Strategic launch planning

8/23/2019 Strategic launch planning

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MRKT320: New Product Development

New York Institute of Technology


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TABLE OF CONTENTS

Strategic launch planning: ..................................................................................... 1

Strategic platform decisions: ................................................................................. 1

Target market decisions: ....................................................................................... 2

AL Kabeer Group of Companies .......................................................................... 4

Product Mix of Al-Kabeer .................................................................................... 4

Strategic Platform Decisions of Al-Kabeer: ......................................................... 4

Product Line Replacement Strategy Used by Al-Kabeer ..................................... 5

Target Market Decisions of Al-Kabeer ................................................................ 6

Bibliography .......................................................................................................... 7


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1

STRATEGIC LAUNCH PLANNING:

In order to stay competitive and achieve growth, it is a necessity for firms to master

the process of introducing new products to the market. A fruitful new product launch

requires research, planning, and a skilled and knowledgeable marketing team. Additionally,

no matter how new-to-the-world the product is, the firm must refer to product

commercialization in two sets of decisions that include strategic launch decisions and tactical

launch decisions. Where strategic launch decisions comprise of strategic platform decisions

(decisions that set overall tones and directions) and strategic action decisions (decisions that

define the target market and define how we are going to sell), on the other hand, tactical

launch decisions are marketing mix decisions such as how the product will be promoted,

distributed, and what will be the pricing strategy used and etc. However in this research

paper we will only be concentrating on strategic launch decisions that would include strategic

platform decisions and target market decisions (strategic action decisions).

STRATEGIC PLATFORM DECISIONS:

A few types of strategic platform decisions include:

1. Type of Demand Sought-This type of strategic platform decision concerns with thefirm having a primary demand or a selective demand. On one hand, the objective

behind targeting a primary demand is to educate the buyers about the idea youre

selling, whereas, selective demand is when a firm has a need, identifies that need, and

pursues a solution, and hence relates their products features with their identified

needs, establishing a benefit.2. Permanence-This kind of strategic platform decisions determines the state of lasting

or remaining unchanged. There are usually three options that include, staying with no

thought to get out (permanent), staying if desired goals are met, and staying

temporary.

3. Aggressiveness-This strategic platform decision determined the kind of entry into themarket. An aggressive entry means a lot of attention is given at the early stage

meaning lots of money is spent in promotion. However, some firms slink into the

market with a cautious entry so as not to alarm the leaders in the market. Lastly,

some firms enter into the market with a balanced level of aggressiveness, in which thefirms is not trying to be aggressive or slinking.

4. Competitive Advantage-This strategic platform decision states whether the firm willoffer a competitive advantage based on lower price or product differentiation or

perhaps both.

5. Product Line Replacement-As we all know, most new products relate to exitingproducts in the firms product line, hence, this strategic platform decision determines

how we should manage the replacement of the existing by the new by offering

different strategic options such as:


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Butt-on productreplacement

The existing one is simply dropped when the new one is

announced Example: Fords marketing of Mondeo and

dropping of Sierra.

Low-season switch

Same as butt-on, but arranging the switch at a low point

between seasons. Tour companies use this switch when theydevelop their new catalogs.

High-season switch

Same as butt-on, but arranging the new item at the top of a

season. Example: Polaroid used this strategy often, putting

new replacement items out during the Christmas season.

Roll-in, Roll-out

Another version of butt-on, but arranged by a sequence of

market segments. Mercedes introduced its C series country

by country.

Downgrading

Keeping the earlier product alongside the new, but with

decreased support. Example: The 386 chip stayed alongside

the 486, until the Pentium was introduced.

Splitting Channels

Putting the new item in a different channel or diverting the

existing product into another channel. Example: Old

electronic products often end up in a discounter channels.

6. Competitive Relationship-This strategic platform decision points out a three-optionset: Make no reference to specific competitors, aim directly at a specific competitor,

and avoid a specific competitor.

7. Scope of Market Entry-This decision relates to a firms desire to do market testing byintroducing their new items into part of a market, and then roll them on out either

rapidly, or deliberately, depending on overcoming any problems.

8. Image-This decision, as the name suggests, determines whether the new product willneed an entirely new image, a major change in an existing image, or a tweaking of an

existing change, or no change whatsoever.

TARGET MARKET DECISIONS:

Due to competition forcing majority of firms to market new items to specific target

groups, markets have become so complex that it is impossible for one product to meet all

needs and desires. Hence, target market decisions offer a firm with alternative ways to

segment a market. Some of these ways include:

1. End use: This kind of target decision is based on marketing products that have manyuses. For example, plastics are sold for hundreds of applications; athletic shoes are

specific for different kinds of athletic activities, and etc.

2. Geographic and demographic: This kind of target market decision is based onmarketing products depending on the geographical boundaries and age, religion,


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social class of people. For example, Goldens Pork fried skins are made available for

the Southern US, bran cereals are often targeted to mature segments, and etc.

