Tools and Tactics of the Growth Team: Successful Go-to-Market Strategies for New Product Launch


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A presentation from the Frost & Sullivan chairman's series on growth, covering successful strategies on new product launch in today's economic climate.

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  • Very good overview. One problem we have is that we are chronically plagued by launch delays. I was hoping to something that quantifies the impact of being late to market. One tool that we found that does that that I thought I would share is a 'cost of delayed product launch' calculator at It was an eye opener for us.
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Tools and Tactics of the Growth Team: Successful Go-to-Market Strategies for New Product Launch

  1. 1. Tools and Tactics of the Growth Team: Successful Go-to-Market Strategies for New Product Launch Chairman’s Series on Growth
  2. 2. Today’s Presenters David Frigstad, Chairman Frost & Sullivan Katherine Burns, Growth Thought Leader Frost & Sullivan Naylor Gray, Director - Global Marketing Frost & Sullivan Todd Grossman, Vice President – Sales and Client Services MultiVu, a PR Newswire Company 2
  3. 3. Agenda • Economic Update : August 2009 • The Growth Acceleration System – New Product Launch • Growth through New Product Development and Innovation • Case Studies in Successful New Product Launch • Serious About Growth: Next Steps 3
  4. 4. Global Economic Outlook   August 2009 4
  5. 5. North America - Recent Developments • Key to recovery - Credit situation, Confidence (Business and Consumer) and Internal and External Demand -leading confidence indicators show signs of recovery • Full Impact of stimulus plans is expected to be spread out starting from second half of 2009. 250 billion is expected to be spent in 2009 and remaining part of stimulus in the next two years • Sector specific support/bail out plans - Restructuring of Automotive Industry focuses on green business and infrastructure development • Revival in stock markets and commodity prices - Dow Industrial Average Increased by 23 percent since February and oil prices in the range of $60-$72 • Financial market conditions are improving, but credit remains tight. • Improving corporate performance and earnings - Better than expected Q2 results for Goldman Sachs, JP Morgan Chase, Apple • Unprecedented focus worldwide on addressing the economic situation - Global stimulus spending estimated to be worth more than US $ 2 trillion - in developed economies it appears more time is required for the stimulus to take effect as they are spread out over 2 or 3 years • Slow down in major trading partners Canada, China, Mexico, Japan and Germany affecting US exports growth. Chinese and Canadian demand is likely to support growth in exports in the second half of 2009. Export demand from emerging nations will be a factor in reviving the global economy • Converging expert consensus on recovery path - Number of forecasters predict slow recovery and low growth in the second half of 2009. 5
  6. 6. North America - Recent Developments United States : Green shoots – are they sustainable ? United States : Downside Risk Factors Green Shoots Downside Risk Factors New Housing Starts • Credit Situation – Some improvement in financial Building Permits markets but credit situation remains tight Retail Sales • Budget Deficit and Public Debt– Long term issue – Corporate Profits kick start the economy and reduce the deficit Dow Jones Industrial Average • Increasing unemployment and underemployment New Orders such as part time work • Impact of decline in household wealth due to the Unemployment Insurance Claims collapse of stock market in 2008 and fall in home Composite Leading Indicator prices Business Confidence Index • Key to sustainable of economic recovery depend on improving the credit situation and confidence • Many leading indicators point toward among investors. Major source of uncertainty stabilizing market conditions comes from lack of clarity on financing the deficit and other large government programs such as healthcare reforms. 6
