Product launch Essay

PRASETIYA MULYA

is an introduction of New Product into its market
it is the early stage of “introduction phase” in PLC

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Sales
Volume

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Maturity

E
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Decline

D
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Time

The day the new product launched into its market
is usually called “D-day” !
NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-01

PRASETIYA MULYA

Prelaunch
is a stage the firm building its capability to compete
Training Sales & other Promotional People
Building Service Capability
Preparing Communication Campaign
Arranging Distribution & Inventory for Resellers

Preannouncement

To hype interest to the new product
To keep current customers from switching to comppetitors’
To encourage prospective buyers to wait for the new product
To block competitive entry

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-02

PRASETIYA MULYA

Preannouncement
can also be done through “Signaling”
Price
Advertising
Trade Shows
Comment by salespeople
A speech by CEO
Tips from vendors (suppliers)
Filling inventory to Resellers
etc.

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-03

PRASETIYA MULYA

Is Preannouncement Necessary ?
Necessary :
Firms with Smaller Shares are likely to Preannounce
Where Switching Costs are High

Not Necessary :
For Large Firms if they fear Govt. criticism of monopoly
In industry with High Competition

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-04

PRASETIYA MULYA

Announcement of the Launch
Improvements will be done along the process
New Budget will be approved & released
Temporary Marketing arrangements will be made
permanent

3 Common Launch Strategies
The Innovative New Product
The Offensive Improvement
The Deffensive Addition

see pp. 433

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-05

PRASETIYA MULYA

Launch Tactis & Actions

see Fig. 17.2

Communications Plan
Firm to the End Consumers
Firm to the Resellers
Resellers to End Consumers

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-06

PRASETIYA MULYA

Personal Selling
is the “workhorse” of most New Product introduction
Important Roles :
Product availability at Retail Stores
Shelf Position in Retail Stores
An intrusion for the Sales Force :
It takes time
It disrupts schedules
It involves change and risk
Would like to sell it, but still negatives
No reduced territory, when ask to sell new product

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-07

PRASETIYA MULYA

Distribution Plan

Exclusive Distribution
Selective Distribution
Intensive Distribution

Selective-Intensive Distribution
Resellers’ Roles :
Prestocking activities: Training & Installation of equipment Stocking for the new item
Promo preparation: Training Salespeople & Servicepeople
Promoting the new item : In store; catalogue; etc.

Motivating the Resellers

see Fig. 17.3
NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-08

PRASETIYA MULYA

is controling or managing every new product launch
activities

Steps in Launch Management System
Spot Potential Problems

To identify all potential “weak spots”

Select “those” to control

Select those that could be controlled & couldn’t

Develop Contingency Plan for the control problems
What will be done if the difficulties actually occur

Design the Tracking System

Data
Experience to evaluate the data
Triger Points (to avoid “arguement”)
NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-09

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