Essay on New Product Launch Strategy: Evaluation Model

Words: 6105
Pages: 25


Technovation 26 (2006) 1244–1252

An evaluation model of new product launch strategy
Yi-Chia ChiuÃ, Benson Chen, Joseph Z. Shyu, Gwo-Hshiung Tzeng
Graduate Institute of Business Administration, National Chung Hsing University, 250 Kuo-Kuang Road, Taichung 402, Taiwan

Abstract The objective of this article is to develop an empirically based framework for formulating and selecting a product launch strategy. Managers usually face Fuzzy decision scenarios. Traditional decision-making methods fail to satisfy a manager’s need in this regard. Thus, a hierarchical fuzzy multi-criteria decision-making (Fuzzy MCDM) method for evaluating a new product launch strategy is proposed in this
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Gatignon et al. (1990) suggested that entry strategy encompasses the marketing mix variables, in particular the positioning of the new brand in relation to currently competing brands and the marketing activities undertaken to support the entry. Unfortunately, while these prescriptions provide the steps one should go through in putting together a launch plan, they provide no explicit advice as to what decisions go into launching a new product and whether or which of these decisions may be interdependent (Hultink et al., 1997). In this regard, Hultink et al. (1997) presented a rigorous identification of the launch strategy components by reviewing the previous launch strategy literature and interviewing managers responsible for making launch decisions. These strategic launch decisions govern what to launch, where to launch, when to launch, and why to launch. The product launch decisions laid out above are based on a mix of strategic and tactical decisions that must be mutually reinforcing to produce new product development success (see Fig. 1). New product strategy crafting varies widely across companies and competitors even in the same industry (Wind and Mahajan, 1988), a situation which points out the importance of the ‘‘match’’ or ‘‘fit’’ between the competitor environment and the new product strategy (Calantone and Cooper, 1981). Droge and Calantone (1996) specified