Topics
product launch, launch review, profits, return on investment, analysis, ATAR model
Review the activity below or download the PDF student worksheet
Student Worksheet: Reviewing Product Launch Results
Optional Excel spreadsheet of the below table: new product results
Student Discussion Task
In this activity, you need to review the recent new product launch results across different firms.
How well did their respective launches go? Can you get a sense of their relative strengths/weaknesses from these results?
| Key Metrics |
Firm A |
Firm B |
Firm C |
Firm D |
| Target market size |
1m |
1m |
1m |
1m |
| Trial % |
20 |
40 | 20 | 10 |
| Repeat % | 40 | 20 | 60 | 50 |
| Penetration % |
8% |
8% |
12% |
5% |
| Average quantity | 20 | 25 | 30 | 10 |
| Average frequency | 3 | 3 | 4 | 2 |
| Volume – units (unit sales) | 4,800,000 | 6,000,000 | 14,400,000 | 1,000,000 |
| Average price | 5 | 6 | 4 | 10 |
| Volume – $’s (revenue) | 24,000,000 | 36,000,000 | 57,600,000 | 10,000,000 |
| Retailer penetration | 10 | 60 | 40 | 20 |
| Launch spend | 2,000,000 | 20,000,000 | 10,000,000 | 2,000,000 |
Student Discussion Questions
- Start by defining the key metrics used, namely: trial, penetration, frequency, and volume.
- Then make sure you know how the numbers work together to calculate volume of units and $’s (revenue).
- Based on these results, which firm achieved the best launch results?
- Review the results and highlight a positive and a negative aspect of the results for each firm.
- Can you get a sense, from the numbers, of the quality/value of their product and how well they executed their launch campaign?
- What top-level recommendation/s would you have for each firm?
Related Activities
Allocating Fixed Costs (Product Profitability)
Financially-driven Marketing Strategy
Price Calculation – Target Profit Pricing
External Information
The ATAR Forecasting Model Formula
