or work in small

spaces and limit. With new technology, this product can be customized to match

the high with demand for using of them.

6. Pricing strategy:6.1 Factors affect to assess the price:

The level of price sensitive customers:

Day by day consumers are increasingly sensitive to the level of prices

of products when they decide to purchase. However, for the target customers

identified in the company's strategic business as well as the value transfer to

customers, the price of the difference products in the same type is not sensitive

with customer considerably

Cost: bear some cost quite high during working

• Hire staff

Promotion for the new product

• The investment cost of equipment originally (camera system, automatic

doors, computer .... ...)

• Other operating expenses

Competition:

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According to a survey, the price of our product is higher than the

product of the competition a little. There are some reasons explained by our

group follow:

Our company has more operating costs such as studying, researching,

designing and selling a new product in the market.

There are no more likely to inventory, apply multiple methods exhibited

on the point of sales and have to pay for the discount sale, promotion

from the manufacturer.

6.2 Method of assessment the price Currently the assessment product method the company is applying

which is the new product assessed the price based on the expense

Table 17Model valuation costs

The retail price of the product will be based on the cost of the product and the added value to customers. The level of disparity between prices and costs (markup) is considered in order to ensure payback for the company, but there is competition and customer satisfaction.

1.200.000 VNĐ + promotion cost + other tangible costs + value = 2.200.000 VNĐ

To plan price strategy for this project, we have to list detail the factors make the completed product and other tangible costs

Variable CostNo Item Picture Material Price Unit

1 The table leg

STAINLESS STEEL

150.000 VND 1

25

Price Value CustomerCostProduct

2 The castors

PU plastic wheels with locking swivel steel core

320.000 VND 4

3 PillarSTEEL 180.000 VNĐ 1

4 Rotation axis

STEEL 80.000 VNĐ 1

5 The tableface

Mica plastic 250.000 VNĐ 1

6 Crank STEEL 200.000 VNĐ 1

7 Fasteners STEEL 20.000 VNĐ

Total 1.200.000VNĐ

Fixed CostFixed assets The value The value used for 1 month

(VND)

Stationery and office supplies

100.000.000/10 year 830.000/1month

Warehouse 60.000.000/6 months 10.000.000/1month

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Cost of living (electricity, water, wifi…)

3.500.000/month 3.500.000/1month

Taxes 1.500.000/1 year 125.000/1monthRent employee 60.000.000/1 month 60.000.000/1 monthCost marketing 500.000.000/1 year 41.700.000/1 month

Total 116.155.000/1 monthTable 18 Variable Cost and Fixed Cost

The breakeven point

= Fixed costs / (Price – Variable costs)

=116.155.000 / (2.200.000-1.200.000) = 116.155

If each month sale force can buy same or more 117 items, the

company has profit.

7. Distribution strategy

Kotler defines marketing strategy as “the broad principles by which the business unit excepts to achieve its marketing objectives in a target market.” A marketing channel strategy can be viewed as a special case of the more general marketing strategy. The most fundamental distribution decision for any firm or organization to consider is the role that distribution is expected to play in a company’s long-term overall objectives and strategies.( source: Marketing Channels, a management view, Bert Rosenbloom)At this time our company offers many items of furniture to large and small dealers nationwide. We will summarize the main distribution channels following their

Table 19 Chanel Distribution

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The Company

Independent merchant

wholesalers

Small - scale low volume retailers Consumers

the company's representatives

Medium - scale moderate-

volume retailersConsumers

Large - scale high - volume retailers

Consumers

High - volume consumers

Channel 1: the new product is going to be distributed through independent merchant wholesalers. They are agents to buy some items for retailers and high-volume consumers. for example: these agents usually buy to retailers, whom would like to buy furniture in order to sell consumer, they could live in another provinces.

Channel 2: And other channel in same level is the items can distribute through the company’s representatives. They can give offers to medium-scale moderate-volume or large – scale high-volume retailers (mediums-scale or large scale depend on quantity they buy item). Besides that they can make deal with high-volume consumers whom are purchase once with a great deal of products for example: the big companies, organizations, etc.

