tools and tactics of the growth team: successful go-to-market strategies for new product launch
DESCRIPTION
A presentation from the Frost & Sullivan chairman's series on growth, covering successful strategies on new product launch in today's economic climate.TRANSCRIPT
Tools and Tactics of the Growth Team:Successful Go-to-Market Strategies for New Product Launch
Chairman’s Series on Growth
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Today’s Presenters
Naylor Gray, Director - Global MarketingFrost & Sullivan
Todd Grossman, Vice President – Sales and Client ServicesMultiVu, a PR Newswire Company
Katherine Burns, Growth Thought LeaderFrost & Sullivan
David Frigstad, ChairmanFrost & Sullivan
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Agenda
• Economic Update : August 2009• The Growth Acceleration System – New Product Launch• Growth through New Product Development and Innovation• Case Studies in Successful New Product Launch• Serious About Growth: Next Steps
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Global Economic Outlook August 2009
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• Key to recovery - Credit situation, Confidence (Business and Consumer) and Internal and External Demand -leading confidence indicators show signs of recovery
• Full Impact of stimulus plans is expected to be spread out starting from second half of 2009. 250 billion is expected to be spent in 2009 and remaining part of stimulus in the next two years
• Sector specific support/bail out plans - Restructuring of Automotive Industry focuses on green business and infrastructure development
• Revival in stock markets and commodity prices - Dow Industrial Average Increased by 23 percent since February and oil prices in the range of $60-$72
• Financial market conditions are improving, but credit remains tight. • Improving corporate performance and earnings - Better than expected Q2 results for Goldman Sachs, JP
Morgan Chase, Apple• Unprecedented focus worldwide on addressing the economic situation - Global stimulus spending
estimated to be worth more than US $ 2 trillion - in developed economies it appears more time is required for the stimulus to take effect as they are spread out over 2 or 3 years
• Slow down in major trading partners Canada, China, Mexico, Japan and Germany affecting US exports growth. Chinese and Canadian demand is likely to support growth in exports in the second half of 2009. Export demand from emerging nations will be a factor in reviving the global economy
• Converging expert consensus on recovery path - Number of forecasters predict slow recovery and low growth in the second half of 2009.
North America - Recent Developments
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Green Shoots
New Housing Starts
Building Permits
Retail Sales
Corporate Profits
Dow Jones Industrial Average
New Orders
Unemployment Insurance Claims
Composite Leading Indicator
Business Confidence Index
• Many leading indicators point toward stabilizing market conditions
North America - Recent Developments
Downside Risk Factors
• Credit Situation – Some improvement in financial markets but credit situation remains tight
• Budget Deficit and Public Debt– Long term issue –kick start the economy and reduce the deficit
• Increasing unemployment and underemployment such as part time work
• Impact of decline in household wealth due to the collapse of stock market in 2008 and fall in home prices
• Key to sustainable of economic recovery depend on improving the credit situation and confidence among investors. Major source of uncertainty comes from lack of clarity on financing the deficit and other large government programs such as healthcare reforms.
United States : Green shoots – are they sustainable ? United States : Downside Risk Factors
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North America
North American Economic Outlook : Due to high interdependence among the three countries on account of closer economic
and trade relations, recovery in the region largely depend on the performance of the US economy which accounts for the bulk
of regional GDP. Despite the initiatives taken by the Obama administration, credit situation is tight and confidence remains
low due to high unemployment levels. However a number of indicators shows signs of stabilization which is likely to result
in recovery starting second half of 2009.
Canada : The impact of the crisis is high due to high level of interdependency and consequently affected economic growth in Q1. Aided by the timely stimulus measures Canadian economy is expected to return to its growth path in the second half .
United States: Improving business sentiments, consumer confidence, easing credit situation, Stimulus plans and other government initiatives are likely to contribute to the recovery.Expected to bottom out in 2009 and recovery to begin in the second half of 2009.
