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Developing a Successful Product Launch Plan

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Title: Developing a Successful Product Launch Plan


1
Developing a Successful Product Launch Plan
Cathy Liggett
2
Fighting Fires
  • Anticipation Market Problems
  • Cultivation New Business Opportunities
  • Innovation New Products Services

3
Successful Product Launch Plan
  • Strategic Product Launch Planning
  • Marketing Launch Plan
  • Marketing Launch Strategies
  • Marketing Launch Programs
  • Launch Management

4
Strategic Product Launch Planning
  • Product Focused
  • Strategic Launch Decisions
  • Strategic Platform Decisions
  • Sets overtone and directions
  • Strategic Action Decisions
  • Define to whom to sell and how

5
Strategic Platform Decisions
  • Type of Demand Sought
  • Different levels of product newness require
    different kinds of impact the launch activities
    must have on demand
  • Primary Demand
  • Customer Migration
  • Replacement Demand
  • Selective Demand Stimulate trial purchases

6
Strategic Platform Decisions
  • Permanence Three options
  • We are in the stay, no thought to getting out
  • In to stay if we meet our goals, try to win, but
    be willing to pull out.
  • Temporary or Short Term used lots
  • Example Baskin-Robbins has a basic cadre of
    flavors but runs others in and out to give
    variety. Snack foods also have short- term
    products

7
Strategic Platform Decisions
  • Aggressiveness
  • Aggressive
  • Cautious
  • Balanced
  • Competitive Advantage
  • Will our product lower end user cost by virtue of
    its price?
  • Will our product offer new benefits by virtue of
    its differentiation? (Many companies choose both)

8
Strategic Platform Decisions
  • Product Line Replacement Strategies
  • Butt-on Product Replacement
  • Dropped when a new one is announced
  • Fords Marketing of Mondeo and dropping of Sierra
  • Low-Season Switch
  • Same a Butt-on, but arranging the switch at a low
    point between seasons
  • Tour companies use switch when they develop their
    new catalogs

9
Strategic Platform Decisions
  • High-Season Switch
  • Same a Butt-on, but arranging the new item at a
    top of a season
  • Sony, putting new replacements items out during
    the Christmas season.
  • Roll-in, Roll-out
  • Another version of butt-on, arrange by a sequence
    of market segments
  • Mercedes introduced its C series country by
    country

10
Strategic Platform Decisions
  • Downgrading
  • Earlier product alongside the new, but will
    decreased support
  • 386 chip stayed alongside the 486, until the
    Pentium was introduced
  • Splitting Channels
  • New Item in a different channel or diverting
    existing product into another channel
  • Old electronic products often end up in
    discounted channels

11
Strategic Action Decisions
  • Competitive Relationship
  • Avoid a Specific Competitor
  • The product that will come from this program
    will not be aimed at XYZ Company, nor threaten a
    piece of business that is important to that
    firm.
  • Colgate once had such a statement relative to
    Procter Gamble, but abandoned it in the 1980s
  • Aim directly at a specific competitor
  • Make no reference to a specific competitor
  • Caution trying to do two or three of these at
    once can cause a set of conflicts for your
    tactical managers

12
Strategic Action Decisions
  • Scope of Market Entry Related to Market Testing
  • Rollout
  • Rollout very rapidly (barely holding up long
    enough to find crisis problems)
  • Rollout deliberately, as performance warrants
  • Rollout to the total market at the beginning

13
Strategic Action Decisions
  • Image
  • What will the new product need…?
  • Entirely new image
  • Major change in an existing image
  • Tweaking of an existing image
  • No change in an image

14
Strategic Product Launch Planning
  • Organizational Focus
  • Guideline Decisions or Strategic Givens
  • Decisions made early in the new products process
    or product protocol specification that would be
    difficult or costly to change once made
  • These are often set in concrete without our
    knowledge
  • These can also be corporate policies that cant
    be bent or someone in upper management that whose
    personal opinions that become corporate law
  • Example Sybron Corporation, had a division in
    the dental furniture business, the division
    desperately needed new cash flow, and it had a
    new and unique chair ready to go, but the
    corporation had a mandatory 50 gross margin
    requirement that the division product planners
    were sure would be waived when management saw the
    new chair. It wasnt, even when the gross margin
    came in at 47. The division collapsed.

