NEW PRODUCT LAUNCH

SUBMITTED BY: ANURAG RANA (11DCP069) PIYUSH BHANDARI (11DCP088) SUDHANSHU SHARMA (11DCP098) SWATI BHARGAVA (11DCP099)

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. What is a new product?.....................................03 What is new product launch process?...............03 Benefits of a new product..04 Why do company need a new product?.............04 Approaches of a new product launch.....06 New Product Development Decision Process....07 7. Launch it the APPLE way!.................................11 8. Failure launches......14

NEW PRODUCT LAUNCH

Bringing a product to the market for the first time The most critical phase of new product development (NPD) process Launch activities aim at maximizing new product performance Many new products are launched into the marketplace with little prior planning for targeting the customers, creating a sales strategy, developing a distribution strategy, training the sales force, and integrating the competitive strategy. This mistake significantly reduces or eliminates any potential profit the product may have, and greatly increases the sales development time. These problems must be avoided if a company wants to survive in today's competitive marketplace.

What is a new product? A new product can be categorized in terms of how new they really are to the world, or to the firm. One common set of categories are the following: 1. New to the world products, or really new products. These products are inventions that create a whole new market. Examples: Apples iPad, Walt Disneys Theme Park. Accounts for 10% of the new products 2. New to the firm, or new product lines. Products that take the firm into a category new to it. The products are not new to the world, but new to the firm. Examples - Cannons Laser Printer, Allen Solly Womens Wear. Accounts for 20% of the new products. 3. Additions to existing Product line. Product that are line extension, flankers etc. in the firms current market. Examples P&Gs Tide Liquid Detergent, Coca Colas Sprite. Accounts for 26% of the new products.

4. Improvements and revisions to existing products, current products made better. Examples - Apple iPhone 2G, 3G, 3Gs, 4G, Passion, Passion Plus. Accounts for 26% of the new products. 5. Repositioning. Products that are re-targeted for a new use or application. Examples - Hand Sanitizer, GPS System in Mobile Phones. Accounts for 7 % of the new products 6. Cost Reductions. New products that simply replace existing products in the line, providing the customers similar performance but at the lower cost. Examples - Jet lite, L'Oral - Garnier. Benefits of New Product Launch An improved product launch process results in faster time-to-market and time-to-profit. Activities are better planned and coordinated and more tightly integrated. System integration is more effective and sales force is better prepared to begin selling the new product and support group can service and support the new product, leading to greater customer acceptance.

Why do company need a new product?

To satisfy the needs and wants of the customers. Allen Solly Women : WOOING INDIAN WOMEN We feel there is a definite potential to expand the market by offering a range of western womens wear, properly styled and cut according to body types, under the Allen Solly brand name. That will complete the whole lifestyle package we will have both Allen Solly Mens and Womens wear, and have a strong retail line-up for both. - Vikram Rao, Director, Indian Rayon, in October 2002. In September 2002, leading Indian apparel company, Madura Garments (Madura, Refer Exhibit I for a brief profile of the company) launched a line of readymade womens western wear under the brand name Allen Solly Womens Wear. The launch was backed by advertisements in the national print and outdoor
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media. The move attracted attention for two reasons. First, this was the first-ever nationwide exercise by any company to offer readymade Western wear for women in India on this large a scale. Second, Madura seemed to have taken a risk by trying to extend its hitherto exclusively for men brand, Allen Solly, to the womens segment. The nationwide launch was undertaken following the brands impressive performance during the testmarketing phase in the city of Bangalore (Karnataka) in December 2001. Through Allen Solly Womens Wear, Madura formally extended the concept of Friday Dressing to women all over the country. The scope of operations and marketing support was what set Allen Solly apart from the earlier entrants in the branded womens wear segment, Indus League and Raymonds. To extend the product line Lux : Celebrating Beauty
Lux has effectively managed its PLC through careful brand building and changing the product in line with the changing consumer. Lux was always changing with the times. Whether it be in terms of the product or in terms of promotions, the brand kept the consumers excited. Lux has two basic extensions in terms of segments - Lux beauty soap and International Lux. Lux was being projected as an aspirational brand and the endorsements by stars further reinforced the positioning. The increasing competition in the soap category forced Lux to rethink on its targeting strategy. The brand had a choice either to compromise on market share and uphold the premium positioning or to retain the market share and dilute the positioning. Lux wanted to ensure that the brand be positioned as premium but also did not wanted to compromise on the share. Thus born International Lux which is the premium variant and the affordable segment was catered by Lux beauty soap. While Lux beauty soap is sticking to the age old positioning, Lux international has moved from being a soap brand to a skin care brand. Lux International has the tagline " Not Just Soap, Its Skin Care".
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Lux is the classic example of HLL's marketing genius.

To kill the competitors TVS Apache TVS launched Apache RTR 180cc to counter Bajaj Avenger DTSi 200cc as well as Bajaj Pulsar 180cc DTS-i as far as performance and style was concerned.

