CREATING NEW FOODS
THE PRODUCT DEVELOPER'S GUIDE
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Contents
About the book
About the authors
Preface
1. The product
development project
in the company

2. The organisation of
the product
development project

3. Product strategy
development: idea
generation and
screening

4. Product strategy
development: product
concepts and design
specifications

5. Product design and
process development

6. Product
commercialisation

7. Product launch and
evaluation

8. Summary: bringing
it together

8.10 Textbooks in
product development

Index of Examples &
Problems

Useful links
Feedback (email link)
CHAPTER 7
Product Launch and Evaluation


7.2 THE STEPS IN THE PRODUCT LAUNCH

Once the top management decision has been taken for the launch, the product has to be launched to several groups of people, the most important being the company, the retailers, the consumers and the general public. The product launch can be regarded as three steps: launch to the company, launch to the market and launch to the consumers, and these are followed by the launch evaluation.

The activities are the typical operational activities of the company in departments such as marketing, sales, production, quality assurance, finance, but the new product causes changes and sometimes problems. The launch to the company has as its outcome the completed company organisation. The launch to the market involves the production and distribution of the product combined with the marketing to the retailers and the outcome is the complete set up ready to launch, and the final stage is the launch to the consumer. For the industrial products, the launch can be just to the company and to the customers, but there may also be distributors and agents in the chain.

The outcomes from the three steps are important, both in their quality and their timing. In timing, the company organisation for the launch needs to be completed before the launch to the market starts, or disaster can ensue; for example:

      product that has not arrived at all the retail stores,
      TV. advertising that cannot be booked for the launch date, and
      printing of in-store promotional material that is two weeks behind.

Most people in product development have met these crises, and scrambled to solve them.

The quality also needs to be correct or again disaster ensues:

      instant powder that does not dissolve in the correct time,
      T.V. advertising that does not mention the product name, and
      in-store promotional material that is a different colour from the packaging.

Once the product is launched to the consumers, there is not time to sit back and relax; there is constant checking of product, production, distribution, marketing, sales and costs. The checking will show up any problems that are occurring so that they can be rectified quickly. Are the sales increasing more slowly than predicted? Is this caused by lack of consumer interest in the product, consumer lack of acceptance of the product or retailers' lack of promotion or shelf space? The checking also collects the qualitative and quantitative information needed for the post-launch evaluation.

The post-launch evaluation leads into the final analysis which will decide the product's future - to be dropped, improved, or accepted immediately into the company's product mix. But during this time of evaluation, there is a need to continue the improvement and the stabilisation of the product qualities, the marketing, the production and the costs.

The activities and the outcomes in the four stages of launch and the post-launch evaluation are shown in Figure 7.1. Within these stages, the activities are organised as suits the company and the project, but the marketing and product organisation are not separate as shown in the Figure but are integrated and coordinated.

Figure 7.1 Activities and outcomes in the product launch and post-launch

Marketing organisation   Production organisation
OPERATIONAL PLAN
   
   
 
Launch to the company
 
Finalise promotion
Media advertising contracted
In-store material prepared
Sales presentation to staff
First introduction to retailers
  Design, build, commission plant
Quality assurance finalised
Raw materials contracts
Physical distribution contracts
Production finalised
 
Market channel/physical distribution organisation
COMPLETED COMPANY ORGANISATION
   
   
Launch to the market
 
 
Launch targets finalised
 
Complete selling to retailer
In-store material distributed
Merchandising in supermarket

Release advertising
  Produce the product
Distribute the product
Check product quality in supermarket
Check product safety
 
Release product for sale
 
PRODUCT LAUNCH
   
   
Launch to the consumers
Merchandising
Advertising
Sales recording
Buyers' surveys
Competition study
Marketing costing
  Improving production efficiency
Reduce product quality variation
Checking product in distribution
Checking product in retailers
Production costing
Distribution costing
 
Financial analysis of costs, revenues
Analysis of production, distribution, marketing
Comparison of actual results with targets
PRODUCT LAUNCH EVALUATION
   
   
Post Launch
New phase of advertising
New phase of in-store promotion
Pricing revamping

Sales recording
Sales analysis
Buyers' studies
Standardising production
TQM in place
Raw material procurement revised
Future costing
Future developments of product, production, marketing
Financial analysis of investment, costs, revenues and profits
Future returns on investment predicted
FINAL EVALUATION REPORT
   
   
ADOPTION OF PRODUCT INTO PRODUCT MIX



INTERNAL COMPANY LAUNCH

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Creating New Foods. The Product Developer's Guide. Copyright © Chartered Inst. of Environmental Health.
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