As a strategic manager of a company, I have a certain responsibility for introducing or launching a new product in the market.

My decision is a key term to launching the product and depends the company image, goodwill and the financial growth of the company. So I think look in the following issues then it will be safe plan for the new product launch.

 Market Review:
 Market Segmentation  Target Market  Market positioning:  Product Review

 Competitor Review:
 Total market share:  Total competitors  Ratio of the potential customers & scope for the market positioning  SWOT analysis:

 Goals and Objectives
 Link between goals, objectives and priority:

 Marketing Plan:
 Price:  Promotion:
 Distribution:

 Financial Review:

Strategic Proposals:
 Core Competency:  What usually goes wrong:  Launch our product:

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Our product might be a new version of an existing one that we already sell.most of the effort is simply lost in the context. This is an audience that is already familiar with our products and with buying them from us. therefore we should divide the market into sub segments. which can lead to disastrous results. hotel room. and behavioral differences among buyers. but does so in a way that adds features or functions better. This actually makes more sense financially. Consumers demand products that work on multiple levels – functionality. If our item expands on the idea of an existing product. They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic. we’ll be targeting a market that has already formed a need for our type of product. Advertising and Sales without a market segmentation base is like scattering breadcrumbs to a product -. Start with our current customers.  Market positioning: We cannot satisfy everyone in the market. It must connect with and benefit enough potential customers to make it financially viable and successful. Not everyone likes the same cereal. This is much easier than having to create that need in the first place. It has to fill a demand in the market. restaurant etc.  Product Review: Our product is after all the most important part of our launch. price and quality. psychographic. Customers who are already buying a similar product can also make up our audience.  Target Market: It’s important to focus our attention on the group of people who are most likely to buy from us. Businesses will often mistakenly offer new products to customers without proper research or planning.that’s a built in market right there. We’re not spending marketing dollars on individuals who are not interested in our product. Market Review:  Market Segmentation: Market segmentation is a process by which market researchers identify key attributes about customers and potential consumers that can be used to create distinct target market groups. Our new item must address all of these needs 3 .

Competition was hardly even a consideration. Ultimately. Including: • New products have higher margins than older ones: This is especially true if they are innovative. it should be a product that sells itself. let alone luxury buyers. For example. But in 2008. unique or with little to no competition. naturally. or company. • • • New products help us to stay ahead of the competition. there are other reasons why our business needs to launch new products. when they released their Genesis sedan. businesses seek to increase their market share.  Competitor Review:  Total market share: Market share is typically reported as a percentage and reflects the portion of a target market that is an actual customer base. • New products can change customer’s perceptions about a company: For decades Hyundai was barely even a consideration among those shopping for economy cars. everything changed. The profits associated with new products help to add to our bottom line. expanding our product line helps us to offset sales fluctuations. If our product or service is seasonal in nature. service. which led to the shift in consumers’ minds. Because the figure for the possible / available revenue 3 . They offered luxury styling and amenities at a price point far below the competition. Market share may be reported as revenue or unit sales from a specific market divided by the total possible revenue or unit sales in that market. A "market" is a universe of customers or clients who are interested in a particular product. the Apple iPhone was insanely popular even before it launched. An increase in market share often makes economies of scale available that can contribute to earnings and profit margins so.and do so in a better way than what’s currently available. In addition to reacting to changes in customer tastes and competitors products.

we own a hypothetical company that offers fast. Weaknesses.  SWOT analysis: SWOT stands for:  Strengths (External)  Weaknesses (External)  Opportunities (Internal)  Threats (Internal) Review of the Internal Environment  Strengths.or unit sales in a specific market must be estimated or extrapolated. Threat 1. 1.  Total competitors: We have to find out the total market share and the total number of competitors belongs in the market to find out the scope of our new product. It is mandatory for calculating the promotion cost of the new product.  Ratio of the potential customers & scope for the market positioning: After finding the total competitors in the market we will easily know about the unexplored market or the customers that is mean here by potential customers.) 2. Opportunities External factors that offer a benefit (We have a strong business relationship with a local car dealership.) 3 . efficient car washes. Weaknesses Areas that place us at a disadvantage (We are unable to offer the lowest prices. Strengths Characteristics of our company that give us an advantage (For example.) Review of the External Environment  Opportunities. it is common for a firm to use market research to arrive at that figure.

2.) Our first step is to put together a list of other companies that have a product similar to the one we want to launch. This will give us a good idea of how they portray themselves and the areas where you might need improvement. and we need to be prepared for that. However. advertising. Threats External factors that may hinder our progress (A competitor is producing commercials that bad-mouth us. Check how the competition markets itself. 3 . We may think that our product idea is something new and unique and there is nothing in the market that can compare to it. Review their websites. Our new product should be able to satisfy the needs of our customers and resonate with them better than our competition does. whatever they use to interact with the public. put our self in the mind of the customer. Evaluate how our product measures up to what’s already out there. they’ll be comparing us to the competition. promotional materials.

