Name: Preeti Hemant Bharade

Roll no. 6015

Div: B, 1st Yr. MMS

Topic: New Product Development of Office Furniture

Subject: Marketing Management Subjected to: Professor Suhas

What is product• The new product introduced by Preeti Furniture Ltd. is Modular Furniture.

• The Company has introduced this product with the help of its Customer’s, Marketing & PRO team feedback, & Research & development SWOT Analysis of product in order to further survive in market & growing competition.

• Size of Modular Furniture : 1. Full-size block: 30.48cmL x 15.24cmW x 15.24cmH (+2.54cm for lugs) - 1kg  

2. Half-size block: 15.24cm (Long) x  15.24cm (Wide) x 15.24cm (High) (+2.54cm      for lugs) - 0.45kg  3. Quarter-size block: 7.62cm (Long) x 15.24cm (Wide) x 15.24cm (High)      (+2.54cm for lugs) - 0.23kg 4. Finishing cap block: 30.48cm (Long) x 15.24 (Wide)  x 2.8cm (High)  - 0.11kg.

What is product• Weight of Modular Furniture:1. Full-size block: 12"L x 6"W x 6"H (+1" for lugs) - 2.2 lbs.2. Half-size block: 6"L x 6"W x 6"H (+1" for lugs) - 1.0 lb. 3. Quarter-size block: 3"L x 6"W x 6"H (+1" for lugs) - 0.5 lb.4. Finishing cap block: 12"L x 6"W x 1.1"H  - 0.25 lb.

• Features of Modular Furniture:1. Fire Extinguish: Modular Furniture protection from fire 80 %. As it signifies

that Ever Block material embodies a slow burn rate of 2” per minute for a 2” wide by 0.5” in thickness test sample. 

2. Less transportation cost: Components are packed and transported to the site. Pacing of components is far more compact and easier as compared to packing of assembled piece. Hence it leads to less transportation cost.

3. Design Flexibility: Above two features, provides designer a better design flexibility. You can extend, reduce or even can change the shape of furniture at any point of time, if required. This will led to better space utilization.

What is product4. Durable, Waterproof, & Easy to Clean, Recyclable: Modular Furniture Every Block modules are water and chemical resistant and can stand up to abuse. Use them indoors or outdoors and in wet or dry environments. 

Every Blocks are manufactured using a durable, high-quality, polypropylene co-polymer and as such can handle the stresses of repetitive use. This material is non-absorbent, easily cleaned, and won't leach harmful chemicals. 

5. Protection From Insects: Modular Furniture Every Block modules are chemical resistant and can stand up to abuse insects upto 85 %.

7. Easy Separateable: Modular furniture parts are designed and manufactured in a way that can be separated and can be rejoined many time without any damage to products.

Idea Generation• The idea of developing Modular furniture developed with the help of survey made by PRO Team on Preeti Furniture past Corporate Customers found that –1. Many Corporate Companies in our Market in Banda Kurla Complex are finding difficulties to manage heavy office’s.

2. Due to large amount of electric current use in Corporate companies buildings once in 4 months they are getting shock current problem. So many office furniture's are also burning with it.

3. During rainy season Office furniture get damage at large amount.

4. Office furniture large get damage by insects so employees problem to work.

5. Office furniture life is less than 5 yrs. So every 5 yr. they have change office furniture.

Idea Generation• So Preeti Furniture Ltd. has decided to create a fire & water extinguish, affordable, long life all weather form of Office Furniture for the Corporate Companies.

• To option for Corporate Companies who want move from Heavy corporate design Office Furniture to Simple Royal less space Office Furniture.

• To provide customers with wide sizes & choices of design for selection of office furniture.

Idea Screening• A Office furniture with long life benefit be affordable for future growth of Preeti Furniture Ltd.?

• Do the cost for preservative chemicals for protection of Insects, Water, & Fire for Modular Office furniture be affordable by Company ?

• Do the market requires Water, Fire, Insects protection Office Furniture ?

• Is it possible to make Office furniture of less size ?

But Market want a Office Furniture which should look royal, less space, easy Separateable, Long life, Protection from insects, fire, water.

Not something that people should say that “ AH! That’s just a office hall with Tables & Chairs!”.

Concept Development & Testing• Ms. Preeti Marketing Manager & her team of Preeti Furniture Ltd. Talked with our Corporate Companies Managers, Employees. And found that.

In talk with Rahul HR Manager of TCS Company in BKC by Ms. Preeti Marketing Manager, Rahul said to Preeti, “ With heavy big office furniture its difficult to manage, separate, costly, & very dangerous when set on fire”

So when Preeti ask for solution he said, “ Office furniture should less size, easily Separateable, less cost, Protection from furniture, water, insects Finally Preeti Marketing Manager & team found that Corporate companies want a Office Furniture which should look royal, less space, easy Separateable, Long life, Protection from insects, fire, water.

Product Design & development• Design inputs of costs from Indian Institute of design, Mumbai every yr. will be 1,50,000.

• Constant design changes.

• Design adaptations from Lifestyle & Godrej interior.

• 50 patents with the design of Modular furniture.

