Managing new product launch process:

New product launch Bringing a product to the market for the first time The most critical phase of new product development (NPD) process Launch activities aim at maximizing new product performance Objective Understanding new product launch as a process, focusing on the organization How is launch process managed? What kind of phases and activities are included in launch process? How does launch link to other processes in the company? What is the role of subsidiaries during launch?

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Findings: Launch process Process description needed: phases, activities, gates, cross-functional links for information exchange Marketing is the coordinator of launch, inputs from R&D and Sales forming a cross-functional launch team for managing Launch phases dependent on product process, concurrent from the early NPD stages Market testing phase not seen as an activity of marketing.

THREE PHASES LAUNCH

OF

NEW

PRODUCT

There are three types of product launches. An internal launch, a partner launch and a joint venture (JV) launch.

The purpose of an internal launch is to prove you have a product to sell and can be succeed at both selling and delivering it. This new product launch is also the one that will cause you the greatest amount of work for the least amount of income. This is because youre trying many different things to make your launch a success, not knowing which is the best investment of your time. As you get into subsequent launches however, youll do less of what doesnt work and more of what does. A partner launch is just that. This is where you ask one or two friendly affiliates or partners to help promote your product as you re-launch it for a second time. The reasons those affiliates climb on board to help you promote is more because they like you and less about how much money they looking to make. Reason being, if it was only about the money, at this stage you dont really have the kind of proof the majority of affiliates really want to hear about. ie. will you pay your affiliate commissions on time, will your sales process ensure a great conversion

rate and will refunds be kept to a minimum. This is also the phase where you begin to shift your relationship building efforts towards affiliates rather than solely with your customers. The third phase is the most profitable, even though it really ends up being quite a bit more work than the partner launch. This is because building relationships with lots of affiliates or partners takes time. The main benefit however is two fold. One is relates to the financial benefits. And second, if you properly collect the emails of affiliate directed traffic to your offer, youll own a highly valuable list with which to email market to for at least the next year and sometimes longer.
ABOUT KIA MOTORS Kia motors, a Hyundai Kia Automotive group company based in Korea is planning to grab a share of the booming Indian Automobile industry. The car maker is planning on bringing their compact cars, hatchbacks and entry-level sedans initially to start their innings in the country and expand into compact sports utility vehicles later. This move has been an after effect of the European financial meltdown which has lead company to move its base to Asian markets. The company is currently studying the Indian market for a potential entry.

Kia, the oldest Korean car maker is a cheap alternative in the foreign markets against the pricey European luxury cars. However, company is expected to enter as a luxury brand in the Indian car industry.

2010 was marked as the best year for South Koreas automotive industry with a strong 25.7% increase in sales worldwide the industrys highest ever. Kia Motors led the pack with a 38.9% increase in sales by selling 484,512 cars locally and exporting 1,647,019 to global destinations, marking a new milestone of two million car sales in one year.

KIA MOTORS A START In its plans to introduce its automobile products in indias market, Kia Motors is expected to leverage Hyundai Motors Corporations strong presence in the country. However, Hyundais two plants on the outskirts of Chennai will not have the capacity to accommodate Kias production. Still, Hyundai Motors india, Ltd already has a strong network and the capacity to support Kia with infrastructure, component and raw

material needs as well as support for its back-end and logistics operations.

INDIAN CAR MARKET The Indian auto industry has maintained its position of second fastest growing auto market in calendar year 2010 by registering a growth of 31 per cent to 1.48 crore vehicles. China remained at the top position by reporting a sales jump of 33 percent during the year. The compact car of India surged by 47 percent during this year, making India the world's fastest growing market for Compact cars. On the other hand, the car segment registered a substantial growth of around 32 per cent in year 2010. There were some concerns on car exports, with European demand dipping. In Dec 2010, car sales jumped by over 29 percent to 1.48 lakh units. While the sales of market leader Maruti Suzuki rose 26 per cent to 89,469 units, Hyundai India registered a sales growth of 18 per cent to 26,168 units during the month. Tata Motors reported a sales jump of 30 per cent to 24,592 units in the month. Kias plans for Indian market In June, a South Korean daily, Chosun Ilbo, reported that Kia Motors wants to build a plant in India to produce 300,000 vehicles a

year, starting from 2012. The companys spokesperson mentioned that a feasibility study is being conducted to select a site for the plant near Chennai and based on the data from Hyundai Motors, Kia Motors is estimating the cost and time it would take to build the plant, and is also examining demand forecasts and Hyundais sales figures in India.
Kia Motors is speeding up its plans for India because any delay in the decisions would take its toll in terms of competition from fast growing brands such as Volkswagen, GM and Ford, besides the top three carmakers, Maruti, Tata Motors and Hyundaei. Hyundai Kia partnership Kia was rescued by Hyundai with the help of an acquisition of the formers stakes in 1998 after Kia faced bankruptcy in the wake of the Asian financial crisis. Kia, as of today, marks its presence in the global market with its Tiger Face grille design. Kia Motors is expected to use the full advantage of Hyundais presence in India. Hyundai Motors India Limited (HMIL), being the second largest car maker, has a strong network in developing infrastructure for manufacturing cars and it would thus not be a difficult task for Kia to derive a lot of synergies including Joint component and raw material procurement. Obviously, Kia can also get Hyundais logistics and back-end operations

support. But some sources are pretty sure that Hyundai and Kia can work only as solo brands at dealerships and so it may take a while for Kia to establish the front end networks. It must be noted that Hyundai does not have the capacity to accommodate Kias production right now because the two fully functional plants of Hyundai near Chennai already have a handful of tasks to complete in order to meet the domestic and export market demands. HMIL plants have the annual production capacity of 6 lakh units and last year, the company sold 2.9 lakhs cars in India out of the 5.6 lakhs cars produced. Hence, the chances of producing both Kia and Hyundai cars in a common plant are very less. Compact Cars Engine Estimated Price Kia Body Shape Capacity (Litres) i10 Rs. 4

Picanto alike 1.1 CRDI diesel/1.0 petrol lakhs*

Kia Soul alike Wagon R 1.6 CRDI diesel/1.6, 2.0 petrol Rs.8.48 lakhs* Kia Rio alike Vista 1.4 petrol/ 1.5 diesel Rs.5.95 lakhs* Kia Venga alike Indica

Hyundai

i20 lakhs*

1.4 petrol/1.6 petrol/1.6 CRDI

Rs. 7.87

SMALL CAR MARKET SEGMENT IN INDIA The small car market in India is increasing by leaps and bounds. The indigenous market for small cars now occupies a substantial share of around 70% of the annual car production in India of about one million. The main players in the car market like Tata Motors and Maruti Udyog are fiercely competitive and more or less all the automobile companies in India that have forayed into the production of small cars are trying to out-do each other in terms of design, innovation, pricing, and technology, in order to gain control of the small car market in India. Factors driving the demand for small cars in India The increase in the demand for small cars can be attributed to the aspirational lifestyle of people which makes them strive for a car early on in life. The overall age for owning a car has also decreased in recent years. Further, with the growing affluence of the rural sector, owning a car, at least a small car, is a foregone conclusion in modern India. However, since small cars are more affordable and utilitarian, the demand for

them has shot through the roof. This rising demand for small cars is attracting companies like General Motors which has increased its yearly production in India to 140,000 vehicles.