Commercialization

New-Product Planning Process

2.
Product
Screening

3.
Concept
Testing

1.
Idea
Generation

Long-term planning is required

to launch a successful new
product.

7.
Commercialization

6.
Test Marketing

4.
Business
Analysis

5.
Product
Development

Commercialization or
Product Launch

This step is the final step in New Product

Development Process by which you are
implementing your full marketing plan, and
launching your product in the marketplace to be
available for your target segment.

Once this step comes, you cant modify, change

on your product (because your product passes to
the production stage in this step and become
commercialized product).

Commercialization
The products introduction to its
full target market, corresponding
to the introduction stage of the
product life cycle
1 Great product

Commercialization
4

Commercialization
Commercialization is the introduction
of the new product into the market

When to launch Timing

Where to launch Location

Planned market
rollout over time.
5

Commercialization
Ordering
Ordering Materials
Materials
Production
Production
Inventory
Inventory Buildup
Buildup
Distribution
Distribution Shipments
Shipments
Sales
Sales Force
Force Training
Training
Trade
Trade Announcements
Announcements
Customer
Customer Advertising
Advertising

2
6

Commercialize the plans and prototypes from

development phase, begin distribution and sale
of the new product (maybe on a limited basis)
and manage the launch program to achieve the
goals and objectives established.

Burger Kings French Fries

Regional Rollouts

THE NEW-PRODUCT PROCESS

STAGE 7: COMMERCIALIZATION

Speed as a Factor in New-Product Success

Time to Market (TtM)

Parallel Development
Fast Prototyping

Why Speed to Market?

Markets are getting more specialized

Intensified competition
Changing technology
Changing tastes
Rampant copying
Gaining shelf space early

10

COMMERCIALIZATION

A public offering of the product to the

marketplace
Two forms

Commercialization - Nationwide
Roll Out limited geographic areas one at a
time

11

Roll out example

Tio Sancho rolled out its

new non-fracturing taco
shell against the largest
Tex-Mex food
manufacturer Old El
Paso.
Tio Sancho was small
with few resources

12

Roll Out vs. Commercialization

Commercialization
Roll Out

very Costly
Complex
Hits the whole market
simultaneously
(Comprehensive)

Less expensive
Simpler
Risks being copied in
the regions not
covered
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Commercialization
Production
Production
Inventory
Inventory Buildup
Buildup
Distribution
Distribution Shipments
Shipments

Steps
Steps in
in
Marketing
Marketing aa
New
New Product
Product

Sales
Sales Training
Training
Trade
Trade Announcements
Announcements
Customer
Customer Advertising
Advertising
14