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. Thus when interviewed a percentage of End Users stated that they were "likely" or "very likely" to purchase (i.e. adopt) new product 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 product 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 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.

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:-

 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 products. 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.

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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):

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

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: