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1 of 21
What are new products?
New to the world: Innovative products → create a new market
New to the company (new product line): Allows the company to
enter an existing market for the first time
Flankers: Company makes additions to existing product
lines/brands
 Line extensions
 Brand extensions
Repositioning: Existing products targeted to a new market
Product Improvements: Quality, feature, service enhancements
toward greater value, different flavor, change in packaging
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
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
Types of Market Research:
 By Source:
 Primary
 Secondary
 By Methodology:
 Qualitative
 Quantitative
 By Objectives:
 Exploratory
 Descriptive
 Causal (experimental)
Primary Collection of data specifically for the problem or project in hand
Secondary
Based on data previously collected for purposes other than the
research in hand (e.g. published articles, government stats, ...)
Market Research by source:
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 High
Areas probed Attitudes Choices
Areas probed Feelings Frequency
Areas probed Motivations Demographics
Ability to replicate Low High
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
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
Go to the main menu
Business review:
Category: Factors impacting trends in related categories.
Consumer: Define segments and key insights for each segment,
through tracking data and research
Channels: Look at each channel’s performance, major customers
and tools for winning used in each channel
Competitors: 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.
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?
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
Pricing considerations:
 Value/benefit delivered
 Customer’s ability to pay
 Competitive alternatives/pricing
 Product “image” created
 Initial sales ramp
 Profitability (short- and long-run)
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 menu
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
Time (months/years)
Volumeofsales(howmanyaresold)
New product is launched
Product matures – sales are steady
Plateau
Sales grow
Sales decline
Development
Saturation
0
Product life cycle:
Pre-
launch
Introduction Growth Maturity Decline
Sales
Pre-launch
Announcement
Beachhead Early Growth
The Launch Cycle
Sales &
Expenditures
SalesExpenditures
The Launch Cycle:
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
Time (months/years)
Volumeofsales(howmanyaresold)
New product is launched
Sales grow
Development
0
Sales boosting or extension strategies are implemented
Product life cycle – sales boosting strategies:
I’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

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Launching a new product in a distribution company

  • 1.
  • 2. What are new products? New to the world: Innovative products → create a new market New to the company (new product line): Allows the company to enter an existing market for the first time Flankers: Company makes additions to existing product lines/brands  Line extensions  Brand extensions Repositioning: Existing products targeted to a new market Product Improvements: Quality, feature, service enhancements toward greater value, different flavor, change in packaging
  • 3. 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
  • 4. 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
  • 5. Types of Market Research:  By Source:  Primary  Secondary  By Methodology:  Qualitative  Quantitative  By Objectives:  Exploratory  Descriptive  Causal (experimental)
  • 6. Primary Collection of data specifically for the problem or project in hand Secondary Based on data previously collected for purposes other than the research in hand (e.g. published articles, government stats, ...) Market Research by source:
  • 7. 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 High Areas probed Attitudes Choices Areas probed Feelings Frequency Areas probed Motivations Demographics Ability to replicate Low High
  • 8. 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
  • 9. 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 Go to the main menu
  • 10. Business review: Category: Factors impacting trends in related categories. Consumer: Define segments and key insights for each segment, through tracking data and research Channels: Look at each channel’s performance, major customers and tools for winning used in each channel Competitors: 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.
  • 11.
  • 12. 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?
  • 13. 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
  • 14. Pricing considerations:  Value/benefit delivered  Customer’s ability to pay  Competitive alternatives/pricing  Product “image” created  Initial sales ramp  Profitability (short- and long-run)
  • 15. 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 menu
  • 16. 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
  • 17. Time (months/years) Volumeofsales(howmanyaresold) New product is launched Product matures – sales are steady Plateau Sales grow Sales decline Development Saturation 0 Product life cycle:
  • 18. Pre- launch Introduction Growth Maturity Decline Sales Pre-launch Announcement Beachhead Early Growth The Launch Cycle Sales & Expenditures SalesExpenditures The Launch Cycle:
  • 19. 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
  • 20. Time (months/years) Volumeofsales(howmanyaresold) New product is launched Sales grow Development 0 Sales boosting or extension strategies are implemented Product life cycle – sales boosting strategies:
  • 21. I’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