Z Score,T Score, Percential Rank and Box Plot Graph
Newproduct launch
1. New product launch, strategies,
mistake, success & failure
BY
RENJINICHANDRAN
S3 MBA
GIMS , KADAKKAL
2. Introduction
New product launch is the most crucial
aspect in the new product development . The
success and failure of a product heavily depend
on the new product launch .
3. Diffusion of Innovation
Rogers has suggested the use of diffusion of
innovation method for launching a new product. Not
all potential users of a product or a new generation of
a technology adopt the new product at the same time
.Consequently , on the basis of the stage at which they
adopt the new product, adapters traditionally are
classified into five categories
1. Innovators
2. Early adapters
3. Early majority
4. Late majority
5. Laggards
4. 1. Innovators
Innovators are willing to take risks, have the highest
social status, have financial liquidity, are social and
have closest contact to scientific sources and
interaction with other innovators. Their risk tolerance
allows them to adopt technologies that may ultimately
fail. Financial resources help absorb these failures.
2. Early adopters
These individuals have the highest degree of opinion
leadership among the adopter categories. Early
adopters have a higher social status, financial
liquidity, advanced education and are more socially
forward than late adopters. They are more discreet in
adoption choices than innovators. They use judicious
choice of adoption to help them maintain a central
communication position
5. 3. Early Majority
They adopt an innovation after a varying degree of
time that is significantly longer than the innovators
and early adopters. Early Majority have above average
social status, contact with early adopters and seldom
hold positions of opinion leadership in a system
4. Late Majority
They adopt an innovation after the average
participant. These individuals approach an innovation
with a high degree of skepticism and after the majority
of society has adopted the innovation. Late Majority
are typically skeptical about an innovation, have below
average social status, little financial liquidity, in
contact with others in late majority and early majority
and little opinion leadership
6. 5. Laggards
They are the last to adopt an innovation. Unlike
some of the previous categories, individuals in
this category show little to no opinion leadership.
These individuals typically have an aversion to
change-agents. Laggards typically tend to be
focused on "traditions", lowest social status,
lowest financial liquidity, oldest among adopters,
and in contact with only family and close friends.
7. The diffusion of innovations according to Rogers. With successive
groups of consumers adopting the new technology (shown in blue), its
market share (yellow) will eventually reach the saturation level. In
mathematics, the yellow curve is known as the logistic function. The
curve is broken into sections of adopters.
8. Rogers suggests that the rate of ease of adoption of
new idea depends on the following elements
• Relative advantage: The degree to which the idea is
perceived as better than the one it supersedes. The
greater the relative advantage an idea has, the faster
it will be adapted.
• Compatibility: The degree to which the idea is
perceived as being consistent with existing values,
past experience &needs of potential adapters.
• Complexity: The degree to which the idea is
perceived as difficult to understand &or use. The less
complex a new idea is , the faster rate of adoption.
9. • Trialability: The degree to which the idea can be
tested .The easier it is to experimentally test a
new idea ,the faster it will be adapted.
• Observability: The degree to which the result of
an innovation are visible to others .The more
observable these results , the faster the idea will
be adapted. Providing free samples , trial packs
make the product visible . High degree
advertising also help in observability.
10. LAUNCH OF TYPE OF PRODUCTS
• Innovative product
• Imitative product
• Me too product
11. NEW PRODUCT SUCCESS
When operating in this technology driven era at a
breakneck pace, firms cannot afford to take the
time to complete the traditional forms of
qualitative and quantitative market research –
activities aimed at reducing a firm risk of
failure. Taking 9 to 18 months to define and
deliver a product is no longer an option
12. In many of today’s industries products must be
conceived and delivered within 6 months or less
to give a company a first to market position. As
a result often eliminate or cut back on their
customer research, taking on more risk than
desired when rolling out their new products.
With this added risk, firms are often forced to
wait until the product is introduced to gain an
accurate assessment as to how customers will
respond. This is often dangerous proposition.
13. In the days weeks that follow a product’s
introduction, evaluation are published or
reported by trade magazines, user groups,
industry waters, newsmagazines and other
customer groups that have an interest of the
product. During this period only companies are
learning how potential customers perceive their
products.
14. A marketer to ensure product success
guidelines may use the following
• Distinguish your product from the competition
in a consumer relevant way
• Capitalise on key corporate competencies and
brand strength
• Develop and market products to people’s needs
& habit
• Market to long-term trends , not fads
• Don’t ignore research , but don’t be paralysed by
it
15. • Make sure your timing is right
• Be a marketing leader , not a distant follower
• Offer a real value to customer
• Determine a products short-term & long-term
sales potential
• Gain legitimacy and momentum for the brand
• Give the trade as good a deal as the customer
• Clearly define, understand ,&talk to your target
• Develop &communicate a distinctive & appealing
brand character... & stick to it
• Spend competitively and efficiently , behind a
relevant proposition
• Make sure the customer is satisfied ...& says that
way
16. According to Sanchez &Perez the
following ere the practices that need
to be done for new product successes
• Open organisations
• Broad jobs
• Employee autonomy
• Cross-training /job rotation
• Standardization
• Group technology
• Computer –Aided – Design/Computer-Aided
Engineering
17. • Cross –Functional terms for innovation
• Supplier development
• Supplier partnership
• Just –in- Time purchasing
• Benchmarking
• Concurrent engineering
• Rapid prototyping
• Value analysis
• Design for manufacturing
18. PRODUCT FAILURES
• A product is a failure when there is
• Withdrawal of the product from the market
• Inability of a product to take off toward
anticipated market share
• Inability of a product to fulfil anticipated life
cycle
• Failure of a product achieve profitability
19. Studies have shown that in many industries 35-40%
of new product effort fails. 46% of new product
funding is wasted on failed or cancelled projects.
Failures are different from FADS(which have a
naturally short life cycle)Failure are not
necessarily financial failures, although bankruptcy
enough or misdirected product research or market
research , failures include , but are not limited to
products and services which pose health & safety
hazards .Failure are not necessarily bad technical
ideas . The study of failure is important in that it
can help us prevent future failures
20. Reasons for the product failures
• The relationship of the company or its brands on the
consumers will decide whether a product will be
successful or not. Ponds decided to enter the toothpaste
market because the consumers perception of Ponds as
talcum powder, not as a tooth paste
• Too small a target market ,which is too specialised for the
volume originally planned
• Too many new products in quick succession . Bajaj auto,
the biggest scooter maker during 1998 launched 4 models
and5 products upgrades . But none of them succeeded.
• Insufficient differentiation from existing offerings ,leading
to another me-too product. Mac industries diversified into
papad business but lost out due to the grey market Ponds
toothpaste was similar as Colgate
• Poor or inconsistent product quality.
21. • No access to the market due to faults in the
company's policy
• Poor timing in terms of the industry life cycle. No
company ventured to offer new products during the
recessionary times of 2008 . Even the film industry
decided not to release more films during the
secession
• Launching the product too early
• Launching the product too late.
• Poor marketing and not enough attention was paid
to main competitive alternatives.
• The following statements are very important to get
the benefit this product offers were new to
customers. The customers perceived the product
features as novel/unique. This product offers
improvements in existing product features.
