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

Chapter 17 Implementation of the Strategic Plan 17-2

The Launch Cycle Sales Expenditures Sales and Expenditures Prelaunch Beachhead Early growth Announcement 17-3

Tactical Launch Decisions and Actions, Showing Influences on Demand 17-4

Preannouncement Getting to be popular, and very creatively managed. Far from the old days of “tease the public.” Preannouncement signaling may be used (“vaporware”). 17-5

Beachhead This refers to the heavy expenditure needed to overcome sales inertia (“getting the ball rolling”). Steep rising expenditures curve during this period, up to point where sales are increasing at an increasing rate. Begins with the announcement. Key decision during beachhead: when do you end it? How do you know inertia has been overcome? 17-6

Copy Strategy Statement Communications tools used at launch will have certain deliverables. The way in which the firm communicates these deliverables to the advertising and promotion creative people is the copy strategy statement. Typical contents: The market segment targeted The product positioning statement The communications (promotion) mix The major copy points to be communicated. 17-7

Typical Examples of Copy Points “The provider of this insurance policy is the largest in the world.” “This cellular phone has no geographic limitation.” “Dockers are available at JCPenney.” “Future neurosurgeons benefit from the hand-to-eye skills of computer games like this one.” There is no limit to the choices here, but there must be a focus. Only a few copy points are going to be accomplished at a time. 17-8

A-T-A-R Goals: The New Product Group’s Obligation New product group must persuade itself and management that the plan can achieve the necessary awareness, availability, trial, and repeat purchase... and that it can do so in sufficient quantity and at acceptable cost. 17-9

Motivating Distributors Increase distributor’s unit volume. Increase distributor’s unit margin. Reduce distributor’s cost of doing business. Change distributor’s attitude toward the line. 17-10

Barriers to Trial Lack of interest in the claim. Lack of belief in the claim. Rejecting something negative about product. Complacency. Competitive ties. Doubts about trial. Lack of usage opportunity. Cost. Routines. Risk of rejection. 17-11

Appropriate Launch Tactics Given Relative Advantage and Compatibility 17-12