PRODUCT LAUNCH FACTORS DEFINITIONS

PRODUCT LAUNCH FACTORS


The data given is based on research into the industry product launches. Product launches include actual new products as well as product or technology innovations and product substitutions.


ADOPTION RATES:    Product Launch Adoption Rates were identified during the Surveys of End Users in the countries covered. Adoption rate is the term used to denote the likely level of End Users adoption of new products and services of the Product. Thus when interviewed a percentage of End Users stated that they were "likely" or "very likely" to purchase (i.e. adopt) new products if introduced to the market. This percentage forms the Adoption Rate.

CONVERSION RATIOS:     In addition to the Adoption Rates, it is also necessary to analyze the Conversion Ratio, i.e. the ratio at which potential new products adopters are converted into buyers.

Not all End Users who stated that they were likely to adopt new products will actually do so; thus this ratio is dependent on all the marketing factors e.g. the distribution channel, numbers of the Distributors, sales promotion factors, et cetera, as isolated in the following pages on product launches. These ratios are based on past experience of product launches of the Product.

In conjunction with the Product Launch Adoption Rates one can use the Conversion Ratio to determine the actual level of likely Product Launch sales.

Thus the following calculation will provide the likely level of sales at Product Launch:-

 

 

 

 

 

AR

 

1

 

 

 

PLS

=

U x

(


x


)

 

 

 

 

 

 

100

 

CR

 

 

 Where,

PLS

=

Product Launch Sales

U

=

Total Universe

AR

=

Adoption Rate

CR

=

Conversion Ratio

THE RATIOS GIVEN ARE 1:X


SALES GROWTH:    It is possible to isolate likely sales growth data for the Product. The percentages given below are the likely average annual sales growth for product launches in the countries concerned. The data is based on current and forecasted economic conditions.

PRODUCT LAUNCH DATA:    In addition to the normal or usual industry costs, during the launch of a product greater costs are experienced. These costs are shown separately in the following tables.

It is possible to isolate these costs based on past experience of product launches.


THE DATABASE

There are a series of spreadsheet and database tables for this section, and each table will consist of a number of records for each of the specific products, markets, operations, geographic locations and competitors areas:

TABLE

Datafile

PRODUCT LAUNCH FACTORS

PLA

PRODUCT LAUNCH FACTORS - PRODUCTS

PL2 – PLP

PRODUCT LAUNCH FACTORS - TRADE CELL

PL3 – PLT

PRODUCT LAUNCH FACTORS - OPERATIONS

PL4 – PLO

PRODUCT LAUNCH FACTORS - COMPETITOR

PL5 - PLC

PRODUCT LAUNCH FACTORS - MAJOR CITY

PLB

The tables for this section provide a Time Series of 7 years (headings indicate Field names) for each of the above Sections:

PRODUCT LAUNCH FACTORS

CODE

CRITICALS

A_

B_

C_

D_

E_

F_

G_

PL_01

ADOPTION RATES : PRODUCT REVISIONS

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

PL_02

ADOPTION RATES : NEW PRODUCTS

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

PL_03

CONVERSION RATIOS : PRODUCT REVISIONS

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

PL_04

CONVERSION RATIOS : NEW PRODUCTS

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

PL_05

POTENTIAL FIRST YEAR GROWTH : PRODUCT REVISIONS

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

PL_06

POTENTIAL FIRST YEAR GROWTH : NEW PRODUCTS

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

 

The above tables are then applied to the specific products, markets, operations, geographic locations and competitors for under 15 sub-headings (headings indicate Field names):

Items being considered (x)

Products, markets, operations, geographic locations and competitors

Field Name for Item

Field Name for Item Weight

For example:

Head01

Headx01

Product 1

Head02

Headx02

Product 2...

Head03

Headx03

 

Head04

Headx04

 

Head05

Headx05

 

Head06

Headx06

 

Head07

Headx07

 

Head08

Headx08

 

Head09

Headx09

 

Head10

Headx10

 

Head11

Headx11

 

Head12

Headx12

 

Head13

Headx13

 

Head14

Headx14

 

Head15

Headx15

 

FIELD MANIPULATION

Criticals

CODE

CRITICALS

Crit_A

Crit_B

Crit_C

Crit_D

Crit_E

Crit_F

Crit_G

Crit_H

Crit_I

Crit_J

Crit_K

PL_01

ADOPTION RATES : PRODUCT REVISIONS

1.2

0.9

1.0

1.12

0.90

0.88

0.75

The above fields (Crit_A to Crit_K) represents the average VALUE for the entire Factor, Eg. for PL_01 ("ADOPTION RATES : PRODUCT REVISIONS") across all Items, Eg. for headings A  to G. 

Headings A to G is a Time series. 

The individual cells (Axx – Kxx) represent the VALUE for EACH YEAR, Eg. Current to 2028.

Cells – where, A01-K01 = A - K, etc.

A01

B01

C01

D01

E01

F01

G01

H01

I01

J01

K01

   …  To …

A15

B15

C15

D15

E15

F15

G15

H15

I15

J15

K15

1.10

1.00

0.98

0.80

0.70

0.80

Where, the xx, (i.e. 01-15) represents the VALUE for each Heading (i.e. Head01 – Head15)

The Weight for each Heading is found in fields Headx01 to Headx15

Field Name for Item Weight

Headx01

Headx02

Headx03

Headx04

Headx05

Headx06

Headx07

Headx08

Headx09

Headx10

Headx11

Headx12

Headx13

Headx14

Headx15

Graphically, one can establish a base reference line for each Item (Eg. Headx) by multiplying the Crit_x field with the Headxx field, viz, Crit_A x Headx01.

Then one can plot the value of each Item in relation to the base reference line and the other Item in the set by multiplying the A01 field with the Headx01.

Time Series representation for Product Launch tables:

A_DEF

B_DEF

C_DEF

D_DEF

E_DEF

F_DEF

G_DEF

C

     

E

L

L

x

x

z= Base Reference  (Crit_A – Crit_G)

V

x

z

z

z

A

z

z

z

x

x

x

o

o= Head02

L

o

x

x= Head01

U

o

o

o

E

o

… Etc.

o

Current

Year +1

Year +2

Year +3

Year +4

Year +5

Year +6

RELATIVE IMPACT ON SALES VOLUME