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McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
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CHAPTER TWENTY-ONE
LAUNCH MANAGEMENT
3 21-3 Launch Management Concept Showing Remedial Action
% aware whohave tried
As of now Goal
Launch Now 6 months
Time
PlanActual
With action
Without action
Figure 21.1
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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.
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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).
6 21-6 A-T-A-R Hierarchy: Where Does the Problem Lie?
Aware
Unaware
Tried
NotTried
ReusedNot R.
Does the problem lie in awareness, trial, or repeat?
Figure 21.2
7 21-7 Decision Model for Building Launch Control Plan Figure 21.3
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Problems at Launch: Philips DCC Machine
• Advertising: Missed lack of product understanding; used DCC term without defining it.
• Resellers: In relaunch, marketed only to those dealers who supported and were willing to invest in the concept.
• Price: Cut price too much, depleted inventories, dealers sent back tapes.
• Consumer Attitudes: Preferred CD-ROMs to DCC tape format (whether right or not).
All of these problems could have been identified and managed!
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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.
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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)
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Designing the Tracking System
• Select the tracking variables– Relevant, measurable, predictable
• Select the trigger points
• Consider the nontrackable problems
12 21-12 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)?
Figure 21.6
13 21-13 Questions from New Product Tracking Study (continued)
Purchase Questions
Have you ever bought (brand)?
Figure 21.6(cont’d.)
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?
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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.
Figure 21.7
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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.
Figure 21.7(cont’d.)
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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 DeletionScenarios,” Journal of Product Innovation Management, Vol. 17, No. 1, January 2000, pp. 41-56.
Figure 21.8