Product Launch Strategy Research Articles

Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models

Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models

Theoretical insights into AI product launch strategies for start-ups: Navigating market challenges

Launching AI products presents unique challenges for start-ups, requiring a deep understanding of market dynamics and effective strategic planning. This paper explores theoretical frameworks and practical approaches to help start-ups navigate the complexities of AI product launches. We begin by analyzing market challenges, including competitive landscapes, market segmentation, and regulatory considerations. Drawing from theoretical models such as lean startup methodology, crossing the chasm theory, and blue ocean strategy, we propose a comprehensive framework for AI product launch strategies. Tactical approaches such as MVP development, customer-centricity, strategic partnerships, and scalability considerations are discussed to facilitate successful product launches. Implementation challenges, including talent acquisition, resource allocation, and investor management, are addressed alongside ethical considerations in AI deployment. Case studies and practical examples offer insights from both successful and failed AI product launches. Through this exploration, we aim to equip start-ups with the theoretical insights necessary to navigate market challenges and drive successful AI product launches in an ever-evolving landscape.

The use of electroencephalography (EEG) in a study into the effectiveness of advertising communication

In an era of increased competition between companies, the retention, as well as the acquisition of new clients constitutes one of the greatest tasks for the management of any company. In order to successfully reach target clients and influence their purchasing decisions, marketing specialists utilise various forms of communication, including mass communication, of which the primary tool is advertising.The aim of this article is to present the results of a study on the effectiveness of advertising communication conducted through the use of electroencephalography (EEG). The author argues that a company utilising this method may significantly improve its existing knowledge of clients and facilitate the creation of appropriate strategies for the future, e.g. product launch strategies.

The role of credence attribute claims in food product launch – a comparative study of New Zealand and Australia

PurposeThis paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food companies in Australia (AU) and New Zealand (NZ). As such, positioning through credence attribute claims can be associated with product launch strategies, including brand-new products, expansion of product ranges, new packaging and relaunch, as a response to market demand.Design/methodology/approachText analysis was used to investigate the descriptions of food claims using Structured Query Language, providing a word list of food claims and further filtered and categorised into groups of claims. Multinomial regression models were then employed to analyse the association between product launch strategies and food claims adopted by firms.FindingsThe results of this paper provide evidence that positioning via food claims play an important role in product launch strategies in both AU and NZ. Types of food claims matter differently to firms' product launch decisions in the two markets. The “green” and “ethical” attributes are found to be associated with new launches in NZ but not in AU. Claims that are seen as most important for consumers are more likely to be engendered for the more costly launch approach.Originality/valueThis study is amongst the first studies that addresses the role of positioning in product launch strategies of food companies. The results and findings provide insights into the different prevailing credence attributes from the firm side and help policymakers to regulate the delivery of information about credence attributes to consumers.

Food product launch and positioning in China—Do claims of credence attributes matter?

AbstractThis article aims to empirically investigate the role of claims of credence attributes in the launch of food and drink products using a large dataset of new product development by food companies in China. A multinomial regression model is employed to analyze the association between the type of product launch and the positioning claims adopted by firms. The results provide evidence that claims of credence attributes play an important role in the product launch strategy of firms. Food companies tend to choose the most cost‐effective strategies to launch products with credence attributes. Hence, claims that are seen as most important for consumers are more likely to be engendered for the more costly launch approach. For example, the attribute of food safety is highly important in China and its use is related to launching brand new products which generally is the most costly launch strategy. In contrast, other credence attributes, such as “environmentally sustainable,” are linked to relatively simpler and cheaper strategies, such as new packaging. Given most studies on credence attributes have focused on the consumer side, results of this study fill in the gap of understanding how food suppliers respond to consumer demand for food products with credence attributes.

Ancillary market signalling: A two-stage model of economic reputation on ancillary market success

ABSTRACT Due to high market search costs, public information can have a stronger impact than private information on consumer choice behaviour. As a result, a priori economic success serves as a signal of high quality, reduces information asymmetries and can thus have an influence on the market performance in ancillary markets. Using weekly sales data from the ancillary DVD market, consisting of 8664 movies and their commercial performance between 2006 and 2018, we empirically test the influence of economic reputation on ancillary market success. We find clear evidence to suggest that former box office and DVD market success is positively associated with DVD sales. We additionally show that for distributors it is rational to follow a price skimming strategy of setting prices high when introducing new products to the market. These results provide practical insights into how businesses can maximize their profits by improving their decisions concerning product launch strategies.

