Strategic Launch

Planning
Strategic Launch Tactical Launch
Decision Decision
● Treat as part of ● MLP-Good Quality market
development phase intelligence
● Begins early ● Sufficient HR & Finance
● Team
Strategic Platform Decision
● Type of demand
● Permanence
● Aggressiveness
● Competitive Advantage
● Product Line Replacement
● Competitive Relationship
● Scope of Market Entry
● Image
Type of Demand
● New to the world
○ Emphasize strategy to stimulate primary demand
○ Stimulate and Diffuse
● Product Upgrade
○ Encourage existing customer to migrate
○ Stimulate replacement demand
● New Product Line
○ Stimulate Selective Demand ; drawing market share
○ Trial purchase
● To Stay
● To Stay “if”
● Temporary
○ High R&D time
○ Temporary on the market
○ Ie; F&B company
Aggressiveness

● Aggressive Entry ; Seeks loots

attention
● Cautious Entry ; product
performance, competitive
reaction, etc.
● Balanced Aggressiveness.
Competitive Advantage
Product Line Replacement
Competitive Relationship
● Make no reference to
specific competitors
● Aim directly at a specific
competitor
● Avoid a specific
competitor
Scope of Market Entry
This issue relates to a firm’s desire to do market testing. Some introduce their new
items into part of a market, watch what happens, and then roll them out to the
entire market as they overcome any problems.
Image
Issue
● Will the new product need an entirely new image, a major change in an
existing image, a tweaking of an existing image , or no change whatsoever in
an image?
● butt-on strategy of market replacement can destroy the prior brand if
necessary to properly position the new
TARGET MARKET DECISION
Alternative Ways to Segment a Market
End-Use

Geographic and Demographic

Behavioral and Psychographic

Benefit Segmentation
Alternative Ways to Segment a Market
End-Use

Geographic and Demographic

Behavioral and Psychographic

Benefit Segmentation
Alternative Ways to Segment a Market
End-Use

Geographic and Demographic

Behavioral and Psychographic

Benefit Segmentation
Alternative Ways to Segment a Market
End-Use Joint Space Map

Geographic and Demographic

Behavioral and Psychographic

Benefit Segmentation
Micromarketing and Mass
Customization Micromarkets, a current twist in target market
selection is the trend toward smallness. Retail
scanners and sales information systems yield
the databases that display very small targets
(neighborhoods or industrial subsets) with
unique purchase patterns.
 Micromarketing and Mass
Customization
Mass Customization is the ultimate smallness,
and the ultimate building customer value(tailoring a
good or service to the unique specifications of
individual customers).

Type Of Mass Customization

• Collaborative customizers

• Adaptive customizers

• Cosmetic customizers

• Transparent customizers
Diffusion of Innovation
Product Characteristics According to the classic diffusion theory of Everett Roger
 Adopting Innovations
Individualistic consumers are
more innovative than collective
consummers
Diffusion of Innovation
The obvious question is, “Who
will be the innovators and early
adopters?” Can we identify
them in advance so as to focus
our early marketing on them?
Product Positioning
Positioning originated as a concept in advertising but is
now seen as an ingredient of total strategy, not just an
advertising ploy.

Positioning alternatives fall into two broad categories. The

first is to position to an attribute (a feature, a function, or a
benefit). The second alternative in positioning is to use
surrogates (or metaphors).
Creating Unique Value for the Chosen
Target
Trademark and Registration
● Trademark is a word, symbol, logo, or a
design that is used to identify a product.
● Brand is about the strategy, while
trademark is the legal aspect of that brand.
● Registration is the act of registering a
trademark. Normally the first user of
trademark had exclusive rights, in U.S.A
however, if someone successfully
registered a trademark, that trademark will
become his right forever, despite someone
might already use it.
 ● Conditions to register a

Trademark and trademark:

