Product Launch
Chapter Sixteen; Strategic Launch Planning
The firm should think of product commercialization in two sets of decisions: 1. Strategic Launch Decisions a. Strategic platform decisions (overall tones and directions) b. Strategic action decisions (define to whom we are going to sell and how) 2. Tactical Launch Decisions a. Marketing mix decisions such as communication, promotion, distribution, pricing, etc. b. Strategic givens (already established; difficult or costly to change at this point) For examples check page 374
Strategic Platform Decisions
Different levels of product newness require different kinds of impact the launch activities must have on demand: • New to the world: entry strategy with the emphasis on stimulating primary demand • Product improvement or upgrade to existing product: Entry strategy with the emphasis on customer migration (to newer product). Stimulating replacement demand • New entry or line addition in established market: Emphasis on stimulation on selective demand
Several other platform decisions:
Permanence: Three options: 1. In to stay 2. In to stay if we meet our goals 3. Temporary (think of things like a tamagochi, merchandise related to movies)
Aggressiveness: Refers to attitude as much as dollars, three options: 1. Aggressive entry 2. Cautious entry 3. Balanced
Competitive Advantage: Why should customer buy your products? 1. Price 2. Differentiation 3. Both
Product Line Replacement: Most new products relate to existing products in the company’s product line, how should we manage the replacement strategy? 1. Butt-on product replacement Existing product is dropped on launch of new product. (like a new version of car.) 2. Low season switch Like Butt-on, but the switch at a low point between seasons. (like tour operators) 3. High season switch Like butt-on, but the switch is at the top of the season (like camera’s)
The firm should think of product commercialization in two sets of decisions: 1. Strategic Launch Decisions a. Strategic platform decisions (overall tones and directions) b. Strategic action decisions (define to whom we are going to sell and how) 2. Tactical Launch Decisions a. Marketing mix decisions such as communication, promotion, distribution, pricing, etc. b. Strategic givens (already established; difficult or costly to change at this point) For examples check page 374
Strategic Platform Decisions
Different levels of product newness require different kinds of impact the launch activities must have on demand: • New to the world: entry strategy with the emphasis on stimulating primary demand • Product improvement or upgrade to existing product: Entry strategy with the emphasis on customer migration (to newer product). Stimulating replacement demand • New entry or line addition in established market: Emphasis on stimulation on selective demand
Several other platform decisions:
Permanence: Three options: 1. In to stay 2. In to stay if we meet our goals 3. Temporary (think of things like a tamagochi, merchandise related to movies)
Aggressiveness: Refers to attitude as much as dollars, three options: 1. Aggressive entry 2. Cautious entry 3. Balanced
Competitive Advantage: Why should customer buy your products? 1. Price 2. Differentiation 3. Both
Product Line Replacement: Most new products relate to existing products in the company’s product line, how should we manage the replacement strategy? 1. Butt-on product replacement Existing product is dropped on launch of new product. (like a new version of car.) 2. Low season switch Like Butt-on, but the switch at a low point between seasons. (like tour operators) 3. High season switch Like butt-on, but the switch is at the top of the season (like camera’s)