The Multifaceted Nature of Competitive Response: Repositioning and New Product Launch as Joint Response to Competition

The literature abounds with theories on firms’ response to competition, highlighting various response strategies. Although firms likely use combinations of these response strategies in practice, there is little attention to this in the literature. We investigate how firms coordinate two closely related strategies—product repositioning and new product launch. Our approach is to empirically document how firms use these strategies in response to moves by a dominant competitor, in order to provide insight and ground future theoretical development. Using data from the Chinese TV industry, we: (a) document that in most cases, firms respond to competitive approaches by simultaneously changing their position and product launch strategies; (b) interpret the nuanced response strategies that reflect the different combinations of repositioning and changes in product launch; and (c) assess which types of firms are more likely to choose these nuanced response strategies. We discuss how our findings can advance theory development of firms’ responses to competition.

INTEGRATIVE MODEL FOR THE SELECTION OF A NEW PRODUCT LAUNCH STRATEGY, BASED ON ANP, TOPSIS AND MCGP: A CASE STUDY

New product launch strategy is a key competitive advantage for a new product development. A new product launch is a multiple criteria decision-making problem, which involves evaluating different criteria or attributes in a strategy selection process. The purpose of this paper is to develop a qualitative and quantitative approach for the selection of a new product launch strategy. The current study proposes an integrated approach, integrating analytic network process, the technique for order preference by similarity to an ideal solution and multi-choice goal programming, which can be used to determine the best launch strategy for marketing problems. The advantage of this integrated method is that it enables the consideration of both tangible (qualitative) and intangible (quantitative) criteria as well as both “more/higher is better” (e.g., benefit criteria) and “less/lower is better” (e.g., cost criteria) in the launch strategy of a new product selection problem. To show the practicality and usefulness of this method, an empirical example of a watch company is demonstrated.

Optimal Digital Rights Management with Uncertain Piracy

ABSTRACTMany firms that sell digital copies of copyrighted materials online face a common dilemma: the use of digital rights management (DRM) to impede pirates can impose restrictions on legitimate use. We introduce a two‐period model in which the use of DRM in the first period affects the probability that a consumer finds a pirated copy in the second period; the threat of legal action reduces consumers’ consumption of pirated copies; and firms choose whether to sell, and at what prices, either strongly or weakly DRM‐protected products, or both. Furthermore, we incorporate the role of uncertainty concerning future levels of piracy. Using a two‐period model with uncertainty, we investigate a firm's optimal DRM strategies and present the optimal pricing strategy as well as product launch strategy under different market conditions. We find that one important characteristic of the optimal strategy is that it is optimal to maintain the same product line configuration strategy for both periods. We also characterize the conditions under which each strategy is optimal.

The Greek Health Care Reform After Troika's Involvement: The Potential Impact on Global Pricing and Access Strategy.

Troika's measures to support Greece’s financial recovery have targeted all sectors of economy including health care. Since 2012, policy reforms have changed the way health care is funded, managed and delivered, and how pharmaceuticals are priced, accessed and reimbursed. This study examines the changes to the Greek system and tries to understand the wider possible impact on global pricing and access strategies. To better understand the recent reforms we conducted a literature review of public domain sources, including the Greek Government Gazette, PubMed and other websites. Searches were conducted in English and Greek-language, and materials were translated into English. From our findings a road map diagram was developed, and this was validated by interviews with health policy experts. Part of troika's campaign to reduce public spending has seen the Greek government focus on pharmaceutical markets and introduce policies to contain costs. The drug budget for 2014 has been cut to 2 billion euros, a billion lower than 2013. Considerable price cuts have been agreed on both novel and generic agents on top of clawbacks and rebates for high cost drugs. Prescribing is controlled through electronic prescription and physician budget caps. Introduction of price-volume agreements and risk sharing schemes are being considered, however the infrastructure to support implementation is still under development. Demonstrating value by health economics and outcomes research can still help manufacturers to achieve premiums. With a small population and an ever-decreasing expenditure on health care, it is tempting to overlook Greece when developing a product launch strategy. However, with Greek drug prices being referenced by several EU and non-EU countries, ignoring Greece may no longer be an option, especially when considering the indirect effect on the big EU5 prices. Understanding the reforms and assessing the impact on launch sequencing will be key in developing optimal pricing strategies.