Mexico : Higher dependence on US economy is adversely affected the Mexican economy since the crisis began. Expatriation of earnings and fall in remittances has contributedto capital flight, and depreciation of peso. Recovery depends onexport growth and improvement in oil prices.
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European Growth Trends - 2008 - 2009 Europe Growth Trends Europe Growth Trends
Growth Trends
• Germany, France, Italy, Spain and United Kingdom accounted for 72 percent of European Union GDP in 2008. • GDP declined sharply in these countries due to the financial crisis. • Germany and France are likely to lead European recovery as there are signs of improvement in industrial output and
consumer confidence
Policy Initiatives
• European Union EU wide stimulus package 200 billion euros – nearly 1.5 percent of EU GDP • Country specific measures includes tax cuts, financial support to the unemployed, increased spending on infrastructure
development and social sectors and industry specific support
-5.0-4.0-3.0-2.0-1.00.01.02.03.04.05.0
Austria Belgium France Germany Italy Netherlands Spain UnitedKingdom
Euro area
GD
P G
row
th (%
)
Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009
Note : Quarterly growth rates - same quarter previous year
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The Big Four Asian Giants - Economic Growth Trends
Japan : Japanese economy depends on exports; the global slow down has contributed to a sharp decline in 2009 Q1. Public debt is estimated at 200 % of GDP, which is one of the highest in the world. Stimulus package of over $104 billion.
China : Stimulus $586 billion (204 new money) with focus on infrastructure and induce domestic demand. Recovery signs include growth in domestic demand including increase investment. China accounts for 6.5 percent of global GDP, and is expected to have one of the highest economic growth in 2009.
India : More stable political conditions and domestic demand have contributed to the increased investor confidence in recent months. Though exports are declining, the manufacturing sector is stabilizing with six core industries and had positive growth partly aided by the stimulus measures ($6.5 billion in new money). GDP is expected to grow by 7.0 percent in 2009.
Korea : Export driven economy, sharp decline in GDP, With stimulus package of $ 45 billion ($26 billion in new money), economic growth in 2009 Q2 is 2.3 percent driven by manufacturing (Electrical and electronic equipment, and petroleum, coal and chemicals manufacturing). Increased durable demand has contributed growth in consumption expenditure.
-10.0
-5.0
0.0
5.0
10.0
15.0
Japan India China Korea
Gro
wth
Rat
e (%
)
Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009
Note : Quarterly growth rates - same quarter previous year
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Latin America - Economic Growth Trends
Brazil : Stimulus package is estimated to be $ 8.6 billion. Equity market shows signs of recovery, pressure on currency is also easing. Import growth expected to fall
Chile : Stimulus package-$ 4 billion announced In January. In addition other initiatives such as support to small enterprises and stabilize the financial sector and ease credit situation. Combination of stimulus plan and rise in copper prices driven by Chinese demand will support the economic recovery.
Argentina : $ 4.4 billion in new stimulus which includes public works program to improve infrastructure covering energy, transportation and housing sectors.
Colombia : Bank rates were reduced from 10 percent to 5 percent since December 2008. Fiscal policy initiatives include tax cuts and increased infrastructure spending. Economic recovery is expected to gain momentum in the second half of 2009
Venezuela : Oil price had adverse impact on exports and government finance. Most invest plans are likely to be postponed till the global recovery gains momentum.
Peru : Stimulus package is estimated at $ 3 billion funded by fiscal surplus. Focus of the plan is on social spending, infrastructure and reduction in fuel prices. Peru’s Economy expanded by 0.9 percent in the first half of 2009.
