New Product Development

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NewProduct Development



Unileveris a global company where about two billion people use Unileverproducts in one given day. With the products ranging fromnutritionally balanced foods to indulgent ice creams, affordablesoaps, luxurious shampoos and everyday household care products, morethan 400&nbspbrands&nbspare focused on health and wellbeing. InCanada, Unilever is among the companies with the largest market sharefor household care products. This marketing plan intends to market anew product to the Canadian marketplace in efforts to increase themarket share for Unilever’s beverage products.

MarketAnalysis for Consumer Needs

Inthe global community today, natural products are mostly preferred asthey perceived as key an indicator of health and wellness. Productionof natural health products is one of the rapidly growing sectorsacross the globe to (Smith, 2011). Canada has not been left behindeither as many Canadian companies are specializing in production offunctional foods and natural health products. These are believed tohave health benefits because, for functional foods, they are usuallyenhanced with bioactive ingredients while natural health products arebasically extracts from natural sources.

Asthe demand for natural food and beverage category grows, differentcompanies have come up with different brands for both cold and hotbeverages, enhanced with ingredients for health benefits. However,consumption of these beverages mostly attracts grownups because theyare aware and able to make decisions of what they consume, whileputting their health into consideration. Children on the other hand are prone to any beverage as they are not able to properly evaluatethe benefits of consuming natural beverages, except under theguidance of a grown up. For them they prefer what is appealing andtasty.

Thereis a gap in the market, as the production of the natural beveragesbrands has mostly targeted grown-ups who are able to choose andconsume beverages that have health benefits to them. There iscurrently no beverage brand at Unilever with 100% ingredients thatare of health benefits, specially made and designed for children.There is therefore a need to satisfy this need as children wouldmostly want to consume products, associated with them. Parents onthe other hand would want their children to consume beverages thathave health benefits. Also, the fact that the market for beverageswith health benefit targeting children consumers has been notexplored exhaustively both in Unilever and other food and beverageproduction companies creates a gap in the market.


Theproduct will come as a tasty cold beverage, specially designed to beadmire by children. Unlike a variety of most tasty cold beverages, itwill come as a natural healthy product, a beverage with extracts fromnatural fruits sources and enhanced with bioactive ingredients ofminerals and vitamins. The beverage will be positioned as a highquality, unique and ready-to-drink product in order to convincecustomers that, it provides their children with the value theydesire. The product will have several brand extensions in terms oftastes varieties meant to meet the diversified demands, needs,desires and preferences of consumers. The product will also be packedin several denominations including 1.5 liters, 1 liter, 500 ml, 250ml, 100, ml and 50 ml. such packaging will be priced differently thusallowing consumers to buy according to their needs and affordability.The domination of 1 and 1.5 liters will be packaged in a containerthat will allow the product have a long life before it expires. However, to minimize the cases of the product’s expiry, Unileverwill employ lean production, whereby, high production of the beveragewill only take place after the demand of the beverage raises.

TheBrand Name

Sincepeople will always want to consume products with health benefits,this cold beverage specially designed for children, will be in thecategory of natural healthy products. This product fills the gap inthe market where there are many beverages that do not have healthbenefits, and for those with health benefits, they mostly attractgrownups because, such are able to make decisions concerning theproduct they consume in relation to health benefits. Children on theother hand will choose a product they find sweet and attractive tothem.

Themain consideration while naming a new product is the name’s abilityto relate with the market goal (Kaplan,2011), inthis case the main goal will be to createawareness to young parent and children aged between 4 to 15 yearsabout a product in the market with health benefits. The product is acold beverage is specially designed for children, as the primarytarget, and teenagers, as the secondary target consumers. The namemust therefore be attractive to these targets and must also bememorable. The quality of the product in terms of its health value isalso a consideration in naming the product because parents willalways be concerned about what their children consume.

Thename for the new product will be“Champverve”. Itis a name derived from two English words the word “champ” and“verve” champ is a short form for champion mostly related to theact of winning or gaining victory. On the other hand verve meansvitality or energy which is always associated with good health. Theblend of the two English words “Champ” and Verve” has been usedto come up with this new brand name “Champverve”. This namerelates to the health value of the product since the product willcontain bioactive ingredients and extracts from natural sources, thusclosely relating to its health meaning. The name is also is short andcan thus be memorable even to children. Basically, the unique brandname make it special and will thus stand out from the rest availablebrands in the market by balancing style with the quality of theproduct.


