Commercialisation
Once a product going
through the NPD process has been test marketed, the final stage for this
product is commercialisation. Lamb et al (2010) defined commercialisation as
the introduction of a new product to the market in relation to when the product
will be delivered, where the product will be delivered, how the product will be
delivered and to whom the product will be delivered to. Kotler & Keller (2012)
further state that when a new sport product reaches the commercialisation
phase, certain factors have to be considered, including:
·
Intensity of the distribution process
·
Promotional mix – after taking into
account the results of the test marketing phase
·
Production capabilities
·
Price considerations – taking into
account costs, objectives and competitor’s actions
·
How long until the product will break
even
·
Extra additional costs of
commercialisation
Pride & Ferrel
(2011) suggest that advertising and promotion is the most important part of the
commercialisation process, however this can affect smaller firms as they may be
unable to reach potential customers (Aarikka-Stenroos
& Sandberg 2012). On the other hand, smaller firms may advertise on cheaper
promotional streams that may contain niche markets that large firms may not be
able to reach (Pride & Ferrel, 2011). Furthermore, Schnurr (2005) expresses
looking at commercialisation with the process of risk assessment continually
running simultaneously (Appendix A).
This was seen in 2006 when RipCurl
introduced the world’s first ever power heated wetsuit by working with the
Australian Institute for Commercialisation to find new technologies and
materials that could advance the wetsuit industry; in doing this they gained a
competitive advantage over their rivals. The product was advertised and
marketed effectively and is thought to have changed the nature of wetsuits
forever (Australian Innovation, 2006). Commercialisation can be seen across the
entire sport industry, with Slazenger also introducing their new cricket
equipment products to market in 2013, by having famous cricketers endorse their
products to boost their marketing campaign (Slazenger, 2013).
In regards to the SB SpikeSwitch cricket
spike idea that has come through the NPD process, commercialisation will be
applied appropriately. The commercialisation ideas are as follows;
·
WHEN –
Cricket is played through the summer,
but training commences through the winter. Therefore, as my product is suited
for both winter and summer, the
product will be advertised and marketed from the beginning of November 2014,
but the official launch date will be December 1st 2014. This is because
the whole of November will be the promotional month for the SpikeSwitch.
·
WHERE – The
product will be sold in SportsDirect stores nationwide. Also, sales through
various online cricket websites (E.g. Prodirectcricket.com) will sell the
product as they can reach potential customers within the industry.
·
PROMOTION - The marketing
campaign will see the product advertise through TV adverts, magazine
advertisements (E.g. AllOutCricket) and posters (at various county grounds).
Distribution,
production, promotion and price have all been considered regarding commercialisation
but not break-even. Therefore a cash flow forecast has been created and shows
that break-even will be achieved after 11 months (Appendix B).
Word
Count 498.
Appendices
Appendix A
Appendix B
Reference
List
Aarikka-
Stenroos, L & Sandberg, B (2012).‘From new product development to
commercialisation through networks’, Journal of business research. 65:2,
pp. 198-206. Available at: http://jr3tv3gd5w.search.serialssolutions.com Last
accessed 3rd February 2014.
Kotler, P., & Keller, K. (2012) Marketing Management. Essex:
Pearson Education. pp54-80.
Lamb,
C. W., Hair Jr, J. F., & McDaniel, C. D. (2010) Essentials of marketing. Ohio: Cengage Learning.
Pride,
W & Ferrel, O (2011). Marketing Express. 2nd edn. USA:
South Western Cengage Learning
Schnurr,
K. (2005) ‘Making product commercialisation more successful’, Medical device
technology. Volume 16, Issue 7.
pp. 26. Available at: http://jr3tv3gd5w.search.serialssolutions.com Last accessed
3rd February 2014.
