Add the phtml file in the local.xml

For displaying the featured products in the home page please add featured_product.phtml in the template file and include that file in local.xml as shown below.

<cms_index_index>
    <reference name="content">
        <block type="core/template" name="home.featured.product" template="custom/featuredproduct.phtml"/>
    </reference>
</cms_index_index>

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