○ Trademark should not be immoral
or misleading
Registration ○ Trademark should not be
descriptive
○ Trademark should not be similar to
other trademark
● Companies can also apply for
a trade dress protection
○ Trade dress protection is a
protection not only to a trademark
but also too many factors that
identify the product such as
packaging, product color, decor,
etc
What is a Good Brand Name?
What is a Good Brand Name?
● When choosing a brand name we should be careful not to chose the wrong
name
● Some of the brand use the semantic meaning of phonemes, or the raw sound
of the letters
○ B on BlackBerry evokes reliability, the short e evokes speed.
○ Vi- on Viagra suggests vitality, -agra suggest aggression and also rhymes with Niagara a
favorite honeymoon spot.
● Brand name should be backed by creating customer awareness and
understanding
● Check with your users for their opinion on your brand name!
Managing Brand Equity
● Brand equity is the value of a quality and
positive brand image that encourage
customer loyalty
● Making advertising and other forms of
promotion become more efficient for a
product with high brand equity. High brand
equity = high brand awareness
● High brand equity can become a
bridgehead for launching brand extension
BRAND EXTENSION:
● Brand extension can be either vertical or
horizontal
● Vertical brand extension is when the
extension are still on the same category
● Horizontal brand extension is when the
extension are on different category
● Brand extension should be managed well
or it might results to brand equity erosion
Brand Equity and
Branding
Strategies
● Umbrella Brand Strategy:
strategy where the
company put their name
and/or logo on every each
one of their product
● Individual Brand Strategy:
strategy where each of the
product did not bring the
company name with them
and have their own equity
Global Branding and Positioning: Standardize
or Adapt?
● Consideration when doing a global brand management: should we
standardize it or adapt to the environment?
○ Some brands such as Gillete, Coca Cola and Kellog’s Cereal decided to standardize their
brand on the world. By standardized they aim to use the same positioning on each part of the
world
○ Others however like Honda and Canon decided to use different positioning for different
region/environment. They tried to adapt with that differently for each part of the world
○ Some other use different name for exactly the same product when it is introduced on different
region like what Procter & Gamble did
○ There is also a company that utilize both standardize and adapt strategy like Unilever where
some product were sold under the same name and positioning and other were sold with
different positioning
Global Brand ● Global brand leadership is a

Leadership process to create strong

presence in every market
○ This require overall global brand
strategy that goes beyond simple
product attribute, but also
including intangibles such as
quality reputation or symbols
● A company did not aim to
pursue a single global brand,
but to achieve global brand
leadership
PACKAGING
The Role of Three type of Packaging:

● Primary Packaging
Packaging ● Secondary Packaging
● Tertiary Packaging

Role of Packaging:

● Containment
● Protection
● Safety
● Display
● Information and Persuasion
The Packaging Decision
● Packaging decision usually was made by packaging director
○ However it is not an easy decision its often involve other department such as
engineering, distribution, safety, legal, cost accounting, purchasing, R&D, etc.
● Common step on packaging:
○ Packaging person is put on a new product team, a field trip is mandatory.
○ The process for a package development resembles the process of a making
product including dummy packages, in-store display test, color test, visual test,
etc.
● Packaging is important because it can be a very powerful competitive tool.
 CHAPTER 17
IMPLEMENTATION OF STRATEGIC
PLAN
THE LAUNCH CYCLE
The Launch Cycle is an expansion of the
familiar introductory stage of the Product Life
Cycle (PLC) into substages.
Prelaunch is when we are building our
capability to compete.

What can we do?

1. The training of sales and other promotional

people.
2. Building service capability.
3. Putting out preannouncements.
4. Arranging for stocking of the product at the
reseller level.
SEQUENCE OF
ANNOUNCEMENTS
1. Non disclosures

2. Product testing

3. Anticipation
PREANNOUNCEMENTS
4. Influential

5. Broadcast PR

6. Promo pieces
PREANNOUNCEME
NTS
Goals:

1. Used to hype interest in the upcoming product.

2. To keep current customers from switching to a
competitor.
3. To encourage prospective buyers to wait for the
new product.
4. Used to block a competitive entry.
PREANNOUNCEME
NTS
It often tied to “network externalities”.

1. Indirect Network Externalities

The value of the service increases for one user

group when a new user of a different user group
joins the network. (e.g. Gojek)

1. Direct Network Externalities

The value of a service simply goes up as the

number of users goes up. (e.g. Instagram)
BEACHHEAD
Beachhead is a heavy expenditures
necessary to overcome sales inertia.

What happen?

1. Improvements scheduled.
2. New budget released.
3. Temporary marketing arrangements
become permanent.
LAUNCH STRATEGIES & TACTICS

The Innovative New Product

The Offensive Improvement

The Defensive Addition

LAUNCH STRATEGIES & TACTICS
The Innovative New Product

A strategic objective to get a foothold in the

market early in the product life cycle.

