Strategic Launch Planning

Question 1

“You cannot save a bad product with a splendid launch strategy but you can surely kill a great product with a poor launch strategy”

Answer 1

“You cannot save a bad product with a splendid launch strategy but you can surely kill a great product with a poor launch strategy”

Question 2

What % of cash is spent at the launch/commercialisation stage of the NPD?

Answer 2

Cooper & Kleinschmidt, 1988

- Over 50%

Question 3

What is a product launch?

Answer 3

Hultink et al 1997
- The decisions and activities necessary to present a product to its target market and begin to generate income from sales of the new product

Question 4

How many types of launches are there?

Answer 4

2

Question 5

What are the different types of launch?

Answer 5

• Tactical

- Strategic

Question 6

Explain the components of a tactical launch decisions and give some examples of what these might be:

Answer 6

• The advertising, promotion etc is done near to the time of market entry
• This type of launch is more easily modified in late stages of NPD
• Strongly influenced by early strategic decisions
• Unlikely to compensate for a poorly developed product

e.g.
Hultlink et al 1999
- Promotion: Advertising, price, free samples
- Sales & distribution: events, distribution structure
- Pricing: Introductory, price skimming
- Product: branding
- Timing: fast or slow

Question 7

Explain the components of a strategic launch decisions and give some examples of what these might be:

Answer 7

• Taken long before the time of market entry
• Defined within PIC or protocol
• Difficult of expensive to change later in process

e. g.
- Target market: Niche or mass
- Market entry: 1st or 2nd
- Relative innovativeness: incremental or radical
- Investment: R&D, advertising etc
- Positioning: attack or avoid competition
- Unique value proposition: core benefit, physical product

Question 8

What are some factors that are key to a successful launch?

Answer 8

• Superior skills in market research, distribution, R&D
• Cross-functional team working
• High quality technical implementation
• Information gathering activites
• Launch timing taking into consideration: company, customers and competition

Question 9

What is an ATAR launch tactic?

Answer 9

• Awareness: Level of involvement, advertisement, WOM
• Trial: Free samples, tasting
• Availability:
• Repeat: Encourage further usage, long term discounts

Question 10

What are some pre-launch activities?

Answer 10

• Training staff
• Pre-announcments/market signalling
• Pre-stocking
• Market access: red tape

Question 11

What is important to conduct after the launch is done?

Answer 11

Post-launch review

Question 12

What % of firms conduct a solid post launch review?

Answer 12

Haines, 2013

- 21%

Question 13

Out of the best performing firms how many perform a post launch review?

Answer 13

Cooper et al, 2014

- Twice as many