launching a new product in a distribution company

Launching a new product

Research

Plan

Test

Implement

Analyze

Amin SameniFeb 2016

Launching a new product - Amin Sam

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New Product - ConceptsFeb 2016

What are new products?New to the world: Innovative products → create a new marketNew to the company (new product line): Allows the company to

enter an existing market for the first timeFlankers: Company makes additions to existing product

lines/brandsLine extensionsBrand extensions

Repositioning: Existing products targeted to a new marketProduct Improvements: Quality, feature, service enhancements

toward greater value, different flavor, change in packaging


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New Product - ConceptsFeb 2016

Why new products fail? (in a distribution company) Overestimation of market size Poor use of research Poor planning and strategy Incorrectly positioned, priced, or advertised Poor execution Poor timing Bad support from channel Product problem (Design, Quality,…) Competition might be too fierce

Go to the main menu


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Market(ing) ResearchFeb 2016

Why We use Marketing Research? Identify & Evaluate Opportunities Analyze Market Segments Select Target Markets Plan & Implement Marketing Mixes Analyze Marketing Performance Identify trends that affect sales and profitability Keeping up with competitors' market strategies


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Types of Market Research: By Source:

Primary Secondary

By Methodology: Qualitative Quantitative

By Objectives: Exploratory Descriptive Causal (experimental)


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Primary Collection of data specifically for the problem or project in hand

SecondaryBased on data previously collected for purposes other than the research in hand (e.g. published articles, government stats, ...)

Market Research by source:


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Market Research by methodology:By Methodology: Qualitative Quantitative

Type of Question Probing Simple

Sample Size Small Large

Information per respondent High Low(ish)

Questioner’s skill High Low(ish)

Analyst’s skill High Low

Expenses Low HighAreas probed Attitudes Choices

Areas probed Feelings Frequency

Areas probed Motivations Demographics

Ability to replicate Low High


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Market Research by objective:

Exploratory Preliminary data needed to develop an idea further. E.g. outline concepts, gather insights, formulate hypotheses

Descriptive Describe an element of an ideas precisely. E.g. who is the target market, how large is it, how will it develop

Causal Test a cause and effect relationship, e.g. price elasticity. Done through experiment


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1. Defining the problem and objectives

2. Developing the research plan

3. Collecting the information

4. Analysing the information

5. Presenting the findings

The Market Research Process:

Distinguish between the research type needed e.g. exploratory descriptive causal

Decide on budget data sources Research approaches instruments sampling plan contact methods

Information is collected according to the plan (it is often done by external firms)

Statistical manipulation of the data collected or subjective analysis of focus groups

Overall conclusions to be presented rather than overwhelming statistical methodologies

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Launch PlanFeb 2016

Business review:Category: Factors impacting trends in related categories.Consumer: Define segments and key insights for each segment,

through tracking data and researchChannels: Look at each channel’s performance, major customers

and tools for winning used in each channelCompetitors: dissect competitors looking at positioning, pipeline,

pricing, distribution differences, consumer perception, strategies. Brand: look at internal and external health and wealth of brand.

Use financial analysis and market research perceptions.


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Launch PlanFeb 2016

Strengths

Weaknesses

Opportunities

Threats

SWOTanalysis


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Launch PlanFeb 2016

Positioning:Who: Target market criteria (demographic, geographic,

psychographic, benefit segmentation)What:

What are we selling? (main Benefit) What do want people to think, feel or do?

Why: Why should they believe us? (Support points) How:

How we want to tell them? How we reach them?


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Launch PlanFeb 2016

Selecting Target Customers considerations: Segment size Revenue and margin opportunity Customer benefits Customer interest Customer willingness-to-pay Competition/market coverage Sales channel and associated profit margin Cost to serve Customer loyalty/lock-in


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Launch PlanFeb 2016

Pricing considerations: Value/benefit delivered Customer’s ability to pay Competitive alternatives/pricing Product “image” created Initial sales ramp Profitability (short- and long-run)


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Launch PlanFeb 2016

Selecting channels considerations: The Nature of the Product:

Perishability Size and weight of product Unit value of a product

The Nature of the market: Number of prospective buyers Size of the order Geographic concentration of market

The Nature of the company: Cost of distribution of goods Our facilities Product margin

The nature and size of the manufacturing unit: Manufacturer Reputation and Financial Stability Marketing Strategy Go to the main

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LaunchingFeb 2016

Pre-launch Activities: Training of sales/marketing staff Building service capability Pre-announcements/market signalling Pre-stocking Product listings, price lists etc. Market access

Legal, regulatory, purchasers


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LaunchingFeb 2016

Time (months/years)

Volu

me

of sa

les (

how

man

y ar

e so

ld)

New product is launched

Product matures – sales are steadyPlateau

Sales grow

Sales decline

Development

Saturation

0

Product life cycle:


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LaunchingFeb 2016

Pre-launch Introduction Growth Maturity Decline

Sales

Pre-launch

Announcement

Beachhead Early Growth

The Launch Cycle

Sales &Expenditures

SalesExpenditures

The Launch Cycle:


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LaunchingFeb 2016

Sales boosting strategies:To boost sales and prevent a decline in a product life cycle, we could implement marketing strategies such as:

Advertising, e.g. television, billboard, online Price reduction Sales promotion Adding value or new features Exploring new markets, e.g. international markets


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LaunchingFeb 2016

Time (months/years)

Volu

me

of sa

les (

how

man

y ar

e so

ld)

New product is launchedSales grow

Development

0

Sales boosting or extension strategies are implemented

Product life cycle – sales boosting strategies:


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Amin SameniI’m a self-motivated and goal oriented professional, with more than 10 years of comprehensive experience in sales and marketing with successful track record. My in-depth understanding of business concepts enabled me to work in challenging, dynamic and fast pace environments. Professional Skills:

Solid knowledge of sales and marketing specially in CPG field Extensive experience in Distribution Channels Experienced in Supply Chain Management Extensive ability for sales and marketing data analysis Solid knowledge of Merchandising Management Trade and Consumer Marketing Solid experience in Market Research Proficient software user: Microsoft Office, CRM, ERP Go to the main

menu

Feb 2016

http://ca.linkedin.com/in/aminsameni