Figure: New Product Launch in the Market  Goals and Objectives:  Link between goals. and then is total opposite with the company goal. whether it is matched with the company goals. and we want to introduce new taste of cigarettes in the market. 3 . If our philosophy is like “Discipline is life” like BIRDEM. objectives and priority: The product that we are wants to introduce in the market. objective and philosophy. because depending on this issue our image will build in front of the customer. objective and the overall philosophy. So we should be very careful about this issue.

Prices. or rate of return on investment. By emphasizing current financial performance the company may sacrifice long-run performance. competitors’ reactions. Select pricing method Step: 6. cash flow. and offers Step: 5. So we should set the price of new product in such a way that enables us to compete in the market and ensure the growth of the company. or changing consumer wants. and legal restraints on price. Marketing Plan:  Price: Setting the product price is one of the major issues in new product development.  Maximum current profit: Companies pursuing this pricing objective estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profit. the companies stay in business. intense competition. Analyze competitors’ costs. Select the price objective Step: 2. ignoring the effects of other marketing mix variables. Here we should charge minimum price. 3 . Select final price Step: 1. Estimate costs Step: 4. Steps in Setting Price: Step: 1. Determine demand Step: 3.  Survival: We pursue this objective when it suffers from over capacity. As long as the prices cover variable costs and some fixed costs. Select the price objective: We first have to decide what it wants to accomplish with its particular product offer.

the lower the demand. distributing.  Product-quality leadership: Companies aiming to become product-quality leaders in the market usually pursue this strategy. That is. Price elasticity of demand. Here we should develop high-quality products and price them pretty high compared to most of the competitors’ products. the higher the price.  Maximum market skimming: Companies introduce an innovative product usually follow pursue this objective. The company wants to charge a price that covers its cost of producing. assuming that the market is price sensitive. Step 2: Determining Demand: Each price that the company might charge will lead to a different level of demand and will therefore have a different impact on its marketing objectives. partial cost recovery. demand and price are inversely related. Following points are to be addressed in determining the demand: • • • i. Here we should set the lowest price. Here we should charge a high price initially and gradually lower price. and the lower the price.  Other Objectives: Nonprofit and public organizations may adopt a number of other pricing objectives. viz. Estimate demand curves. Step 3: Estimating Costs: Demand sets a ceiling on the price that the company can charge for its product. Maximum market share: Companies pursuing this objective believe that revenue maximization will lead to long-run profit maximization and market share growth. and selling the product. 3 . the higher the demand. ii. iii. social price (geared to the varying income situations of different clients) etc. In the normal case. Price sensitivity. full cost recovery.

9. we make a profit of Tk. the average cost has fallen to Tk.000 pens. As we gains experience producing pens.000. When the company has produced the first 200.2 per unit. Prices.including a fair return for its effort and risk.10. Total costs consist of the sum of the fixed and variable costs for any given level of production. Thus the average cost of producing the first 100. engineering. prices.8. and procurement costs fall. Average cost is the cost per unit at that level of production.000 ball point pens per day. and offers: Within the range of possible prices determined by market demand and costs. A manufacturer. manufacturing. it is equal to total costs divided by production. This decline in the average cost with accumulated production experience is called the experience curve or learning curve. If all firms sell at Tk. After its accumulated production experience doubles again to 400. and possible price reactions help the firm establish where to set its prices. • ii. Management wants to charge a price that will at least cover the total production costs at a given level of production. Fixed costs are costs that do not vary with production or sales revenue. its methods improve. sales – etc are examined. A company’s costs take two forms. Now suppose three firms compete in this industry.10 per pen. • iv. Step: 4. The company 3 . Following points are to be addressed while estimating costs: • i. each cost element – design. 9 thus can wipe one or both of the competitors. Accumulated production: Suppose our company runs a plant that produces 3. Activity-based cost accounting: Today’s companies try to adapt their offers and terms to different buyers. Average cost falls with accumulated production experience.000 pen is Tk. To eliminate one of two of its competitors we can sell at a price of Tk. and different means are adopted to bring costs of each element at a target level. Analyze competitors’ costs. fixed and variable. competitors’ costs. Target costing: Here. for example. materials flow more smoothly. “X”. and “Z”. Types of costs. Workers learn shortcuts. the average cost is Tk. “Y”. • iii. Variable costs vary directly with the level of production. will negotiate different terms with different customers depending on the service rendered to them and the associated costs.

d. it can use them as an orienting point for its own pricing.b. Value pricing 5.a. Impact of price on other parties  Promotion: After we’ve determined whom it is that we’re targeting with our product. The company also needs to learn the price and quality of competitors’ offers. the company must consider additional factors.f. including: • • • • A. Company pricing policies. C. Sealed-Bid pricing Step 6: Selecting the Final Price: Pricing methods narrow the price range from which the company must select its final price. Step 5: Selecting a Pricing Method: • • • • • • 5. What is it about our product that they should value the most? This is our unique value proposition (UVP). It’s a way of making our product compelling.needs to benchmark its costs against its competitors’ costs to learn whether it is operating at a cost advantage or disadvantage.e. psychology of prices (price-quality relation).c. Influence of other marketing mix elements. B. Markup pricing 5. In selecting the final price. It turns it into a “must have” item. Once the company is aware of competitors’ prices and offers. Target-return pricing 5. Perceived-value pricing 5. customers would wait for it and not even look at the competition. 3 . Our UVP tells us audience what makes our product different and better than the competition. Going-rate pricing 5. we need to establish exactly why people will want to buy from us and not the competition. to the point that even if it was unavailable. and D.