15
Developing The Marketing Plan
Define Marketing Objectives
Situation Size-Up
External
Internal
Market analysis
Marketing audit
Strengths Weaknesses
Macro- environmental analysis
Specify target market
Set product strategy
Set supporting strategy
Distribution Sales Force
Other Services
Advertising Promotion
Pricing
Deployment
Post- Launch Evaluation
16
Marketing Launch Plan
  • Marketing Launch Plan
  • A plan of action for new product introduction or
    launch
  • Where does the Marketing Planning activity begin?
  • Market launch is one of the final stages in
    the new product game plan, but do it
    simultaneously with the strategic product launch
    planning, if you wait until the end you may have
    done too little, too late
  • Discussion

17
Setting Marketing Objectives
  • The Role of Objectives
  • A decision criteria
  • Creates a sense of purpose
  • A standard for measurement
  • What makes a good objective, marketing
    objectives must
  • Set criteria for making decisions
  • Be quantifiable and measurable
  • Specify a time frame
  • Example To obtain a 20 unit market share in
    the owner operator segment of the class 8 diesel
    truck market by the end of Year 2 in the
    market.

18
Setting Marketing Objectives
  • Market objectives for a new product should
    include some or all
  • Unit or dollar sales of the product by year after
    launch
  • Share by year (be sure to specify the whole
    market or segment, and the unit of measurement)
  • Product profitability
  • percentage margins, annual profits by year
    (dollars or percentages) and payback period
  • Discussion

19
The Situation Size Up
  • The Situation Size Up
  • Key facet, size- ups are done often and at every
    phase of marketing planning
  • Size-up is a situation analysis the relevant
    information and asks
  • So what? most often ignored
  • What does all this information mean to the
    development of my plan of action?
  • What are the action implications?

20
The Situation Size Up
  • Market Analysis addresses the following
    questions and issues
  • Market Overview
  • How large is the market?
  • How fast is it growing?
  • What are the key market trends both quantitative
    and qualitative?
  • What are the market drivers?

21
The Situation Size Up
  • Market Segments
  • What segments exist in this new products
    marketplace?
  • How is each segment unique?
  • How fast is each growing?
  • What are their drivers?
  • What other segment trends are evident?

22
The Situation Size Up
  • Buyer Behavior
  • The who, what, when, where, why and how of the
    purchase process within each segment are set out?
  • Who buys?
  • Who are the purchase influencers?
  • What do buyers buy, and when and where?
  • Why do they buy what they buy?
  • What are their choice criteria and what are their
    preferences, wants and needs?

23
The Situation Size Up
  • Competition
  • Who are the competitors in each segment?
  • What are their strengths and weaknesses?
  • How good are their products?
  • How does the customer rate their products?
  • What are the competitors strategies in pricing,
    advertising, and distribution?
  • How well are they doing in terms of market share
    and profitability? Why?

24
The Situation Size Up
  • Macroenvironmental Analysis Trends and Factors
  • The economic situation
  • Political, legislative and legal situation
  • Demographic trends
  • Social trends
  • Technological development

25
The Situation Size Up
  • These questions should be asked for each trend
    category
  • What is the current situation or trend?
  • What is the timing of the situation or trend, and
    how certain is it to occur?
  • What are the implications of the situation or
    trend?
  • Is it a treat or an opportunity?
  • What impact does it have on the design,
    positioning, and pricing of your product?
  • What action is called for in light of the
    situation or trend?

26
The Situation Size Up
  • Internal Assessment
  • The companys internal strengths and weaknesses,
    as they pertain to this product launch.
  • Perform a Marketing Audit
  • Identify marketing assets and liabilities
    and how you can build on them and use them to
    your advantage in the new product

27
The Situation Size Up
  • Marketing Audit Questions
  • Can your relationships with your customers be
    used to advantage with the new product? Or your
    image or brand name?
  • Is your Sales Force good, bad or indifferent?
  • Will your Sales Force be able to sell your new
    product? If not, what should be done?
  • What shape is your customer service or support
    in? Are sufficient changes needed to support the
    new product?
  • Assess the status of your distribution or channel
    systems, pricing policies, advertising
    approaches, etc. What needs to be done to bring
    them up to speed for the new product?

