TR3001 New Product Development : CleanPak™
Product Development Plan
Xie Ziyang U052494H (prototype creator )
Zhou Wenhan U047762M (Owner of this blog, contact me @ zwenhan@g m a i l. c o n)
Tay Hong Juan U050925X
Khin Khin Htwe U054865L
Chen Deneng U047752R (creator of all our marketing materials!, wonder macbook user)
CleanPak is made up of a team of entrepreneurs from diverse backgrounds. We have different skill sets and each take a different stake in the business.
Company Name: CleanPak
Sparkles™ is a tray of tablet sized bathing solutions like shampoo, bath soap, facial wash etc. It is highly portable and convenient to use.
Our customer is a person who has a need to bath outside the comfort of his own home. He can be a sport athlete whom has just finished his workout or a typical student staying over at a chalet. We also plan to target the military market.
The soap market is a high volume, low growth market. Global demand is forecast to grow at a low CAGR of below 2% from 2005 to 2008. Most of that growth will come from Asia, which accounts for 50% of global demand. The market size of our product is estimated to be $9.6 million in Singapore.
We will be distributing our product through retail shops. Also we will be selling direct to business that have contact with our customer profiles. These businesses are hotels, the military, airports, stadiums and resorts.
• Low start-up Cost: $60,000
Sparkles is a convenient product that caters to the users’ need. It is built around a simple product with a simple and already well understood manufacturing process. Thus we have a very low start up cost.
• High returns – 72 % gross margin
Our product prototype cost $0.84 to produce. We expect the cost to drop after we enter mass production. Our market research shows that our customers are willing to pay $3.00 for our product.
• Breakeven in Eleven month
Due to our low startup cost and high returns, we expect to break even in less than a year.