7.1 INTRODUCTION

The product launch is both the end and the beginning. It is the culmination of all the effort and thought that has gone before. It is also the start of a new product cycle if it is an innovation, the revival of a product cycle which appears to have levelled off, or just another product in the total product lifecycle causing a change in market share and perhaps a faster growth pattern.

The new product affects the company's product mix. It may increase sales in one product area and decrease sales in another, but hopefully it will increase the total sales of all products. It can change the balance of sales in the industry and in the marketplace and affect the consumers' behaviour and attitudes, and also influence change in the social and economic environment. So once the product is launched, it is not just a case of tracking the sales to see that they are reaching the target, but also of following consequential changes in the company, the consumer and the environment.

The targets for success need to be carefully recorded and recognised by all before the launch starts. The targets should not be moved unless they are discussed and again there is agreement.

The success or failure of the product in the market depends largely on the skill with which the operational plan is conducted by the production, marketing and finance departments, but of course also on the market and the environment into which it is launched. The plan may be good and the operation efficient, but suppose on the day the product was launched either there was a food poisoning scare with this type of product, or the competition started a massive price reduction campaign, or the government announced that all benefits and pensions were to be cut, or the importing country imposed massive import duties for this type of product. There need to be emergency plans in place to react to such unpredicted problems - how to stop or change plans quickly.