1. New product launch, strategies,
mistake, success & failure

2. Introduction
New product launch is the most crucial
aspect in the new product development . The
success and failure of a product heavily depend
on the new product launch .

3. Diffusion of Innovation
Rogers has suggested the use of diffusion of
innovation method for launching a new product. Not
all potential users of a product or a new generation of
a technology adopt the new product at the same time
.Consequently , on the basis of the stage at which they
adopt the new product, adapters traditionally are
classified into five categories
1. Innovators
2. Early adapters
3. Early majority
4. Late majority
5. Laggards

4. Innovators tend to be smallest segment of
the five adopter categories . However ,despite its
small size , it is often the main target of the
marketing efforts of firms that wish to sell a new
product .
The reason is that not only are innovators ,
even a small fraction of early adopters ready to
take risks and price sensitive . They also influence
the early majority and late majority in purchasing
the new product . It is hence optimal in a new
product launch to allocate relatively more
marketing efforts &resources to the innovators
and early adopaters.

5. Innovators really like to be the first to try new
products . They tend to be better educated and
are ready to risk buying an innovative product.
The early adopters are very sociable and they
influence to the people . The key to diffusion of
innovation is to find the innovators and early
adopters.

6. Rogers suggests that the rate of ease of adoption of
new idea depends on the following elements
• Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability

7. LAUNCH OF TYPE OF PRODUCTS
• Innovative product
• Imitative product
• Me too products

8. NEW PRODUCT SUCCESS
When operating in this technology driven era at a
breakneck pace, firms cannot afford to take the
time to complete the traditional forms of
qualitative and quantitative market research –
activities aimed at reducing a firm risk of
failure. Taking 9 to 18 months to define and
deliver a product is no longer an option

9. In many of today’s industries products must be
conceived and delivered within 6 months or less
to give a company a first to market position. As a
result often eliminate or cut back on their
customer research, taking on more risk than
desired when rolling out their new products.
With this added risk, firms are often forced to
wait until the product is introduced to gain an
accurate assessment as to how customers will
respond. This is often dangerous proposition.

10. In the days weeks that follow a product’s
introduction, evaluation are published or
reported by trade magazines, user groups,
industry waters, newsmagazines and other
customer groups that have an interest of the
product. During this period only companies are
learning how potential customers perceive their
products.

11. A marketer to ensure product success
guidelines may use the following
• Distinguish your product from the competition
in a consumer relevant way
• Capitalise on key corporate competencies and
brand strength
• Develop and market products to people’s needs
& habit
• Market to long-term trends , not fads
• Don’t ignore research , but don’t be paralysed by
it

12. • Make sure your timing is right
• Be a marketing leader , not a distant follower
• Offer a real value to customer
• Determine a products short-term & long-term
sales potential
• Gain legitimacy and momentum for the brand
• Give the trade as good a deal as the customer
• Clearly define, understand ,&talk to your target
• Develop &communicate a distinctive & appealing
brand character... & stick to it
• Spend competitively and efficiently , behind a
relevant proposition
• Make sure the customer is satisfied ...& says that
way

13. According to Sanchez &Perez the
following ere the practices that need
to be done for new product successes
• Open organisations
• Broad jobs
• Employee autonomy
• Cross-training /job rotation
• Standardization
• Group technology
• Computer –Aided – Design/Computer-Aided
Engineering

14. • Cross –Functional terms for innovation
• Supplier development
• Supplier partnership
• Just –in- Time purchasing
• Benchmarking
• Concurrent engineering
• Rapid prototyping
• Value analysis
• Design for manufacturing

15. PRODUCT FAILURES
• A product is a failure when there is
• Withdrawal of the product from the market
• Inability of a product to take off toward
anticipated market share
• Inability of a product to fulfil anticipated life
cycle
• Failure of a product achieve profitability

16. Studies have shown that in many industries 35-40%
of new product effort fails. 46% of new product
funding is wasted on failed or cancelled projects.
Failures are different from FADS(which have a
naturally short life cycle)Failure are not
necessarily financial failures, although bankruptcy
enough or misdirected product research or market
research , failures include , but are not limited to
products and services which pose health & safety
hazards .Failure are not necessarily bad technical
ideas . The study of failure is important in that it
can help us prevent future failures

17. Reasons for the product failures
• The relationship of the company or its brands on the
consumers will decide whether a product will be
successful or not. Ponds decided to enter the toothpaste
market because the consumers perception of Ponds as
talcum powder, not as a tooth paste
• Too small a target market ,which is too specialised for the
volume originally planned
• Too many new products in quick succession . Bajaj auto,
the biggest scooter maker during 1998 launched 4 models
and5 products upgrades . But none of them succeeded.
• Insufficient differentiation from existing offerings ,leading
to another me-too product. Mac industries diversified into
papad business but lost out due to the grey market Ponds
toothpaste was similar as Colgate
• Poor or inconsistent product quality.

18. • No access to the market due to faults in the company's policy
• Poor timing in terms of the industry life cycle. No company
ventured to offer new products during the recessionary times
of 2008 . Even the film industry decided not to release more
films during the secession
• 8. Launching the product too early.
• Launching the product too late.
• Poor marketing and not enough attention was paid to main
competitive alternatives.
• The following statements are very important to get the benefit
this product offers were new to customers. The customers
perceived the product features as novel/unique. This product
offers improvements in existing product features.