We assume that the selection of good employees is very important to the success of a company, so, too, is the selection of channel members because most firms need both to succeed in the marketplace. We base on 10 criterions in order to offer a best choice.

1. Credit and Financial condition.2. Sale strength3. Product lines : consider four aspects of the intermediary’s product line:

competitive products, compatible products, complementary products and quality of line carried

4. Reputation5. Market coverage6. Sale performance7. Management succession8. Management succession9. Management ability10. Attitude

After evaluating wholesalers or retailers rely on above criterions, the company can identify the best choice that make the highest profits for company

Sales force

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Table 20 Sale Force

Sales force includes

Sale Director: The person who is responsible for most of the work of the sales team such as: management, monitoring, and to make decisions about the sales activities

Regional Sale Managers has responsibility for building sales within specific accounts or accounts within a specific area (HCMC, HNC, DNC)

In each region we divide into 3 functions in a sale department. Include:

Customer service division: Primary responsibility is receiving feedback from the customers, during and after the purchase process, to answer customer question, complaints.

Sale division: they are responsible for acquiring new business and developing partnership at original equipment manufacturers, providing customer and competitor feedbacks to the company, conducting long-range planning to assure account penetration, customer satisfaction, sale growth and profitability.

Sales for the reseller and B2B customer, need a trained sales force is thorough with the appropriate skills, to establish close relationships with customers and market expansion. The order here often be large quantities

Transportation division: Receiving order from both the sales department then transfer products to customers.

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Sale Director

HCMC

Customer Service Traditional

sellers

District 1 - 5

B2B B2C

Distric 6- 10

B2B B2C

the rest of district

Modern sellers

Receipt of orders Transportation

HNC DNC

8. Promotion8.1 Communication tools:

No Tool Time Perform Process

1

Print Advertising(Newspaper and Magazines, Standees, Posters )

6 times and public in 3 month Thanh Nien

½ front page ( 19cm x 27 cm)

4 times and public in 3 months

Doanh Nhan

Standard half page

Standees, banner

Point of retailers, wholesalers

2 Internet Advertising

2 weeks / month ( the first and 4th week of month)

Thanhnienonline

Moving Banner in Medium Rectangle 2

2 weeks / month ( the 1st

and 4th week of month)

VnexpressLarge 6

Daily SEO

3 Consumer Product Fair

May 2015Ly Thuong Kiet Fair

Introduce product

Dec 2015Hoang Van Thu Fair

Introduce product

Table 21 communication Tools

8.2. Communication plan

Because this is the new product, the consumers won’t know anything about this, so the purpose of promotion campaigns in the first time after product introduction is raising the awareness of customers.

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Target consumers live in the small space, renting house or the apartment for their company in big cities such as: Ho Chi Minh City, Ha Noi City, Da Nang City, so the promotion strategies we want to use the tools that consistent with our consumers.

To implement for promotion programs, we propose some tools and approaches with their advantage as below:

Purpose and Target Audiences:

Bringing the images of new product of our company to customers. Building brand awareness and brand image is the priority of our company in introducing new product.

Because the audiences of these channels are usually the young people, the officers, the young business man, who want to try a new experiment, want to have a modern atmosphere in the office but still want to save the space in the office.

And especially that we want to join in the B2B market for this product. Because needs to decorate the office, make it professional and modern are 2 things that the office managers usually do. So the budget for this activity gain the biggest percentage of whole promotion

Print advertising Print advertising is a form of advertising in newspapers and magazines.

This is not included advertising on television, radio or the internet. But it must be the newspaper, magazines for the people, who are renting a small room to run their company, or even the people who living in the small area, the people who need the compact table.

Advantages: The target customers of print advertising are variety. Print advertising can reach the audience effectively. Print advertising has an important role in achieving advertising

objectives. It’s can impress the audience easily

(source :Internet)

We can use the print advertising to attract the customers who usually read newspapers and magazines. Although the development of online marketing, print advertising still reach the large audiences by dramatic images.

