Introducing a New Product, case study Lavina bar soap

Introducing a New Product, case study Lavina bar soap

Overview

This study aimed at focusing on the background information, statement of the research problem, objectives of the study, research questions, and significance of the research, and the scope of the study.

Background of the Study

According to (Nguyen & Yiannias (2019). A product refers to an object that is processed or manufactured for consumption by the consumers. It can also be something that is released to the market, the main aim of being satisfying the customer’s needs. These products can further sold to the consumers through retailing or manufacturing, whereby raw materials manufactured into finished products. Products can exist in two forms. Those that can be touched are known as tangible, while those that cannot are intangible.

Statement of the problem

In the current world, business is the order of the day. They are vast both from large scale to small scale offering different products and services. Some have joined the market recently, while others have been in existence for quite a long time. All with the aim of satisfying customer’s needs. However, it becomes a challenge in introducing new products in the market. Some of the factors that success includes inadequate funds, lack of business skills, insufficient resources, government policy, and stiff competition. The study therefore aims to examine the issues that affect launching of a new product that has made it hard not to enter the market. The research will lead to a more efficient and effective way of releasing the Product into a competitive business environment.

Research Objectives

The main objective of the study is to find out the challenges of introducing a new product in the market Lavina bar soap as a case study.

Specific objectives

1. To establish the costs of creating a new brand.
2. To examine the challenges faced when developing the Product.

Research Questions

1. What will be the structure of the company?
2. How much fund is needed?
3. What will be the main obstacle?

Significance of the study

The findings from the survey will give insight into entering the market of skincare products.

Assumptions of the study

1. The chosen skincare product exists
2. The figures used are real

Scope of the study

The study investigated the establishment of a new product to the country that will help people with the purpose of cleaning. The bar soap is for day to day cleanness. That is both at household levels, companies, hospitals, and learning institutions.

Importance of bar soap

1. Easy to use
2. It is not bulky and can be stored easily.
3. They do not pollute water when and after using it.

Cost to be incurred

Since the company starts from scratch, it will suffer a lot of expenses. It means the budget will be high since everything is new and has to be purchased.

1. Cost of land approximately- 100,000 U$
2. Cost of machinery and all related equipment for production- 10,000,000 U$.
3. Cost of labor -8,000,000 U$
4. Cost of starting the business including government fees- 1,000,000 U$
5. Cost of obtaining raw materials- U$ 1,000,000,000.

Hence the total cost is approximate -U$ 1,019,100,000

The time frame for starting Lavina bar Soap Company

The figures are so huge, therefore, and therefore it may require a period. Hence the study suggests a maximum period of 3 years.

The figures for starting the

Challenges in improvising the new product bar Soap

1. Inadequate funds. It requires the establishment of a new company that requires a lot of money. Money can is used to purchase land, raw materials, and paying for labor.
2. Lack of business skills. It is a challenge since it is the first time the Product needs to enter the market; hence, lacking some skills of operation.
3. Inadequate resources. Production of soap requires a lot of raw materials for the company to flow. It tends to be a challenge since it is not familiar with raw materials suppliers.
4. Government policy. Establishing a new company requires legal procedures, including license and paying revenue, which is a challenge to a growing business.

Recommendations

The study, therefore, recommends the following before starting the Lavina Bar Soap Company.

1. We are constructing a business plan. Before setting up a new product, it is crucial to have a plan. It will help in showing the production process beginning from the first stage to the last.
2. Proper survey and research. It entails carrying out a field survey and doing more research on the nature of Soap Company. By doing this, more skills and knowledge added on how to operate the business.
3. They are making inquiries. It is also advisable to ask questions, especially to the related companies. Finding out the nature of their products and what is the secret beyond their survival and existence for long.
4. Proper finance. Earlier plans are needed to ensure the business will be well-financed. It involves areas of obtaining funds that are reliable and adequate. A good example includes money lending institutions, friends, or family members.
5. Self-evaluation. It is essential to access oneself before enacting a business. For example, do you have the necessary knowledge? Do you have enough capital? Are you ready to face challenges, and will you manage them?

Conclusion

Business is a critical element of the present world. There are millions of companies offering the same brand. (Oksman et al. 2017).There is stiff competition, and survival for fitness is the order of the day. However, it is good to take a risk and be one of the best, if not the best. Soap is an essential product, and as long as the population increases, its demand will also increase.

Reference;

Nguyen, H. L., & Yiannias, J. A. (2019). Contact dermatitis to medications and skin products. Clinical reviews in allergy & immunology, 56(1), 41-59.

Oksman-Caldentey, K. M., Nohynek, L., Smolander, M., Alakomi, H. L., Rischer, H., & Puupponen-Pimiä, R. (2017). Sustainable cosmetics–berry-based ingredients for bioactive skincare products. Planta Medica International Open, 4(S 01), We-SL.