APPROACHES OF A NEW PRODUCT LAUNCH 1. Review current product launch process. Identify needed activities and identify the system requirements (inputs and outputs). To determine organizational responsibilities and interfaces. Identify issues and goals. o Product and service manuals o Package design o Market testing o Distribution planning o Sales, support and service training

2. Develop improved process. Based on understanding of the current process and processs goals, we work accordingly to develop an improved process so that product can be brought into light to the consumers effectively.

3. Determine system integration requirements. Once the product has been thought of, the next comes the production process. This stage requires continuous flow of managed data with the help of various product management tools as well as various resource planning equipments.

4. Develop product launch plans. We can also assist the developing product launch plans through either facilitating discussions or developing draft plans for review. We can provide marketing and advertising experts from our associated firms to help in those areas as well.

New Product Development Decision Process

Idea Generation. Co-ordinate, stimulate, and search for ideas in external environment and among company personnel.

Sources of idea generation Internal sources Company employees at all levels External sources Customers Competitors Distributors Suppliers Outsourcing Idea generation : Creativity Techniques Attribute listing Forced relationships Morphological analysis Reverse assumption analysis New contexts
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Mind mapping Idea Screening. IdentifyWill the customer in the target market benefit from the product? What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price?

Concept developing and testing. Develop alternative product concepts. 1. Develop the marketing and engineering details 2. Who is the target market and who is the decision maker in the purchasing process? 3. What product features must the product incorporate? 4. What benefits will the product provide? 5. How will consumers react to the product? 6. How will the product be produced most cost effectively? 7. Prove feasibility through virtual computer aided rendering.

Marketing strategy development. Propose 1. Price 2. Distribution 3. Promotion. Business analysis. Prepare 1. Market analysis 2. Cost analysis.

Product development. Conduct 1. Engineering tests 2. Consumer Preference tests 3. Branding 4. Packaging.

Test Marketing. Go into limited production, prepare advertising. Market Testing. Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance. IssuesWhere to test market? When to test market? What to test market? For how long to test market?

Commercialization. Buy equipment and go into full production and distribution.

Decision issuesa. When? b. Where? c. To whom? d. How? WHEN (Timing) First entry-Firm enjoys first mover advantage can backfire if the product is not debugged.

Parallel entry-Firm might time its entry to coincide with the competitors entry the market may pay more attention when both the companies are advertising the new product. Late entry-Firm might delay its launch until after the competitor has borne the cost of educating the market the firm can learn the size of the market and avoid flaws. WHERE (Geographic strategy) Small companies select an attractive city and put on blitz campaign,entering one city at a time. Large companies introduce their product into a whole region and then move to the next Companies with national distribution networks, such as auto companies, launch new models nationally. With the web connecting the far-flung parts of the globe, companies are increasingly rolling out new products simultaneously across the globe. TO WHOM (Target Market Prospects) Early adopters Heavy users Opinion leaders AIM- To generate strong sales as soon as possible to attract further prospects. HOW (INTRODUCTORY MARKET STRATEGY) Management can use network-planning techniques such as CRITICAL PATH SCHEDULING-which develops a master chart showing the simultaneous and sequential activities that must take place to estimate the completion time for the entire project.

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Launch like Steve Jobs: 7 Ways to Build Buzz for Your Next Product Launch

Apple product launches have become the stuff of legend. While Apples reputation and sometimes-rabid fan-base obviously plays a large part in the success of their launches, there are also a number of strategies virtually any company can employ to make their own product launch a huge success:

1. Put the Focus on the People, Not the Product Rarely do you hear Steve Jobs talking about the various features of Apple products. Standing on stage, he doesnt push the speed of the iPhones processor or the screen resolution, for example. He knows most people dont care, and the ones who do can easily find that information on Apples website or product literature. So, thats how you have to frame your marketing. Dont just talk about what your product does or why its superior; show them a compelling picture of how its going to make their life better. Thats what gets people excited.

2. Get Opinion Leaders On-Board Early Apple has a knack for getting bloggers and other thought leaders on board before their product launches. What really sets them apart, though, is they get everyone talking months before the product launches, usually

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before theres even a demo for anyone to see. No one is talking about what the product does; theyre talking about what it might do

3. Be Revolutionary When Steve Jobs takes the stage, the whole world watches. Its not just because Apple is a huge company. Its not just because there are billions of dollars on the line. Its not just because Steve is a great speaker. Its because they know Apple isnt afraid to change the world. Their products arent incremental advances; they are revolutions.

4. Turn Your Product Launch into an Event When Apple launches a new product, you dont see some PR lackey trundling out onto the stage to read a press release. They stage an entire event around it, going so far as to even close their online store, so that everyone knows something important is happening and they need to pay attention. And what they ever they do have a centre stage.