In this kind of advertising, we choose newspapers have the high percentage of audiences, and the segmentation is suitable with our target customers. We will choose: Thanh Nien newspaper and Doanh nhan newspaper.

Advertsing on Thanhnien Newspaper:

Thanhnien Newspaper has millions of readers. One of the ideas for company to advertising which one wants to find target customers. With 460.000 publics per day and amount of audiences from 20-35 get 53%, this is an effective

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advertise channel and suitable with the target customer whom our group want to attract. We will advertise on the content of newspaper 6 times and public in 3 month.

This is the price list for Thanh Nien Newspaper:

Figure 12 Price advertising in Thanh Nien Newspaper

( Source: http://luaviet.co/ )

Advertising on Doanh Nhan Newspaper

Doanh Nhan Newspaper is the newspaper for business man, the people who care about the economic, people who want to run their own business. So this is suitable with our target customers at the first time. Advertising on Doanh Nhan Newspaper maybe will bring us B2B orders.

We will advertise on Doanh Nhan newspaper from launching the new product period to December 2015.

This below is the price for advertising on Doanh Nhan Newspaper

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Figure 13 Price advertising in Doanh Nhan newpaper

( Source: Internet )

Standees Standee also called X-shelf is one of the most important advertising

material to reach the audience. Standee usually used for promoting a movie, product or an event, it can easily take everywhere because of the lightweight.

Advantages: Costs are not high. Usually placed near the product, event or movie so easily impressed

the audience. Easily bring to everywhere because of the lightweight. Can place on the pavement so that can appeal the walkers.

At each point of sale, we put a standee to introduce the new product with customers. In addition, it can attract attend of citizens go across outlets and also help communicate fascinating promotion programs. We will implement that during a first month introduce the new product and in 2 months January and February 2016.

Internet advertising

Nowadays, with the rapid development of Internet, almost our country, especially in big cities, Internet connection is becoming indispensable thing in people life. Visitors speed have been improved and internet company have the competition in improving facility are two advantages make internet become useful tool. Search engines such as Google, Bing are advantages of the company too. The habit of searching the product is caring nowadays

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Internet advertising has the advantages which are its flexibility. The internet can easy bring company name to customers in the short time with a low cost. And there are many reputation e-newspaper have the service for hiring banner with the good price. This is one effective ways to approach target customers

On Zing News and Thanh nien Online we will run banners of our product on top right of the website where attract more viewers. We will conduct that during a first month introduce the new product and in 2 months February and March 2016.

This below is the price of Zing News and Thanhnien online, which we think that is 2 popular and we think it will be effective for our company

Figure 14 Price for advertising on Vnexpress

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Figure 15 Price for advertising on Thanhnien News

SEOBeside that SEO is a useful tool to help company website become

more popular on the internet where is the place to bring to people the news quickly, obviously SEO became one of the areas mentioned this out. The SEO keyword, the keyword in the first class, which means the company has brought closer to the customer. When a customer wants a keyword search on Google, they tens to choose the first link and description have the similar keywords they search. SEO work has two major tasks to be done: on page SEO and off page SEO.

In this tool, we can hire 2 staffs, who can design, control the website and can do SEO work. That person will have the right to run the company website, even company Facebook. Because the social network is developing day be day, the traffic of these social networks is very big. So advertising on the social networks will get no high for company. And that 2 guy will write advertising topic on those forum such as : lamchame.com, tinhte.vn…v….v…

And we can do SEO for the website. SEO work is usually done in contract form. SEO-er will have a deal with the business when they want to do SEO for their website. It is based on the words, which one the business man want the customers find. It based on the difficult or the easy word to find too. So, in the beginning of the website, we will do SEO for these words

Ban lam viec (hard) Ban lam viec van phong ( medium) Bảng van phong ( hard) Ban lam viec nho gon ( easy)

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Figure 16 Image key word

No Item Quanity Price1 Create new

website1 9.000.000

2 E-marketing 1 8.000.0003 SEO ( easy) 1 2.000.0004 SEO ( Medium) 1 8.000.0005 SEO ( Hard) 2 15.000.000Total 57.000.000

Table 22 Price advertising in SEO

Consumer Product Fair:

With the aim maintaining price stability and keep the goods at the end of the year. Fair "Consumer Product" 2015, promises to shopping opportunities, helping people to access quality goods at the market appears a lot of fakes, counterfeit goods of inferior quality. Besides fair is to encourage domestic businesses improve the design, quality goods to meet the increasing demands of consumers, improve competitiveness with foreign products. Facilitate the connection between domestic enterprises to consumers, trade promotion in the country, to help companies develop the domestic market, consumers use local products.