Optimal Sales Schemes for Network Goods

This paper considers a monopolist’s product-launch strategy in the presence of network effects, focusing on how to exploit these effects to the maximum possible extent. In our formal framework, the firm sets a price for its product and chooses a sales scheme, which effectively determines how consumers can learn from each other about the product’s popularity. Our results on the profitability of different schemes provide insights on a variety of managerial issues that are of practical relevance for product launch. Specifically, to best exploit network effects, our results suggest releasing preorder and sales information to consumers. They also suggest taking a sequential approach to multimarket product launch, launching first in smaller markets before larger ones. Moreover, they identify possible benefits of promoting prerelease consumer communication, and they support the idea of targeting independent-minded consumers, so they can serve as opinion leaders for those who follow. This paper was accepted by Juanjuan Zhang, marketing.

Maruti Ertiga launch in India by new category creation

Subject area Marketing. Sub subjects: customer segmentation, targeting, positioning and new product launch strategies. Study level/applicability This case can be taught at degree and master level management programmes including distance education mode in business schools having marketing management as one of the subjects. Case overview Maruti Suzuki a leading global Japanese car manufacturer recently launched a new multi utility passenger car with the brand name Ertiga. Ertiga was launched by Maruti Suzuki as life utility vehicle (LUV) using lifestyle categorization instead of using car categorization to position Ertiga using LUV theme. This new category created called LUV is in car categorization between high end hatchbacks and multi utility vehicles/sedans. This case highlights how Maruti Suzuki through effective market research was able to identify a new category and also create and offer a car to the Indian market. This case covers some of the innovative promotional strategies like in film promotions and brand placements which was used to promote Ertiga in India. Expected learning outcomes The case is designed to enable students to understand the concept of segmentation, targeting, and positioning about the various products launch strategies companies adopt in the emerging markets. Also this case covers the marketing mix concepts and how it was adopted during the Ertiga launch in India. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email: support@emeraldinsight.com to request teaching notes.

Radical Product Innovation Capability: Literature Review, Synthesis, and Illustrative Research Propositions

Product innovation is a key to organizational renewal and success. Relative to other forms of innovation, radical product innovations offer unprecedented customer benefits, substantial cost reductions, or the ability to create new businesses, any of which should lead to superior organizational performance. In other words, a radical product innovation capability is a dynamic capability, one that enables the organization to maintain alignment with rapidly evolving customer needs in high‐velocity environments. Extensive research has been conducted on the antecedents to an incremental/general product innovation capability, and meta‐analyses have been conducted to integrate the results from the various studies. However, whether and how a radical product innovation capability differs from an incremental product innovation capability is also critical. The purpose of this work is to develop a testable model of the antecedents to radical product innovation success. Based on an extensive literature review, a comprehensive set of organizational components that comprise a firm's radical product innovation capability is identified. These organizational components include senior leadership, organizational culture, organizational architecture, the radical product innovation development process, and the product launch strategy. Of course, each of these components has subcomponents that provide even more texture. This review highlights how the components of a radical innovation capability function differently from those for an incremental capability. In addition, this review strongly suggests that the direct effects models that dominate this literature underestimate the complexity of the interplay of components that comprise a radical product innovation capability. Thus, a model to demonstrate this interplay of these organizational components is provided. Illustrative research propositions are offered to provide guidance to researchers. Suggestions for executives and managers who are involved in the product development process and for scholars who seek to advance the state of knowledge in this area are offered in the conclusion.

Market Uncertainty and Dynamic New Product Launch Strategies: A System Dynamics Model

New products are intrinsically associated with high level of market uncertainty, and product launches often fail because launch strategies formulated based upon prelaunch forecasts cannot accurately capture actual market conditions. While research generally recognizes the importance of flexibility in new product launch, it has rarely examined the dynamic adjustments after initial launch, largely due to the limitation of conventional methodologies in modeling dynamic feedbacks and interactions. This study develops a system dynamics model of new product launch that formalizes the adjustments of launch scale according to actual market conditions and the dynamic interactions among launch scale and various tactical elements of product launch, including advertising, distribution, pricing, manufacturing, and inventory management. This study makes a first attempt to bring systems dynamic modeling to new product launch research and illustrates a new approach to examine dynamic feedbacks in the new product launch process. The model developed in this study illustrates why and how dynamic approaches outperform static ones, and reveals important insights of the behavior of dynamic product launch strategies. The model can be used as a “flight simulator” in managerial training to help new product managers understand the dynamic interactions among different elements of new product launch.

