launching a new product in a distribution company
TRANSCRIPT
Launching a new product
Research
Plan
Test
Implement
Analyze
Amin SameniFeb 2016
Launching a new product - Amin Sam
eni
New Product - ConceptsFeb 2016
What are new products?New to the world: Innovative products → create a new marketNew to the company (new product line): Allows the company to
enter an existing market for the first timeFlankers: Company makes additions to existing product
lines/brandsLine extensionsBrand extensions
Repositioning: Existing products targeted to a new marketProduct Improvements: Quality, feature, service enhancements
toward greater value, different flavor, change in packaging
Launching a new product - Amin Sam
eni
New Product - ConceptsFeb 2016
Why new products fail? (in a distribution company) Overestimation of market size Poor use of research Poor planning and strategy Incorrectly positioned, priced, or advertised Poor execution Poor timing Bad support from channel Product problem (Design, Quality,…) Competition might be too fierce
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Launching a new product - Amin Sam
eni
Market(ing) ResearchFeb 2016
Why We use Marketing Research? Identify & Evaluate Opportunities Analyze Market Segments Select Target Markets Plan & Implement Marketing Mixes Analyze Marketing Performance Identify trends that affect sales and profitability Keeping up with competitors' market strategies
Launching a new product - Amin Sam
eni
Market(ing) ResearchFeb 2016
Types of Market Research: By Source:
Primary Secondary
By Methodology: Qualitative Quantitative
By Objectives: Exploratory Descriptive Causal (experimental)
Launching a new product - Amin Sam
eni
Market(ing) ResearchFeb 2016
Primary Collection of data specifically for the problem or project in hand
SecondaryBased on data previously collected for purposes other than the research in hand (e.g. published articles, government stats, ...)
Market Research by source:
Launching a new product - Amin Sam
eni
Market(ing) ResearchFeb 2016
Market Research by methodology:By Methodology: Qualitative Quantitative
Type of Question Probing Simple
Sample Size Small Large
Information per respondent High Low(ish)
Questioner’s skill High Low(ish)
Analyst’s skill High Low
Expenses Low HighAreas probed Attitudes Choices
Areas probed Feelings Frequency
Areas probed Motivations Demographics
Ability to replicate Low High
Launching a new product - Amin Sam
eni
Market(ing) ResearchFeb 2016
Market Research by objective:
Exploratory Preliminary data needed to develop an idea further. E.g. outline concepts, gather insights, formulate hypotheses
Descriptive Describe an element of an ideas precisely. E.g. who is the target market, how large is it, how will it develop
Causal Test a cause and effect relationship, e.g. price elasticity. Done through experiment
Launching a new product - Amin Sam
eni
Market(ing) ResearchFeb 2016
1. Defining the problem and objectives
2. Developing the research plan
3. Collecting the information
4. Analysing the information
5. Presenting the findings
The Market Research Process:
Distinguish between the research type needed e.g. exploratory descriptive causal
Decide on budget data sources Research approaches instruments sampling plan contact methods
Information is collected according to the plan (it is often done by external firms)
Statistical manipulation of the data collected or subjective analysis of focus groups
Overall conclusions to be presented rather than overwhelming statistical methodologies
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Launching a new product - Amin Sam
eni
Launch PlanFeb 2016
Business review:Category: Factors impacting trends in related categories.Consumer: Define segments and key insights for each segment,
through tracking data and researchChannels: Look at each channel’s performance, major customers
and tools for winning used in each channelCompetitors: dissect competitors looking at positioning, pipeline,
pricing, distribution differences, consumer perception, strategies. Brand: look at internal and external health and wealth of brand.
Use financial analysis and market research perceptions.
Launching a new product - Amin Sam
eni
Launch PlanFeb 2016
Strengths
Weaknesses
Opportunities
Threats
SWOTanalysis
Launching a new product - Amin Sam
eni
Launch PlanFeb 2016
Positioning:Who: Target market criteria (demographic, geographic,
psychographic, benefit segmentation)What:
What are we selling? (main Benefit) What do want people to think, feel or do?
Why: Why should they believe us? (Support points) How:
How we want to tell them? How we reach them?
Launching a new product - Amin Sam
eni
Launch PlanFeb 2016
Selecting Target Customers considerations: Segment size Revenue and margin opportunity Customer benefits Customer interest Customer willingness-to-pay Competition/market coverage Sales channel and associated profit margin Cost to serve Customer loyalty/lock-in
Launching a new product - Amin Sam
eni
Launch PlanFeb 2016
Pricing considerations: Value/benefit delivered Customer’s ability to pay Competitive alternatives/pricing Product “image” created Initial sales ramp Profitability (short- and long-run)
Launching a new product - Amin Sam
eni
Launch PlanFeb 2016
Selecting channels considerations: The Nature of the Product:
Perishability Size and weight of product Unit value of a product
The Nature of the market: Number of prospective buyers Size of the order Geographic concentration of market
The Nature of the company: Cost of distribution of goods Our facilities Product margin
The nature and size of the manufacturing unit: Manufacturer Reputation and Financial Stability Marketing Strategy Go to the main
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Launching a new product - Amin Sam
eni
LaunchingFeb 2016
Pre-launch Activities: Training of sales/marketing staff Building service capability Pre-announcements/market signalling Pre-stocking Product listings, price lists etc. Market access
Legal, regulatory, purchasers
Launching a new product - Amin Sam
eni
LaunchingFeb 2016
Time (months/years)
Volu
me
of sa
les (
how
man
y ar
e so
ld)
New product is launched
Product matures – sales are steadyPlateau
Sales grow
Sales decline
Development
Saturation
0
Product life cycle:
Launching a new product - Amin Sam
eni
LaunchingFeb 2016
Pre-launch Introduction Growth Maturity Decline
Sales
Pre-launch
Announcement
Beachhead Early Growth
The Launch Cycle
Sales &Expenditures
SalesExpenditures
The Launch Cycle:
Launching a new product - Amin Sam
eni
LaunchingFeb 2016
Sales boosting strategies:To boost sales and prevent a decline in a product life cycle, we could implement marketing strategies such as:
Advertising, e.g. television, billboard, online Price reduction Sales promotion Adding value or new features Exploring new markets, e.g. international markets
Launching a new product - Amin Sam
eni
LaunchingFeb 2016
Time (months/years)
Volu
me
of sa
les (
how
man
y ar
e so
ld)
New product is launchedSales grow
Development
0
Sales boosting or extension strategies are implemented
Product life cycle – sales boosting strategies:
Launching a new product - Amin Sam
eni
Amin SameniI’m a self-motivated and goal oriented professional, with more than 10 years of comprehensive experience in sales and marketing with successful track record. My in-depth understanding of business concepts enabled me to work in challenging, dynamic and fast pace environments. Professional Skills:
Solid knowledge of sales and marketing specially in CPG field Extensive experience in Distribution Channels Experienced in Supply Chain Management Extensive ability for sales and marketing data analysis Solid knowledge of Merchandising Management Trade and Consumer Marketing Solid experience in Market Research Proficient software user: Microsoft Office, CRM, ERP Go to the main
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Feb 2016