In addition, fair also help promote domestic manufacturing business, promote products, brands directly to consumers, enhance competitiveness and reinforce the belief of consumer with domestic products. This is an opportunity for enterprises to trade, exchange of experience, innovative technology to improve the quality of production, product development and market trend of integration.

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We will take part in two fair, include a fair on Ly Thuong Kiet street and a fair on Hoang Van Thu street. Our objective is to introduce the new product to consumers and increase awareness about our item as well as our brand.

Figure 17 Image in a Fair

9. Intellectual property registration:9.1 Benefits of Intellectual Property Right (IPR)

a. Helps firms monetize their innovations and grow

Companies use IPR in various ways to help them develop, trade in,

and secure income from their innovative products and services. Firms that use

IPR generally succeed better and have a higher market value than those that do

not.

b. Helps small and medium enterprises (SMEs)

SMEs use IPR more widely in many cases than large companies.

SMEs that use IPR report higher growth, income and employment than those

that do not.

c. Helps consumers and society

IPR helps offer consumers with innovative products and services in

almost every area of life, and helps protect consumers from imitation and pirated

products. IPR encourages competition among different product, function and

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quality offerings, giving consumers a greater selection among the goods and

services they demand. IPR also provides vital mechanisms to help address

many of society's most important demands, from clean energy and reduced

carbon emissions to health care and a truly 'digital economy'.

(source:http://www.iccwbo.org/advocacy-codes-and-rules/areas-of-

work/intellectual-property/ip-a-positive-force-for-society/ )

9.2 Registering IPRa. Composition, number of records:

Name of product.

Describe technique, images, map construction about product.

Copies of the product design.

Information about disadvantages and limit of old product.

Information about specific condition to use new product.

Name, address, phone of people / organization that invented the new

product.

Bill / receipt.

b. Patent industrial design:

Require about new product must:

New.

Creation.

Be capable application to the industry.

c. Performing law enforcement:

Receiving records: Apply at the Registration Office – Bureau of

copyrighted (address: 170 Nguyen Dinh Chieu, District3, Ho Chi Minh City).

Evaluate the application form: Check the compliance with regulation for

the application form, meet full the requirement legal in Viet Nam, after that

conclusion can be considered the application valid

Cost: 2,500,000 VND

10. TimelineEach product is sold in the market must be through a very long process

and include many steps from time to gather ideas for new products to launch in

market. We divide the whole process into 5 periods:

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o Stage 1: Brainstorm for new product

1/1/2014-1/3/2014: gather ideas from internal employees and consumers,

evaluate these ideas.

2/3/2014- 1/4/2014: chose the best ideas and develop concept (opportunity

identification and concept generation)

2/4/2014-1/5/2014: evaluate concept and identify the best concept

2/5/2014-15/5/2014: establish product innovation charter (PIC) for the best

concept.

o Stage 2: Develop the new product

16/5/2015-2/6/2014: Identify main objectives and market

3/6/2014- 1/9/2014: Describe the new product (illustrate images, parameter,

element, function)

2/9/2014 – 1/1/2015: product a prototype and make the plan to collect the

comment of customer about prototype.

o Stage 3: Research response of customers for prototype

2/1/2015 – 1/4/2015: ask the opinion of the target customers and agency (what

do they think about shape, function, design, material of the new product? Do they

think it useful? How do you think about its price? etc).

2/4/2015 – 1/6/2015: analyze and evaluate the response of the customer. And

then, identify details of design or change function, material, color and shape to

appropriate for consumers’ demands.