  7. 7. North America Canada : The impact of the crisis is high due to high level of interdependency and consequently affected economic growth in Q1. Aided by the timely stimulus measures Canadian economy is expected to return to its growth path in the second half . United States: Improving business sentiments, consumer confidence, easing credit situation, Stimulus plans and other government initiatives are likely to contribute to the recovery. Expected to bottom out in 2009 and recovery to begin in the second half of 2009. Mexico : Higher dependence on US economy is adversely affected the Mexican economy since the crisis began. Expatriation of earnings and fall in remittances has contributed to capital flight, and depreciation of peso. Recovery depends on export growth and improvement in oil prices. North American Economic Outlook : Due to high interdependence among the three countries on account of closer economic and trade relations, recovery in the region largely depend on the performance of the US economy which accounts for the bulk of regional GDP. Despite the initiatives taken by the Obama administration, credit situation is tight and confidence remains low due to high unemployment levels. However a number of indicators shows signs of stabilization which is likely to result in recovery starting second half of 2009. 7
  8. 8. European Growth Trends - 2008 - 2009 Europe Growth Trends 5.0 4.0 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 3.0 GDP Growth (%) 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 Austria Belgium France Germ any Italy Netherlands Spain United Euro area Kingdom Note : Quarterly growth rates - same quarter previous year Growth Trends • Germany, France, Italy, Spain and United Kingdom accounted for 72 percent of European Union GDP in 2008. • GDP declined sharply in these countries due to the financial crisis. • Germany and France are likely to lead European recovery as there are signs of improvement in industrial output and consumer confidence Policy Initiatives • European Union EU wide stimulus package 200 billion euros – nearly 1.5 percent of EU GDP • Country specific measures includes tax cuts, financial support to the unemployed, increased spending on infrastructure development and social sectors and industry specific support 8
  9. 9. The Big Four Asian Giants - Economic Growth Trends 15.0 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 10.0 Growth Rate (%) 5.0 0.0 -5.0 -10.0 Japan India China Korea Note : Quarterly growth rates - same quarter previous year Japan : Japanese economy depends on exports; the Korea : Export driven economy, sharp decline in GDP, global slow down has contributed to a sharp decline in With stimulus package of $ 45 billion ($26 billion in new 2009 Q1. Public debt is estimated at 200 % of GDP, money), economic growth in 2009 Q2 is 2.3 percent which is one of the highest in the world. Stimulus driven by manufacturing (Electrical and electronic package of over $104 billion. equipment, and petroleum, coal and chemicals manufacturing). Increased durable demand has contributed growth in consumption expenditure. China : Stimulus $586 billion (204 new money) with India : More stable political conditions and domestic focus on infrastructure and induce domestic demand. demand have contributed to the increased investor Recovery signs include growth in domestic demand confidence in recent months. Though exports are including increase investment. China accounts for 6.5 declining, the manufacturing sector is stabilizing with six percent of global GDP, and is expected to have one of core industries and had positive growth partly aided by the highest economic growth in 2009. the stimulus measures ($6.5 billion in new money). GDP is expected to grow by 7.0 percent in 2009. 9
  10. 10. Latin America - Economic Growth Trends 10.0 8.0 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Growth Rate (%) 6.0 4.0 2.0 0.0 -2.0 -4.0 Brazil Argentina Venezuela Chile Note : Quarterly growth rates - same quarter previous year Argentina : $ 4.4 billion in new stimulus which includes Colombia : Bank rates were reduced from 10 percent to public works program to improve infrastructure covering 5 percent since December 2008. Fiscal policy initiatives energy, transportation and housing sectors. include tax cuts and increased infrastructure spending. Economic recovery is expected to gain momentum in the Brazil : Stimulus package is estimated to be $ 8.6 second half of 2009 billion. Equity market shows signs of recovery, pressure on currency is also easing. Import growth expected to Peru : Stimulus package is estimated at $ 3 billion fall funded by fiscal surplus. Focus of the plan is on social spending, infrastructure and reduction in fuel prices. Chile : Stimulus package-$ 4 billion announced In Peru’s Economy expanded by 0.9 percent in the first half January. In addition other initiatives such as support to of 2009. small enterprises and stabilize the financial sector and ease credit situation. Combination of stimulus plan and Venezuela : Oil price had adverse impact on exports rise in copper prices driven by Chinese demand will and government finance. Most invest plans are likely to support the economic recovery. be postponed till the global recovery gains momentum. 10