we can minimize the cost of the distribution. Online Marketing – Websites. which means in order to guarantee the success of our product launch. blogger and social media influencer outreach. postcards. If our product is consumable then the distribution system is different from if the product is service oriented. Direct Mail – Sales letters. Promotional Products. If we can do that.  Financial Review: Financial objectives are generally described in quantitative terms for at least three years in the future: • Gross sales (increase) • Cost-of-goods (decrease) • Gross margin (increase) • Net income (increase) • Return on investment • Return on income 3 . Promotional Literature – Business cards. media mailers. Another important thing is that whether we are unable to use the existing distribution system or not. Guerilla Marketing. • • • •  Distribution: Product distribution should be based on the product nature. email marketing. Consumers get information from multiple sources. online retail sites. newspaper. radio. magazine and outdoor. online advertising. brochures. the more success we’ll have. Marketing for our launch can be broken down into a few key areas: • • Advertising – Television. self-mailers. flyers. statement stuffers.The more channels that we can use to sell our product. we’re going to have to pursue them in different ways. social media. CD mailers.

These may come from the following strategies.and long-term company objectives and your marketing strategy. Sales and marketing plans should be a logical outgrowth of short. Four of the most frequently used strategic approaches to setting a company apart from rivals and achieving sustainable competitive advantages are:  Being the industry’s low cost provider. in marketing terms.  Strategic Proposals:  Core Competency: Finally we should go for the production of the new product.Businesses seeking outside funding and capital should provide a minimum of five years of projected income statements. 3 . For example. and share or shipment goals for each program. Before going in that portion we should keep in mind some factors. Those are how we can achieve the competitive advantage over the competitors. it may contain a summary of quarterly promotion and advertising plans. with spending. timing. Marketing objectives are quantitative translations of the company's financial objectives. For example: • Sales dollars • Sales units • Market share • Distribution levels/channel • Advertising awareness • Key account distribution The sales and marketing plan outlines each specific marketing event or action plan to increase sales. although these are usually located in the financial section of the business plan rather than the marketing section.

omitted. when key actions often considered central to success are arbitrarily omitted. technological superiority. Through their awareness it is anticipated that Stanski Customers may successfully avoid these during their NPD projects. Outcompeting rivals based on such differentiating features as higher quality. combined with organizational bravado is a recipe for failure.  Not Enough up Front Homework: Inadequate market analysis. For instance. the project moves off target. ignored. 3 .  Poor Quality of Execution: New product development processes are deficient. poor quality of execution and moving too quickly – all converge on the homework phase being very fuzzy and ill defined.  Lack of Market Orientation: Inadequate market analysis.  Moving Too Quickly: Many of these errors include failure to do certain key tasks and short-cutting of others . these are usually indicative signs of poor execution. better service. more attractive style. A poor definition of the product and market. When these corners are cut.usually made in the interest of saving time. added performance. all at great time and money expense. or erroneous. wider product selection.  What usually goes wrong: Some of the most common pitfalls associated with new product development (NPD) include the items listed below. a failure to understand customer needs and wants. and activities have to be repeated.  Focusing on a narrow market niche and winning a competitive edge. or unusually good value for the money. mistakes are made. and insufficient attention to the marketplace are consistently cited as major reasons for NPD failure.  Developing expertise and resource strengths that give the company competitive capabilities that rivals can easily initiate or trump with capabilities of their own.

This gives customers somewhere to go to get information on our product immediately. networking group. or seminar. These new products add no value or minimal benefit to customers. 3 . This is why we’ll need to create a new product launch plan. Consider holding our event at a trade show. conference. money. thus resulting in poor market adoption. In order to capitalize on the momentum built by our launch event. people are going to want what it is we’re offering. Think about holding a launch event so you can build up buzz. The lack of time. we need to make 100% certain that our product is complete and ready to be purchased by the public. Whichever we choose. Lack of Product Value for Customer: Moving ahead into product development with vague understanding of customer requirements leads to too many ill defined products. our marketing campaigns need to begin their roll out as soon as possible. We’re looking to reach the exact audience that will turn into someone willing to pay for our product. Launch our product: No matter how we conduct our launch. This in turn has serious consequences on product development as scarce resources are dissipated across many fronts and the truly deserving projects are under resourced. We should also establish our web presence prior to the launch event. Too Many Projects. Provide members of the media with a press packet and give them access to our product for review. There is no turning back once people know about our item and if we’ve done our job correctly. make sure that we use our public relations skills. and Lack of Resources: This is one of the most common new product development scenarios that plague organizations.  No Focus. This includes all advertising and direct mail. and people is the root cause of many errors of omission and poor quality of execution.

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