Caterpillar The Marketing Plan: Your guide to a more successful product launch Spring Semester 2016 University of Illinois 1 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Statistics • How Successful Are New Products? Ø Why do you think many new products fail? Spring Semester 2016 University of Illinois 2 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Statistics Pre-Launch Phase 1. Market research is lacking on the product or the market. 2. Most of the budget was used to create the product; little is left for launching, marketing, and selling it. 3. The product is interesting but lacks a precise market. 4. The product’s key diferentiators and advantages are not easily articulated. 5. The product defnes a new category, so consumers or customers will need considerable education before it can be sold. Spring Semester 2016 University of Illinois 3 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Statistics Pre-Launch Phase 6. The sales force doesn’t believe in the product and isn’t committed to selling it. 7. Because the target audience is unclear, the marketing campaign is unfocused. 8. Distribution takes longer than expected and lags behind the launch. 9. Sales channels are not educated about the product and thus slow to put it on shelves. 10. The product lacks formal independent testing HBR Spring Semester 2016 University of Illinois 4 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Role of Marketing “Marketing plays a signifcant role in the success of a new product launch.” To illustrate this point, let’s listen to a story about selling condoms in the Congo. Spring Semester 2016 University of Illinois 5 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Defnition • A marketing plan outlines the specifc actions that will be taken to interest potential customers in the product/ service and persuade them to purchase it. Ø The what, how, and to whom sales will be made Spring Semester 2016 University of Illinois 6 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Levels Spring Semester 2016 University of Illinois 7 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Components • Title Page • Table of Contents • Executive Summary • Mission Statement/Goals & Objectives • Market Overview & Situation Analysis • Product/Brand Strategy • Marketing Programs & Tactics • Financials/Budget/Forecast • Monitors and Controls • Appendix & Exhibits Spring Semester 2016 University of Illinois 8 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Executive ü Prepare last, after rest of plan is written Summary • Provides a high-level summary/overview of the plan. • Introduces the ofering and explains the major points of the plan. • Summarizes the marketing goals and objectives of the plan. Ø Tell decision-makers the key things they need to know about the plan Spring Semester 2016 University of Illinois 9 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Mission Statement/ • Brief description of the purpose and marketing goals and objectives of the ofering Goals & Objectives § Company objectives (if appropriate) § Marketing objectives Ø What you want to achieve with the ofering Spring Semester 2016 University of Illinois 10 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Market Overview • Market overview, defnition, analysis § Profle socio-cultural, political, legal, economic and and technological environments Situation Analysis • Company and competitor analysis § Description of market drivers & dynamics § Comparative SWOT analysis § Market shares • Profle of target audience/segments § Demographics § Size § Their wants & needs § How they will decide to adopt and use the ofering § Support requirements, etc. Spring Semester 2016 University of Illinois 11 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Product/Brand Ø How you plan to achieve the objectives • Present core strategy (yours will be one of the Strategy following): Ø Market development Ø Technological innovation Ø New product-new market Ø New product-same market Ø Product line extension • State the value proposition • Describe the product positioning and rationale Spring Semester 2016 University of Illinois 12 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Ø Marketing Application of the 4 P’s • Describe the ofering, including features and benefts and Programs and competitive advantages and disadvantages Tactics • Describe pricing and rationale • Describe the distribution and rationale (dealers, distributors, sales people, etc.) § How and where customers will have access to the ofering • Describe the tactics of how the ofering will be promoted and rationale • Advertising • Personal selling • Sales promotion • Public relations • Publicity Spring Semester 2016 University of Illinois 13 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Financials/ • Budget to achieve plan goals and objectives Budget/Forecast • Sales forecast • Proft & loss statement Spring Semester 2016 University of Illinois 14 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Monitors and • Market research Controls • Customer feedback • Market share analysis • Financial and accounting analyses • Sales call reports, etc. Spring Semester 2016 University of Illinois 15 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Key Considerations Spring Semester 2016 University of Illinois 16 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Marketing Plan 1. What is your value proposition? What is the unmet need you are flling? What is your business model? Exercise 2. How does your product support the corporate goals and objectives? How does this compare to your marketing goals and objectives? 3. Identify your Macro Environment: What are the uncontrollable factors that will impact your product? (e.g. Political-Legal, Economic, Social- Cultural, Technology) 4. Defne your Market: How would you defne your industry, market, segment where you will compete? Analyze Market Trends. How large is this market? How much potential growth is there? How is it structured? Conduct a Competitive Analysis: Who are your competitors and what advantages do you ofer? Spring Semester 2016 University of Illinois 17 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar end Spring Semester 2016 University of Illinois 18 At Chicago Interdisciplinary Product Innovation Center Development .