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:

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. Advertising and Sales without a market segmentation base is like scattering breadcrumbs to a product -- most of the effort is simply lost in the context.
Target Market:

Its important to focus our attention on the group of people who are most likely to buy from us. This actually makes more sense financially. Were not spending marketing dollars on individuals who are not interested in our product. Start with our current customers. This is an audience that is already familiar with our products and with buying them from us. Our product might be a new version of an existing one that we already sell- thats a built in market right there. Customers who are already buying a similar product can also make up our audience. If our item expands on the idea of an existing product, but does so in a way that adds features or functions better, well be targeting a market that has already formed a need for our type of product. This is much easier than having to create that need in the first place.

Market positioning:

We cannot satisfy everyone in the market. Not everyone likes the same cereal, hotel room, restaurant etc. therefore we should divide the market into sub segments. They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers.
Product Review:

Our product is after all the most important part of our launch. It has to fill a demand in the market. It must connect with and benefit enough potential customers to make it financially viable and successful. Businesses will often mistakenly offer new products to customers without proper research or planning, which can lead to disastrous results. Consumers demand products that work on multiple levels functionality, price and quality. Our new item must address all of these needs

and do so in a better way than whats currently available. Ultimately, it should be a product that sells itself. In addition to reacting to changes in customer tastes and competitors products, there are other reasons why our business needs to launch new products. Including:

New products have higher margins than older ones: This is especially true if they are innovative, unique or with little to no competition. For example, the Apple iPhone was insanely popular even before it launched. Competition was hardly even a consideration.

New products can change customers perceptions about a company:

For decades Hyundai was barely even a consideration among those shopping for economy cars, let alone luxury buyers. But in 2008, when they released their Genesis sedan, everything changed. They offered luxury styling and amenities at a price point far below the competition, which led to the shift in consumers minds.

New products help us to stay ahead of the competition. The profits associated with new products help to add to our bottom line. If our product or service is seasonal in nature, expanding our product line helps us to offset sales fluctuations.

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. A "market" is a universe of customers or clients who are interested in a particular product, service, or company. An increase in market share often makes economies of scale available that can contribute to earnings and profit margins so; naturally, businesses seek to increase their market share. 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. Because the figure for the possible / available revenue

or unit sales in a specific market must be estimated or extrapolated, it is common for a firm to use market research to arrive at that figure.
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. SWOT analysis: SWOT stands for:
Strengths (External) Weaknesses (External) Opportunities (Internal) Threats (Internal)

Review of the Internal Environment Strengths, Weaknesses,

1. Strengths

Characteristics of our company that give us an advantage (For example, we own a hypothetical company that offers fast, efficient car washes.)
2. Weaknesses

Areas that place us at a disadvantage (We are unable to offer the lowest prices.) Review of the External Environment Opportunities, Threat
1. Opportunities

External factors that offer a benefit (We have a strong business relationship with a local car dealership.)

2. Threats

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

Figure: New Product Launch in the Market

Goals and Objectives:

Link between goals, objectives and priority:

The product that we are wants to introduce in the market, whether it is matched with the company goals, objective and the overall philosophy. If our philosophy is like Discipline is life like BIRDEM, and we want to introduce new taste of cigarettes in the market, and then is total opposite with the company goal, objective and philosophy. So we should be very careful about this issue, because depending on this issue our image will build in front of the customer.

 Marketing Plan:
Price:

Setting the product price is one of the major issues in new product development. 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. Steps in Setting Price: Step: 1. Select the price objective Step: 2. Determine demand Step: 3. Estimate costs Step: 4. Analyze competitors costs, Prices, and offers Step: 5. Select pricing method Step: 6. Select final price Step: 1. Select the price objective: We first have to decide what it wants to accomplish with its particular product offer. Survival: We pursue this objective when it suffers from over capacity, intense competition, or changing consumer wants. As long as the prices cover variable costs and some fixed costs, the companies stay in business. Here we should charge minimum price. 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, cash flow, or rate of return on investment. By emphasizing current financial performance the company may sacrifice long-run performance, ignoring the effects of other marketing mix variables, competitors reactions, and legal restraints on price.

 Maximum market share: Companies pursuing this objective believe that revenue maximization will lead to long-run profit maximization and market share growth. Here we should set the lowest price, assuming that the market is price sensitive. Maximum market skimming: Companies introduce an innovative product usually follow pursue this objective. Here we should charge a high price initially and gradually lower price. Product-quality leadership: Companies aiming to become product-quality leaders in the market usually pursue this strategy. Here we should develop high-quality products and price them pretty high compared to most of the competitors products. Other Objectives: Nonprofit and public organizations may adopt a number of other pricing objectives, viz. partial cost recovery, full cost recovery, social price (geared to the varying income situations of different clients) etc. 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. In the normal case, demand and price are inversely related. That is, the higher the price, the lower the demand, and the lower the price, the higher the demand. Following points are to be addressed in determining the demand:

i. Price sensitivity; ii. Estimate demand curves; iii. Price elasticity of demand.

