Factors to Consider in New Product Launch

Factors to Consider in New Product Launch Marketing is the process by which customer needs are anticipated and identified. Ways are found of meeting those needs at a price that consumers are prepared to pay and which allows the business to make a profit For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under consideration What are the key political factors likely to affect the chocolat industry? What are the important economic factors of chocolat industry? What are the cultural aspect of chocolat industry? What are the technological innovations ? What current and impending legislation may affect the industry? What are the environmental considerations? Situational Analysis of chocolate industry and market tactics To launch a new chocolate product we must analyze the role of the marketing function in a business, we are going to follow through what might have happened in the marketing of a major new chocolate bar and the major economical , political and technological factors that affects the chocolate industries. 1. Assessing the market The market for chocolate bars is highly competitive. There are a small number of large firms in the industry Mars, Cadbury, Nestlà © and Suchard being the most well known. Many of the brands in the market have been in existence for a long time and have a high amount of brand loyalty. Openings for new products therefore, are limited. There are many examples of products that have been launched and have been withdrawn because they could not sustain long-term sales success. Can you remember the Prize Bar, Aztec and Junglies? The market for certain types of chocolate bar has changed in recent years. The growth of the so called count-line bar (shaped like Mars bars) became popular as people ate chocolate on the go as opposed to sitting down in a room with a traditional bar of chocolate. Companies had to respond to these changes. Row tree (now owned by Nestlà ©) changed the shape of their Aero bar and Cadbury brought out a rival bar called Wispa. Both of these were designed to exploit this growing market. The market is still changing but using chocolate as a snack as opposed to sharing a bar amongst a family. Giving a chocolate bar as a gift is still a growing part of that market. The UK chocolate market is the biggest in all European market. People in the United Kingdom consume more chocolate than any other Country in Europe. Mintel said the UK consumed 3.5 billion pounds ($5.6 billion) worth of chocolate in 2008, more than any other European country, with only Germany, which has more than 20 million more people, coming close at 3.4 billion pounds Some of the famous brands are: Mars (http://www.mars.com/) Cadbury Schweppes (http://www.cadburyschweppes.com/EN/Brands/) Nestlà © (http://www.nestle.co.uk/) Suchard (http://www.kraftafh.co.uk/Cultures/en-GB/Brands/Suchard/) Amul Chocolate Boost Club Mint In December 2009,the market research company, showed Cadburys chunk of the chocolate market by value slipped 1.7 per cent to 29.8 per cent last month, the first time that it has fallen below 30 per cent all year. Market share of Mars, its biggest rival, slipped 0.6 per cent in the period. Kraft, which makes Milka and Toblerone, increased its market share by 0.7 per cent to 5 per cent, while Nestlà © raised its share 1.2 per cent to 20.4 per cent of the market.. The market research firm estimated the British chocolate market would be worth 4.4 billion pounds by 2013 2. Identifying a gap in the market Once the market has been analyzed, it might become clear that there is a gap in the market. What this means is that, there is an identifiable customer need that is not currently being met by an existing product. It could also be where a rival might have a presence and where the company concerned believes it could offer a competitive alternative. Market research, which in many cases is on-going, will have given the business some idea of the nature of the market and the extent of the possible market. It may be that further research is used to target particular market segments that the business feels will be the ones most likely to purchase this product and what it is they want out of the product. Much of this will be used to inform the marketing mix. 3. Developing the product Quite often businesses in this particular industry want to develop a brand personality. What this means is that they will want consumers to associate something specific with the product. KitKat for example, is associated with a break, making it the perfect accompaniment to a cup of tea or coffee. The personality of the product will be in line with the market research and analysis carried out. The ingredients, the look of the product, its texture when eaten, its name and packaging, and how it will be promoted will all be key factors that will be informed by the development of the brand personality. A very good example of this process is the development of Yorkie. Yorkie was developed as a contribution to the count-line bar market. It aimed to use the concept of a chunky chocolate bar but in a different format to allow it to be eaten on the go. The key thing to emphasise was the chunky nature of the chocolate,and to do that Rowntree developed its early marketing around the length of time it would last and it being an ideal accompaniment for long journeys. The trucker image stuck and gave the bar a masculine personality. In recent years, this has been exploited with a deliberate campaign suggesting that it is so chunky it is not for girls for! 4. Product testing Once these stages are gone through, the product is likely to have to be tested. People may be given choices of different names