  11. 11. World Economy - Recent Developments • IMF support for least developing countries worth 17 billion to help the revival • Chinese demand for resources helping countries to promote growth (Australia and ASEAN) • US recovery critical for Europe and Japan because of high level of economic and trade interdependence • World balance of economic power – shift towards East from the West with emerging countries likely to lead growth through increased consumption, rather driven by exports • Worst is behind us, more positive future outlook, some areas of uncertainties remains which are likely to subside in the near future • Time for fine tuning strategies, adjust plans, prepare for the future 11
  12. 12. David Frigstad Chairman Frost & Sullivan
  13. 13. The Growth Acceleration System (FGP) 13
  14. 14. The Growth Model 10 Growth Processes Implementation of Strategies Gr ow th Pi pe Evaluation of lin Opportunities & Strategies eD ev e lo pm e nt Generation of Opportunities & Strategies 14
  15. 15. Sources of Growth Top Successes Regarding Growth #1 Success #2 Success #3 Success 30% 23% 22% 19% 20% 18% 17% 16% 15% 15% 15% 15% 14% 13% 13%13% 11% 10% 9% 9% 10% 7% 6% 4% 4% 3% 2% 0% Competitive Strategic Product Geographic Technolgy Distribution Mergers & Growth Strategy Partnering Launch Expansion Strategies Channel Acquisitions Sourcing Optimization Total Sample Selecting 54% 54% 47% 47% 37% 22% 20% 13% What are the top three strategies that you have had the most growth in the past three years? 15
  16. 16. Strategies for Future Growth Strategies Planned for Future Growth #1 Success #2 Success #3 Success 30% 25% 23% 20% 18% 16% 16% 16% 15% 13%13% 13% 13% 12% 12% 11% 11% 10% 9% 9% 10% 8% 7% 7% 7% 6% 4% 0% Launching new Strategic Entering new Competitive Customer Technology Mergers & Distribution products/services partnerships geographies strategies strategies strategies acquisitions channel Total Sample optimization Selecting 59% 54% 42% 33% 31% 27% 25% 21% Which of these strategies are you using for future growth? 16
  17. 17. Katherine Burns Director, Growth Thought Leadership Frost & Sullivan
  18. 18. Katherine Burns Director, Growth Thought Leadership Frost & Sullivan 18
  19. 19. Growth Process Toolkit Accelerating Growth through Rigorous Planning, Principled Execution, and Continuous Monitoring What Are the Growth Process Toolkits? The Growth Process Toolkits document Frost & Sullivan’s best thinking and work on each of the 10 growth processes in a step-by-step implementation format. How Will They Help You? They save you time and money by focusing you on the right questions to ask and the right activities to back them up, right from the start. 19
  20. 20. Before the Launch: Growth through New Product Development and Innovation -Investment in new product development is a strong predictor of a company’s future value. - Most executives cite innovation as a top corporate priority. -47% of participants in Frost & Sullivan’s 2008 survey of CEOs cited growth through new products as their companies’ primary source of growth. 20
  21. 21. Two Sides of the Same Coin: Innovation and New Product Development Innovation New Product Development Innovation is the foundation for The idea means nothing if the growth through NPD: a new company isn’t agile (or disciplined) product starts with a breakthrough enough to get it into the hands of idea customers An “innovation culture” is key for A process for fairly vetting ideas’ any organization seeking long-term potential discourages growth through NPD organizational biases 21
  22. 22. Where the Rubber Meets the Road: New Product Launch -Itis unusual for a new product on its own – regardless of how innovative or breakthrough it may be – to deliver revenue for the company if the launch fails to: - Communicate the product’s promise - Convert buzz into revenue -A product’s launch is therefore the most sensitive step in achieving growth through innovation and new product development. 22
  23. 23. The Risks of New Product Launch -On average, 40 to 90% of all new products fail. -47% of companies that pioneer new product categories later pull out of those businesses. 23
  24. 24. Where New Product Launch Goes Wrong -Customers are averse to change -Companies expect too much too soon - Companies go to market before they’re ready 24