Common tactic accompanying this kind of

launch is a broad product assortment.
LAUNCH STRATEGIES & TACTICS
The Offensive Improvement

A strategic objective to erect barriers to

entry.

Common tactic accompanying this kind of

launch are a broad product assortment, high
consumer promotion & advertising.
LAUNCH STRATEGIES & TACTICS
The Defensive Addition

A strategic objective to increase penetration

in existing markets.

Common tactic accompanying this kind of

launch are penetration pricing and
promotions to the customer.
 LEAN
LAUNCH Lean Launch means keep the supply chain
system flexible, so it can respond rapidly to sales
changes.

Commit not too much inventory during the early

days of launch, but can ramp-up quickly. It
requires coordination between:

1. Sourcing
2. Manufacturing
3. Delivery operations
 LEAN
LAUNCH Lean Launch drives by Postponement
(delaying finalization of product form and
identity). The Key : firm must have good
information technology systems.

1. Time Postponement

Deploy inventory as late as possible.

1. Form Postponement

Lock in product design as late as possible.

LAUNCH TIMING
The timing of the launch
depends on the readiness in
every parties.
(manufacturing, marketing,
etc.)

Lean Launch provides a firm

choose to launch earlier or
later.
LAUNCH TACTICS
 LAUNCH TACTICS

The Communications Plan

The Copy Strategy Statement

Personal Selling
 LAUNCH TACTICS
The Communications Plan

It involves everything from PIC

(Product Innovation Charter), COMMUNICATIONS MIX
concept testing, to strong
persuasion. Company communicate with The Reseller

Reseller communicate with The End User

It based on a solid understanding of
Company communicate with The End User
the end users’ attitudes & behavior.
Total communication to The End User
 LAUNCH TACTICS
The Copy Strategy Statement

It is a communication tool designed

to communicate these requirements:

The market segment being targeted.

The product positioning statement.

The communications mix.

The major copy points to be communicated.

 LAUNCH TACTICS
Personal Selling

Salesperson role is to introduce new

product.

It is important to :
Investigate why salespeople might object new product.

Give them training & materials.

Make sure the product available with them.

Alliances
Technical department needn’t have every possible technical capability
required for new product project

Form strategic alliances with government, university, private research,

competitor

Advertising agency Trade channel Exhibit firms

A-T-A-R REQUIREMENT
4 key steps must move through to be satisfied adoption of a new product:
- Awareness
- Trial
- Availability
- Repeat
A T A R - AWARENESS
First step toward adoption
Marketer want awareness followed by trial

To get awareness:
- Announcement ad/sales call
- Mention by friend
- Seeing product in use
- Professional endorsement
A T A R - AVAILABILITY
Service → Sold directly
Goods → reseller (distributor & retail dealer) → help push product down the
channel

Include distributor/trade relation director’s

thinking in early product development
A T A R - AVAILABILITY
Reseler role:
1. Prestocking activity (training, installation of equipment)
2. Stocking of new item
3. Preparation for promotion (training salesperson)
4. Doing promotion (catalog listing, add item to selling schedule)

Slotting allowance → large retailers sell their scarce space

for minimum shelf position
A T A R - AVAILABILITY
Motivating
Distributor

“Don’t deal
carelessly with
a necessary
team player!”
A T A R - TRIAL
● Stumbling point for most product that fail
● will permit customer to verify claims, learn advantage & disadvantage
of product

● To generate trial: free sample

A T A R - TRIAL
Barrier to trial → cause customer delay/permanently postpone trial
If desired perceived relative advantage / compatibility can be achieved at
launch, desired level of trial will be attained
A T A R - TRIAL
Consumer deferring trial because of anticipating loss of something
(money/time/prestige) → pay the buyer for such loss
(to overcome barrier to trial)

New product price strategies:

1. Premium → very high price, clear product differentiation
2. Skim → price above the market, appropriate to differentiated product,
nonthreatening to competition, with room to some price manipulation
3. Meet the market → no one market price, pick a price that takes price
out of the play as much as possible
4. Penetration → low price, little room for discount, though to raise price
after market share achieved
A T A R - REPEAT PURCHASE
Actions in marketing program to encourage further
usage:
1. Long term discount
2. New use for the item
3. Ready availability of additional product