or different packaging prototypes to see what consumer reaction are. It may be that this type of problem has been resolved at an earlier stage, in which case more substantial user testing may be used by virtue of a test-market. This may be a selected region of the country where there is a profile of users that is representative of the country as a whole. Using test markets gives relatively accurate feedback but is also much cheaper than a national launch, which might not see the product doing as well as anticipated. Remember that to feed a market, the capital investment has to be there to back it up. If the test market showed that the product was going to be very popular, the business would have to ensure that sufficient capacity was available prior to a national launch. You would certainly not want to have a product launched and people not be able to get hold of it! Image: User testing is an important aspect of marketing strategy it gives a good idea of the likely market reaction without incurring the costs of a national launch. à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ Media and marketing implementation Most often than not but, It is very difficult to convince a customer to buy a certain product if they do not understand the product. We need to make a strategy for marketing new product in the market so that we can achieve our target. Without a bullet proof plan to attract customers, your efforts will most likely be inefficient. we should ensure that Businesses should focus what a customer needs and what he is looking in the product .so that we can make a long term profitable customer relationship . This means that you need a plane to know customer more closely in a flexible way so that whenever need we can change our product according to our customers perceptions and demand. On the other hand, your marketing scheme should be focused on identifying and communicating the benefits of your business is offering to its target market. You will then need to monitor and maintain its effectiveness. Advertising new products Market part is an essential factor for a successful marketing strategy and if we are able to recognized the different market areas that allows a business to make fruitful and more efficient decisions in regard to advertising new quality products. This is the lock pick to understanding the different kind of needs of different types of customers. Once you have divide your market in different categorizes, you will then be able to formulate marketing activities that will ensure your targeted audience to know about the products or services you are offering and why they need them in their lives. We can achieved this through the various kind of advertising, since customer knowns what they want exactly want and motivate them,. You must have to hit your targeted audience to feel like that they must need to purchase whatever it is you are offering is the best product in the market. So that they buy our product and increase our sales How to launch new product and there strategies Gigantic changes are going on in the world and marketing strategies are no exemptions to that. Businesses should think outside the box. Observe who is doing better and try to imitate them or better yet, outwit them. It will greatly benefit your company to do market research in order to determine your potential market and make changes to your current marketing strategy. This is mainly done to draw uninterested customers to at least give your business a try. Your new product launch should make enough noise to ensure that it will remain in customers memories and entice them to really try it. With the various media available today, you can maximize your visibility by not limiting your business to one media. You can turn your company around by doing a major brand makeover. If there are not a lot of people who are buying your product or service, then perhaps its because they literally do not see you. This is not a time when businesses are allowed to sober down on marketing techniques, just because the economy is going down. Once the economy gets back on track chances are, people will no longer remember those that were not visible in the market during this time. You have to make your business a household name so people will remember you long after this global recession is over. We can use Marketing mix (4ps)strategy to launch our final product Marketing Mix (4ps ) Introduction The marketing mix principles are controllable variables which have to be carefully managed and must meet the need of the defined target group. All elements of the mix are linked and must support each other Marketing Mix Price Products Promotion Place Target Market Pricing mix Strategy It is one of the most important part of the marketing mix strategies. Pricing is a mix which generates a revenue for an organization. The remaining 3ps strategies are the output for the organization . We know that it costs to produce and design a product, promote a product and also to distribute it. Pricing is very difficult and must reflect supply, demand relationship. Pricing a product too high or too low, could mean loss of sales for the organization. The following factors should be taken into account: Objectives of the Company Fixed and variable costs of the product Target the group and their willingness to pay Competition with leading organization Proposed Positioning strategies An organization can adopt different types of pricing strategies. The pricing strategies are based on what g the goal the organization has set itself to archive Penetration Pricing We can set a low price to our product to increase the market shares and sales of the products is called penetrating pricing