  25. 25. Case-in-Point: 25
  26. 26. Where New Product Launch Goes Wrong -Customers are averse to change -Companies expect too much too soon - Companies go to market before they’re ready 26
  27. 27. Case-in-Point: 27
  28. 28. What Do Smart Companies Do? Smart companies: -Replicate a precisely executed launch each time they introduce a new product. -Follow a specific process for positioning products, training the sales force, working with channel partners, and communicating with customers. -Brace for slow adoption. 28
  29. 29. Case-in-Point: 29
  30. 30. Frost & Sullivan’s Approach to New Product Launch 30
  31. 31. A Closer Look at the Growth Process Toolkit for NPL Table of Contents and Page Layout 31
  32. 32. Tool Excerpt #1: Product Placement Worksheet 32
  33. 33. Tool Excerpt #2: Sales Support Readiness Checklist 33
  34. 34. Tool Excerpt #3: Sales and Marketing Performance Dashboard 34
  35. 35. Todd Grossman Vice President, Sales & Client Services MultiVu, a PR Newswire Company
  36. 36. Agenda - Supporting product launch through unconventional channels - The reach and influence of multimedia - Case profiles of two industry leaders - How to build a solid multimedia platform
  37. 37. Pushing the Limits of Your Comfort Zone To communicate effectively in today's market, companies must be comfortable communicating through unconventional channels
  38. 38. Adding multimedia to your release increases engagement by 55%. According to a sample of PR Newswire’s clients’ Visibility Reports comparing text-only press releases to their Flex Releases.
  39. 39. Proof is in the Pudding
  40. 40. Current Online Media/Advertising Environment U.S. online ad spending will hit $24.5 billion this year Video ads account for nearly $1 billion, but are expected to grow at about 40% each year “The web is designed for two-way communication and two-way communication is about engagement…we believe it is a basket of interactivity with everything from commenting, sharing, posting, responding…all of these are forms of engagement.” - John McCarus, VP Brand Content, Digitas Source: eMarketer, June 2009
  41. 41. Multimedia News Release (MNR)
  42. 42. Metrics and Reporting Comprehensive Activity Report Daily Page Hits Time Spent on Page Exit Links Referring Domains Visits by Location File Downloads Social Media Sources and Audience Web Clip Sources and Audience Blog Sources and Audience Media Outlets (by date) Media Outlets (by industry)
  43. 43. Case Study #1: Guitar Hero Guitar Hero Stats • Over 2,200 page hits • More than 600 file downloads • Dozens of clicks to e- commerce sites for direct sales
  44. 44. Case Study #2: LG LG Rumor Stats • Over 2,500 page hits • Close to 3,000 video streams on over 60 viral video sites • 500 file downloads • Almost 1,000 embedded video views
  45. 45. Multimedia Platform Proprietary Online Content Distribution Online Video Social Targeted Web SEO Dist Media Blogs Placement Targeted Consumers Enga t ons gem ent Referrals Transac i
  46. 46. Growth, Innovation and Leadership A Frost & Sullivan Global Congress on Corporate Growth $1000 CSG participant savings GIL 2009: North America now thru August 15, 2009 September 13-16, 2009 For more information Email Brian Denker – • Provides 360 Degree Perspective supporting critical decision-making that helps executives achieve their corporate growth objectives • Examines proven tools and strategies that deliver sustainable growth in a highly interactive forum GIL 2009: North America • Allows senior executives to network with industry luminaries, innovators, visionaries, and leaders • Enables executive to better prepare for current challenges and future trends 46
  47. 47. Next Steps Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth ( September 2009! Request additional information related to the Growth Team Membership Growth Process Toolkits and Innovation Survey (email us: Request a proposal for Growth Partnership Services to support you and your team to accelerate the growth of your company. Attend Frost & Sullivan best practice networking events ( Consider Conducting a 360 Degree Growth Workshop to support your long-term growth strategy Register for the next Chairman’s Series on Growth: ( Schedule a One-on-One Preliminary Growth Diagnostic Blueprint workshop with a Frost & Sullivan Growth Consultant (email us: Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team Membership e Bulletin to keep abreast of growth opportunities in your industry and best practices in your career track. ( 47