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New product development

Dream Sweet and Cake Shop is developing a new product, processed wheat, which simplifies cake baking by requiring only the addition of milk and baking time. The product has received positive feedback from potential consumers and is expected to have a high market share due to low competition and high demand. The launch is planned for the first month of next year, with an initial focus on the national market before considering international expansion.

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2 views

New product development

Dream Sweet and Cake Shop is developing a new product, processed wheat, which simplifies cake baking by requiring only the addition of milk and baking time. The product has received positive feedback from potential consumers and is expected to have a high market share due to low competition and high demand. The launch is planned for the first month of next year, with an initial focus on the national market before considering international expansion.

Uploaded by

killlove20233
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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New product development

Dream sweet and cake shop is working to come up with new products which could better
satisfy our customers.

Idea generation
We compiled general ideas of what product to develop by collecting information from
different sources. Some of which are our employees, suppliers and the general community.
We also read feed backs of customers on what kind of additional product they need.

The following are potential products that are presented

 processed wheat
 pie
 cereals
 canned ice cream
 noodles
 fast foods(burger and pizza)
 bread

Idea screening
We have compiled potential ideas of products we may be able to produce. After careful study
of the market and our own financial capability we have decided to choose one of the above
options ,which is processed wheat.

Processed wheat is used to make a cake but simpler than the normal wheat. It is much lighter
than the normal wheat and it will have all the ingredients needed to make a cake within it. So
the only thing people need to do is add milk and bake . All the process will be written in the
package.

During our research we found out there is high need of this product since it is easy to use and
time conservative . There are also less completion with high level of demand in the market so
our chances of winning are high . Due to the reasons mentioned above we also believe it to
generate sufficient profit.

Concept development and testing


Our product idea is processed wheat. This is used for baking cakes easily in different flavors.
Different kind of ingredients are used in order to bake a cake. But with this product people
just need to add milk at the prescribed amount for different amount of cakes and put it in the
oven for about 15-20 minutes.

We have presented the idea to potential consumers and it got strong approval and were
excited for the product to be developed.
Marketing strategy development
The target market for our new product are people above the age of 4 .it can be used both by
children and adults.

The product offers different values-

 It is easy to bake , it reduces the cost of having to buy all the ingredients of cake.
 It is reduces the time it takes to bake a cake as it takes only 15 minutes.
 It reduces the cost of having to buy all the ingredients of cake.

The market share of the product is really high since there is no strong competitors and there
is high level of demand for the product.

The profit we expect on the first few months is 5% return since this are essential times for
people to know about the product and use it at low price. After that we will increase the price
of the product gradually. We expect this product to be one of the cash cow products we
produce .

We plan to distribute the product to different bakeries , retailers and wholesales . we don’t
need to find new distributers we plan to distribute it through distributers of our other
products.

Business analysis
We studied the sales forecast of business involved in producing the same kind of products
and it suggests that sales is really low during the first year of the product in the market since
it has no recognition but through time and different promotion there product has shown
profitability.

We expect the amount of sales to be low for the first year so we will focus on getting a return
the same amount as the costs needed to produce the product . After a year we expect the
profit to increase by 15%. As the product gets recognition, we expect the product to generate
high level of profit.

Product development
The production process has gone effectively . there where so many trials with different
ingredients in order to deliver the best product to our customers . there were 2000 failed
attempts of mixing different ingredients which could not deliver the desired taste. But we
were able to develop the best taste and flavor of cakes.

This process needed a huge amount of investment .

The product was tested by Ethiopian Health and Nutrition Research Institute(EHNRI) and
was ensured to be healthy and can be distributed to the public.
Test marketing
We have presented the product to small number of people ranging from children to adults and
the response was promising . it has gotten positive reaction from the customers and some
orders for more of the product .

This showed as that we can launch the product in the near future.

Commercialization
We will be launching the product in the first month of next year. The product will first be
launched in the national market. After careful observation of its progression we will consider
launching it internationally .

We expect high level of cost during its first launch due to many expenses like advertisement
and promotion. We plan to use our funds effectively .
NEW PRODUCT DEVELOPMENT

Dream sweet and cake shop

Group members ID no

1. HamelmalYibabe UU/00019/14

3. Tsion Tilahun UU/00140/14

Submitted to: YaredAdeme

JUNE 8, 2023

Addis Ababa, Ethiopia

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