Product management

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I. Create a product:
1. Idea from group’s member brainstorm:
1.1 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 bottles
In 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
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Produce electricity
from Hamster:
x X
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The coat can adjust
temperature
x x X X X
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Raincoat for Laptop
x x x
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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

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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
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 temperature
Basic 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 meal
Basic description about product Analyze ingredient of dish
Picture
Idea 3
Name of product Table integrated with board
Basic description about product As table as board, transport and store
simply
Picture
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% .

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3.3 Convenience (25%)
The product need to make the customer's life becomes more
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)
-

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Table 6: Evaluate the best idea with RWW model
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.

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2. Management Organization Chart:
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

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Stage 2: Develop the new product
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 Role
This 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 Advantages
Upgrade 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

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2.1 Creation process:
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 100 270 220 220
Table 9 Evaluate Concepts
4.Concept testing
After 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) 116155000 116155000 116155000
variable cost (1 table) 1200000 1320000 1452000
selling volume (1year) 2000 2200 2420
selling price 2200000 2420000 2662000
Table 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 over 4400000000 5324000000 6442040000
cost 3793860000 4297860000 4907700000
profit 606140000 1026140000 1534340000
Table 11 Concept 1 forecast profit
Year
0 -800000000 r 10%
1 606140000
2 1026140000
3 1534340000
NPV $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
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.

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1.3 For productivity
Interestingly 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 function
The 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.
While in the state it is
vertical side panel, it is
used as a board to

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note, sketch on it.
Table 13 Elements and function
3. The details and parameters
Figure 1 Technical Drawing 1
Figure 2 Image of product 1

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Figure 5 technical Drawing 3

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:
Figure 9 Table face with parameter
Table 14 Dimension of tableface

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 Element of product
No Item Picture Material Unit
1 Table leg STAINLESS
STEEL
1
2 Castor
PU plastic
castor with
locking
swivel steel
core
4
3 Pillar
STEEL 1
4 Rotation
axis
STEEL 1
5 Table face Mica plastic 1
6 Rank steel 1
7 Fasteners Steel
18

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4. Package
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

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 Purpose: To collect and analyze feedback from customers and evaluate
customer satisfaction, thus improving the product.
 Tools: Provide questionnaires, surveys, measure satisfaction, showing
samples of products
 Execution time: 3 months before launching
Questionnaire
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)
STATEMENT (1) (2) (3) (4) (5)
1. Breakthrough design
(package)
2. Eye-catching design
3. The convenience of
the height adjustment
4. Supporting the notes
5. Easy assembly
6. Quality of products
7. Reasonable price
8. Will to buy this table
9. Will introduce people
to use this table
10. You think you will buy
again after use the
product

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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
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)

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 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
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

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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:
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 Cost
No Item Picture Material Price Unit
Product Cost CustomerValuePrice

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1 The table
leg
STAINLESS
STEEL
150.000 VND 1
2 The
castors
PU plastic
wheels with
locking
swivel steel
core
320.000 VND 4
3 Pillar
STEEL 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

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Total 1.200.000VNĐ
Fixed Cost
Fixed 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
Cost of living
(electricity, water,
wifi…)
3.500.000/month 3.500.000/1month
Taxes 1.500.000/1 year 125.000/1month
Rent employee 60.000.000/1 month 60.000.000/1 month
Cost marketing 500.000.000/1 year 41.700.000/1 month
Total 116.155.000/1 month
Table 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

28
Table 19 Chanel Distribution
 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 strength
3. Product lines : consider four aspects of the intermediary’s product line:
competitive products, compatible products, complementary products
and quality of line carried
4. Reputation
5. Market coverage
6. Sale performance
7. Management succession
8. Management succession
9. Management ability
The Company
Independent
merchant
wholesalers
Small - scalelow
volume retailers
Consumers
the company's
representatives
Medium - scale
moderate-
volume retailers
Consumers
Large - scalehigh
- volume
retailers
Consumers
High - volume
consumers

29
10. 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
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.
Sale
Director
HCMC
Customer
Service
Traditional
sellers
District1 -
5
B2B B2C
Distric 6-
10
B2B B2C
the rest of
district
Modern
sellers
Receipt of
orders
Transportation
HNC DNC

30
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.
8. Promotion
8.1 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)
Vnexpress
Large 6
Daily SEO
3 Consumer Product Fair
May 2015
Ly Thuong Kiet
Fair
Introduce product
Dec 2015
Hoang Van Thu
Fair
Introduce product
Table 21 communication Tools

31
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.
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.

