New Product Entry Strategies

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NEW PRODUCT ENTRY STRATEGIES
BY
SASHANK IYER - 18
MMS
Once a product is developed, effectively product launch becomes the critical step to its success. The Product Launch Process must address all the steps necessary to start volume production, plan and execute marketing activities, develop needed documentation, train sales and support personnel (internal and external), fill channels, and prepare to install and support the product. Below we have given ten different examples of new product entries and the different strategies they have adopted In the example given below the product bournville is using a product differentiation strategy where the differentiating feature is the Dark chocolate and hence it caters to the segment of dark chocolate consuming segment which is primarily a higher class segment and as a result it is using differentiation and segmentation strategy Example 1 : Cadbury India Ltd. has announced the Relaunch of BournvilleFine Dark Chocolate, the first dark chocolate product from the much-loved Cadbury India basket. This Brand was in India over the last 30 years Well coordinated marketing at relevant consumer touch points – front page ad in Economic Times with catchy taglines (’Food of the Gods and other Top Management); upscale ad campaign targeted at the well healed. Careful store selection for distribution – launched in self select and high throughput grocery stores across the major cities in the country with focus on merchandising and in store placement. The advertising focuses on generating impulse via its distinguished taste – earn your Bournville; while the packaging talks about the health benefits – natural source of anti oxidants – associated with dark chocolate. In short, a great insight into the changing tastes and preferences of the emerging market consumers; an attempt to introduce the fastest growing dark chocolate segment (+13% growth globally) in emerging markets; combined with excellent consumer segmentation and marketing strategy. No wonder, a Rs. 75 (1.5$) for a chocolate bar, and fast selling even in Lucknow. That’s a marketing gem generating truly profitable business growth in an otherwise depressing economic environment. In the example given below the product AXE DARK TEMPTATION has entered the market using the product differentiation strategy . The differentiatiom is mainly done on the chocolate feature which differentiates AXE DARK TEMPTATION from its competitiors Example 2 :Axe dark temptation was the new product by Axe which was launched using product differentiation strategy . The basic theme on which axe deodorants are launched is a deodorant which attracts females. The campaign was launched in three phases. The first – the seed phase – was done by Lowe Mumbai. Lowe Mumbai put together the teaser campaign for Dark Temptation on the basis of a research study conducted in November 2007 by Unilever together with Datosclaros, a company that designs and develops market and public opinion studies.

The study involved 3,571 women in 13 countries in the age group of 18-35 years. The aim was to test preferences and the relationship between women and chocolate. The teaser campaign highlighted the results of the survey, which implied that women found chocolate irresistible. During its Launch the model is priced at $660 (Rs 31,000). The higher version of iPhone (16 GB) is priced at $299 in the US, against $766 (Rs 36,000) in India. What Apple shows us with its current pricing of the IPhone is no more than the classic pricing strategy known as “skimming” in the literature. Skimming is loosely speaking defined as the strategy to introduce a product a high price in order to “skim” the high willingness to pay of the early adopters of the product. Of course, this leaves the big crowd on the table, but only firsthand. As soon as the early adopters market is satisfied, the price will be in order to attract a larger segment of adopters and speed up diffusion of...
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