New Product Introduction Strategies - Essay Example

NEW PRODUCT INTRODUCTION Introduction All businesses aim at outdoing each other in terms of productmanufacturing, selling and the amount of profits made from a particular product. For these reasons, all companies will try their level best when introducing their products in the market so as to create a good customer base. The introduction of new products in the market is a very difficult task for any company regardless of the quality or value of that product or the name that the company has built for itself over the years. Therefore, it is important that a company devices an effective new product introduction strategy if it wants to have good marketing policies for its new products. New product introduction strategies play a vital role in the success or failure of a new product in the market (Schneider & Yocum, 2004: 15). New product introduction strategies for rover 75 and how they affected the company The Rover 75 was produced by the British automobile manufacturers, the Rover Group and the MG Rover. This model of vehicles was produced from 1998 to 2005. The compact executive car was introduced to the public in 1998 Birmingham Motor Show and the sales began in February 1999. Notably, it was the first rover to be sold in North America. As the vehicle was being introduced to the public, the manufacturers aimed at establishing a larger and more profitable market compared to the existing BMW series that were already a favorite to many. They had this factor in mind even during production and they had to make a car that was far much better than the BMW series. During the launch of the Rover 75, there was a speech that was meant at demeaning to financial standing of the British government to support the production of the Rover 75. The public took this to mean that the vehicle was substandard and would not match up to the BMW series. This thought definitely scared off many potential buyers and the manufacturers had to come up with better strategies to market their product (Jex, 2006: 98). The first introduction strategy they devised was introducing the model to the staff of the manufacturing company. These would be the immediate people who would get first-hand experience in what the car had to offer. From there, the staff and members of their family would extend information on the experience to those around them. This strategy worked as the car was soon embraced by the staff, their families and friends who created a good base for the market. The embrace that the Rover 75 got from this people eventually spilled over to the rest of the country and British as well. As early as 2000, the company recorded tremendous increase in sales (Economist Newspaper Ltd, 1843). The company recorded the hugest sales in history from vehicles as at that time. The company also saw the need of explaining to the public the features of the Rover 75. They explained to the public that the car was much cheaper to insure compared to other models since it had being designed with higher safety measures, performance abilities and easier maintenance. The car was also found to be more cost effective in terms of diesel use because it was designed to use less fuel while at the same time maintaining high levels of performance. This simple explanatory strategy served to increase the sales of the model in the early 19th century. The manufacturers also saw the need of advertising the new Rover 75 model in unique ways so as to establish a market outside the British boundaries (Freitas, 2008: 35). Promotional campaigns were held in different part of the country as well as in the neighboring nations. Advertisements on various media sites; television, magazines, journals and newspapers were used to help create better visual aid to people from far off countries. Billboards that had the Rover 75 and cheerful drivers attractively drawn on them could also be spotted at strategic locations on the roads. All these promotional activities served to let the people know that there was a new car model in the market which was safer and definitely more beautiful than the rest. The manufacturing company also strategized on how they would avail and distribute the Rover 75 so as to make it easily available to the public. It ensured that 90% of all motorcar dealers had at least 5 Rover 75 models in their shops. The most renowned dealers had more than 5 models for sale. The dealers were also in a position to call the manufacturers directly and ask for the vehicles once they ran out of stock (Schneider, 2004: 137). Customers who wanted to buy the vehicle directly from the manufacturers could also do so easily by simply making a call. There was an all round the clock delivery service for the customers who were too far from the purchase location. These after sale services were hardly available from other manufacturers and they served to attract more customers. The manufacturers also offered sales incentives to the sales people who had their models in stock. This helped to always remind them that they had something to gain once they sold one Rover 75 vehicle. The incentives included a commission from the selling price of the vehicle accompanied by a gift hamper from the British motor company. The incentives were a form of motivation to the sellers. Bearing in mind that they had something to gain from the sale, they would have to find a way of attracting the customers to the Rover 75 more than to any other model. The British motor company also ensured that the Rover75 was sold at affordable prices. Their target was to establish a market both among the middle class owners as well as the top afford the car and the rich people would not mind spending a little bit less dollars for a quality brand of car. By so doing, the car sold at a very high rate as most people were in a position to afford it. Profit margins increased from 10% to 15% within a short period of implementing these strategies. This ultimately increased production by a very high percentage (around 20%). It is believed that the manufacturing of the Rover 75 was done on all round the clock basis so as to meet the required demands of the market already in place and the targeted markets as well. Impact of the New Product Introduction Strategies on the production of the Rover 75 The above discussed strategies served to create a good customer base for the Rover 75. There was constantly high demand for the vehicle from different parts of the country as many people; government officials included sought to have an experience of what the Rover 75 had to offer. The manufacturing company was therefore faced with the challenge of ensuring that their stock never ran out. They had to produce the model at a constant rate, working to ensure that all other models were of the same or even better quality than those already sold out (Jex, 2006: 187). References Top of Form SCHNEIDER, J., & YOCUM, J. (2004). New product launch: 10 proven strategies. Deerfield, Ill, Stagnito Communications. Bottom of Form Top of Form INSTITUTE OF THE MOTOR INDUSTRY. (1983). Motor industry management: journal of the Institute of the Motor Industry. High Wycombe, Burke House Periodicals (P.O. Box 46, 21 High St., High Wycombe, Bucks. HP11 2BZ). Bottom of Form Top of Form (1843). The economist. London, [Economist Newspaper Ltd. Bottom of Form Top of Form FREITAS, E. S. L. (2008). Taboo in advertising. Amsterdam, John Benjamins Pub. Co. Bottom of Form JEX, R. M. (2006). Rover 75 & MG ZT owners workshop manual. Sparkford, Somerset, Haynes. Read More