3.4.3 Launch activities

There are two important decision areas for activities:

    1. Marketing-mix decisions - relative distribution and promotion
        expenditures, relative breadth of product assortment, distribution
        channels used, marketing communications channels used, branding
        and pricing.

    2. Production and distribution decisions - raw materials quality and
        quantity, production outputs, product quality, inventories, logistical times
        and quantities for delivery.

There are many activities in these two areas as shown in Table 3.5 and the problem is to choose the activities and integrate them.


Table 3.5 Activities in product launch and evaluation

Marketing organisation Production organisation Organising for the launch 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 Product launch   Launch targets finalised Complete selling to retailer In-store material distributed Merchandising in supermarket Release advertising Release product for sale Produce the product Distribute the product Check product quality in supermarket Check product safety Product launch evaluation Merchandising Advertising Sales recording Buyers’ surveys Competition study Marketing costing Improving production efficiency Reducing product quality variation Checking product in distribution Checking product in retailers Improving distribution efficiency Production and distribution costing Financial analysis of costs, revenues Analysis of production, distribution, marketing Comparison of actual results with targets Adoption of product into the company New phase of advertising New phase of in-store promotion Pricing revamping Sales recording Future costing Sales analysis Buyers’ studies Standardising production Total quality management in place Raw material procurement revised Output increased Costs reviewed Logistics optimised Retailers’ handling optimised Future developments of product, production, marketing Financial analysis of investment, costs, revenues and profits Future returns on investment predicted

Source: After Earle and Earle, 1999.


Very often there is emphasis on marketing tactics in the launch (Guiltinan, 1999) but the production and the logistic tactics can often make or break a launch. The launch strategy integrates the launch; and the launch tactics need to integrate the production, distribution and marketing activities so that they are focused on the same desired demand outcomes. Common pricing tactics are market skimming with a high price, and market penetration with a lower price. In choosing one of these, there needs to be consideration not only by marketing of the demand but also by production and distribution on the capability of producing the volumes and the costs of inventory in storage. Good launch management with control of activities and in particular of their timing and costs is the basis for a successful launch. The timing of the launch is all-important and sometimes activities have to be shortened to achieve this timing; this may cause problems for staff but it usually results in a successful launch unless everything falls apart!

A very important aspect of launching is logistics; the aim is to have sufficient product on the shelves but not for too long. In the past, there was the practice of filling up with product the pipeline from the factory to the retailers' shelves, according to the predicted sales demand. This meant having a large inventory, which was costly, and in the case of introducing product lines did not allow for different rates of uptake of the individual products. A lean launch strategy based on logistics and supply chain collaboration can greatly reduce the costs and the risks of the product launch (Bowersox et al., 1999). The lean launch strategy is based on response-based logistics, a flexible and responsive system with agile supply and manufacturing which can react quickly to real- time information from point-of-sale data transmitted via electronic data interchange (EDI) and Internet communications. The aim is to plan for lean inventory and to focus on in-stock position to support product successes, reduce stock of product failures and manage stock for niche markets. This gives better management of start-up costs, as sales will more rapidly balance costs and make a profit more quickly.