Commercialisation

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 1^st 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 3^rd February 2014.

Australian Innovation Online. (2006) Australian Innovation. Rip Curl – Commercialisation of the first ever power heated wet suit. Available at: http://www.ausinnovation.org/articles/rip-curl-commercialisation-of-the-first-ever-power-heated-wet-suit.html 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. 2^nd 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 3^rd February 2014.

Slazenger Online. (2013) V12. Overview. Available at: http://www.slazenger.com/v12.html Last accessed 3rd February 2014.