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Analysis of pricing strategies for new product introduction

Analysis of pricing strategies for new product introduction States that one weakness of new product introduction (NPI) is the elapsed time required to bring the product to market. Many manufacturing companies are losing the competitive race in this area to the speedy and effective execution process, which other successful companies (for example, some Japanese electronic manufacturers) use. Analyzes two sets of companies: those that bring the products to market early; and those which do so late. Describes the advantages of a company bringing product into the marketplace before its competitors, and how a company can wrestle away a larger share of the marketplace. Also provides some closed form algorithms for computing projected shares of sales volume. Using this formula, a company can compute what sales volume a company can lock‐in by introducing a product to market when demand or need for a product is at its peak. Also provides a computational means for calculating possible loss of revenues when a company is not able to bring a product timely to the marketplace. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Pricing Strategy and Practice Emerald Publishing

Analysis of pricing strategies for new product introduction

Biren Prasad
Pricing Strategy and Practice , Volume 5 (4): 10 – Dec 1, 1997
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References (6)

Publisher
Emerald Publishing
Copyright
Copyright © 1997 MCB UP Ltd. All rights reserved.
ISSN
0968-4905
DOI
10.1108/09684909710184626
Publisher site
See Article on Publisher Site

Abstract

States that one weakness of new product introduction (NPI) is the elapsed time required to bring the product to market. Many manufacturing companies are losing the competitive race in this area to the speedy and effective execution process, which other successful companies (for example, some Japanese electronic manufacturers) use. Analyzes two sets of companies: those that bring the products to market early; and those which do so late. Describes the advantages of a company bringing product into the marketplace before its competitors, and how a company can wrestle away a larger share of the marketplace. Also provides some closed form algorithms for computing projected shares of sales volume. Using this formula, a company can compute what sales volume a company can lock‐in by introducing a product to market when demand or need for a product is at its peak. Also provides a computational means for calculating possible loss of revenues when a company is not able to bring a product timely to the marketplace.

Journal

Pricing Strategy and Practice – Emerald Publishing

Published: Dec 1, 1997

Keywords: Cost/benefit analysis; Market share; Pricing strategy; Product launch; Profit; Simultaneous engineering

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