Uploaded byMuhammad Ali Jehangir
New Launch Strategy & Product Cycle
This document discusses strategies for launching new products. It covers several key points: 1. Successful product launching depends on coordination across functions and preparation. 2. Strategic decisions for launching include identifying customers, product positioning, and developing an appropriate marketing mix. 3. Tactical decisions involve the "4 Ps" of marketing - product, price, place (distribution), and promotion. 4. The document provides an overview of different product life cycle stages and strategies for each stage.
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New Launch Strategy & Product Cycle
- 1. Phr_ali91@hotmail.com New Launch Strategy& Product Cycle Muhammad Ali email: phr_ali91@hotmail.com
- 2. Phr_ali91@hotmail.com Why Business Development? •To shape the company’s future. • To maintain or build sales. • Customers want new products, which competitors will do their best to provide them. Muhammad Ali 2
- 3. Phr_ali91@hotmail.com Successful product launchingdepends on co- ordination and cross- functional preparation. Muhammad Ali 3
- 4. Phr_ali91@hotmail.com Why develop NewProduct ? • To create stars and cash cows for the future • To replace declining product • To take advantage of new technology • To defeat rivals • To maintain/increase market share • To keep up with rivals • To maintain competitive advantage • To fill gap in the market 4Muhammad Ali
- 5. Phr_ali91@hotmail.com Categories of NewProducts • New product • entirely new market • New line • new product in established market • Addition to existing line • new product in established line • Improvement of existing product • value addition to existing product • Re-positioning • existing product in new market • Cost reduction • similar performance at lower cost 5Muhammad Ali
- 6. Phr_ali91@hotmail.com Launching Strategy The objectivesof Product Launching is begin, to generate income from sales of the new product. Launching Strategy • First to Market: First to market with New Products ( First Follower: A first follower, learns quickly from those companies who enter first ) • Delayed Entrant: A delayed entrant which likes to enter established market Muhammad Ali 6
- 7. Phr_ali91@hotmail.com Strategic Core The strategiccore of the launching is to identify – 1. Customer 2. Product positioning 3. Marketing mix to carry the message. Muhammad Ali 7
- 8. Phr_ali91@hotmail.com Marketing Mix LaunchingDecisions Marketing Mix Launching Decisions • Product • Price • Promotion • Place (Distribution) Muhammad Ali 8
- 9. Phr_ali91@hotmail.com Launching Strategy According toHultink, the conceptualization of a complete launching strategy consist of – 1. Strategic Decisions 2. Tactical Decisions Muhammad Ali 9
- 10. Phr_ali91@hotmail.com Strategic Launching Decisions •Company Strategy • Product Strategy • Market Strategy • Competitive Strategy Muhammad Ali 10
- 11. Phr_ali91@hotmail.com Strategic Launching Decisions StrategicLaunching Decisions are dependent upon – a) New Product’s Marketing Objectives b) Target Markets c) Competitive Environment d) Production Size of Entry Scale Muhammad Ali 11
- 12. Phr_ali91@hotmail.com Company Strategies Different therapeuticareas represent different types of opportunities for a Pharmaceutical Company. 1. Some areas are important current profit sources 2. Some of them are attractive (Strong, Sustainable different advantages) 3. Some looks set to provide long-run growth 4. Relative weakness of the Competition A company needs to balance these different advantages Muhammad Ali 12
- 13. Phr_ali91@hotmail.com Product Strategy Product Superiorityis the Number One factor for New Product Success. Product Superiority means – 1. Unique Benefits for the Customers 2. Product Quality 3. Reduced Customer Cost 4. Product Innovativeness 5. Product Superiority in the eyes of the Customer 6. Solution to a Customer’s Problem Muhammad Ali 13
- 14. Phr_ali91@hotmail.com Product Related Decisions InPharmaceutical Industry, a new drug’s clinical profile clearly influences the commercial success. Clinical Profile means – Efficacy, negligible side effects and a convenient dosing mechanism, the new drug enjoys a good position in the competition. • The contribution of the clinical profile varies significantly with different market conditions and the company’s sales and marketing capabilities. • Efficacy, Safety, Side Effects Dosage/Administration and Cost comprises Drug’s • A new drug can be differentiated by any or all of these criteria. Muhammad Ali 14
