Mba pharmaceutical and health management

1. NEW PRODUCTS
MANAGEMENT
Merle Crawford
Anthony Di Benedetto
10th Edition
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 19
Launch Management
19-2

3. Launch Management Concept
Showing Remedial Action
% aware who
have tried
As of now Goal
Launch Now 6 months
Time
Plan
Actual
With action
Without action
19-3

4. The Launch Management System
• Spot potential problems.
• Select those to control.
– Consider expected impact/damage.
• Develop contingency plans for the management of
problems.
• Design the tracking system.
– Select variables.
– Devise measuring system.
– Select trigger points.
Adage: in driving a car, it is the potholes you don’t know
about (or forget about) that cause you damage.
19-4

5. Spotting Potential Problems
• Problems section from the situation analysis.
• Role-play what competitors will do.
• Look back over all the data in the new product's
"file."
• Consider hierarchy of effects needed to result in
a satisfied customer (A-T-A-R).
19-5

6. A-T-A-R Hierarchy: Where Does
the Problem Lie?
Aware
Unaware
Tried
Not
Tried
Reused
Not R.
Does the problem lie in awareness,
trial, or repeat?
19-6

7. Decision Model for Building Launch
Control Plan
19-7

8. Select the Control Events
Of all potential problems,
• Which have enough impact to warrant investigation?
• Which of these ought to be given special consideration?*
• Which of these should be given contingency planning?
• And which of these need to be tracked?
*Basis: Consider potential damage and likelihood
of occurrence.
19-8

9. Develop Contingency Plans
• "Is there anything we can do?"
– e.g.: competitive price cut or product
imitation.
• Base contingency plan on type of problem:
– 1. A company failure (e.g., inadequate
distribution)
– 2. A consumer failure (e.g., low awareness
or trial)
19-9

10. Designing the Tracking System
• Select the tracking variables
– Relevant, measurable, predictable
• Select the trigger points
• Consider the nontrackable problems
19-10

11. Questions from New Product
Tracking Study
Category Usage Questions
In the past six months, how many times have you bought (product
category)?
What brands of (product category) have you ever heard of?
Have you ever heard of (brand)? (Ask for 4 to 6 brands)
Have you ever bought (brand)? (Ask for 4 to 6 brands)
About how many times have you bought (brand) in the past six
months?
Advertising Awareness Questions
Do you recall seeing any advertising for (brand)? (ask all brands
respondent is aware of)
Describe the advertising for (brand).
Where did you see the advertising for (brand)?
19-11

12. Questions from New Product
Tracking Study (continued)
Purchase Questions
Have you ever bought (brand)?
If "Yes":
How many times have you bought it?
How likely are you to buy (brand) again?
What did you like/dislike about (brand)?
What do you think of the price of
(brand)?
If "No":
Did you look for (brand) in the
store?
Why didn't you try (brand)?
How likely are you to try (brand)
in the future?
19-12

13. A Sample Launch Management
Plan
Potential Problem
Salespeople fail to contact general-purpose market at
prescribed rate.
Tracking
Track weekly sales call reports (plan is for at least 10
general-purpose calls per week per rep).
Contingency Plan
If activity falls below this level for three weeks running, a
remedial program of one-day district sales meetings will
be held.
19-13

14. Another Problem Illustrated
Potential Problem
Potential customers are not making trial purchases
of the product.
Tracking
Begin a series of 10 follow-up calls a week to
prospects.
There must be 25% agreement on product's main
feature and trial orders from 30% of those
prospects that agree on the feature.
Contingency Plan
Special follow-up phone sales calls to all prospects
by reps, offering a 50% discount on all first-time
purchases.
19-14

15. After Action Review
• Designed to capture the events leading up
to product launch.
• Identify what went right (so it can be
duplicated) and what went wrong (so it can
be fixed in the future).
• Contains planned versus actual results,
what has been learned, and outline for
next steps.
19-15

16. A Sample After Action Review
• Objectives:
– Send customer sample by end December
– Send revised samples by end February
– Reduce test time in half (from 60 to 30 seconds)
• Results:
– Objective 1 missed by one week, other objectives achieved
• Reasons for variances:
– New product did not achieve performance requirements spelled out in the product spec.
– Too much time (six weeks) lost in redesign and remanufacturing as a result.
– Not enough time allocated for hardware or software changes.
– But, team was able to reduce test time due to newly developed efficient testing.
• Lessons learned:
– Relied too much on off-the-shelf processes.
– Testing procedure turned out to be more complex than expected, which should have been
accounted for in the plan.
Source: Ken Bruss, “Gaining Competitive Advantage by Leveraging Lessons Learned,” in A. Griffin and S. M.
Somermeyer, The PDMA Toolbook 3 For New Product Development, Wiley, 2007.
19-16

17. A Stepwise Product Deletion
Process
Recognition of the product to
be deleted
Analysis and revitalization stage
Evaluation and decision formulation stage
Implementation stage
Source: George J. Avlonitis, Susan J. Hart, and Nikolaos X. Tzokas, “An Analysis of Product Deletion
Scenarios,” Journal of Product Innovation Management, Vol. 17, No. 1, January 2000, pp. 41-56.
19-17