NPD Presentation

References

Hammedi, W., Van Riel, A. C., & Sasovova, Z. (2011). Antecedents and Consequences of Reflexivity in New Product Idea Screening. Journal of Product Innovation Management, 28(5), 662-679.

Summers, J., Gardiner, M., Lamb, C. W., Hair, J. F., & McDaniel, C. (2009).Essentials of marketing. Cengage Learning Australia.

Juin, S. С. (2000). ‘Marketing planning & strategy’. School of Business and Administration.

Blakey, P. (2013). SP0568. NPD Product Development. Northumbria University.

Commercialisation

Commercialisation 

In this stage of the New Product Development Process it is vital that certain factors are taken into account before the product is launched including the timing of the launch, where and how it will be launched along with the scale of it (Learn Marketing, 2012).

Blakey (2014) presents that following the previous test market stage, further analysis needs to be made based upon the data received as this will determine necessary changes in the marketing mix. Marketing and implemented strategy is the primary influence on this stage, which directs the launch potentially producing increased business and product exposure opportunities (Queensland Government, 2013). The full-scale marketing strategy, plans and all factors surrounding the product has to be finalised and initiated.

Commercialisation can bring about competitive advantages if decisions are carefully implemented surrounding elements such as warranties on the product along with the speed of acceptance into the market by consumers (Blakey, 2014). Once the product is released, the NDP process comes to an end diverging into the introductory stage of the Product Life Cycle.

Examples in the Industry

The Australian Institute for Commercialisation (AIC) engaged in assisting RipCurl to search for new technologies and materials to develop the second generation of the wetsuit line ‘H Bomb’ (Australian Innovation, 2010).

Research gained from Universities lead to increased thermal characteristics and heat retention enabling RipCurl’s introduction to five Victorian manufacturers for collaboration opportunities developing their product. RipCurl rapidly engaged with the further research outcomes whilst reviewing the market in order to better its commercialisation strategy (Australian Innovation, 2010).

This allowed further engagement enabling outcomes to be achieved by providing samples offering technology advancements in textiles and polymers from the five manufacturers. The AIC’s facilitation was the sharing of knowledge with TechFast clients in different areas of sport product design manufacturers. The companies combining allowed this commercialization of RipCurl due to increased knowledge and information improving networks and technologies (Australian Innovation, 2010).

Commercialisation of Reel Feel Trainer

The Reel Feel trainer will penetrate the market as a performance trainer primarily aimed at female consumers who are looking for ease and comfort whilst playing sport or even going to the gym and therefore the final Marketing Mix will be mainly directed at them (Appendix A). Prior to the Olympic Games, there has been increased participation rates of people taking part in sport emphasised by females who are aiming for ‘the perfect body’ due to increased media. Therefore the trainer will be accepted into the industry by consumers at a fast rate with expected profit to be made within the first 6 months of sales.

Distribution outlets will be situated in main cities where the previous Test Marketing took place using the same stores however, the product will be available to purchase online as well as in new cities to generate interest (Appendix A).

Although Reel Feel is penetrating a competitive market, the individuality and design of the trainer will be attractive assets to consumers with a forecast to succeed if careful consideration of the commercialisation stage is taken.

Appendices

Appendix A: Marketing Mix of the Reel Feel Trainer

+Paul Blakey 

References 

Blakey (2014). SP0568. NPD Commercialisation. Northumbria University

Learn Marketing (2012). New Product Development (NDP): Commercialisation. Available at: http://www.learnmarketing.net/npd.htm. [Accessed on: 5/02/2014]

Queensland Government (2013). Launching and Commercialising New Products. Available at: http://www.business.qld.gov.au/business/business-improvement/new-product-development/launching-commercialising-new-products. [Accessed on: 5/02/2014].

Australian Innovation (2010). Available at: http://www.ausinnovation.org/articles/rip-curl-commercialisation-of-the-first-ever-power-heated-wet-suit.html. [Accessed on: 5/02/2014].