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The Effects of Competition in Short Product Life-Cycle Markets: The Case of Motion Pictures

It is critically important to understand the relationship between new product launch strategies and their interaction with the competitive environment, which results in the successful introduction of new products. Deciding when to launch new products is among the most significant issues facing managers when formulating new products strategy, especially for products with short product life cycles. However, little extant research has focused on the interaction of product launch timing and the competitive market environment. This study explores the effects of four types of competitive threats on the market performance of short product life-cycle products. Threats from new products and incumbents are possible. Also, products in the same category and those in related product categories exert competitive pressures. In this paper, a framework of competitive threats is developed, and research questions are constructed and empirically tested using the motion pictures industry as the focus of this research. A set of simultaneous equations was estimated using a sample of 2,948 movies introduced in the U.S. market between 1997 and 2004. The results show that all competition types have negative direct, indirect (as mediated by distribution intensity), and total effects on the performance of a new product. For a focal product, incumbent products exert a greater negative impact on performance than new entrants. Surprisingly, products in different, but related, categories are more harmful to the performance of products than products in the same category. The results have important implications for launch timing and new product performance.

The Impact of the Corporate Mind-set on New Product Launch Strategy and Market Performance

In the last decade, there has been an increasing interest in the link between new product launch strategy and market performance. So far, new product launch research has focused on this performance relationship without giving much attention to background factors that can facilitate or inhibit successful launch strategies. However, investigating such antecedents that set the framework in which different strategic launch decisions enable or prevent the market performance of new products is useful for enhancing the current state of knowledge. Drawing on the concept of a firm's orientation, the present study discusses the influence of the corporate mind-set on new product launch strategy and market performance. It is hypothesized that the capability to successfully launch new products is based on the interplay between a firm's mind-set (i.e., an analytical, risk-taking, and aggressive posture) and its strategic launch decisions on setting launch objectives, selecting target markets, and positioning the new product. A research model with mediating effects is proposed, where the corporate mind-set determines the launch strategy decisions, which in turn impact market performance. The model is tested with data on 113 industrial new products launched in business-to-business markets in Germany using a multiple informant approach. The results support the mediated model as the dimensions of the corporate mind-set have a significant impact on most strategic launch decisions, which in turn significantly contribute to market performance. It is found that while an analytical posture relates to all three strategic launch decisions, risk taking and an aggressive posture have a significant impact on two, respectively one, launch strategy elements. These findings confirm the importance of investigating antecedents for a successful new product launch, as the corporate mind-set serves as a background resource that sets the framework for successful new product launch decisions. In the final section implications for research and managerial practice as well as limitations of this research are provided.

IMC strategies in new high technology product launches

PurposeThe purpose of this paper is to provide empirical evidence on the use of IMC in new high technology product launches among companies that operate in different fields of business, yet providing similar innovation to the same market.Design/methodology/approachA qualitative case research methodology is applied. Multiple sources of evidence are gathered. These include interviews with key informants and documentary data, and IMC mini audits. Concerning the theoretical approach, the related literature in IMC, new product launch and high technology marketing is reviewed.FindingsIMC is vital to high technology marketers launching new products and services. The analyses reveal that IMC practices vary across firm size, industry type, product/service orientation, and customer orientation.Practical implicationsCompanies of different types can be on an equal footing in their integration efforts. Whether service‐ or product‐oriented companies, business‐to‐consumer or business‐to‐business marketers, companies from all backgrounds can achieve higher levels of IMC. What matters most is customer‐centricity, i.e. having a close interaction with customers and being responsive to their feedback.Originality/valueThe study contributes to the integrated marketing communications research field in several important respects. First, it focuses on IMC usage among firms in different industries. Second, it takes a genuinely refreshing view on studying IMC strategies by focusing on usage of IMC as part of new high technology product launch strategy.

Entry for supermarket feature me-too brands: An empirical explanation of incidence and timing

Anticipating the speed of market entry can help the feature pioneer and me-too brands develop more informed product launch strategies. This paper explains imitation speed, broken down into the incidence and timing of imitation, across 144 imitators and 847 nonimitators in 22 consumer packaged goods subcategories. On average, it takes 85 weeks for a me-too brand to introduce its feature imitation. Increasing category market share increases the incidence of imitation and, conditional on their occurrence, decreases the time to market of feature imitators. Faster entry arises for store brands as they are more likely to imitate and tend to take shorter times to market. Price premium does not have a significant effect on the incidence or timing of a me-too brand as it tends to dissipate after the first year. Brands imitate innovative features more often than noninnovative features. Some evidence indicates these imitators can take a longer time to enter the market. New product managers may benefit from the direction as well as the magnitude of these results.