Marketing Research for New Product Launch

Product improvement and innovation represent an essential characteristic that determines the success level of a company in the current business world. The introduction of a new product in the market has the intention of improving a company market share and providing product solution to consumers (MacMillan, 2016). The disposable baby bottle market is a competitive spectrum that requires strategic product development and launching mechanism that ensures the success of such goods. The assignment seeks to analyze the dynamics associated with the introduction of new products into the market. Evaluation of PBM plastics organization will inform the development and implementation process of the introduction of a disposable baby bottle.

Rationale

Product launch refers to the decision made by a company to introduce a new product into the market. The new product could either be an existing commodity that is already available in the market or a completely new commodity that an organization has developed. This paper will use the case of Adam Burke and the PBM plastics organization. The primary reason for the choice of this organization is based on the challenges the company faced four months after the introduction of the disposable preformed baby bottle liner organization (Zeng, 2017). Due to the lack of a comprehensive product launch approach, the company attracted heavy fines and as a result, failed to meet the needs of their customers. In this paper, I will present a comprehensive product launch strategy for PMB for their disposable baby bottles that will address all the shortcomings exhibited by the former baby bottles. Moreover, the reason for selecting PBM plastics is based on the existing market opportunities for the disposable baby bottles given the few numbers of organizations that have ventured into the production of the product. The other reason for the new product launch is to raise income for the organization through the establishment of windfalls and to gain a strategic positioning in the market. Furthermore, the new product will assist PBM to stabilize the business following the constantly changing prices of baby bottles which have a notable effect on its stability.

Problem or Opportunity

Reduced competition is one of the main underlying opportunities for the new PBM product. PBM organization noted that no company was developing private-label preformed liner to pose competition for Playtex. It implies that the only potential rival for the new product is Playtex which will offer PBM ability to focus on product improvement and production other than on promotion. Marketing education, on the other hand, presents a complex problem during the new product launch. PMB Company will have to educate the customers on the newly launched product including its benefits over other similar products to inform the customers why they should choose the product other than those of competitors (Zeng, 2017). Also, the launch of the new disposable baby bottle will lead to the emergence of long budget cycles and the complex processes of acquiring the materials for the new product. The company management will have to look for a reliable and cost-friendly supplier which often is a complex process for large organizations like PMB. Competitive pressure is also likely to influence the stability of the organization after the establishment of the new product. It is because most customers prefer old products that they have an understanding about and could not be willing to risk trying the new product. As a result, the PMB will have to invest in education programs as a way of creating awareness about the new product. To add on this, constantly changing market environments could trigger constant instabilities for the PMB new product. Such changes in the market environment mainly occur due to shifts in prices of materials and changes in the cost of production. Other risks include; failure by the media to cover the real thing which would have a negative effect on the new product performance.

Product Launch Approach

The new product launch for Burke company will comprise several phases. PBM will first need to examine its competitors in the markets and identify its target customers. The company will then identify the product features that will differentiate its products and services from those of its main rivals like the Playtex. A comprehensive analysis of the market will be undertaken to identify appropriate marketing tactics suitable for the organization, and a clear understanding of the product cycle will be necessary during the launch of PBM's new commodity (MacMillan, 2016). PBM has two main targets for its commodities including the trade customers whose role will be to stock the new commodity and clients who will purchase the product. Prior to the trial of the new commodity by customers, it is essential for PBM to acquire the support of its clients. The company should use retailers as a product review tool. The new product should interest both distributors and retailers in order to realize the investment costs. The company should conduct one-on-one briefings with its main trade customers as a way of creating both awareness and commitment to the establishment of the new product. Besides, one-on-one briefing with potential customers will enable PBM to acquire substantial orders for the in-store displays as well as for the merchandising before the product is launched.

Marketing Research

Marketing research refers to the process that will join PMB managers to their potential clients through information. Prior to the launch of the new disposable baby bottle, marketing research will be done so as to identify available opportunities to enable PMB management team to make informed choices about the products and its future potential in the market. The revelations of marketing research show that children prefer disposable bottles which limit air sucking to prevent bloating. PMB's driving forces are the changes in the markets. Therefore, the company frequently evaluates its offerings to customers to ensure that the right disposable baby bottle is produced and sold. PBM is also embarking on innovation through the integration of modern technology with the aim of creating incremental volume and to achieve its vision of market leadership in the new segments in which the new product will operate (Zeng, 2017). Innovation is a critical element for PMB organization to be ahead of its rivals in the areas of the market in which the new product will operate and enhance sustainable growth for the new product in the future. Marketing research will mainly be done through the social media platforms and other internet sources due to their wide coverage and cost efficiency.

Product development

PBM established two goals for the creation of disposable baby bottles. First was to grow the market for baby formulae and secondly was to increase its market share. The development of disposable baby bottle was initiated following the identification of low competition levels in the production of disposable baby bottles in the market. New product designs were developed and tested after a survey was conducted to question customers of their experiences with existing baby bottle designs. The survey enabled the company design team to create a new design for the disposable baby bottle to address the shortcomings of existing ones. Prior to the development of the final product, research and the development teams created several product prototypes that were then analyzed to see whether they complied to the needs expressed by customers. One of the products emerged in the final product development stage. Research and development encompassed the combination of ideas and new materials to create a potential commodity. The main focus in the development of the new product is on differentiation elements that distinguish this product from the existing products which will create a unique selling point. It implies that the newly developed product will have a distinct appeal that is not shared by PMB's main rival products.

