Reviewing Product Launch Results

Topics

product launch, launch review, profits, return on investment, analysis, ATAR model


Review the activity below or download the PDF student worksheet


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         4,800,000     6,000,000      14,400,000      1,000,000
Average price                         5                      6                         4                    10
Volume – $’s       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

  1. Start by defining the key metrics used, namely: trial, penetration, frequency, and volume.
  2. Then make sure you know how the numbers work together to calculate volume of units and $’s (revenue).
  3. Based on these results, which firm achieved the best launch results?
  4. Review the results and highlight a positive and a negative aspect of the results for each firm.
  5. Can you get a sense, from the numbers, of the quality/value of their product and how well they executed their launch campaign?
  6. 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