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LAUNCHING PRODUCT

UNIT - III

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Topics to be covered

  • Cost Analysis
  • Steps to fix the final price
  • Promotion Planning
  • Digital Marketing and Methods
  • Retailing
  • Types of Retailing
  • Online Retailing
  • Post Market Analysis of the Launch

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Cost Analysis

  • The act of breaking down a cost summary into its constituents and studying and reporting on each factor.
  • Cost Analysis is the examination of each and every element of the expenditure to determine how resources have been spent.
  • Cost Analysis helps to understand how funds have been used.
  • Cost Analysis guides in optimal utilization of scarce resources.

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Case study on Cost Analysis

  • An entrepreneur named DK was considering the money making potential of chartering a bus to take people from his hometown to an event in a larger city.
  • DK planned to provide transportation, tickets to the event, and refreshments on the bus for those who signed up.
  • He gathered data and categorized these expenses as either fixed or variable:

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Fixed, Variable and Total Costs

Example 1

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  • DK developed an overall total cost equation for his business expenses.
  • Now DK wants to evaluate the potential to make money from this chartered bus trip.

Total Cost = Total Fixed Cost + Total Variable Cost

  • = $225 + ($20)(the number of people on the trip)
  • Let x = number of people on the trip
  • Thus,

Total Cost = 225 + 20x

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  • Using this relationship, DK can calculate the total cost for any number of people - up to the capacity of the bus.

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  • What he lacks is a revenue equation to offset his costs.
  • DK's total revenue from this trip can be expressed as:

Total Revenue =

= (Charter ticket price)(number of people on the trip)

= (ticket price)(x)

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  • Profit or loss can now be calculated as:

Total Profit =

= [Total Revenue] - [Total Costs]

= [ticket price]x – [225 + 20x]

If he charged a charter ticket price of $35, then

= [35x] - [225 + 20x]

= 15x - 225

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Online Retailing

  • Online Retailing is a process that allows the customers to search, select and purchase the products, services and information remotely over the Internet.
  • The sale of goods and services over the internet is known as online retailing. Business-to-business (B2B) and business-to-consumer (B2C) sales of items and services are examples of e-tailing.

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Post Market Analysis

  • Post product launch is often the most underestimated phase in new product development.
  • Post product launch is just not celebrating your achievement but also understanding how well your product is accepted by end-users and your esteemed clients.

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  • As an organization, you need to interact more with target audience after the product launch to ensure they are not only satisfied with your new product or service but also getting the features and benefits as promised by your marketing professionals during promotions and campaigns.
  • Keep in touch with all your dealers, outlets, stores and keep a track of sales. 

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