Launch Overview

During the launch phase, there are two dominating objectives:

(a) Secure an adequate distribution base (i.e. get intermediaries to carry the product)

(b) Build and convert purchase intention across potential buyers.

Intermediaries are gatekeepers for new products. For upstart or unproven brands, signing up intermediaries may be a formidable challenge. For large national brands (e.g. Black & Decker), broad scale distribution support is relatively assured based on prior performance (reputation) and established account relationships.  Many companies solicit intermediaries' input early-on in design process to benefit from their perspective and induce eventual "buy in".

Creating and converting purchase intention typically follows the hierarchical sequence of building brand and product awareness among potential customers, communicating the product's distinctive benefits and value proposition, and informing customers when and where the product can be bought.

The level of resources (time, money, people) required to launch a product can be substantial, including dedicated sales people (to secure distribution), advertising (to build awareness and purchase intentions), promotional incentives (e.g. introductory allowances to create urgency), and merchandising support (product displays or in-store demonstrators)

Accordingly, product launches can range from a "big bang" release into all markets, or sequential phasing by geographic market, channel of distribution, or customer segment.  For example, a product may be launched in a confined region and then rolled out to other areas, or select intermediaries (like Wal-mart) may get initial exclusive rights to the product, or current customers may be given an early opportunity to upgrade legacy versions of the product.

Typically, a phased roll-out is most appropriate when:

(a) required launch resources (e.g. ad budgets or dedicated sales people) are substantial

(b) the "ramping up" of production and distribution capacity is progressive, but slow

(c) time is not of the essence (e.g. competitors are not likely to be first-in to deferred markets)

(d) the product must be "proven" for widespread acceptance by intermediaries and end-users.

The line between phased and big bang launches is blurring.  While products may be launched in strategic phases, the time between phases is typically getting shorter (i.e. the launch cycle is faster).