Strategies for Introducing a New Product in the Market

Strategies for Introducing a New Product in the Market

Much have been said and written about the strategies for introducing a new product in the market.  Product is very important in every country of the world.  In market customer satisfaction is said to be the corner stone of the new product strategy in the market. This researcher wants to review related literature in this area of study.

Onyebuagu (1995) carried out a research on Launching and Commercialization of a new product, his findings revealed that commercialization involves the launching of the product into the market and onward, into sales.

The essence is to ensure proper scrutiny arrangements and to ascertain that sufficient awareness is created to enable the product sell.  He also fixed and that commercialization requires maximum  co-operation and integration among firm’s functional areas.  In particular the areas of marketing manufacturing and physical distribution must work together very closely during this period.  Frequently, sizeable expenditures are made on production and marketing programmes are planned and then, the products is launched because of the size of the job, some firm’s introduce their product city by city, region by region until they have complete market coverage.

Eventually the “new” product is no longer “new/and it becomes just another product in the market.  About this time the new product people” turn the product over to the regular operating people and go on to developing other new ideas.  There are some major decisions that are involved before launching a new product into the market. This decision creates an

–       Where

–       When

–       To whom and

–       How the product is to be launched

When studying the right time to introduce the product.  Where is more or less a situation analysis which must state the place to launch the product to whom traits to define the particular group of people the product is meant for; is it the innovators early adopters, early majority, late majority or laggard whereas how looks at the strategies to be adopted by the organization.  In introducing the product, poor to launching and commercialization the firm engages itself in preliminary announcements about the product to trade houses and sales departments, introduces the new program to sales personnel including training of salesmen and dealers.

The company also embarks upon how distribution of product line to outlets will be made easier, public showing, trade exhibitions, distribution of promotions and advertisement and publicity before the actual launching.

As the new product is launched, the firm should be prepared to fill in initial orders.

This will increase the customers confidence that the company will meet up with the demand.  During this time, the firm will be attentive to information’s about the product and make corrections where necessary.

The new product when launched and a reasonable market acquired, must maintain quality and quantity, if customers perceive it as substandard and go to more satisfying brand, it will be difficult to get them back values a heavy incentives are offered to them again.

Chioma (1999) carried a\out a research on new product adoption in Enugu metropolis.  Her finding were that innovation and adoption are factors that must be consider in new product development and commercialization.

Adoption is a mental change experienced by an individual form the time he first heard about a new product until he adopts it.  The individual receives various stimuli about the new product form variety of sources.

It accumulates until he responds by either accepting or rejecting the product.

Adoption is also decision of an individual to become a regular user of a product as might be expected, not all individuals responds alike.  Some might tend to adopt early, some lade and some never.

Most new products of any consequence follows a rather uniform pattern of adoption.

In the new product adoption stage five process were identified:

–       Awareness stage

–       Interest stage

–       Evaluation  stage

–       Trial stage

–       Awareness

In this period an individual is exposed to the new product but does not have full information about it.  Only that he is aware of the product existence but have not been introduced to seek information about it.

Interest State:

Is where an individual is interest in the product and seek to get information about it though he is yet to be involved out only committed himself to the new idea in a very general way.

Evaluation Stage:

Is a mental re-heard stage where the individual mentally apply the new product in his own way use requirement and aciticipates results.  If the result is positive, then he moves to the trial stage.

At trial state the individual tries the product only if the use experience is satisfied that the product stands the chances of being adopted.

Finally, in the adoption stage individual not only continues to use the product but adopts in it in line of substitutes.

In other words, adoption is complete and continues

Adoption is micro in perspective whereas diffusion is macro in perspective.

Baker (1977) carried out a research on variable making for lack of success in the development and marketing of new products.  In his findings, he draw a catalogue of elaborate statement of problems that leads to new product failure.  When the basic concept, specification of proposition are at fault of out of stop with the time, nature and needs of the market, technology or manufacturing capabilities of the company.

When price, size, performance, durability or specification may be wrong when technological skills of the company may have been stretched beyond reasonable bounds.

Assessment of market potential and its location were wrong or the estimate of the timing (of either acceptance by the market or launching of the product) was wrong.

When the entire planning operation was badly organized or staffed or rushed.  When there is no systematic programming or control of the work.

When the technical and production design and planning were rushed, problems missed or under – estimated.

Stanton (1975) strongly holds the view that lack of effective marketing efforts constitutes problems in the marketing of new products.

Britt (1963) on his own research on variable making for lack of success in the development and marketing of new products. Identified channel of distribution, channel conflicts and channel mismanagement as factors that leads to new product failure.

Youdale (1972) discussing the ways researcher will help an organization developing new products many companies have failed or at best failed to keep pace with market growth because their product development policy has been based too much on land and too little on facts unearthed by sound research.  Hw contends that research can be used to improve existing or new products.

He also pointed out that many companies think they have a “winner” in the product but is does not matter a lot what management thinks about the product, it is what consumers think that matters.

Berridge (1960, pg.45) in his own contribution on variables marketing for lack of success.  In the development and marketing of new products gave the following as the spend problems associated with the marketing of new products.

Pricing:    How much the customers will be able to pay and how could it be determined to avoid either over pricing or under rising the new product.

Scale of operation:   This involves ascertaining the time it will take to cover some resistance to change to the company’s product and how quickly the product can be built up.

Promotion:       How is the company going to educate all the different people on the advantages of the new product.

Co-ordination: Determining how the work of introduction could be affectively done at what right time.

Charles (1979) carried out a research on ways companies avoid new product failures.  His findings were revealed that by adopting a varieties of organizational structures for the new product development.

The structure that the firm uses depends solely on the importance of the product to the firm, his existing organizational structure and its objectives.

No singly structure is inherent better that another.  Each company adopts a structure or some combination of structures to last avoid new product failure.

He also pointed out that companies should appoint new product committee.

This is probably the most common farm or organizational structure for managing new products.  The committee is formed from top managements ranks made up of area functional managers e.g. production, finance and accounting, engineering and marketing.

Their functions are generally of four types viz:

Search Team:    responsible for idea generation.

Screening Team: charged with evaluation of product proposals.

Project Team: entrusted with controlling and co-coordinating the development of ideas into full – fledged products.

Product team: in charge of test marketing and introducing new products.

The advantage of the use of new product committees are:

1. To management: is involved and so its ideas and experience are pulled together to yield result.
2. Conflict between line and staff are reduced
3. Acceptance of committee’s decision is very high because members are made up of their own management.

—This article is not complete———–This article is not complete————
This article was extracted from a Project Research Work/Material Topic

“STRATEGIES FOR INTRODUCING A NEW PRODUCT IN THE MARKET

(A CASE STUDY OF ENCRISTO PHAMACEUTICALS LIMITED IN ENUGU).”

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