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Brazil Argentina Venezuela Chile
Gro
wth
Rat
e (%
)
Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009
Note : Quarterly growth rates - same quarter previous year
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• IMF support for least developing countries worth 17 billion to help the revival
• Chinese demand for resources helping countries to promote growth(Australia and ASEAN)
• US recovery critical for Europe and Japan because of high level of economic and trade interdependence
• World balance of economic power – shift towards East from the West with emerging countries likely to lead growth through increased consumption, rather driven by exports
• Worst is behind us, more positive future outlook, some areas of uncertainties remains which are likely to subside in the near future
• Time for fine tuning strategies, adjust plans, prepare for the future
World Economy - Recent Developments
David FrigstadChairman
Frost & Sullivan
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The Growth Acceleration System
(FGP)
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The Growth Model
Generation of Opportunities & Strategies
Evaluation of Opportunities & Strategies
Implementation of Strategies Growth Pipeline Developm
ent
10 Growth Processes
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Top Successes Regarding Growth
23%
15%18%
13% 13%
4%
10%
2%
17%
22%
14% 15%13%
9%6%
3%
15% 16% 15%
19%
11%9%
4%7%
0%
10%
20%
30%
CompetitiveStrategy
StrategicPartnering
ProductLaunch
GeographicExpansion
TechnolgyStrategies
DistributionChannel
Optimization
Mergers &Acquisitions
GrowthSourcing
#1 Success #2 Success #3 Success
What are the top three strategies that you have had the most growth in the past three years?
Total SampleSelecting 54% 54% 47% 47% 37% 22% 20% 13%
Sources of Growth
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Strategies for Future Growth
Strategies Planned for Future Growth
25%
15%13%
10% 11%
7%
13%
4%
18%
23%
13%11% 12%
7% 7% 8%
16% 16% 16%
12%9%
13%
6%9%
0%
10%
20%
30%
Launching newproducts/services
Strategicpartnerships
Entering newgeographies
Competitivestrategies
Customerstrategies
Technologystrategies
Mergers &acquisitions
Distributionchannel
optimization
#1 Success #2 Success #3 Success
Which of these strategies are you using for future growth?
Total SampleSelecting 59% 54% 42% 33% 31% 27% 25% 21%
Katherine Burns
Director, Growth Thought Leadership Frost & Sullivan
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Katherine Burns
Director, Growth Thought Leadership Frost & Sullivan
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Growth Process ToolkitAccelerating Growth through Rigorous Planning, Principled Execution, and Continuous Monitoring
What Are the Growth Process Toolkits?
The Growth Process Toolkits document Frost & Sullivan’s best thinking and work on each of the 10 growth processes in a step-by-step implementation format.
How Will They Help You?
They save you time and money by focusing you on the right questions to ask and the right activities to back them up, right from the start.
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Before the Launch:Growth through New Product Development and Innovation
- Investment in new product development is a strong predictor of a company’s future value.
- Most executives cite innovation as a top corporate priority.
- 47% of participants in Frost & Sullivan’s 2008 survey of CEOs cited growth through new products as their companies’ primary source of growth.
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Two Sides of the Same Coin:Innovation and New Product Development
The idea means nothing if the company isn’t agile (or disciplined) enough to get it into the hands of customers
A process for fairly vetting ideas’potential discourages organizational biases
Innovation is the foundation for growth through NPD: a new product starts with a breakthrough idea
An “innovation culture” is key for any organization seeking long-term growth through NPD
New Product DevelopmentInnovation
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Where the Rubber Meets the Road:New Product Launch
-It is unusual for a new product on its own – regardless of how innovative or breakthrough it may be – to deliver revenue for the company if the launch fails to:
- Communicate the product’s promise
- Convert buzz into revenue
-A product’s launch is therefore the most sensitive step in achieving growth through innovation and new product development.
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The Risks of New Product Launch
-On average, 40 to 90% of all new products fail.
-47% of companies that pioneer new product categories later pull out of those businesses.
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Where New Product Launch Goes Wrong
-Customers are averse to change
-Companies expect too much too soon
- Companies go to market before they’re ready
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Case-in-Point:
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Where New Product Launch Goes Wrong
-Customers are averse to change
-Companies expect too much too soon
- Companies go to market before they’re ready
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Case-in-Point:
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What Do Smart Companies Do?
Smart companies:
-Replicate a precisely executed launch each time they introduce anew product.
-Follow a specific process for positioning products, training the sales force, working with channel partners, and communicating with customers.
