SRSD 3032 Innovation Management and New Product Development University Teknologi Malaysia, Kuala Lumpur

1. INNOVATION MANAGEMENT AND NEW
PRODUCT DEVELOPMENT
SOFT DRINKS
MUHAMMAD NURAFIF BIN MOHD NORSHISAM
UNIVERSITI TEKNOLOGI MALAYSIA, KUALA LUMPUR

2. Value Propositions (VP)

3. Age is one of the most important segments of soft
drinks. Children, and young adults in particular are an
exciting target group for my soft drinks. Beverage
brands benefit from establishing a bond early on, since
preferences are developed at a young age and often
preserved into adulthood, where they become
consumption habits. In addition, my soft drinks targets
the market that desires an intense flavor with various
flavours drinks in terms of taste. My soft drinks can
implement business-to-business (B2B) where I can
supply my drinks to other convenient store for sale and
business-to-customers (B2C) where consumer or
customers can buy directly from the supplier.
Potential Customers

4. Demography
The persona that would be for my product will be under 25 in
age because soft drinks is seen to be consumed when you
need a boost or when you’re in a rush and youngsters are
always in a hurry. It can be girl or boy and they don’t need to
have an high income because a single soft drinks won't cost
up to about RM5. The persona also can be a person that like to
hangout with some friends because a drink would suit when
having a chat with other friends. The persona can be a
secondary school student, college student, university student
or youth but did not want to include the primary school
student and under because don’t want to build up an issue
about obesity in young age.

5. Sales and Marketing Strategy
Firstly, for my sales and marketing strategy I will make a signature colour and logos for
product recognition from the customers. I also will make a catchy trademarks for my
drinks so that when people hear or say the trademark, they will immediately know that are
my soft drinks. So when I had structured those elements for my products, I will start
creating new design that would be easily recognizable and set the brand apart from other
competition. Then, I will aggressively markets my product lines through ad campaigns
across multiple mediums and channels, including TV, online ads, sponsorships, and others.
The mass brand awareness created by these wide-reaching marketing and sponsorship
campaigns enable my soft drinks to maintain its stranglehold on the beverage market. I
invested heavily in not only advertising, but also gave out free samples to thousands of
people as the drink moved into new communities, convincing new customers to try the
beverage and share it to others.

6. Distribution Plan
My company will manufactures and sells concentrates,
beverage bases and syrups to bottling operators. However I
still owns the brand and responsible for consumer brand
marketing initiative. The bottling partners manufacture,
package and distribute the final branded beverages to
customers and vending partners, who then sell products to
consumers. All bottling partners work closely with suppliers,
grocery stores, restaurants, convenience stores and many
others to execute localised strategies developed in
partnership with my company. More precisely, my products
never have to travel far to reach the final consumer, making
the product more local than you may think, the product is
made local to the market where it is sold.

7. Competitors
There are many competitors that had been established
earlier than me such as Haus Boom, 100 Plus, Kickapoo
and Yeos line-up. Although their product was well known
by local people, I can overcome it by making a unique
flavour and attractive product. I also can offer affordable
and cheaper price for my product, proportional with my
drinks quality. My distribution channel could be local
delivery or logistics company to distribute my product
from the manufacturer to the consumers. I also will offer
online ordering option for the customers and will be
delivered by the available local delivery services such as
J&T, NinjaVan and GedEX.

8. Product Production
In our concentrate operations, my company typically generates net operating revenues by
selling concentrates and syrups to authorized bottling partners. Our bottling partners combine
the concentrates with sparkling water and sweeteners, depending on the product, to prepare,
package, sell and distribute finished beverages. Our finished product operations consist
primarily of company-owned or -controlled bottling, sales and distribution operations. Some of
the bottling partners are more know about the local sellers that could our product as their new
products to sales so that we can spread our product more effective and faster.

9. Exit
Strategies
If I fail on my business I can sell my
business to the ideal buyer that someone
who has more skills and interest on the
operational side of the business. Selling
your business could allow us to pursue
other projects such as investing in
another business or find work with an
employer. Any profit from selling your
business could allow you to pay off
personal debts. But I think, I would not sell
it hundred percent of my business,
besides I will sells more than fifty percent
to the shareholders so that when the
business become stable again, I still can
have profits.

10. Google Patents
Based on Google Patent, the beverages product that similar with my product is coded with
CN1321594C. A carbonated drink having both the rich taste of a plant-derived components
such as fruit juices and the stimulating and refreshing feel of carbonic acids is provided. The
carbonated drink contains 10% to 80% by weight of the plant-derived components and 2% by
volume or, more of carbon dioxide, has a soluble solids content of not more than 8 degree as
indicated by a refractive saccharometer, contains high intensity sweeteners, the sweetness
due to which is not less than 25% by weight on the sucrose equivalent basis and has an entire
sweetness equivalent to the sweetness of a sucrose content of 8 to 14% by weight.
Furthermore, it contains sucralose as at least one high intensity sweetener, with the sweetness
due to sucralose accounting for not less than 50% of the sweetness due to all high intensity
sweeteners on the sucrose equivalent basis.

