product launch

PRASETIYA MULYA

is an introduction of New Product into its market it is the early stage of “introduction phase” in PLC

Sales
Volume

I n t r o d u c t i o n E a r l y
G
r o w t h

R a p i d
G
r o w t h

S l o w G r o w t h E a r l y
M
a t u r i t y

Maturity

E a r l y

Decline

D e c l i n e

Time

The day the new product launched into its market is usually called “D-day” !
NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-01

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Prelaunch is a stage the firm building its capability to compete
Training Sales & other Promotional People
Building Service Capability
Preparing Communication Campaign
Arranging Distribution & Inventory for Resellers

Preannouncement

To hype interest to the new product
To keep current customers from switching to comppetitors’
To encourage prospective buyers to wait for the new product
To block competitive entry

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-02

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Preannouncement can also be done through “Signaling”
Price
Advertising
Trade Shows
Comment by salespeople
A speech by CEO
Tips from vendors (suppliers)
Filling inventory to Resellers etc. NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-03

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Is Preannouncement Necessary ?
Necessary :
Firms with Smaller Shares are likely to Preannounce
Where Switching Costs are High

Not Necessary :
For Large Firms if they fear Govt. criticism of monopoly
In industry with High Competition

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-04

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Announcement of the Launch
Improvements will be done along the process
New Budget will be approved & released
Temporary Marketing arrangements will be made permanent 3 Common Launch Strategies
The Innovative New Product
The Offensive Improvement
The Deffensive Addition

see pp. 433

NPD/ M.Crawford-A.Di Benedetto/Ch.17&19/RP-05

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Launch