New Product Idea Report: Craving Chocolate Pastries - Business Plan

This report introduces a new product concept, Craving Chocolate Pastries, a sugar-free pastry aimed at health-conscious consumers and individuals with diabetes. The report outlines the product's mission, screening process, and concept testing, identifying the target market as individuals aged 50-65 in urban areas. It delves into marketing analysis, detailing product features, competitive pricing, a selective distribution strategy, and digital media promotion. The business analysis includes a financial projection and market testing challenges related to packaging and distribution budget. The report concludes with a proposed commercialization strategy involving a diabetes awareness campaign to build brand awareness and drive sales. References support the research and analysis presented in the report.

Running Head: NEW PRODUCT IDEA
NEW PRODUCT IDEA
Name of the Student:
Name of University:
Author Note:

1NEW PRODUCT IDEA
Table of Contents
New product idea.............................................................................................................................2
Screening.........................................................................................................................................2
Concept testing................................................................................................................................3
Marketing analysis...........................................................................................................................4
Product.........................................................................................................................................4
Price.............................................................................................................................................4
Distribution..................................................................................................................................4
Promotion....................................................................................................................................4
Business analysis.............................................................................................................................5
Market testing..................................................................................................................................5
Commercialisation...........................................................................................................................5
Reference.........................................................................................................................................7

2NEW PRODUCT IDEA
New product idea
Craving Chocolate Pastries are identified as a factory made chocolate pastry that are
completely free from calorie but taste like chocolate. From the report of Giovannini, Howes and
Edwards (2016) it can be stated that the obesity and diabetes become a common health disease
that people are suffered with these days. One of the major reason is the food. People eat food
without knowing its nutrition value or the percentage of calorie it contains (Boyko, Monteiro-
Soares & Wheeler, 2017). As a result of that a number of serious diseases are occurred. In this
regard, the Inhalable chocolates are made in such a manner that it will meet your chocolate
cravings but there will be no adverse effect on body due to its less calorie ingredients. The use of
stevia as a replacement of added sugar helps to make the chocolate pastry taste sweet. The
product is very unique as there is no such companies that make sugar free chocolate pastries.
Screening
The mission of the product is based on both sustainable approach and long term relevance
in the market. It is important to note that due to the alarming threat of diabetes among majority
of the people it is so important to offer products that have zero negative impact on health.
Moreover, chocolate pastry is a very common and popular food. However, the health conscious
nature of the product can help it to gain customer attraction effectively. It can be assumed that
this new product, Craving Chocolate Pastries will have high opportunity to get success because
of its taste and the health conscious feature.

3NEW PRODUCT IDEA
Concept testing
The primary target customers are aged people with an age group of 50 to 65. Mostly
belonged to the urban areas, the primary target customers are both male and females who love to
eat sweets. They are basically middle to high earners with a professional attitude. Most of them
are on the verge of retirement or retried. The target customers are hard core loyal and they
believe in the quality of the product that has a health benefit. They are highly determined and
have a sense of self-belonging. Therefore, they are also looking for products with high health
value and help them to control their diabetic health condition.
Therefore, a 5Ws question is prepared to understand the primary customers and their
intention as well.
Factors Justification
Who Aged customers from the age between 50 and 65.
What Craving Chocolate Pastries that has zero calories but the taste remains same
When Anytime they want
Why Because they are diabetic patients mostly or have a great concern for health.
Where At home, roadside or restaurants.
The best part of the product is the use of calorie free chocolate that tastes the same. It is
important to note that all those people are highly concerned about their health condition and
some of them are suffering from diabetes. Therefore, the Craving Chocolate Pastries will help
them to meet their chocolate craving but without having any health related issues.