Test Marketing

Test Marketing

Silk and Urban (1978) presents that test marketing is a prominent step in the New Product Development process of ‘branded, low-priced, frequently purchased consumer products’. This step enables the experimented launch of the new product allowing the devised marketing strategy to be analysed and sometimes the product intended to expose problem is that otherwise would be undetected (Silk & Urban, 1978).

Marketing plans are primarily exposed to a carefully chosen sample of the population before deciding whether to reject it prior to its full scale launch. Drawing upon Silk and Urban (1978), Test Marketing is a experiment conducted in a field laboratory ‘comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise.’ Depending on the quality and quantity of sales data required for the final decision, test marketing may last from few weeks to several months (Business Dictionary, 2013).

Examples in the Industry

In 2013 Adidas delivered a plan to reinvent their whole marketing strategy across all their brands. It will introduce a new sport performance “Home Court” area to key stores in January 2014 to showcase the technology behind products. The company has been highlighting the innovation behind its products in football and athletics campaigns this year in an attempt to differentiate itself from rival brands. Adidas is launching this Test Marketing strategy prior to the World Cup that will create increased sales due to the re-launch (Marketing Week, 2013) 

Marketing Week (2013) presented that ‘Adidas believed it has become too reliant on Barcelona FCB footballer Lionel Messi to broaden its reach at the expense of the brand itself. It is placing a greater focus on expanding its retail estate in the hopes of crafting a brand experience it can scale.’

Test marketing advisory is a business within itself and is prominent in the sport industry, with organisations such as PreTesting Group, offering companies advice on this stage of the NDP.

Reel Feel Test Marketing Strategy

There will be test market cites implemented in three main cities in the United Kingdom including London, Manchester and Glasgow as these is are the main shopping cities with the highest number on consumers visiting throughout the year according to a review by the Telegraph (2007). Scotland Food and Drink (2013) highlights the importance of a carefully chosen cite as this allows accurate monitoring due to a competitive buying environment.

The chosen outlets within the cite will include three main stores that provide athletic training shoes like the Reel Fit performance trainer; Footlocker, JD Sports and DW Sport shops. These stores are primarily related to sport performance sales and are used Nike and Adidas and therefore attract consumers.

This test market will be a ‘Controlled Test’ as it is the cheapest form however caution must be taken when analysing test results as minimal adverting will be carried out (Scotland Food and Drink, 2013). It will run for 8-12 months with the aim to follow the AIDA approach (Blakey, 2011). The marketing strategy will also have the aim to attract female consumers due to the bright colours available and the ‘no fuss’ gym approach due to the lack of laces that females look for in a training shoe.

Information that will be collected from the test market will include; number of sales, market penetration that has occurred and the weight of purchase (Scotland Food and Drink, 2013).

+Paul Blakey 

References

Silk, A. J., & Urban, G. L. (1978). Pre-test-market evaluation of new packaged goods: A model and measurement methodology. Journal of Marketing Research, 171-191.

Lipstein, B. (1968). Test marketing: a perturbation in the market place. Management Science, 14(8), B-437.

Joseph, S., (2013). Adidas details plan to 'reinvent' its retail strategy. Available at: http://www.marketingweek.co.uk/news/adidas-details-plan-to-reinvent-its-retail-strategy/4008788.article. [Accessed on: 29/01/2014]

Pretesting Group (2013). Our Difference. Available at: http://www.pretesting.com/who-we-are/differences/. [Accessed on: 29/01/2014].

Business Dictionary (2013). Test Marketing. Available at: http://www.businessdictionary.com/definition/test-marketing.html#ixzz2rni8ooFI. [Acessed on: 29/01/2014]

Telegraph (2007). Fashion: Britain’s Six Best Shopping Cites. Available at: http://fashion.telegraph.co.uk/news-features/TMG3361028/Britains-six-best-shopping-cities.html. [Accessed on: 29/01/2014]

Blakey, P. (2011). Sport Marketing. SAGE. (p.6).