28
The Situation Size Up
  • Attack from the position of strength
  • Review your companys marketing performance
    overtime
  • Discussion
  • D

29
Marketing Launch Strategies
  • Marketing Strategies
  • Define the Target Market
  • Key element of the product definition
  • The manager needs to know the object of your
    affection

30
Marketing Strategies
  • Segmenting the Market
  • Delineation of groups or clusters of people
    within a market such that there is relative
    homogeneity within each group and heterogeneity
    between groups.
  • Bases for Segmenting the Market
  • State of Being
  • State of Mind
  • Product Usage
  • Volume Segmentation
  • Loyalty
  • Market Factor
  • Benefit Segmentation

31
Marketing Strategies
  • Selecting the Right Target Market
  • Criteria for Market Selection
  • Segment Attractiveness
  • Competitive Situation
  • Fit
  • Ease of Use
  • Relative Advantage
  • Profitability
  • Discussion

32
Marketing Strategies
  • Product Strategy
  • Product Positioning
  • Product Benefits and Value Proposition
  • Features Attributes
  • Supporting Elements of Market Plan
  • Channel and E-Channels
  • Pricing Strategy
  • Overall Business Strategy

33
Marketing Launch Programs
  • Advertising and Marketing Communications
  • Steps in developing your communications plan for
    launch
  • Specify the communications objectives
  • Specify the target and positioning strategy
  • Describe the product to the agency
  • Review plan and approve
  • Review the media plan
  • Access the worth of the objectives

34
Marketing Launch Programs
  • Sales Force Decisions
  • Training the sales force in the selling of the
    new product
  • Providing the sales force with the appropriate
    selling aids
  • Devoting effort to the new product
  • Motivating and incentivizing the sales force
    (internal marketing)
  • If changes or additions to your sales force are
    needed
  • What is the nature of the selling job for the new
    product?
  • Is the nature of the selling job compatible with
    the talents, training and the way the current
    sales force operates?

35
Marketing Launch Programs
  • Financials
  • What will the plan cost to implement (the budget)
  • What will the plan will achieve (Sales Profit
    Projections)

36
Developing The Marketing Plan
Define Marketing Objectives
Situation Size-Up
External
Internal
Market analysis
Marketing audit
Strengths Weaknesses
Macro- environmental analysis
Specify target market
Set product strategy
Set supporting strategy
Distribution Sales Force
Other Services
Advertising Promotion
Pricing
Deployment
Post- Launch Evaluation
37
Launch Management
  • Follows these six steps to increase new product
    and service revenue and improve ROI on new
    product development costs
  • Establish goals
  • Create an effective product launch process
  • Define appropriate launch team structure and
    roles
  • Choose suitable launch managers
  • Select the right sponsorship team
  • Ensuring continuous improvement

38
Launch Management
  • Establish Goals
  • For an innovation idea to take place, companies
    need first to establish the right suite of
    metrics
  • Overall ROI
  • Time-to breakeven
  • Measure of quality
  • Revenue and profit profile

39
Launch Management
  • Create an effective product launch process
  • Tailored to the company its culture, customers,
    its industry, types of solutions it provides

40
Launch Management
  • Define appropriate launch team structure and
    roles
  • Successful launch teams work together to uncover
    problems or risks, and find solutions both inside
    and outside individual team members functional
    roles.

41
Launch Management
  • Choose suitable launch managers
  • An effective launch manger builds a shared
    vision, helping create a team which aggressively
    overcomes hurdles
  • Select the right sponsorship team
  • The sponsorship team ensures that the launch team
    is both accountable for and empowered to
    effectively execute the launch
  • Ensuring continuous improvement
  • Implementing continuous improvement requires
    discipline and a true commitment to
    organizational learning

42
Case Study
  • Case Study of Successful Product Launch Plan
  • Need
  • The product management team at an international
    company was gearing up to develop a pair of
    cutting-edge, phone-and-data devices in
    partnership with leading technology
    manufacturers.
  • Actions
  • Strategic Product Launch Plan
  • Marketing Plan
  • Marketing Strategies
  • Marketing Programs
  • Followed the six steps of Launch Management

43
Case Study Continued…
  • Results
  • Successfully launched two first-of-their-kind
    devices in time for high-sales retail season.
  • Exceeded post-launch sales expectations in first
    few months.
  • Achieved a positive revenue and
    customer-lifetime-value impact for designated
    sales channels

44
Summary
  • A well-planned and managed launch plan is
    critical to a new products success in the market
    place and achieving product goals.
  • From the customers view point, the launch of a
    new product or service must appear smooth and its
    value proposition compelling

45
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