-Brace for slow adoption.
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Case-in-Point:
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Frost & Sullivan’s Approach to New Product Launch
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A Closer Look at the Growth Process Toolkit for NPLTable of Contents and Page Layout
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Tool Excerpt #1:Product Placement Worksheet
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Tool Excerpt #2: Sales Support Readiness Checklist
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Tool Excerpt #3: Sales and Marketing Performance Dashboard
Todd GrossmanVice President, Sales & Client Services
MultiVu, a PR Newswire Company
Agenda
- Supporting product launch through unconventional channels
- The reach and influence of multimedia
- Case profiles of two industry leaders
- How to build a solid multimedia platform
To communicate effectively in today's market, companies must be comfortable communicating through
unconventional channels
Pushing the Limits of Your Comfort Zone
Adding multimedia to your release increases engagement by 55%.
According to a sample of PR Newswire’s clients’ Visibility Reports comparing text-only press releases to their Flex Releases.
Proof is in the Pudding
Current Online Media/Advertising Environment
U.S. online ad spending will hit $24.5 billion this yearVideo ads account for nearly $1 billion, but are expected to grow at about 40% each year
“The web is designed for two-way communication and two-way communication is about engagement…we believe it is a basket of interactivity with everything from commenting, sharing, posting,responding…all of these are forms of engagement.”- John McCarus, VP Brand Content, Digitas
Source: eMarketer, June 2009
Multimedia News Release (MNR)
Metrics and Reporting
Comprehensive Activity Report
Daily Page Hits
Time Spent on Page
Exit Links
Referring Domains
Visits by Location
File Downloads
Social Media Sources and Audience
Web Clip Sources and Audience
Blog Sources and Audience
Media Outlets (by date)
Media Outlets (by industry)
Case Study #1: Guitar Hero
Guitar Hero Stats
• Over 2,200 page hits
• More than 600 file downloads
• Dozens of clicks to e-commerce sites for direct sales
Case Study #2: LG
LG Rumor Stats
• Over 2,500 page hits
• Close to 3,000 video streams on over 60 viral video sites
• 500 file downloads
• Almost 1,000 embedded video views
Multimedia Platform
Proprietary Online Content Distribution Proprietary Online Content Distribution
SEOSEO Online VideoDist
Online VideoDist
SocialMediaSocialMedia
Targeted Blogs
Targeted Blogs
WebPlacement
WebPlacement
Targeted ConsumersTargeted Consumers
EngagementEngagement ReferralsReferrals Transactions
Transactions
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GIL 2009: North America
GIL 2009: North AmericaGIL 2009: North AmericaSeptember 13-16, 2009www.gil-global.com/northamerica
• Provides 360 Degree Perspective supporting critical decision-making that helps executives achieve their corporate growth objectives
• Examines proven tools and strategies that deliver sustainable growth in a highly interactive forum
• Allows senior executives to network with industry luminaries, innovators, visionaries, and leaders
• Enables executive to better prepare for current challenges and future trends
$1000 CSG participant savings $1000 CSG participant savings now thru August 15, 2009now thru August 15, 2009
For more informationFor more informationEmail Brian Denker –[email protected]
Growth, Innovation and LeadershipA Frost & Sullivan Global Congress on Corporate Growth
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Next Steps
Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com)September 2009!Request additional information related to the Growth Team Membership Growth Process Toolkits and Innovation Survey (email us: [email protected]) Request a proposal for Growth Partnership Services to support you and your team to accelerate the growth of your company. Attend Frost & Sullivan best practice networking events(http://www.frost.com/cal)Consider Conducting a 360 Degree Growth Workshop to support your long-term growth strategy Register for the next Chairman’s Series on Growth: (http://www.frost.com/growth)Schedule a One-on-One Preliminary Growth Diagnostic Blueprint workshop with a Frost & Sullivan Growth Consultant (email us: [email protected]) Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team Membership e Bulletin to keep abreast of growth opportunities in your industry and best practices in your career track. (www.frost.com)