University of Dhaka

Report
On

“Marketing Management of a New Product – A case on SMC Plus”

Date of Submission:
 Literature review:

Introduction:

Product innovation is increasingly recognized as a crucial element of sustainable success for most
businesses in today's competitive industry. New products are essential to the survival of all businesses,
big and small. The success of many businesses can be attributed to new product development expertise. In
addition to the fact that successful new products are a significant source of increased financial and market
performance, identifying the elements that contribute to new product success is still an important
managerial concern because it may reveal previously unknown business prospects. The market's inherent
uncertainty and how to lessen it by raising the possibility that an invention will succeed are two problems
that new product managers have to deal with. Multiple research studies have shown that successful
marketing and R&D integration improves the probability of successful innovation.

Concept on marketing management:

Managing the marketing aspects, establishing company goals, formulating plans step-by-step, making
decisions for the company, and putting those decisions into action are all parts of the marketing
management process, which aims to maximize profit by satisfying customer needs. A marketing manager
needs to perform extensive research to understand what marketing management is and how to improve it
for the benefit of their company. Increasing sales of products is a key goal of marketing management. To
attract customers, marketing management is focused on product, placement, pricing, and promotion.

A sound business is characterized by its reputation, which will enable it to expand and grow. Selling,
buying, trading, and shipping items all contribute to brand building through marketing. The marketing
management assists in promoting innovative concepts that depend on the advantages and incentives that
the public may swiftly take advantage of. By keeping the businesses distinctive from the existence of
other firms on the market, these concepts continue to sustain and diversify the businesses.

These concepts help the business understand business demand in the current and prevent it from leading
in the improper direction. (Rust, 2004) (Srivastava, 2005)

A brand-new product line from a business that the public is unfamiliar with needs to be advertised.
Marketing management enables more effective and efficient product advertising that might draw a sizable
audience of consumers to the new product.
Marketing strategy:

According to Adam Barone, A company's overall plan for reaching out to potential customers and
converting them into buyers of their goods or services is referred to as a marketing strategy. The value
proposition of the business, critical brand messages, information on target customer demographics, and
other important components are all included in a marketing plan. The four Ps of marketing—product,
pricing, place, and promotion—are covered in-depth in a marketing strategy. A marketing strategy is a
company's plan for reaching out to potential customers and persuading them to buy its goods or services
(BARONE, 2022).

It makes sense that a company's performance is maximized when it develops an innovative marketing
plan and achieves efficacy in the application of the marketing plan. However, it could be challenging or
impossible to do both due to cultural tensions and resource competitiveness. According to the
contingency theory, there may be market- and/or firm-level forces that favor one over the other.
Therefore, it is crucial for researchers to look into those circumstances so that we can advise managers on
how to deploy their resources. The study discussed in this article evaluates the influence of business unit
strategy and environmental factors on the relative weights of marketing plan innovation and execution
effectiveness (Stanley F. Slater, 2008).

Cirque du Soleil is cited by (Kim, 2004) as an illustration of a highly innovative or "Blue Ocean"
strategy. Cirque saw that it would be ineffective to merely strive to outperform the competition by
altering conventional circus acts in a crowded and diminishing market. With the new value proposition
"We reinvent the circus," they started their transformation. Cirque changed to an elegant, sophisticated
look (product), a luxurious, welcoming setting (place), and somewhat higher costs that are in line with the
exceptional experience.

The most imaginative and forward-thinking companies can visualize how an important new advantage
might be used to carve out new competitive territory or alter existing territory. Innovative value
propositions, new pricing models, customer-driven supply networks, or extended ways and means of
"touching" clients that respond to their unique preferences and interests can all be used in creative
marketing techniques. These components of the marketing mix may offer distinctive customer value or
give consumers a motivation to buy. A unique positioning for the company that is challenging for rivals
to copy could result from an inventive or creative strategy, giving it a competitive edge. (Barney, 1991)
The new product Positioning:

The entire process of bringing a product to market is referred to as product development. A crucial
component of product design is new product development (NPD). The procedure doesn't finish till the
end of the product life cycle. By upgrading or including new features, you can iteratively create new
versions while continuing to gather customer input (Sutton, 2021). The new product strategy, which
strives to integrate the company's NPD activities with its strategic imperatives, serves as the framework
for the NPD process. This new product entered a seasoned market dominated by huge multinational
corporations who had lost touch with their customers, failed to recognize their need for change, and
suffered the price after dismissing the product concept as possessing any technical superiority. The new
product revitalized the entire industry by changing the market game and displacing it from sectors where
rival supremacy was unassailable, such as cost and pricing (School of Management, 3 December 2003).
These criteria appear to be in line with the particular demands of each process stage, according to the
usage patterns that are starting to emerge. This enables the identification of issues and the beginning of
corrections that raise the likelihood that the new product will succeed in its entirety.

