strategic launch planning
TRANSCRIPT
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MRKT320: New Product Development
New York Institute of Technology
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TABLE OF CONTENTS
Strategic launch planning: ..................................................................................... 1
Strategic platform decisions: ................................................................................. 1
Target market decisions: ....................................................................................... 2
AL Kabeer Group of Companies .......................................................................... 4
Product Mix of Al-Kabeer .................................................................................... 4
Strategic Platform Decisions of Al-Kabeer: ......................................................... 4
Product Line Replacement Strategy Used by Al-Kabeer ..................................... 5
Target Market Decisions of Al-Kabeer ................................................................ 6
Bibliography .......................................................................................................... 7
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1
STRATEGIC LAUNCH PLANNING:
In order to stay competitive and achieve growth, it is a necessity for firms to master
the process of introducing new products to the market. A fruitful new product launch
requires research, planning, and a skilled and knowledgeable marketing team. Additionally,
no matter how new-to-the-world the product is, the firm must refer to product
commercialization in two sets of decisions that include strategic launch decisions and tactical
launch decisions. Where strategic launch decisions comprise of strategic platform decisions
(decisions that set overall tones and directions) and strategic action decisions (decisions that
define the target market and define how we are going to sell), on the other hand, tactical
launch decisions are marketing mix decisions such as how the product will be promoted,
distributed, and what will be the pricing strategy used and etc. However in this research
paper we will only be concentrating on strategic launch decisions that would include strategic
platform decisions and target market decisions (strategic action decisions).
STRATEGIC PLATFORM DECISIONS:
A few types of strategic platform decisions include:
1. Type of Demand Sought-This type of strategic platform decision concerns with thefirm having a primary demand or a selective demand. On one hand, the objective
behind targeting a primary demand is to educate the buyers about the idea youre
selling, whereas, selective demand is when a firm has a need, identifies that need, and
pursues a solution, and hence relates their products features with their identified
needs, establishing a benefit.2. Permanence-This kind of strategic platform decisions determines the state of lasting
or remaining unchanged. There are usually three options that include, staying with no
thought to get out (permanent), staying if desired goals are met, and staying
temporary.
3. Aggressiveness-This strategic platform decision determined the kind of entry into themarket. An aggressive entry means a lot of attention is given at the early stage
meaning lots of money is spent in promotion. However, some firms slink into the
market with a cautious entry so as not to alarm the leaders in the market. Lastly,
some firms enter into the market with a balanced level of aggressiveness, in which thefirms is not trying to be aggressive or slinking.
4. Competitive Advantage-This strategic platform decision states whether the firm willoffer a competitive advantage based on lower price or product differentiation or
perhaps both.
5. Product Line Replacement-As we all know, most new products relate to exitingproducts in the firms product line, hence, this strategic platform decision determines
how we should manage the replacement of the existing by the new by offering
different strategic options such as:
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Butt-on productreplacement
The existing one is simply dropped when the new one is
announced Example: Fords marketing of Mondeo and
dropping of Sierra.
Low-season switch
Same as butt-on, but arranging the switch at a low point
between seasons. Tour companies use this switch when theydevelop their new catalogs.
High-season switch
Same as butt-on, but arranging the new item at the top of a
season. Example: Polaroid used this strategy often, putting
new replacement items out during the Christmas season.
Roll-in, Roll-out
Another version of butt-on, but arranged by a sequence of
market segments. Mercedes introduced its C series country
by country.
Downgrading
Keeping the earlier product alongside the new, but with
decreased support. Example: The 386 chip stayed alongside
the 486, until the Pentium was introduced.
Splitting Channels
Putting the new item in a different channel or diverting the
existing product into another channel. Example: Old
electronic products often end up in a discounter channels.
6. Competitive Relationship-This strategic platform decision points out a three-optionset: Make no reference to specific competitors, aim directly at a specific competitor,
and avoid a specific competitor.
7. Scope of Market Entry-This decision relates to a firms desire to do market testing byintroducing their new items into part of a market, and then roll them on out either
rapidly, or deliberately, depending on overcoming any problems.
8. Image-This decision, as the name suggests, determines whether the new product willneed an entirely new image, a major change in an existing image, or a tweaking of an
existing change, or no change whatsoever.
TARGET MARKET DECISIONS:
Due to competition forcing majority of firms to market new items to specific target
groups, markets have become so complex that it is impossible for one product to meet all
needs and desires. Hence, target market decisions offer a firm with alternative ways to
segment a market. Some of these ways include:
1. End use: This kind of target decision is based on marketing products that have manyuses. For example, plastics are sold for hundreds of applications; athletic shoes are
specific for different kinds of athletic activities, and etc.
2. Geographic and demographic: This kind of target market decision is based onmarketing products depending on the geographical boundaries and age, religion,
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social class of people. For example, Goldens Pork fried skins are made available for
the Southern US, bran cereals are often targeted to mature segments, and etc.