5. Take Pre-Orders This is probably one of the most overlooked launch strategies out there. Every company thats been around for a while has a set of customers who will buy anything they release. As soon as you announce the product, theyll be lining up in droves, eager to get their hands on the first units to be released. So why not let them.

6. Release a Product Your Customers Will Want to Show off Apple knows their image is vital to their success. Thats one of the biggest reasons they place such a high value on form. People know and expect that Apple products will be aesthetically pleasing. If Apple suddenly stopped launching beautiful products, they would almost certainly see a huge drop in market share.

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7. Draw out the Suspense for As Long As You Can While Apple always makes a big deal about announcing new products, prior to those actual announcements their product lines are shrouded in secrecy. And Apple will do almost anything to protect that secrecy.

Hollywood Movies
A Hollywood movie release is nothing more than a product launch sequence for an information product - a feature film! The launch sequence used by big Hollywood distributors is very well honed and nearly every film goes through the same basic process. Months before a movie hits the theaters, a carefully orchestrated promotional sequence begins. It is designed to capture your attention, make you curious about the movie and then build your desire to see the film to the point where you rush out on opening weekend to be the first person to see it. This sequence includes behind the scenes documentaries, trailers, magazine articles, tv commercials, websites, games, product tie-ins and other cross-promotions, newspaper ads, movie reviews, advanced screenings and star-studded premieres, talk show appearances, and more.

The Volkswagen New Beetle

The Volkswagen New Beetle is a recreated version of the original Volkswagen Beetle that was sold between 1938 and 1975. The New Beetle was released on the market late in 2008 and is currently in its third year of production. The trendy New Beetle has been accepted with open arms although it refuses to follow the conventional style of the cars standard in our market. The new advertisements, much like the old, are very simple. One ad from the 1060s featured a small picture of the car with the headline Think small. Text highlighted the advantages of
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driving the small Beetle versus a big car. Overall their ads conveyed a message of frugality and sensibility. People like to feel theyre not of the herd. Their advertising campaign remains simple and unique, just like their cars. They dont bombard viewers with technical jargon or even luxury equipment. They simply appeal to the stylish side of each individual capitalizing on uniqueness and originality.

FAILURE PRODUCT LAUNCHES

Mosquito Magnet In 2000 we worked with American Biophysics on the launch of its Mosquito Magnet, which uses carbon dioxide to lure mosquitoes into a trap. The timing was perfect: The West Nile virus scare had elevated mosquitoes from irritating nuisances to life-threatening disease carriers. Mosquito Magnet quickly became one of the top-selling products in the Frontgate catalog and at Home Depot. But American Biophysics proved more adept at killing mosquitoes than at running a fast-growing consumer products company. When it expanded manufacturing from its lowvolume Rhode Island facility to a mass-production plant in China, quality dropped. Consumers became angry, and a product that was saving lives almost went off the market. American Biophysics, which had once had $70 million in annual revenue, was sold to Woodstream for the bargainbasement price of $6 million. Mosquito Magnet is making money for Woodstream today, but the shareholders who originally funded the device have little to show for its belated success. Flaw : The product falls short of claims and gets bashed. The Lesson: Delay your launch until the product is really ready.

Microsoft Windows Vista In 2007, when Microsoft launched Windows Vista, the media and the public had high expectations. So did the company, which allotted $500 million for marketing and predicted that 50% of users would run the
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premium edition within two years. But the software had so many compatibility and performance problems that even Microsofts most loyal customers revolted. Vista flopped, and Apple lampooned it in an ad campaign (Im a Mac), causing many consumers to believe that Vista had even more problems than it did.

Coca-Cola C2 For its biggest launch since Diet Coke, Coca-Cola identified a new market: 20- to 40-year-old men who liked the taste of Coke (but not its calories and carbs) and liked the no-calorie aspect of Diet Coke (but not its taste or feminine image). C2, which had half the calories and carbs and all the taste of original Coke, was introduced in 2004 with a $50 million advertising campaign. However, the budget couldnt overcome the fact that C2s benefits werent distinctive enough. Men rejected the hybrid drink; they wanted full flavor with no calories or carbs, not half the calories and carbs. And the low-carb trend turned out to be short-lived. (Positioning a product to leverage a fad is a common mistake.) Why didnt these issues come up before the launch? Sometimes market research is skewed by asking the wrong questions or rendered useless by failing to look objectively at the results. New products can take on a life of their own within an organization, becoming so hyped that theres no turning back. Coca-Colas management ultimately deemed C2 a failure. Worldwide case volume for all three drinks grew by only 2% in 2004 (and growth in North America was flat), suggesting that C2s few sales came mostly at the expense of Coke and Diet Coke. The company learned from its mistake, though: A year later it launched Coke Zero, a nocalorie, full-flavor product that can be found on shelvesand in mens handstoday. Flaw : The product defines a new category and requires substantial consumer educationbut doesnt get it. The Lesson: If consumers cant quickly grasp how to use your product, its toast.

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