New product launch, strategies,

mistake, success & failure

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 .

Diffusion of InnovationRogers 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 adapters3. Early majority4. Late majority5. Laggards

Innovators tend to be smallest segment of the five adopter categories . However ,despite its small size , it is often the main target of the marketing efforts of firms that wish to sell a new product .

The reason is that not only are innovators , even a small fraction of early adopters ready to take risks and price sensitive . They also influence the early majority and late majority in purchasing the new product . It is hence optimal in a new product launch to allocate relatively more marketing efforts &resources to the innovators and early adopaters.

Innovators really like to be the first to try new products . They tend to be better educated and are ready to risk buying an innovative product. The early adopters are very sociable and they influence to the people . The key to diffusion of innovation is to find the innovators and early adopters.

Rogers suggests that the rate of ease of adoption of new idea depends on the following elements

• Relative advantage

• Compatibility

• Complexity

• Trialability

• Observability

LAUNCH OF TYPE OF PRODUCTS

• Innovative product

• Imitative product

• Me too products

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

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.

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.

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

• 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

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

• Cross –Functional terms for innovation

• Supplier development

• Supplier partnership

• Just –in- Time purchasing

• Benchmarking

• Concurrent engineering

• Rapid prototyping

• Value analysis

• Design for manufacturing

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

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

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.

• 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

• 8. 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.