It is a complete presentation of Operational Management for the students of MBA. It'll provide a guideline how to introduce your new brand.

2. Assignment
Subject
Presented By
Product Development
Hafiz Ali Raza Khan
Roll # MMKT
18
Presented To
Mian Kausar
Hameed

3. New Product Development
Product
Flavored Bread

4. Introduction:
“Yummy Bread” is the first company
concerning with the manufacturing of the
flavored bread.
Yummy Bread is a name that has come to
signify quality and freshness in bread
products.

5. Bread Innovation:
 Our product is unique in sense that it provides
with unique flavored in bread first time in
Pakistan.
It is also at the same time a product for the
health conscious people.

6. Currently Yummy has three flavors :
Mango
Strawberry
chocolate

7. “To provide our customers with bread
that actually looks and tastes good.”

8. Our vision is to become Pakistan's favorite bread
this is underpinned by our dedication to continued
improvement across all areas of the business.

9. Our goal is to ensure that important values such
as quality, freshness, and service are delivered to
our consumers in the 21st Century.

10. Current Market Situation:
The bread and bakery products market
has struggled with numerous challenges
over many years.
The sector has suffered from the effects of
discounting, keeping value growth at a modest
level.

11. Only 5 % population of Pakistan is using
the packed bread so rest of the markets still
to be captured.
Here people are wiling to pay extra amount
for the differentiated product.

12. Market Segmentation:
Effort to increase a company’s precision
marketing. We have done the segmentation on the
basis of the following variables:
Geographic
Demographic
Psychographic
Behavioral

13. Geographic :
Divide Lahore in different segments according to
areas, states, regions and markets. E.g. D-ground,
medina town.
Demographic:
Divide people according to Age, Income, Social
Class, Occupation and their life cycle.

14. Psychographic:
To analyze the psyche of the people of Lahore
we divide them in social class, life style and
personality .
Behavioral:
Behavioral segmentation divides buyers into groups
based on their knowledge, attitude, uses or responses to
products. In Lahore we see the behaviors of people with
the help of the questionnaire.

15. Targeting:
After segmenting the market we are targeting the
following segments:
Income Group:
We will be targeting all income groups who should
afford easily.
It will not discriminate between income groups.

16. Youth:
A huge potential market for this bread it lies
with youth whom we will be Specifically
targeting road shows to be held as part of the
‘Add Color’ campaign.
Travelers:
It is also available in mini-size factor, so it will
be highly convenient to carry along during
large journeys or trips.

17. Positing Strategies:
Positioning is what the customer
believes about your product’s value,
features, and benefits.
By benefits:
Through positioning we will tell our customer
how many benefits they can get from our
product.

18. By use or application:
The different tastes from the ordinary bread. Use
it with butter or eat the simple loaf.
 By user:
Every one who wants to have a
“different taste” may have it.
By product or service class:
It is positioned as a lower cost and healthier
alternative to the ordinary bread, while it provides
better taste and healthy ingredients.

19. By price or quality:
Yummy wants you to believe that their flavor
bread is of the highest quality Positioning is
what the customer believes
By Values:
We will also position our product on the basis
of customer values. Like this, if you want to
look healthy then use Yummy bread.

20. Product Review:
Company Name:
“Yummy & Co.”
Product Name: “Yummy Bread”
Logo:

21. Ingredients:
Flour
Water
Salt
Yeast
Sugar
Cooking Oil
Emprovel
Flavor
Preservatives:
Calcium propionate
Calcium acetate

22. Quantity per Badge:
Flour 130 kg
Sugar 6 kg
Cooking Oil 2 kg
Yeast 2 kg
Emprovel 240 gm
Calcium propionate 250 gm
Calcium acetate 100 gm
Water 62 liters
Flavor as per requirement

23. Flavor
Strong bones
8 hours energy
Vitamin A & D
Quite notorious
Features:
Yummy bread has different flavors
Make the bones strong
Repair the dead tissues of the body
Source of creating blood
Enriched with vitamin A & D
Glow the body & skin
Reduce fat & Carbohydrates

24. Design & Packing:
The color of our bread is the same as the flavor
we used in making the bread and we provide
the bread in a very attractive packing, just look
like it.