Management may utilize a variety of strategies to create economically and technically viable product
configuration designs during each evaluation. Although normative guidelines are available to aid in the
creation of novel product configurations, the performance standards applied at the various assessment
gates of the NPD process are vague. (Susan Hart, 2003)

During the launch of a new product, positioning strategy in the form of differentiation or cost leadership
is essential. Businesses must have a well-defined competitive position for a new product before it is
launched to increase the likelihood of success. After positioning is combined with pricing, quality, cost,
and other crucial elements of the value chain, a higher financial return result. (Zhao, Founding team
capabilities and new venture performance: The mediating role of strategic positional advantages. , 2013)
(Atuahene-Gima, 2011)

It is typical to think about a new product's relative competitive strength in terms of low cost or distinction.
Customers must operate more efficiently to achieve low cost as a source of competitive advantage, and
customers must perceive a constant difference in key characteristics between the firm's product and those
of its rivals (Krush, 2013) (Morgan, 2004). A business that is focused on the market would be better able
to establish a strong position for its new products based on insightful knowledge of both the internal and
external environments (Zhao, founding team capabilities and new venture performance: The mediating
role of strategic positional advantages, 2013). When done successfully, the advantageous position creates
the positioning strength for a new product when it is introduced to the market in the eyes of industrial
purchasers. A market-oriented company's establishment of a new industrial product's dominant position
on the market can raise the new product's perceived worth in the eyes of industrial consumers, ultimately
increasing financial return. (Langerak, 2003)

SMC PLUS:

Introduction:

The largest privately owned social marketing company in the world for a single nation is called Social
Marketing Company (SMC). It makes a significant contribution to Bangladesh's reproductive and
children's health services. SMC launches "SMC Plus," a brand-new electrolyte drink that strikes the
perfect balance between flavor and health. SMC Plus is the only electrolyte beverage ever created in
Bangladesh that is both scientifically designed and delicious. Through social marketing of goods and
services in the fields of family planning, nutrition, maternal and child health, and other socially beneficial
sectors, SMC's overall aim is to improve the health and wellbeing of women, children, and families. In
this article researcher take about the success history of SMC company (Mahbubur Rahman, 2008). The
social marketing of ORS and contraception has proven to be a significant factor in the government of
Bangladesh's success in achieving its population and health goals. Between 1975 and 2007, the nation's
overall fertility rate decreased from 6.3 to 2.7, while the prevalence of contraception among currently
married women increased from 8% to 56%, with modern contraceptive use at 48% ((NIPORT), 2007).

Sales and distribution network:

One of Bangladesh's oldest, largest, and most effective distribution networks belongs to SMC. Twelve
offices, located in the largest division and district towns across the nation, provide coverage for the entire
nation. This makes it possible for SMC's sales team, which consists of just over 100 personnel, to
distribute goods to rapidly and frequently the distant outlet. The SMC serves an average of 223,000
outlets. Each year, there are about 35% of pharmacies in the sales force, with the remainder being non-
pharmacies such grocery shops and kiosks. At predetermined times, big delivery trucks restock the stock
at the sales offices. When necessary, the sales team covers the region using SMC's fleet of distribution
vans, motorcycles, and boats. SMC's extensive marketing and sales activities helped to make its products
broadly accessible in retail establishments all throughout the nation.
References
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Atuahene-Gima, K. a. (2011). The vital role of problem-solving competence in new product success.
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Kim, C. W. (2004). Blue ocean strategy. Harvard Business.

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Krush, M. T. (2013). Enhancing organizational sensemaking:An examination of the interactive effects of

Langerak, F. (2003). The effect of market orientation on positional advantage and organizational
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Mahbubur Rahman, T. U. (2008). Social Marketing: A Success Story in Bangladesh.

Morgan, N. A. (2004). Antecedents of Export Venture Performance: A Theoretical Model and Empirical
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Sutton, M.-R. (2021). What Is Product Development? Learn The 7-Step Process.

Zhao, Y. L. (2013). founding team capabilities and new venture performance: The mediating role of
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Zhao, Y. L. (2013). Founding team capabilities and new venture performance: The mediating role of
strategic positional advantages. .