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Traditional Product Launch Strategy

Traditional Product Launch Strategy. Skim the market with premium prices (lead users, technophiles) Establish first-mover advantage Descend learning curve with volume increases Reach broad market later with lower prices. What Are First-Mover Advantages?. Brand loyalty

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Traditional Product Launch Strategy

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  1. Traditional Product Launch Strategy • Skim the market with premium prices (lead users, technophiles) • Establish first-mover advantage • Descend learning curve with volume increases • Reach broad market later with lower prices

  2. What Are First-Mover Advantages? • Brand loyalty • Preempt capacity • Preempt shelf space • Head-start on learning • Network externalities\ • Question: Have first mover advantages disappeared?

  3. The Survival Zone Features Price Point Quality

  4. Product: Sony Cyber-shot DSC-T1 • Specs: 5.0 megapixels, 3X optical zoom • Price: $550 list • Company Info: Sony Electronics Inc., www.sonystyle.com • Ease of use: • Power: • Performance: • Image quality: • Editor Rating: 

  5. Calculating Target Cost Price Point - dealer margin - import costs - margin requirement Target Cost

  6. What If Estimated Costs AreHigher Than Target Costs? • Reduce features and lower price point • Enhance features and raise price point • Redesign the product or component • Reexamine conditions (launch date, volume) • Consider life cycle cost

  7. Managing the Product Development Process • If you can’t meet the target, don’t launch the product • Tip-toe objectives • Cost target is a unifying metric

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