3. Behavioral and psychographic: This target market decision targets market segmentsaccording to psychographic variables such as values, lifestyles, and activities. For
example, Kevlar bulletproof jackets are marketed for people who are exposed to guns.4. Benefit segmentation: This target market decision allows firms to identify segmentsbased on benefits through surveys of customers and potential customers, and develop
products to satisfy the needs of one or more of these segments.
5. Micromarketing and mass customization: Micromarketing also known as masscustomization is a kind of marketing strategy in which advertising efforts are focused
on a small group of highly-targeted consumers.
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Vegetables &fruits
Kids corner Snacks corner
Ready meals Seafood Meat & Poultry
AL KABEER GROUP OF COMPANIES
Founded over 30 years ago, as a 50:50 partnership between
Subberwal and the Shaikh family, the Al-Kabeer group
manufactures and distributes frozen foods and has established
itself as a leader in the Middle East frozen food industry. With
distributing over 300 products to 8000 retail outlets, the Al-
Kabeer group has evolved into a multi-national, multi-product
business with offices, processing units, and cold storages in over 10 countries. Having
started its business from a two-bedroom apartment in Mumbai, India, Al-Kabeer faced a
problem in shipping meant and poultry to the Middle-East, and therefore established its own
production plant in Sharjah, and then in Dubai. Moreover, due to the vast range of products
at Al-Kabeer, both vegetarian and non-vegetarian, have one thing in common i.e. good taste;
has indeed made Al-Kabeer quite a familiar name in many non-vegetarian households.
PRODUCT MIX OF AL-KABEER
STRATEGIC PLATFORM DECISIONS OF AL-KABEER:
One of the strategic platform decisions used by the Al-Kabeer group of companies is
low or aggressiveness i.e. it enters into the market with a cautious entry. For example, the
recently launched Al-Kabeer zing chicken fillet was introduced one morning without anymarketing or product testing. Other products that were launched in the same manner include
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Butt-onproduct
replacement
Roll in; Roll-out
Downgrading
High-seasonswitch
Low-seasonswitch
Splittingchannels
Al-Kabeer BBQ chicken wings, and Al-Kabeer Arabia kofta. As a matter of fact, this
technique used by Al-Kabeer has mostly proved effective and successful. Of the reasons why
Al-Kabeers practice of this strategic platform decision is mostly fruitful is because of its
competitive advantage, which is yet another strategic platform decision used by it. Al-
Kabeer makes sure that its product not only offers a reasonable and affordable price, but alsooffers good taste(product differentiation), hence making it one of the most demanded
products all over UAE. Moreover, in the case where Al-Kabeer decides to introduce a new
product in the form of a product replacement, it uses the butt-on product replacement where it
simply drops the existing product when the replacement is introduced, so that the consumers
do not get confused with the existing product. Lastly, when Al-Kabeer introduces an entirely
new product or introduces a product replacement, there is no major change in the image of
the product i.e. there is just a slight change in the image when compared to the image of the
existing products. For example, as it can be seen in the images of Al-Kabeer products, they
have similar color packaging, but only have changes in the naming of the products.
PRODUCT LINE REPLACEMENT STRATEGY USED BY AL-KABEER
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TARGET MARKET DECISIONS OF AL-KABEER
When it comes to making target market decisions, Al-Kabeer has an upper hand when
compared to its competitors. Firstly, one target market decision that has helped increase the
profit margins of Al-Kabeer is benefit segmentation. By identifying that the people of UAE
have an increasing demand of ready meal products due to having busy schedules and
increased working hours, Al-Kabeer, in 2010, introduced a new product line of ready meals
which proved to be successful all over UAE. Moving on, keeping in mind the geographic
and demographic factors, Al-Kabeer has been extremely successful by using this strategy of
making target market decisions. For example, from the feedback of their retailers, and to
appeal their local consumers, Al-Kabeer created different brands that include Samurai in
Japan, 'Falcon Foods' in the Europe, and 'Tayebat Al Emarat' in the UAE, which in effect
helped boost sales in most countries, especially, in European markets post 9/11, where Al
Kabeer tended to signal in to Al Qaeda. Additionally, a customer in Japan was perhaps more
willing to try a homegrown-sounding 'Samurai' than Al-Kabeer. Moreover, due to the US
market being very strict about the meat because of the fear of contamination of mad-cow
disease, Al-Kabeer has strict norms in which products undergo specifically severe QC checks
before exporting. Likewise, UAE being strict about the chicken, Al-Kabeer makes sure the
chicken is pure halal. Lastly, due to Japan having an increased demand for seafood, Al-
Kabeer targets most of its seafood products to Japan.
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BIBLIOGRAPHY
The growth of Al Kabeer. (2007, October 3). Retrieved March 31, 2012, from The Economic
Times: http://articles.economictimes.indiatimes.com/2007-10-
03/news/27666755_1_al-kabeer-exports-brands-meat
Home Page. (2012, March 31). Retrieved March 31, 2012, from Al Kabeer:
http://www.alkabeer.com