Excerpt
Table of Contents
Abstract
1. Introduction
2. New Product Launch Process
3. New Product Success and Failure
4. Conclusions
5. References
Figure List
Figure 1: New Product Launch Steps
1. Introduction
We are in an era where people change and people expect changes from the products they use as well. Companies also want to adapt to these changes and satisfy their customers and gain the new ones. The launch of new products is pivotal for the companies that redound their expansion in the market (Andritsos & Tang 2009). Also, the proportion of the new products in comparison to other ones is increasing (Benedetto 1999). What is expected to be done? A new product development to meet the customer needs and expectations. A new product development is likely the most complicated undertaking of the modern company, which requires the participation of all disciplines. All these departments work together and in a concentrated and coordinated manner (Davis 1993). Annacchino (2003) states that the product launch is the culmination of all the effort and work the new product development team has invested. New product launch is the last and the critical stage of the new product development and for the success of the product (Beard & Easingwood 1996). New product launch with the support of market research is used. A sole aim served in market research is to cater the needful information to help marketing managers make better decisions by noticing and reacting to marketing opportunities and problems (Tull & Hawkins 1993). Even though market research is used before launching, majority of the new products fail due to market entry timing, price etc.
2. New Product Launch Process
What is a new product? For a consumer: Whatever he thinks “new” for himself. A person who eats chocolate for the first time thinks of it being a new product. For a marketer, any product item which is different from the former market feature in any way to be a new product (Schoell & Guiltinan 1988). Pessemier (1982) defined a new product as “any product that users treat as an addition to available market offerings”.
The introduction of a product into the market has got sequential stages, each being indispensable in catering the success of the new product. During each stages, it is analyzed whether to go further or not and to understand what modifications/improvements are required for the success of the product. That is why, each stage is vital. New product introduction stages can be elaborated as seen below:
Abbildung in dieser Leseprobe nicht enthalten
Figure 1: New Product Launch Steps
Stage 1: Review of current product-market situation & specifying strategic objectives of new products
New product introduction process begins with the review of the current product-market situation and reevaluation of the strategic objectives that should be obtained by means of new products (Jain et al. 1999). This stage is like looking for the answers of the following questions: Where are we in the market now and shall we be able to reach our targets with new products?
Stage 2: Idea generation
New product ideas come from the employees inside the company, rivals, clients, top management, marketing agencies, scientists, channel members, suppliers, and distributors (New Product Development (NPD) (2012) & Kotler & Keller 2012).
For instance, the famous and very usable product idea of ‘Post-It Note’ of 3M came from an employee. This innovative product is a million-dollar innovation as it might be known (How to Tap Employee Ideas (2011)). In general, it can be said that the idea comes from somewhere.
Stage 3: Idea screening
In this phase, the ideas are evaluated and poor ideas are dropped as early as possible (Jain et al. 1999). This stage is very important. Because no feasible ideas can be expensive for the company.
Stage 4: Concept development and testing
The idea needs to be taken to the consumer. The detailed version of the idea is the product concept. Concept testing means presenting the product concept to target consumers, physically or symbolically, and getting their reactions (New Product Development (NPD) (2012) & Kotler & Keller 2012).
At this stage, the company needs to learn the consumer’s opinions. During the concept testing, market research is done. Concept testing presents the consumer with a proposed product and measures attitudes and intentions at an early stage of the new product planning process. Concept testing is a fast and cheap method of measuring the consumer enthusiasm.
After having this information, the following questions are asked to consumers:
1. Is it easy to understand the idea?
2. Do you comprehend the distinctive differences and benefits for this product in comparison to current ones in the market?
3. Do you find the claims about this product believable?
4. Would you buy the product?
5. Would you change this product with the one you currently prefer?
6. Would this product meet your needs?
7. What improvements could you suggest to the concept?
8. Would you buy the product? If yes, how often would you buy the product?
9. Who would us it? (Berman & Evans 1988).
The answers of the respondents show whether the concept has a wide and mighty customer seduction. What product the rival is, which customers the best targets are, the procurement intention, whether the product is winner, loser. One food manufacturer rejects any concept that draws a definitely-would-buy score lower than 40 percent (Kotler & Keller 2012).
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