Step 3: Estimating Costs: Demand sets a ceiling on the price that the company can charge for its product. The company wants to charge a price that covers its cost of producing, distributing, and selling the product,

including a fair return for its effort and risk. Following points are to be addressed while estimating costs:

i. Types of costs;

A companys costs take two forms, fixed and variable. Fixed costs are costs that do not vary with production or sales revenue. Variable costs vary directly with the level of production. Total costs consist of the sum of the fixed and variable costs for any given level of production. Average cost is the cost per unit at that level of production; it is equal to total costs divided by production. Management wants to charge a price that will at least cover the total production costs at a given level of production.

ii. Accumulated production:

Suppose our company runs a plant that produces 3,000 ball point pens per day. As we gains experience producing pens, its methods improve. Workers learn shortcuts, materials flow more smoothly, and procurement costs fall. Average cost falls with accumulated production experience. Thus the average cost of producing the first 100,000 pen is Tk.10 per pen. When the company has produced the first 200,000 pens, the average cost has fallen to Tk.9. After its accumulated production experience doubles again to 400,000, the average cost is Tk.8. This decline in the average cost with accumulated production experience is called the experience curve or learning curve. Now suppose three firms compete in this industry, X, Y, and Z. If all firms sell at Tk.10, we make a profit of Tk.2 per unit. To eliminate one of two of its competitors we can sell at a price of Tk. 9 thus can wipe one or both of the competitors.

iii. Activity-based cost accounting:

Todays companies try to adapt their offers and terms to different buyers. A manufacturer, for example, will negotiate different terms with different customers depending on the service rendered to them and the associated costs.

iv. Target costing:

Here, each cost element design, engineering, manufacturing, sales etc are examined, and different means are adopted to bring costs of each element at a target level. Step: 4. Analyze competitors costs, Prices, and offers: Within the range of possible prices determined by market demand and costs, competitors costs, prices, and possible price reactions help the firm establish where to set its prices. The company

needs to benchmark its costs against its competitors costs to learn whether it is operating at a cost advantage or disadvantage. The company also needs to learn the price and quality of competitors offers. Once the company is aware of competitors prices and offers, it can use them as an orienting point for its own pricing. Step 5: Selecting a Pricing Method: 5.a. Markup pricing 5.b. Target-return pricing 5.c. Perceived-value pricing 5.d. Value pricing 5.e. Going-rate pricing 5.f. Sealed-Bid pricing

Step 6: Selecting the Final Price: Pricing methods narrow the price range from which the company must select its final price. In selecting the final price, the company must consider additional factors, including: A. psychology of prices (price-quality relation); B. Influence of other marketing mix elements; C. Company pricing policies; and D. Impact of price on other parties

Promotion:

After weve determined whom it is that were targeting with our product, we need to establish exactly why people will want to buy from us and not the competition. What is it about our product that they should value the most? This is our unique value proposition (UVP). Our UVP tells us audience what makes our product different and better than the competition. Its a way of making our product compelling, to the point that even if it was unavailable, customers would wait for it and not even look at the competition. It turns it into a must have item.

The more channels that we can use to sell our product, the more success well have. Consumers get information from multiple sources, which means in order to guarantee the success of our product launch, were going to have to pursue them in different ways. Marketing for our launch can be broken down into a few key areas:

Advertising Television, radio, newspaper, magazine and outdoor; Online Marketing Websites, online advertising, social media, email marketing, online retail sites, blogger and social media influencer outreach; Promotional Literature Business cards, brochures, flyers; Promotional Products; Direct Mail Sales letters, self-mailers, statement stuffers, postcards, media mailers, CD mailers; Guerilla Marketing.

Distribution:

Product distribution should be based on the product nature. If our product is consumable then the distribution system is different from if the product is service oriented. Another important thing is that whether we are unable to use the existing distribution system or not. If we can do that, we can minimize the cost of the distribution.

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

Businesses seeking outside funding and capital should provide a minimum of five years of projected income statements, although these are usually located in the financial section of the business plan rather than the marketing section. Marketing objectives are quantitative translations of the company's financial objectives, in marketing terms. 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. For example, it may contain a summary of quarterly promotion and advertising plans, with spending, timing, and share or shipment goals for each program. Sales and marketing plans should be a logical outgrowth of short- and long-term company objectives and your marketing strategy.

Strategic Proposals:

Core Competency: Finally we should go for the production of the new product. Before going in that portion we should keep in mind some factors. Those are how we can achieve the competitive advantage over the competitors. These may come from the following strategies. Four of the most frequently used strategic approaches to setting a company apart from rivals and achieving sustainable competitive advantages are: Being the industrys low cost provider;

 Outcompeting rivals based on such differentiating features as higher quality, wider product selection, added performance, better service, more attractive style, technological superiority, or unusually good value for the money; Focusing on a narrow market niche and winning a competitive edge;
Developing expertise and resource strengths that give the company competitive capabilities

that rivals can easily initiate or trump with capabilities of their own.

What usually goes wrong: Some of the most common pitfalls associated with new product development (NPD) include the items listed below. Through their awareness it is anticipated that Stanski Customers may successfully avoid these during their NPD projects. Lack of Market Orientation: Inadequate market analysis, a failure to understand customer needs and wants, and insufficient attention to the marketplace are consistently cited as major reasons for NPD failure. Poor Quality of Execution: New product development processes are deficient, omitted, ignored, or erroneous. For instance, when key actions often considered central to success are arbitrarily omitted, these are usually indicative signs of poor execution. Moving Too Quickly: Many of these errors include failure to do certain key tasks and short-cutting of others - usually made in the interest of saving time. When these corners are cut, mistakes are made, the project moves off target, and activities have to be repeated, all at great time and money expense. Not Enough up Front Homework: Inadequate market analysis, poor quality of execution and moving too quickly all converge on the homework phase being very fuzzy and ill defined. A poor definition of the product and market, combined with organizational bravado is a recipe for failure.

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