6 Product launch
Using the knowledge and targets generated in the previous processes, a
final plan is developed. This includes all the other elements of the mar-
keting mix. For example, a final price is set, a promotion campaign is
designed and the buildup of stock begins within the distribution chan-
nels. It is vital that the product has the correct marketing, operational
and logistical support to make it a success. Competitor and customer
reaction should be monitored and the product offering ‘fine-tuned’ if
required. Where resources are limited, or where high degrees of uncer-
tainty exist, the product may be introduced using a ‘roll-out’ strategy.
This entails a phased launch, gradually building market coverage.
Given the importance of NPD, managers must endeavour to make the
process as rigorous and objective as possible. Only in this way, can organ-
isations maximise the likelihood of success and minimise the chances of
progressing with poor ideas. However, there is a dilemma, while a robust
development process has its advantages. There is increasing commercial
pressure to do things quickly. This may result in ‘corners being cut’ and
ultimately mistakes being made in the NPD process. So, the reality of
business life means management has to develop the right products in
increasingly shorter time frame. How can we enable this? Adhering to the
following principles should optimise the entire process:
1 Multi-functional teams
There is much evidence to suggest that projects go more smoothly when
a multi-functional team is in control. By taking people from different
functional backgrounds (e.g. production, marketing, design and
finance) a balanced viewpoint is obtained. For example, problems relat-
ing to the manufacture/provision of the product are addressed early in
the project. Additionally, the multi-functional approach promotes ‘own-
ership’ of the project and staff can be more committed and motivated.
2 Completeness and evaluation
NPD can be viewed as a six stage process (see above). The simple
process of completing all these steps can increase the likelihood of
product success. Undertaking each stage in a systematic manner and
building an on-going evaluation into the process, may not guarantee
success, but it will reduce the chances of failure. So-called ‘evaluation
gates’ at the end of each stage can review the potential product and
whether the NPD process has been properly conducted.
3 Customer involvement
Often market research is used to evaluate possible ideas and to review
products after launch. It may be advisable to integrate the ‘voice of the
customer’ into the entire project. This is possible by having an on-going
process of market research that takes place during each development
stage or by having customer representation on the multi-functional team.
4 Parallel processing
Traditionally, NPD has been viewed as a sequential process – activities
follow each other in sequence. It may be possible to conduct some218 Strategic Marketing: Planning and Control