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If a business was looking start a new product and brand into stores. What would their main strategy and priorities/actions be to ensure the success of their new product?
That’s a rather open-ended question, but:
1 Establish what potential customers want – think of the 7Ps of marketing.
2 Analyse competitors and their products.
3 Look at PESTEL. For example, if launching a luxury product and the economy looks as though it will enter recession, any product is likely to be short-lived.
Thanks Ken, that’s really useful.
So deciding the brand name and design will come under Product in the 7Ps of marketing?
Also, would the company’s level of operational gearing come under strategic risks?
Yes, brand, style, logo etc is considered to be part of the ‘Product’ in the 7Ps.
With regard to operational gearing, this is probably best categorised as a strategic risk because it arises from the possible consequences of strategic decisions taken by the organisation eg whether to make components in-house (relatively high fixed costs so high operational gearing) or to sub-contract their manufacture (more variable costs, less fixed so lower operational gearing).
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