4NEW PRODUCT IDEA
Marketing analysis
Product
Craving Chocolate Pastries is a sugar free pastry that is specifically made for the people
who are highly health conscious. Moreover, people who are suffering from diabetes can be the
potential target customers of the product. The product uses stevia as a replacement of sugar to
retain the taste of the product.
Price
A competitive pricing strategy has been followed. Therefore, the price of the product will
not be high enough that people will never buy. Generally, it costs $6 for one pastry and $10 for
two. The company is interested in increase its sale aggressively so that the offers are given to the
customers to attract them more.
Distribution
The distribution strategy of the organisation is focused on selective distribution strategy
where the products will be sold to selective locations (Dizqah et al., 2016). It is due to the limited
manufacturing and no differentiation of product. The organisation is just waited to get the
response from the customers. For the time being, the products are distribute to wholesalers and
retailers only.
Promotion
The organisation only focuses on the digital media promotion in order to reduce its cost
in promotion (Alalwan et al., 2017). The social media marketing practice is the most common
practice that the organisation follows for promoting the Craving Chocolate Pastries. Moreover,
YouTube advertisements are also used to create an awareness within the society.

5NEW PRODUCT IDEA
Business analysis
The product is in a testing phase where the organisation is willing to check the product
lifecycle properly. Therefore, there is limited expectation from the market. However, the
company sketches a rough estimation of $ 15,000 profit from the initial 6 months. It is a very
limited and reasonable target set by the organisation as the company knows that it takes time to
get a loyal customer base. There are several important aspect for the business organisation to
cross check in order to gain the objectives properly. For instance, using the distribution channel
wisely and focus on the quality of the product particularly.
Market testing
There is no market testing yet because there are some problems with the packaging of the
product. A number of important aspects are associated in the process from manufacturing the
product to its distribution. There are some problem with packaging of the product. Moreover, the
distribution strategy is also get reviewed due to exceeding the budget. It is highly essential for
the organisation to follow the budget and do not overshoot it (Hu et al., 2018). Otherwise a
negative impact will be imposed on the expected profit estimation.
Commercialisation
The management decides to host a campaign on diabetes in the busy market area. The
purpose of the campaign is to create a brand image among the customers so that they will
become interested to buy the product (Davis, 2017). Moreover, free check-ups for the visitors
will also be there and everyone will get a Craving Chocolate Pastries. It is a promotional
campaign so that the management is highly interested in understanding the demands and trends

6NEW PRODUCT IDEA
in the market. The campaign will be conducted just before two days of the product distribution
so that people will get the product easily and it will be beneficial for the organisation as well.

7NEW PRODUCT IDEA
Reference
Alalwan, A. A., Rana, N. P., Dwivedi, Y. K., & Algharabat, R. (2017). Social media in
marketing: A review and analysis of the existing literature. Telematics and
Informatics, 34(7), 1177-1190.
Boyko, E. J., Monteiro-Soares, M., & Wheeler, S. G. (2017). Peripheral arterial disease, foot
ulcers, lower extremity amputations, and diabetes. Diabetes in America. 3rd ed.
Bethesda, MD: National Institutes of Health Publication, 20-21.
Davis, D. H. (2017, July). Is Twitter a Generalizable Public Sphere? A Comparison of 2016
Presidential Campaign Issue Importance among General and Twitter Publics.
In Proceedings of the 8th International Conference on Social Media & Society (pp. 1-5).
Dizqah, A. M., Lenzo, B., Sorniotti, A., Gruber, P., Fallah, S., & De Smet, J. (2016). A fast and
parametric torque distribution strategy for four-wheel-drive energy-efficient electric
vehicles. IEEE Transactions on Industrial Electronics, 63(7), 4367-4376.
Giovannini, P., Howes, M. J. R., & Edwards, S. E. (2016). Data on medicinal plants used in
Central America to manage diabetes and its sequelae (skin conditions, cardiovascular
disease, kidney disease, urinary problems and vision loss). Data in brief, 7, 1217-1220.
Hu, H. H., Lin, J., Qian, Y., & Sun, J. (2018). Strategies for new product diffusion: Whom and
how to target?. Journal of Business Research, 83, 111-119.