3. Behavioral and psychographic: This target market decision targets market segmentsaccording to psychographic variables such as values, lifestyles, and activities. For

example, Kevlar bulletproof jackets are marketed for people who are exposed to guns.4. Benefit segmentation: This target market decision allows firms to identify segmentsbased on benefits through surveys of customers and potential customers, and develop

products to satisfy the needs of one or more of these segments.

5. Micromarketing and mass customization: Micromarketing also known as masscustomization is a kind of marketing strategy in which advertising efforts are focused

on a small group of highly-targeted consumers.


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Vegetables &fruits

Kids corner Snacks corner

Ready meals Seafood Meat & Poultry

AL KABEER GROUP OF COMPANIES

Founded over 30 years ago, as a 50:50 partnership between

Subberwal and the Shaikh family, the Al-Kabeer group

manufactures and distributes frozen foods and has established

itself as a leader in the Middle East frozen food industry. With

distributing over 300 products to 8000 retail outlets, the Al-

Kabeer group has evolved into a multi-national, multi-product

business with offices, processing units, and cold storages in over 10 countries. Having

started its business from a two-bedroom apartment in Mumbai, India, Al-Kabeer faced a

problem in shipping meant and poultry to the Middle-East, and therefore established its own

production plant in Sharjah, and then in Dubai. Moreover, due to the vast range of products

at Al-Kabeer, both vegetarian and non-vegetarian, have one thing in common i.e. good taste;

has indeed made Al-Kabeer quite a familiar name in many non-vegetarian households.

PRODUCT MIX OF AL-KABEER

STRATEGIC PLATFORM DECISIONS OF AL-KABEER:

One of the strategic platform decisions used by the Al-Kabeer group of companies is

low or aggressiveness i.e. it enters into the market with a cautious entry. For example, the

recently launched Al-Kabeer zing chicken fillet was introduced one morning without anymarketing or product testing. Other products that were launched in the same manner include


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Butt-onproduct

replacement

Roll in; Roll-out

Downgrading

High-seasonswitch

Low-seasonswitch

Splittingchannels

Al-Kabeer BBQ chicken wings, and Al-Kabeer Arabia kofta. As a matter of fact, this

technique used by Al-Kabeer has mostly proved effective and successful. Of the reasons why

Al-Kabeers practice of this strategic platform decision is mostly fruitful is because of its

competitive advantage, which is yet another strategic platform decision used by it. Al-

Kabeer makes sure that its product not only offers a reasonable and affordable price, but alsooffers good taste(product differentiation), hence making it one of the most demanded

products all over UAE. Moreover, in the case where Al-Kabeer decides to introduce a new

product in the form of a product replacement, it uses the butt-on product replacement where it

simply drops the existing product when the replacement is introduced, so that the consumers

do not get confused with the existing product. Lastly, when Al-Kabeer introduces an entirely

new product or introduces a product replacement, there is no major change in the image of

the product i.e. there is just a slight change in the image when compared to the image of the

existing products. For example, as it can be seen in the images of Al-Kabeer products, they

have similar color packaging, but only have changes in the naming of the products.

PRODUCT LINE REPLACEMENT STRATEGY USED BY AL-KABEER


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TARGET MARKET DECISIONS OF AL-KABEER

When it comes to making target market decisions, Al-Kabeer has an upper hand when

compared to its competitors. Firstly, one target market decision that has helped increase the

profit margins of Al-Kabeer is benefit segmentation. By identifying that the people of UAE

have an increasing demand of ready meal products due to having busy schedules and

increased working hours, Al-Kabeer, in 2010, introduced a new product line of ready meals

which proved to be successful all over UAE. Moving on, keeping in mind the geographic

and demographic factors, Al-Kabeer has been extremely successful by using this strategy of

making target market decisions. For example, from the feedback of their retailers, and to

appeal their local consumers, Al-Kabeer created different brands that include Samurai in

Japan, 'Falcon Foods' in the Europe, and 'Tayebat Al Emarat' in the UAE, which in effect

helped boost sales in most countries, especially, in European markets post 9/11, where Al

Kabeer tended to signal in to Al Qaeda. Additionally, a customer in Japan was perhaps more

willing to try a homegrown-sounding 'Samurai' than Al-Kabeer. Moreover, due to the US

market being very strict about the meat because of the fear of contamination of mad-cow

disease, Al-Kabeer has strict norms in which products undergo specifically severe QC checks

before exporting. Likewise, UAE being strict about the chicken, Al-Kabeer makes sure the

chicken is pure halal. Lastly, due to Japan having an increased demand for seafood, Al-

Kabeer targets most of its seafood products to Japan.


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BIBLIOGRAPHY

The growth of Al Kabeer. (2007, October 3). Retrieved March 31, 2012, from The Economic

Times: http://articles.economictimes.indiatimes.com/2007-10-

03/news/27666755_1_al-kabeer-exports-brands-meat

Home Page. (2012, March 31). Retrieved March 31, 2012, from Al Kabeer:

http://www.alkabeer.com

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Strategic launch planning