Early Consumer Testing

Early customer testing for the newly developed baby bottle will be done to ensure the willingness of customers to purchase them. Marketing research evidence that over 85% of all commodities launched into the baby feeding markets fail every year. Therefore, extensive research is essential in reducing the risks associated with the launch of the new product into an increasingly competitive market. The new baby feeding bottle will go through home placement tests to verify their purchase frequency after its launch.

Packaging Design and Brand Name

The development of a strong pack design, as well as a strong brand name, are key components in the development of the new PMB product. Pack design and brand names will intend to convey the dynamics and new product personality thus building on the customer interest at the point of purchase. Besides, the new product seeks to appeal to its customers. Packaging process will consider aspects like color, size of the pack and personality of the product. Branding like packaging will help in the development of product personality among the target customers.

Further consumer testing

Testing of the disposable baby bottle acts as a critical step in the introduction of the product to the market. Testing will provide the product development team with the necessary insight on improvements. Disposable baby bottles are critical products are they affect the growth and development of a baby. Feedback from parents, pediatricians and analysis of baby behaviors will create a foundation for the fine-tuning of the product. Consumer testing enables the company to understand further the potential customers and dynamics associated with the use of the disposable baby products.

The launch strategy

The evolution of marketing and business environment has put critical attention and resources in the launch process of a product. The launch criteria affect the reception of a product by its assumed target population. PBM presents parents and babies with a disposable baby bottle solution that entails improved efficiency and effectiveness in its use. The launch process will focus on the distributors of the product and the consumers (Bailey & Alexander, 2017). The PBM products will be stocked in relevant retailers' shops. The notification of the target population on the launching of the product will be critical for the entire market proliferation of PBM. Conditions that will ensure the success of the launch process includes secrecy in the coordination of the activities involved. Secrecy ensures less disturbance and distractions of the launch procedures due to the discreet nature of the activities conducted.

The coordination and collaboration of the marketing teams, product development team and the external agencies and retailers involved is critical for successful launch strategy. The stakeholders mentioned act as the lifeline of the product and effective communication of activities between the parties with streamlining the launch of PBM product (MacMillan, 2016). The manufacturing operations and finance department need to be clear in the investment put and expected returns for the pursuit of accountability. The development of public relation team will be essential for handling the perception of consumers about the product. Creating a desirable and enticing image and perception about a product is fundamental in determining the degree of success of its launch. Proper financial and human resource investment will communicate the success level of the launch strategy of PBM product.

Methodology and planning

The methods involved in the launching of the new product will provide a strategic implementation of numerous activities. The introduction process (task 1) will take a period of 12 months right from the initiation stage to the launching of the final products. The market research (task 1)) will take approximately two months (2nd January to the end of February 2019) in order to collect and analyze data on needs and wants of consumers, retailers and evaluation of the currently available baby products. Product development process (task 2) will take four months (March to end of June). The development process will involve research and design development. Early consumer testing (task 3) will take place for a period of two months (July to 30 August) to get detailed feedback of parents, pediatricians and analysis of babies' growth. The process of packaging design and branding (task 4) will take a timeline of two months (September to October). The further testing (task 5) of the product will happen from October, one month into the packaging and branding. It will enable the development team to create a stronger brand through testing and modifying as well. The launching of the final product into the market will happen in November. The launching process will take two months (November to December) to capitalize on the holiday mood through giving discounts. The summary of the methodology and planning throughout the timeline is elaborated through a Gantt chart in appendix one.

In conclusion, the launch process is critical in the development of any product notably in the contemporary business environment. Strategic methodology coupled with appropriate product launch procedure is critical for the success of PBM baby bottle. Creation of an efficient and improved product that takes into consideration the health and wellbeing of the patient will guarantee a successful launch and market penetration of the disposable baby bottle.

References

Zeng, X. (2017, May). Research on the development strategy of the product under the strategy of brand merger and acquisition. In Applied System Innovation (ICASI), 2017 International Conference on (pp. 963-965). IEEE.

Bailey, A. R., & Alexander, A. (2017). Cadbury and the rise of the supermarket: innovation in marketing 1953–1975. Business History, 1-22.

MacMillan, A. (2016). New Product Launch For Eagle Brand: Marketing Management Case Study-A And B. Journal of Business Case Studies (Online), 12(4), 177.

Appendix 1: Gantt chart

1

2

3

4

5

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8

9

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12

Task 1

Task 2

Task 3

Task 4

Task 5

Task 6

Budget table

Tasks

Cost ( US dollars)

Market research

50,000

Product development

70,000

Early customer testing

20,000

Packaging design and brand name

30,000

Further consumer testing

10,000

Final product launch

20,000

Total

200,000