25. Competitors:
Indirect competitor:
Different cakes
Biscuits
Cookies
Pastries
Substitute Competitors:
A substitute competitor is any competitor that fills the same
buyer need you fill but fills it in a different way. The substitute
competitor of Flavored Bread is:
Dawn Bread
Wonder Bread
Cakes and Bakes
Different Bakery Breads
Vita Bread

26. Distribution Channels:
Our distribution channels in
Lahore are:
Bakeries
Supper stores
Departmental stores
Marts and edible market stores.
We mainly focus on the retailers & Bakeries because
they are the only source which delivers our product to
the final consumer.

27. Pricing strategies:
We will adopt the following
pricing strategies to set the price
of our product:
Marketing Skimming
Cost-plus pricing Method

28. Marketing Skimming:
Yummy is using Price skimming strategy. It is a pricing
strategy in which a marketer sets a relatively high price
for a product or service at first, and then lowers the price
over time.
Cost-plus pricing Method:
A pricing method used by Yummy because it is easy to
calculate & requires little information.
This method determines the cost of the product that used
direct cost, in-direct cost and fixed cost whether related
to the production OR sale of the product.

29. Our prices schedule:
Product Quantity in
pieces
Price in Rs.
Yummy Bread 8 piece Rs. 22
Yummy Bread 14 piece Rs. 35
Yummy Bread 18 piece Rs. 55
Pricing Objectives:
Market share leadership
Product Quality Leadership

30. Yummy Advertising Strategies
 Position the product:
"Because we are worth it."
Creating a stronger brand personality:
It will base on an upscale, character that people will
aspire to associate with.
Using the Internet / Web site:
Currently Yummy don’t have any Web site but it will have
an internet asses and web site in future to target and sell
younger buyers, new buyers, before they have
established a product.

31. Media Vehicle:
The print and electronic medium employed in an
advertising campaign used by Yummy is as follow:
ELECTRONIC MEDIA PRINT MEDIA
Tv Radio News paper Magazines billboard
Ptv Fm 101 The news Young world Muslim Mor
Geo tv Fm 103 Jang Sunday
magazine
Defense
Chock
A tv Fm 90 Dawn Akhbar-e-jahan
Yaadgar
chock
Ary Fm 89 Express Family
magazine
General Bus
stand
Thokar Niaz
Baig
Iqbal town

32. Deciding on Media time:
We will advertise Yummy Bread on TV 4 times in
a day and almost for a week in first 2 and half
months, and the add will go air in the prime time
broadcasting like Drama hours, it will also be
advertise daily in the mid of the KHABARNAMA.

33. Promotional Material:
Point of sale (POS) Terminals:
Yummy has place different check out
counters in big general stores like
AL-FATEH
Participation in Trade Fairs and Exhibitions:
Yummy has stalls in the different Exhibitions held in
different schools, universities and cities. Where they
sell and tell the consumers about the product that is the
flavor bread.

34. Broachers and Leaflets:
Yummy has very attractive and appealing
broachers which Yummy have distributed with
the news papers and they have also placed it on
the cash counters in different stores. Plus,
Yummy is now having a man standing on the
entrance of big shopping malls in the city.
Banner & Hoardings:
Yummy has placed banners on different squares
in the city and they have the hoarding placed on
the malls and stalls in the exhibitions.

35. SWOT Analysis
Strengths:
Our ability to produce options keeps more consumer
interest and needs met.
Our new production technology will enable us to mass
produce products more efficiently and quickly than other
old companies.
Our new taste will attract many such type of consumers
who are taste changer
New product innovation in local area. So it will attract
the people of local area.
No specific Competitor

36. Weaknesses:
No brand recognition our name in baking industry is new so
most of people are not familiar with Yummy Bread.
No separate outlet as we have not enough finance to
construct our separate outlet.
No customer orientation in local areas, as we newly
introduce in Lahore so customer are oriented in the brand.
The more flavor we create the production cost will
increase.
At starting we will not have as such trained staff that has
such market experience.

37. Our new taste will attract much, such type of consumers
who are taste changer.
Our new production technology will enable us to mass
produce products more efficiently and quickly than other
old companies.
Our ability to produce options keeps more consumer
interest and needs met.
No specific Competitor

38. Threats:
New product may people don’t accept it.
There are large companies who have brand loyal customers
providing the market with not exactly similar but milky and
other breads.
Switching brand loyal consumers to a smaller and newer
company.
There is open market everywhere means any new company
or existing ones can start the same production that may have
more experience or more qualified staff.
Imitation by existing bakeries, May try to copy it.