Asa new brand for Unilever we would also be well positioned to createthe brand perception we want in the market for this particularproduct. Its health value makes it unique among Unilever products andin the market place for beverages associated with children. This willthus give it a unique perception. This is made easy by the fact thatUnilever will have a unique opportunity to clearly communicate howthe product should be perceived. As a result this will boost theproduct performance in the marketplace.

Onthe other hand, it could be a challenge since it is difficult tointroduce a new brand in the market and quickly gain acceptance bythe public. Some population will only want to use newly introducedproducts in the market after they have been well established, knownand used by many other people. However this challenge will beovercome by the fact that, Unilever is a well established brand andhas won acceptance across the globe. Therefore as a productassociated with Unilever it will be accepted in the market place.

Althoughthere are a number of food and beverage companies in the marketplace, this new beverage product “Champverve” still has anopportunity to acquire a higher market share. Most of beveragecompanies claim to produce and bring to the to market cold beverageswith health benefits. However, most of these products associated withhealth benefits seem to only attract grownups and there are only afew if no beverages specially designed children. The new beverageproduct, “Champverve” will therefore be positioned as a uniquebrand for children. A perception for “Champverve” as a healthycold beverage for children will be created and hence be among thebeverage product with the high health value.

Themajor beverage company in the market is Coca Cola. The consumershowever do not link most of the Coca Cola products with healthbenefits but instead, luxury beverages. Coca Cola beverages have alsobeen associated with health risks. The energy drinks by Coca Colahowever are not commonly associated with health benefits, but asenergy giving drinks when engaging in a strenuous exercise or whenexhausted.

Thefact that cold beverages are seasonal is a challenge for the productin the marketplace. High consumption rates are only expected duringhot weather seasons and very low consumption rates during the coldweather seasons.

Interms of health value, the fact that it is a unique and aready-to-drink beverage for children with relatively at a reasonableprice, it will be an advantage of the product in the market.


Thefollowing goals will guide the marketing of the new product.

  1. To create awareness about the new product “ Chamverve” in the market

  2. To position the new product “Champverve” as the preferred health drink for children and teenagers in Canada

  3. To create a positive image and perception about the product among the young parents and children in Canada


Theabove mentioned goals will be achieved through the followingobjectives.

  1. To create awareness of at least 50% of the about the new product “Champverve” in Canadian market place.

  2. To communicate the health benefits of the product “Champverve” mainly to young parents

  3. To create and sustain at least 30% market share for new product “Champverve” in the health related beverages in Canada.

MarketSegmentation and Identification

Thetarget market will mainly consist of the consumers of the new productwho are the children and teenagers and young parents who probablyhave the power to influence what their children consume.


Childrenwill be the main target consumers of the product. These will be thechildren between ages of 4 to 10 years. Since the beverage willsweetened with honey, a natural sugar, it will be appealing tochildren as, children always want to consume products that are tastyand appealing to them. Although children will rarely have money oftheir own to buy the beverage, they have a great influence over whattheir parents buy for them. For example when they ask their parentsto buy a specific product for them, being loving and willing toplease their children, the parent will mostly purchase what theirchildren would love. Also in today’s societies children tend tohave money at younger ages, probably from their parents. Wheneverthey get money, our product will be among the first product theywould be willing to consider buying because of the pleasant taste.


Youngparents of both genders will also be the main target in marketing theproduct. These will include upper, middle, and even the lower classparents. The upper and the middle class parents have money, and arewilling to spend extra money not only to please their children, butalso to ensure that their children consume healthy products. The lowclass parents on the other hand, are as well are much concerned aboutthe health of their children. Although they may not always have extramoney to spend on buying luxuries to their children, they would oncein a while want to please them and will thus always prefer topurchase a product that has health addition value for their children.Basically, the new product “Champverve” will be among the veryfirst choice any of the parents would consider buying for theirchildren. Our marketing plan will thus largely consider this group oftarget.


Thesewill be considered as the secondary target in the market. Childrenaged between 11 and 15 to 18 years are the teenagers on whom themarket will target. They usually get pocket money from their parentsand have the freedom to buy for themselves anything pleasing to them.However with the consistent messages on the television and radio, themedia they are exposed to, they will be able to evaluate the healthbenefit our product and thus be willing to purchase it. Influencefrom their parents about the health benefits of the product“champverve” will also influence them to buy the product.


