LAUNCH

Strategic Launch Planning

Strategic Launch Planning

Developing a Marketing Plan

Product Focus

Organizational Focus

Strategic Givens
Some team decisions made earlier. Often found in the PIC Guidelines.
A specified gross margin: affects funding. Speed-to-market: affects promotional outlays and schedules. Commitment to a given channel: affects distribution plan. Advertising policy: affects promotion decisions. Pricing policy: affects decision to use penetration or skimming pricing (slide down demand curve).

PIC Goals
Customer Acceptance Goals
Satisfaction Sales Market Share

Product Level Performance Goals

Cost Time to Market Performance Quality

Financial Performance Goals

Time to break even Margins IRR, ROI

Other
Competitive Effect Image Change Morale Change

Strategic Platform Decisions

Permanence Aggressiveness Type of Demand Sought Competitive Advantage Product Line Replacement Competitive Relationship Scope of Market Entry Image

Permanence
Permanent, stand-alone.
We are here to stay!

Stay if we meet our Goals! Temporary. Given firms tendency to develop streams of products, more and more new products are actually only temporary.

Permanence
Permanent, stand-alone.
We are here to stay!

Stay if we meet our Goals! Temporary. Given firms tendency to develop streams of products, more and more new products are actually only temporary.

Permanence
Permanent, stand-alone.
We are here to stay!

Stay if we meet our Goals! Temporary. Given firms tendency to develop streams of products, more and more new products are actually only temporary.

Some Other Strategic Platform Decisions

Aggressiveness (aggressive versus cautious attitude at entry) Type of demand sought (primary versus selective) Competitive advantage sought (differentiation, price leadership, or both) Competitive relationship (aim at a competitor, avoid a competitor) Image (create a new image, tweak an existing image, use the already-existing image)

Product Line Replacement Strategies

Butt-on product replacement Low-season switch High-season switch The existing one is simply dropped when the new one is announced. Example: Ford's marketing of Mondeo and dropping of Sierra. Same as butt-on, but arranging the switch at a low point between seasons. Tour companies use this switch when they develop their new catalogs. Same as butt-on, but arranging the new item at the top of a season. Example: Polaroid used this strategy often, putting new replacement items out during the Christmas season. New movies and serial launched on Eid/Christmas day. Another version of butt-on, but arranged by a sequence of market segments. Mercedes introduced its C series country by country. Keeping the earlier product along side the new, but with decreased support. Example: The 386 chip stayed along side the 486, until the Pentium was introduced. Putting the new item in a different channel or diverting the existing product into another channel. Example: Old electronic products often end up in discounter channels (Poundland & Primark in UK)

Roll-in, roll-out Downgrading

Splitting channels

Scope of Market Entry

This is not test marketing. This is launch. All forces in place and working.
Roll out slowly -- checking product, trade and service capabilities, manufacturing fulfillment, promotion communication, etc. Roll out moderately, but go to full market as soon as volume success seems assured. Roll out rapidly -- full commitment to total market, restricted only by capacity.

The Target Market Decision

Alternative ways to segment a market
end-use, geographic/demographic, behavioral/psychographic, benefit segmentation

Micromarketing and mass customization Also consider the diffusion of innovation

Positioning Decision
Positioning:
An act of designing the companys offering and image to occupy a distinctive place in the mind of target market. (Kotler & Keller, 2008)

Me too positioning strategy~

 Why should any one buy your product??

Brand Concept Management

Park et al (1986) categorized brands into two categories:
functional symbolic

 Two schools of thought:

Economic model Hedonic consumption

The Economic Model

Need recognition/problem awareness Information search Evaluation of alternatives

Purchase
Post-purchase evaluation of alternatives
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 Functional brands satisfy immediate & practical needs

 Symbolic brands satisfy symbolic need such as those for self expression & prestige.

 According to Park et al (1986)

Brand concept must be selected at the introduction phase and use marketing mix to support it over the brands life.
Brands should be positioned to either appeal functional needs or symbolic needs. Brand concept which is both functional & symbolic possess problems for the consumers.

 According to Park et al (1986)

In a research (1991):
functional extension of functional brand was more favorable than the prestige extension of functional brand. Similarly, prestige extension of prestige brands was more favorable than the functional extension of prestige brands.

 According to Bhat & Reddy (1998):

Consumers dont have any trouble accepting brands that have both symbolic and functional appeal, as consumers see them as separate phenomena.

 Important questions to address before deciding the positioning:

What are the functions of the brands? Do they relate to every day mundane parts of peoples lives OR are they prestige or fashion functions. What positioning does the pricing of the brand signal? Does the packaging reflects the desired positioning in terms of personal expression or prestige? Do we want brand to imply functional superiority or exclusivity? What is the balance of rational decision making & emotional choice?

Branding Decisions
Consumers use brands to Reflect their self-identity and project it to other people Every new product must be identified.

Building Brand Equity

Choosing brand elements Designing holistic marketing activities Leveraging secondary associations

Choosing Brand Elements

Brand name Slogans (Just Do It) Logo Symbols Characters (Kellogs), spokes people (Brand Ambassadors) Jingles

Choosing Brand Elements

Main criteria for choosing brand elements:
Memorable Meaningful Likable Transferable Adaptability Protectible

Brand name considerations (Jobber)

A good brand name should: 1. Evoke positive associations 2. Be easy to pronounce and remember 3. Suggest products benefits 4. Be distinctive 5. Use numerals or alphanumerics when emphasizing technology 6. Be transferable 7. Not infringe an existing registered brand name

Holistic Marketing Activities

Personalization
One-to-one marketing

Integration
Combining efforts

Internalization
Employees motivation

Leveraging Secondary Associations

Linking brand to other information in memory. (Borrowing brand Equity)

Branding Decisions
Individual names.
Head & Shoulders, Pantene, Capri Heinz

Blanket family names. Separate family names for all product categories.
Sears
Allstate - Automobile parts and insurance Celestial Star - Diamond Jewelry Cheryl Tiegs - Clothing Coldspot - Appliances

Corporate name combined with individual product names.

Kellogs Rice Crispies, Kellogs Rassin Bran,