2/6/2015 – 3/8/2015: repair the prototype depend on consumers’ demand. As the

result, produce a new product that is the best fitness with consumers’ needs.

o Stage 4: Set up a marketing plan and implement it.

4/8/2015 – 1/9/2015: establish a marketing plan for the new product with 4 factors

in Marketing mix (Product, Price, Place and Promotion) and apportion the

company’s budget into each factor efficiently.

2/9/2015: launch the new product to the market .

o Stage 5: Communicate in public

1/7/2015 – 1/10/2015: place an advertisement in Thanh Nien newspaper

1/8/2015 – 1/2/2016: implement activities promotion on the Internet such as:

SEO, social media, forum setting, etc

1/8/2015 – 1/10/2015 place an advertisement in Thanh Nien online

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1/9/2015 – 1/10/2015 place an advertisement in Doanh Nhan newspaper

1/9/2015 – 1/10/2015 put standees at point of sales or outlets

1/12/2015 – 1/2/2016 place an advertisement in Thanh Nien online

1/12/2015 – 1/1/2016 place an advertisement in Vnexpress

1/1/2016 – 1/2/2016 put standees at point of sales or outlets

10/1/2016 – 17/1/2016 take part in Consumer product fair on Ly Thuong Kiet

street.

24/4/2016 – 2/5/2016 take part in Consumer Product fair on Hoang Van Thu

street.

TaskDuration ( days)

Start date Finish date Human

Gather ideas 60 1-Jan-14 1-Mar-14 Employees, customersChose idea and develop concept 30 3-Mar-14 1-Apr-14 R&D division in Marketing

department

Evaluate concept 23 2-Apr-14 24-Apr-14 R&D division in Marketing department

Identify the best concept 7 25-Apr-14 1-May-14 R&D division in Marketing

departmentEstablish PIC 14 2-May-14 15-May-14 Marketing departmentIdentify objective and market 18 16-May-14 2-Jun-14 Marketing Department

Describe the new product 91 3-Jun-14 1-Sep-14 Marketing and

Engineering DepartmentMake a prototype 122 2-Sep-14 1-Jan-15 Engineering departmentMake plan survey comment of customer 28 2-Jan-15 29-Jan-15 Marketing department

Implement survey 62 30-Jan-15 1-Apr-15 OutsourceAnalyze database 42 2-Apr-15 13-May-15 Marketing departmentEvaluate th response 19 14-May-15 1-Jun-15 Marketing department

Re-innovate prototype 63 2-Jun-15 3-Aug-15 Marketing and Engineering Department

Establish marketing plan 29 4-Aug-15 1-Sep-15 Marketing department

Launch the new product 1 2-Sep-15 2-Sep-15 Marketing department

place an advertisement in Thanh Nien newspaper

92

1-Jul-15

1-Oct-15 Marketing department

place an advertisement in Thanh Nien online

611-Aug-15

1-Oct-15 Marketing department

40

implement activities promotion on the Internet such as: SEO, social media, forum setting, etc

184

1-Aug-15

1-Feb-16 Marketing department

place an advertisement in Doanh Nhan newspaper

30

1-Sep-15

1-Oct-15 Marketing department

put standees at point of sales or outlets 30

1-Sep-151-Oct-15 Sale department

place an advertisement in Thanh Nien onl

621-Dec-15

1-Feb-16 Marketing department

place an advertisement in Vnexpress

311-Dec-15 1-Jan-16

Marketing department

put standees at point of sales or outlets 1 1-Jan-16 2-Jan-16 Sale department

take part in Consumer product fair on Ly Thuong Kiet street.

710-Jan-16 17-Jan-16

Sale & Marketing department

take part in Consumer Product fair on Hoang Van Thu street.

824-Apr-16 2-May-16

Sale & Marketing department

Table 23 Timeline and human resource

Table 24 Timeline for stage 1,2,3,4

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Table 25 Timeline for stage 5

11. Forecasting sales:

11.1 Research

We already deploy a small about the awareness of target customer to our product. The survey performed in Ngo Gia Tu street within 100 people who have intend to buy furniture on this street.