Tocreate the right marketing mix, product features, the price, placeand suitable promotion will be considered.


Theproduct meets the market demand as a healthy cold beveragespecifically made for children. Packaging will be attractive to thechildren and teenagers as our secondary consumers. Health benefits ofthe product will be consistently be communicated on the productpackaging containers.


Forour new product to reach the entire Canada, Unilever will distributethe product indirectly to the target consumers. Collaboration withsupermarkets and wholesale distributers to retailers will help toeasily and widely reach the target consumers to the furthest parts.


Thefood and beverage market is highly concentrated with ready-to-drinkbeverages. A quality and a competitive price will be the mainstrategy of attracting customers. Although there is increasedproduction of beverages that are a 100 percent fruit juice, criticsclaim additional of artificial sugars. Use of natural sugars in theproduction of this new beverage will position it at a higher quality.In order to gain an extensive market share in the Canadian market,Unilever will set a slightly higher price than the one offered bycompetitors in beverages production mainly because of the quality ofthe product and that the production coast can be slightly higher. Quality will therefore slightly influence the higher price.Considering that the quality is much desirable, this may not so muchaffect the demand.


Toassist our target market audience make decision to purchase ourproduct, promotion will be useful in information provision. Publicityand advertising will be the main promotional strategy. Mediaadvertising will be used to create awareness about the new product inthe market this will include health magazines, daily newspapers,television and radio advertising. Website will also be a great avenuefor promotion in efforts to gain and increase the market share.

MainStrategy and Tactics

Withthe existing competitive challenges, promotional plans and tacticsefforts will be required to establish and maintain a market positionand hence continued growth. Thefollowing marketingstrategies will be employed:


Accordingto Smith, (2011),to be competitive and profitable, a solid launch as a startingplatform for marketingis very important with today`s dynamic economy.The launching will create brand awareness in the region. During thelaunch health benefits of the beverage will be focused on sheddinglight as to why the product is to be preferred. Press releases willbe given to the media houses during the launch since introduction ofthe new healthy product in the market is newsworthy.


Thiswill be used to create and enhance the image of the product.Endorsement by a parent who is a health practitioner will be useful.Making such a person the main brand ambassador to endorse thebeverage will help to create a positive image health wise about theproduct. The parents are the ones who mostly make decisions aboutwhat their children consumes. As a result of endorsement by such acredible source, parents will thus have a positive perception aboutbeverage. This will increase the product purchase in the market.


Electronicand print media advertising will be run on the mainstream television,radios newspapers and health magazines. They will be used to passacross consistent messages of the value of the product “Champverve”.These messages will be designed for children, teenagers and theparents. Prideand Ferrell (2016) regard media advertisingas the most visible formof marketing, useful to build product awareness, bring attention tothe product, and build loyalty of consumers. Advertising for the newproduct will therefore be used to create the intended perception ofthe value of the product by persuading the parents that they aregetting more than the product itself. For children, it is believedthat in Canada, an average child watches about two hours oftelevision a day and sees more than 20,000 commercials per year.


Websiteis strongmarketing tool as it is often the first place clients go to getinformation(Pride &amp Ferrell, 2016). It will be used as an advertisingplatform for the new product targeting parents because they are theones who can access internet and owns the power to purchase for theirchildren. Health concerns focusing on children will be raised on thewebsite. Such concerns including obesity, and overweight, that comeswith consumption of junk food will be raised thus encouraging parentsto ensure that their children consume healthy food and beverages toavoid risks of such health conditions. A fact sheet about thebeverage’s nutrient content will also be provided to the samewebsite page thus encouraging the parents who visit the website topurchase the product for their children.


Thegrowing demand for healthy food and beverage products in the marketplace creates an opportunity for Unilever to embrace this healthybeverage product, which is specially designed for children .This willnot only give Unilever a higher market share but also make thecompany one that contributes to the wellbeing of the citizens.


Kaplan,A. (2011).&nbspReinventingprofessional services: Building your business in the digital marketplace.Hoboken, N.J: Wiley

Pride,W. M., &amp Ferrell, O. C. (2016). Foundationsof marketing.Stamford, Conn: Cengage learning

Smith,M. (2011). Thenew relationship marketing: How to build a large, loyal, profitable network using the social Web.Hoboken, N.J: John Wiley &amp Sons.