NPD–1

NPD and Product Launch

Marketing 460 Product Management

Fuqua School of Business

• Brand Management System

• On Building A Brand– Price– Launch

• P/L• Element

s• Launch

– Place– Promotion

• Managing Across Brands

NPD–2

Agenda

• Fiveonenine games Overview• The NPD/Launch Process

NPD–3

fiveonenine games

Previously GM, International Publishing at Disney/Playdom

Co-Founded and sold Merscom

Graduated Fuqua

NPD–4

Not Just Facebook

NPD–5

New Products

• On average, new products account for 28% of firms’ revenues (American Productivity and Quality Control Study)

• Only half launch on time or meet their sales goals (APQC)

• Thus, new product development (NPD) and product launch are critical

NPD–6

Example

NPD–7

NPD/Launch Overview• Pre-Launch

– Development, Testing and Validation– Research Your Users

• Launch– When– Who (customers)– Where– How (launch plan)

• Post-Launch– Measure Against Goal

NPD–8

Pre-Launch: Validation and Test

Source: PDMA HandbookSource: PDMA Handbook

NPD–9

Pre-Launch: Validation and Test

• Half of all projects omit market studies and test markets!

• Speed is key concern, but often solved with project teams.– Should be cross functional– Cradle to launch– With shared information and accountability

NPD–10

Pre-Launch: Customers

• Involve Your Customers– Speeds time to market– Creates points of parity and difference– Creates evangelists– Generates critical mass at launch– Cross pollinate – Examples include Boeing, 3M, B&D,

Rubbermaid, Bosch, P&G, Philips, Sony, others (Alam 2005)

NPD–11

How?• Customers join NPD team (as above)• Internet• Observation

– Interaction with similar products– Interviews, focus groups, retreats, trade shows,

store visits and customer visits• We run mock Facebook ads• Johnson controls observes consumers loading cars to

design automotive interiors• Rubbermaid visits customers’ houses

• Alpha and beta tests

NPD–12

How?

NPD–13

Caveats to Pre-Launch Research

• Customer feedback too myopic– Philips interviews MDs for stethoscope, but did

not realize key uses in free clinics, homes, streets, etc. Needed redesign for noise filter

• Customer feedback is too backward looking• Competitive secrecy is compromised

NPD–14

Pre-Launch: External Partners• Media

– Write what you wish to see written

– Target customer, reasons to buy, quotes, benefits etc.

– 30 – 60 days prior to announce (long lead press)

• Channel– Supply chain concerns– Cooperative marketing programs– Seasonal issues– Competitive Products

• 3rd Party Partners– Rating and Safety

Boards– Logistics– Suppliers

NPD–15

Pre-Launch: Internal

• Sales and Customer Support– Develop sales guides (key

talking points, competitive positioning, overcoming objections, etc.)

– Customer support reporting systems and warranty and replacement policies

– Training programs

• Other Marketing Communications– Public relations (PR), ad

development and media purchase, direct mail, web, mail, trade show displays, demos, etc. Long leads here, too.

• Intra-Company Coordination– Other Business Units

NPD–16

Pre-Launch: Media

“…It's something of a serious tablet when compared to the competition running software from Apple and Google and, while it certainly has games, its biggest strengths are rather more boring. It does a really great job at displaying PowerPoint presentations, for example, and has the security chops to keep last quarter's dismal sales figures from falling into the wrong hands. Exciting stuff? No, but useful features…”

NPD–17

Launch: When

• Is really three choices– Announce vs. ship– Beta vs full product– Function of buying cycle and

competition• Ship limited product early or richer product late

– Fiveonenine has three games tied to election, timing based on Conventions

NPD–18

Launch Plan: When• Operating concerns

– When is revenue needed?– When are channel partners ready?– Are competitive innovations imminent?– Internal company priorities– Key market events (trade shows like Mac World)– Simultaneous or staggered international

launches– When are customers ready?

• State government buying season ends in May• Federal in September• Europe is “closed” in August

NPD–19

NPD–20

Launch Plan: Who• Customers and Channel

– Product mix, revenue goals, co-promotion

• Applications– If platform

• Analysts– Press– Financial

• Internal– Sales force, customer service, 3rd parties

NPD–21

Launch Plan: Where

• Local or Global• Phased or Current• Trade-off between speed and quality

– Resources for sales– Location of key customers– Capital constraints in production

NPD–22

Launch Plan

• The details of who does what when and where

NPD–23

Launch Plan: Structure

• Steps• Resources• Interlocks• Goals

– Specific– Measurable– Achievable– Realistic– Time Bound

NPD–24

Launch Plan ResponsibilitiesOperations

– Finalize offerings in regions

– Bill of materials– Schedules– First article check– Forecasts – Full operational

capability– Localization,

internationalPackaging

– Screen Shots– Box Copy

Training and Presentations – Train the teams,

train the trainers, then let them train others

– Prep tech support, customer services, direct sales reps

Store and Trials– Coordination with

store and trial—scheduling and posting of bits all languages

NPD–25

Launch Plan: The Event

• Usually at a conference or global sales meeting (as in Black and Decker)

• Microsoft rolls out XP to sales force

NPD–26

Post Launch: Measurement

• Financial– Sales– Profits– Share– Retail Price

• Consumer and branding– Awareness– Brand associations– Downloads and web hits– Seminar attendees– Press and blog mentions

• External Factors– Channel

penetration– Competitive

response

NPD–27

NPD/Launch Overview• Pre-Launch

– Development, Testing and Validation– Research Your Users

• Launch– When– Who (customers)– Where– How (launch plan)

• Post-Launch– Measure Against Goal