New product launch lecture I gave to two classes at Duke University's Fuqua School of Business

1. NPD and Product Launch
• Brand
Management
System
• On Building A
Marketing 460 Brand
– Price
Product Management – Launch
Fuqua School of Business • P/L
• Elements
• Launch
– Place
– Promotion
• Managing
Across Brands
NPD–1

2. Agenda
• Fiveonenine games Overview
• The NPD/Launch Process
NPD–2

3. fiveonenine games
Previously GM, International Publishing
at Disney/Playdom
Co-Founded and sold Merscom
Graduated Fuqua
NPD–3

4. Not Just Facebook
NPD–4

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–5

6. Example
NPD–6

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–7

8. Pre-Launch: Validation and Test
Source: PDMA Handbook
Source: PDMA Handbook
NPD–8

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–9

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–10

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–11

12. How?
NPD–12

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–13

14. Pre-Launch: External Partners
• Media • 3rd Party Partners
– Write what you wish to see – Rating and Safety
written Boards
– Target customer, reasons to buy, – Logistics
quotes, benefits etc. – Suppliers
– 30 – 60 days prior to announce
(long lead press)
• Channel
– Supply chain concerns
– Cooperative marketing programs
– Seasonal issues
– Competitive Products
NPD–14

15. Pre-Launch: Internal
• Sales and Customer • Other Marketing
Support Communications
– Develop sales guides (key – Public relations (PR), ad
talking points, development and media
competitive positioning, purchase, direct mail, web,
overcoming objections, mail, trade show displays,
etc.) demos, etc. Long leads
– Customer support here, too.
reporting systems and • Intra-Company
warranty and Coordination
replacement policies
– Other Business Units
– Training programs
NPD–15

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–16

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–17

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–18

19. NPD–19

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–20

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–21

22. Launch Plan
• The details of who does what when and
where
NPD–22

23. Launch Plan: Structure
• Steps
• Resources
• Interlocks
• Goals
– Specific
– Measurable
– Achievable
– Realistic
– Time Bound
NPD–23

24. Launch Plan Responsibilities
Operations Training and Presentations
– Finalize offerings in – Train the teams, train
regions the trainers, then let
– Bill of materials them train others
– Schedules – Prep tech support,
– First article check customer services,
– Forecasts direct sales reps
– Full operational Store and Trials
capability – Coordination with
– Localization, store and trial—
international scheduling and posting
Packaging of bits all languages
– Screen Shots
– Box Copy
NPD–24

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–25

26. Post Launch: Measurement
• Financial • External Factors
– Sales – Channel
– Profits penetration
– Share – Competitive
– Retail Price response
• Consumer and branding
– Awareness
– Brand associations
– Downloads and web hits
– Seminar attendees
– Press and blog mentions
NPD–26

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
NPD–27