11. Competitor’s Products As Benchmark
The competitors or the product that I can make as benchmark was the local beverages
brand named Hausboom. Hausboom was established in 2014 by 3 founders, Azri Zahier
Azmi, Zaid Hurairah and Erwan Haddie Arshad under The Boom Beverage Sdn Bhd.
Starting with a 100,000-bottle production capacity per month, Hausboom has now moved
to a 4-acre new facility at Besut, Terengganu with German and Italian technology machines
with a production capacity of 2,000,000 bottles per month. Hausboom also practices Good
Manufacturing Practice (GMP) and has been awarded the Halal certificate from JAKIM. The
cost of a carbonated soft drink automated plant cost with one pair of machines will range
from RM60,000 to RM70,000 depending on the production capacity. The cost will come
down to around RM40,000 to RM50,000 with a semi-automatic machine. In addition, I need
to invest in land, inventories, legal costs, manpower costs, and 3 months of working capital.
Total investment in the range of RM100,000 will be required to start a soft drink
manufacturing plant in Malaysia. The requirement of raw material depends on the specific
type of product that I want to produce. However, some of the main ingredients are water,
sweeteners, flavors, acids, colors, and preservatives.

12. Component Analysis
In this component analysis, it will divided into two
categories which is the drink ingredients and bottle. Our
products' purity and quality depend on a healthy supply
chain that includes prosperous farming communities and
ecosystems. So our ingredient will include carbonated
water which is approximately 90% of our soft drinks. The
carbonated part is purified carbon dioxide, which gives the
drink its “bubbles” or “fizz”. Then, sugar for sweet taste and
colouring to give the drink its characteristic colour. Then,
the tartness of our soft drinks comes from the use of
phosphoric acid. Besides, caffeine will give the slight
bitterness in the taste of our drinks and lastly the natural
flavours which is the essence of the secret formula of our
soft drinks is its blend of natural flavours. This is the most
protected and secret part of the formula for our business.
There are so many options for the bottle material but the
most commonly will use polyethylene terephthalate (PET)
plastic and we suggest the usage of PET will take from
recycled plastic to preserve the environment. We also want
to provide glass bottle to attract more customer to buy our
drinks.

13. Product Architecture
There are several design of soft drinks but for
my product we will refer to the two main design
which is plastic soda bottle and glass soda
bottle. The classical soft drinks bottle (16.9 oz)
usually has the same volume, but the style or
finish may differ, especially at the base, which
may be protruded with lined counters. Many
have a wider midsection which narrows
towards the tip. The bottle (16.9 oz) is made of
plastic and has no neck. This bottle (16.9 oz) has
an overall height of 8” (20.3 cm) and diameter of
2.5” (6.35 cm). The drinks bottle (16.9 oz) holds a
volume of 16.9 oz (500 mL).

14. Product Architecture
The Longneck Glass Bottle or Industry Standard
Bottle is very familiar. It features a narrow body
and long neck with uniform capacity, diameter,
height, and weight, though capacity may change
from one country to another by a few ml. It can
be reused up to sixteen times before disposal.
The glass soft drinks bottle (12 oz - Long Neck)
has an overall height of 9.09” (23.1 cm) and
diameter of 2.4” (6.1 cm). The Long Neck Beer
Bottle holds a volume of 12 oz (355 mL).

15. Interaction Analysis

16. Function Modelling

17. UX (user experience)
Today's soft drinks should not only taste nice, but in the best-case scenario also be
considered "functional beverages" with a boost of particular nutrients, such as vitamins
or minerals that support an active and mindful lifestyle as part of a balanced diet. Soft
drinks and other functional beverages ranked among the industries with the highest
growth rates. In terms of volume, sales of soft drinks climbed sharply in market. Along
with branded versions that are reduced in sugar or without it, new flavour developments
remained important sales drivers. As a result of the current global health crisis, many
individuals are seeking greater control over their well-being and are searching for
obvious and trustworthy signs that a product satisfies their requirements for
ingredients, moral principles, and health goals. Demand for goods that promote both
short- and long-term health goals will be driven by this customer requirement. The new
soft drinks should ideally complement a holistic eating pattern in terms of well-being and
performance in addition to being "free from" components, that is, devoid of substances
that could have long-term, significant negative effects on health and wellbeing.

18. Design Concept

19. Thank You !