- 15. Phr_ali91@hotmail.com Market Strategy There aretwo levels of Entry in Market • First Entry Strategy • Parallel or Late Entry Strategy Muhammad Ali 15
- 16. Phr_ali91@hotmail.com Early Entry • Earlyentry combined with marketing investment and stronger competitive position lead to better New Product Performance. Market Decisions. • Being first to market can be the key commercial success and for a market leader to keep its competitive position. Muhammad Ali 16
- 17. Phr_ali91@hotmail.com Early Entry First TimeProduct Launching Success of First time product launching depends on – • Sufficient Clinical Data • Marketing investment to raise disease • Product awareness with physicians, patients or even chemists. Muhammad Ali 17
- 18. Phr_ali91@hotmail.com Later Entrant Products •The later entrants benefited from the awareness generated by the earlier product and physicians confidence in overall class benefits Muhammad Ali 18
- 19. Phr_ali91@hotmail.com Competitive Strategy • Finally,Product decisions are made by well understanding of the target market need. • Market need depends on the quality ,affordability and clinical profile to position the product in the market. • Launching = Market Decision + Company Strategy + Product Promotion Strategy + Right time to enter the right place Muhammad Ali 19
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- 21. Phr_ali91@hotmail.com Product Life-Cycle Strategies •Product development • Introduction • Growth • Maturity • Decline • Begins when the company develops a new-product idea • Sales are zero • Investment costs are high • Profits are negative PLC Stages 21Muhammad Ali
- 22. Phr_ali91@hotmail.com Product Life-Cycle Strategies •Product development • Introduction • Growth • Maturity • Decline • Low sales • High cost per customer acquired • Negative profits • Innovators are targeted • Little competition PLC Stages 22Muhammad Ali
- 23. Phr_ali91@hotmail.com Marketing Strategies: IntroductionStage • Product – Offer a basic product • Price – Use cost-plus basis to set • Distribution – Build selective distribution • Advertising – Build awareness among early adopters and dealers/resellers • Sales Promotion – Heavy expenditures to create trial 23Muhammad Ali
- 24. Phr_ali91@hotmail.com Product Life-Cycle Strategies •Product development • Introduction • Growth • Maturity • Decline • Rapidly rising sales • Average cost per customer • Rising profits • Early adopters are targeted • Growing competition PLC Stages 24Muhammad Ali
- 25. Phr_ali91@hotmail.com Marketing Strategies: GrowthStage • Product – Offer product extensions, service, warranty • Price – Penetration pricing • Distribution – Build intensive distribution • Advertising – Build awareness and interest in the mass market • Sales Promotion – Reduce expenditures to take advantage of consumer demand 25Muhammad Ali
- 26. Phr_ali91@hotmail.com Product Life-Cycle Strategies •Product development • Introduction • Growth • Maturity • Decline • Sales peak • Low cost per customer • High profits • Middle majority are targeted • Competition begins to decline PLC Stages 26Muhammad Ali
- 27. Phr_ali91@hotmail.com Marketing Strategies: MaturityStage • Product – Diversify brand and models • Price – Set to match or beat competition • Distribution – Build more intensive distribution • Advertising – Stress brand differences and benefits • Sales Promotion – Increase to encourage brand switching 27Muhammad Ali
- 28. Phr_ali91@hotmail.com Product Life-Cycle Strategies •Product development • Introduction • Growth • Maturity • Decline • Declining sales • Low cost per customer • Declining profits • Laggards are targeted • Declining competition PLC Stages 28Muhammad Ali
- 29. Phr_ali91@hotmail.com Marketing Strategies: DeclineStage • Product – Phase out weak items • Price – Cut price • Distribution – Use selective distribution: phase out unprofitable outlets • Advertising – Reduce to level needed to retain hard-core loyalists • Sales Promotion – Reduce to minimal level 29Muhammad Ali
- 30. Phr_ali91@hotmail.com “Don’t find customersfor your products, find the products for your customers” 30Muhammad Ali