Introducing a new Product

Overall Market for the Product

 Market Attractiveness: size in revenues, profit margins, growth rate, recent
trends/developments
 Who are the main competitors, what market share do they have, what customers do
they target, and what will their reaction be if we enter this market?

Internal Capabilities
 Branding: does this fit in with the rest of their product mix?
 Financing: what initial investment would be required? How will they finance this
investment?
 Operations: will we need to hire new staff? How will we handle manufacturing,
distribution, procurement? (entire supply chain)
 Strategy: enter on their own, acquire an existing company, joint venture

Product Itself
 How well does new product fit within company’s current product mix?
 Is there a conflict with an existing product? Will it cannibalize sales?
 How much research and development would be required?
 Financial Analysis: how much revenue will it generate and what will it cost us to
manufacture? What will profit margins be? How many will we have to sell to hit our
target? How many to break even?

Customers
 Who are our target customers?
 How will we design a marketing and distribution strategy to reach target customers?

Risks
 Initial investment costs or ongoing cost structure might end up higher than projected
 Customers have strong loyalty to competitors; don’t hit projected market share
 Competitors fight back by lowering prices; don’t hit projected profit margins

Next Steps
 Explore launching different compatible products
 Explore entry strategy
 Look closer at competitors and target customers