32
 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
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

33
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

34
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

35
Figure 15 Price for advertising on Thanhnien News
 SEO
Beside 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)

36
Figure 16 Image key word
No Item Quanity Price
1 Create new
website
1 9.000.000
2 E-marketing 1 8.000.000
3 SEO ( easy) 1 2.000.000
4 SEO ( Medium) 1 8.000.000
5 SEO ( Hard) 2 15.000.000
Total 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.

37
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

38
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 IPR
a. 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. Timeline
Each 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:

39
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
1/9/2015 – 1/10/2015 place an advertisement in Doanh Nhan newspaper

40
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.
Task
Duration
( days)
Start date Finish date Human
Gather ideas 60 1-Jan-14 1-Mar-14 Employees, customers
Chose 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
department
Identify the best
concept
7 25-Apr-14 1-May-14
department
Establish PIC 14 2-May-14 15-May-14 Marketing department
Identify 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 Department
Make a prototype 122 2-Sep-14 1-Jan-15 Engineering department
Make plan survey
comment of customer
28 2-Jan-15 29-Jan-15 Marketing department
Implement survey 62 30-Jan-15 1-Apr-15 Outsource
Analyze database 42 2-Apr-15 13-May-15 Marketing department
Evaluate 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
61
1-Aug-15
implement activities
promotion on the
Internet such as: SEO,
184
1-Aug-15
1-Feb-16 Marketing department

41
social media, forum
setting, etc
place an
advertisement in
Doanh Nhan
newspaper
30
1-Sep-15
put standees at point
of sales or outlets
30
1-Sep-15
1-Oct-15 Sale department
place an
advertisement in
Thanh Nien onl
62
1-Dec-15
1-Feb-16 Marketing department
place an
advertisement in
Vnexpress
31
1-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.
7
10-Jan-16 17-Jan-16
Sale & Marketing
department
take part in Consumer
Product fair on Hoang
Van Thu street.
8
24-Apr-16 2-May-16
Sale & Marketing
department
Table 23 Timeline and human resource

42
Table 24 Timeline for stage 1,2,3,4
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% .

43
Here is the result for the question: "You are willing to try it"
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
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.
50%
15%
5%
30%
YES
NO
NOT SURE
OTHER
Assume awareness 30%
Trial rate 50%
Availability 15%

44
Table 26 ATAR model rate
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 2020
Turnover 5,104,687,500 5,615,156,250 6,176,671,875 6,794,339,063 7,473,772,969
Profit 703,217,109 773,538,820 850,892,702 935,981,973 1,029,580,170
Table 27 Sale forecast in next 5 years
Proportion who repeat purchase the new
product
15%
Target customer 625.000

45
12. Budget
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
Standees
Point of
retailers,
wholesalers
10.000.000
2
Internet
Advertising
1/8/2015 –
1/10/2015
1/12/2015
– 1/2/2016
2 weeks /
month ( the
second and
4th week of
month)
Thanhnie
nonline
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)
Vnexpres
s
Large 6
20.000.000
1/8/2015-
1/2/2016 Daily SEO
57.000.000
3
Consumer
Product Fair
10/1/2016
–
17/1/2016
January
2015
Ly
Thuong
Kiet Fair
Introduce
product
19.000.000

46
25/4/2016
– 2/5/2016 May 2015
Hoang
Van Thu
Fair
Introduce
product
19.000.000
Total
265.000.000/6
months

47
CONCLUSION
During 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.

Product management

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