•Modular design revolution: Modular furniture is built & constructed of components that can be built & shipped separately to be assembled in various locations.

So what type of New Product tobe Developed 

•  To develop a Office Furniture truly at Low cost, with long life, Safety from fire, water, insects.

• To must meet all safety & regulatory requirements of Customers.

• It should be built on a scale which is double than the early launches.

• The Price of the Modular Office Furniture: 1. Portable Systems: Single - 25000 Long - 35000 Set - 50000 Portable System Office Furniture

2. Storage based System:Tables with 6 Chairs - 25000 Tables with 8 Chairs - 40000 Tables with 10 Chairs - 50000 Tables with 12 Chairs - 60000

3. Modular Storage:Small - 250000 Medium - 350000 Large - 400000

Storage Based System Office Modular Storage Furniture Furniture

Target Market•  The Target Market Of Modular Furniture are:1. Bandar Kurla Complex2. Thane3. Goregoen4. Vashi5. Malad6. Mulund7. Airoli

• Preeti Furniture Ltd. Has selected this market as target as this is commercial area & there is huge demand for office furniture’s product, & they are highly need for

those office furniture which occupies less space, protection from water, insects, insects.

Business Analysis• Cost: What makes Modular Furniture so Cheap ?1. Less Size: Full-size block: 30.48cmL x 15.24cmW x 15.24cmH (+2.54cm for lugs) - 1kg  

Half-size block: 15.24cm (Long) x  15.24cm (Wide) x 15.24cm (High) (+2.54cm for lugs) - 0.45kg 

2. Less Weight: Full-size block: 12"L x 6"W x 6"H (+1" for lugs) - 2.2 lbs. Half-size block: 6"L x 6"W x 6"H (+1" for lugs) - 1.0 lb.

3. Less Transportation cost: Components are packed and transported to the site. Pacing of components is far more compact and easier as compared to packing of assembled piece. Hence it leads to less transportation cost.

Business Analysis4. Design Flexibility: Above two features, provides designer a better design flexibility. You can extend, reduce or even can change the shape of furniture at any point of time, if required. This will led to better space utilization.

• Increase in Profitability: Modular Furniture is unique & 1st time such product lunch in market with cost advantage, less competitors.

Total Sales Estimation• Demand for Modular furniture shall be atleast more than Life Style & Godrej Interior.

• Initial Projections were 500000 lakhs per year

• Assumption: 50% of 10 lakhs Corporate Companies Market will transmit to Modular furniture & that will increase demand.

Beta Testing & Market Analysis• Beta Testing: Research & development of Preeti Furniture Ltd. did testing of Modular furniture by :1. Portable Appliance Testing: This test showed that it 80 % safe from electric current & fire.

2. Water extinguish Testing: This test showed that its 80 % safe from water.

3. Pesticides Testing of Insects: This test showed that it can be crockroaches, ants, small bees, etc. insects away from it upon to 85 %.

Market Analysis• Mr. Sonu Sales Manager & his team focus on some Selected past Customers & all target markets of Preeti Furniture Ltd. For & gave them some Modular Furniture Product for use. For 8 months.

• The feedback which they got from all their customers was, “ Modular Furniture is Comfortable, occupies less space, easily Separateable, excellent royal look , less weight & size, good durability.”

Results of Beta Testing & MarketAnalysis

• Beta Testing & Market Analysis proof that Modular Furniture has the ability to fulfill all Corporate Companies Needs.

• By providing Royal look design, Less weight, size, Comfortable to to customers, Protection from insects, water, fire.

• Modular Furniture will increase demand for Sales of Preeti Furniture & increase profit for it in future.

Technical Implementation1. Less Wastage of resources

2. Reduction in Cost

3. Planning of resources required by collaboration with suppliers

4. Introduced of new machine name Alibaba to increase volume

5. Use of Internet for publication of Advertisement

6. Departmental Scheduling

7. Logistics Plan is Flexible

8. Engineering operation planning

Commercialization•  Launch the product in target markets of Modular Furniture like Bandar Kurla Complex, Vashi, Thane, Airoli, etc.

• Modular Furniture productions factory will be located at Biwandi, Warehouse also at Biwandi & office at Phoenix Mall Kurla.

• Modular Furniture Promotion will be done on TV Advertisement, Word of Mouth, Posters on Roads of Kurla & Andheri Highway.

• Modular Furniture product customers are IT Firms, Call Centre Companies, Small firms, Infrastructure companies.

New product pricing• The Price of the Modular Office Furniture: 1. Portable Systems: Single - 25000 Long - 35000 Set - 50000

2. Storage based System:Tables with 6 Chairs - 25000 Tables with 8 Chairs - 40000 Tables with 10 Chairs - 50000 Tables with 12 Chairs - 60000

3. Modular Storage:Small - 250000 Medium - 350000 Large - 400000

New product pricing• Modular Furniture will satisfy the need of customers of protection from insects, fire, water, Royal design Office furniture, Less size & weight, excellent comfortableness, etc.

• Modular Furniture as its 1st time launch in office furniture in market in initial stage it will have no competitors.

Thank you