According to our small survey, we receive the result follow:

When we ask them: "Do you know a table can adjust height and transfer to a board?" The people said that “yes” account at 80%, By means of this question, we find the awareness information form customers. The chart illustrators the result

THE AWARNESS

Figure 18 Customer’s Awareness

The proportion say “Yes” account for 30% .

Here is the result for the question: "You are willing to try it"

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TRIAL RATE

Figure 19 Customer’s Trial

Result for the question: “You think you will purchase TaBo when you want buy another table”

REPEAT PURCHASE RATE

50%

15%5%

30%

YESNONOT SUREOTHER

Figure 20 Customer’s repeat rate

11.2 ATAR model

According to the Data statistic office 2013, in Ho Chi Minh City there are more 2 million households and there are about 500.000 medium – small businesses in whole nation, HCMC occupy at 25%. In the company’s strategy, the target customers are small households and medium – small businesses in HCMC. Hence, we estimate the number of target customer about 1/4 households and 1/4 business that is 625.000 customer. The goal of our company is required achievement 0,33% of this segment in the first year, approximately 2000 customers.

Assume awareness 30%Trial rate 50%Availability 15%Proportion who repeat purchase the new product

15%

Target customer 625.000Table 26 ATAR model rate

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Forecast sale volume in the first year based on databases from survey: (2.200.000 is price of a items)

30% x 50% x 15% x 15% x 625000 x 2.200.000 = 4.640.650.000

Forecast profit in the first year based on databases from survey: (1.896.930 is cost of a item so profit of a item is 303070)

30% x 50% x 15% x 15% x 625000 x 303070 = 639.288.281

Sale forecast for next 5 years (based on ATAR model)

2016 2017 2018 2019 2020Turnover

5,104,687,500

5,615,156,250

6,176,671,875

6,794,339,063

7,473,772,969

Profit 703,217,109 773,538,820 850,892,702 935,981,9731,029,580,170

Table 27 Sale forecast in next 5 years

12. Budget

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Period Tool time Frequency Perform Process Price

Phase 1

Print Advertising(Newspaper

and Magazines, Standees, Posters)

1/7/2015 – 1/10/2015

1 times /1 week and public in 3 month

Thanh Nien

1/32 front page

( 6cm x 8 cm)

With 4 colors

46.000.000/3 months

1/09/2015 – 1/10/2015

1 times/1week and public in 1 months Doanh

Nhan

Standard 1/3 page

34.000.000/1 months

1/9/2015 – 1/10/2015

1/1/2016 – 1/2/2016

StandeesPoint of retailers, wholesalers

10.000.000

2Internet Advertising

1/8/2015 – 1/10/2015

1/12/2015 – 1/2/2016

2 weeks / month ( the second and 4th week of month)

Thanhnienonline

Moving Banner in Medium Rectangle 2

60.000.000

(15.000.000/1 month)

1/12/2015 – 1/1/2016

2 weeks / month ( the 1st and 3rd week of month)

Vnexpress

Large 6

20.000.000

1/8/2015-1/2/2016 Daily SEO

57.000.000

3Consumer Product Fair

10/1/2016 – 17/1/2016

January 2015

Ly Thuong Kiet Fair

Introduce product

19.000.000

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25/4/2016 – 2/5/2016 May 2015

Hoang Van Thu Fair

Introduce product

19.000.000

Total265.000.000/6 months

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CONCLUSIONDuring project implementation, we have approached the group and

learn many skills, and basically accomplish the following goals: Understand the

basic knowledge to apply the knowledge of Product Management has learn to

research, build, deployment plans for a new product. With development and

formation of a new product with unique features that can help many people's

lives. Accumulated huge experience in surveying, planning, allocation time and

know the difficulties of those who specialize in Marketing now. Due to limited

practical experience with practical knowledge is not to be inevitable mistakes. We

look forward to receiving valuable inputs excellent for Marketing Executive on the

way reality later.

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