PRODUCT LAUNCH FACTORS DEFINITIONS
The data given is based on research into the industry product launches. Product
launches include actual new products as well as product or technology
innovations and product substitutions.
ADOPTION RATES: Product
Launch Adoption Rates were identified during the Surveys of End Users in the
countries covered. Adoption rate is the term used to denote the likely level of
End Users adoption of new products and services of the Product. Thus when
interviewed a percentage of End Users stated that they were "likely"
or "very likely" to purchase (i.e. adopt) new products if introduced to the market. This percentage forms the Adoption Rate.
CONVERSION RATIOS: In
addition to the Adoption Rates, it is also necessary to analyze the Conversion
Ratio, i.e. the ratio at which potential new products adopters
are converted into buyers.
Not all End Users who stated that they were likely to adopt new
products will actually do so; thus this ratio is dependent on all the
marketing factors e.g. the distribution channel, numbers of the Distributors, sales
promotion factors, et cetera, as isolated in the following pages on product
launches. These ratios are based on past experience of product launches of
the Product.
In conjunction with the Product Launch Adoption Rates one can use the
Conversion Ratio to determine the actual level of likely Product Launch sales.
Thus the following calculation will provide the likely level of sales at
Product Launch:





AR 

1 



PLS 
= 
U x 
( 
x 
) 







100 

CR 


Where,
PLS 
= 
Product Launch Sales 
U 
= 
Total Universe 
AR 
= 
Adoption Rate 
CR 
= 
Conversion Ratio 
THE RATIOS GIVEN ARE 1:X
SALES GROWTH: It is
possible to isolate likely sales growth data for the Product. The percentages
given below are the likely average annual sales growth for product
launches in the countries concerned. The data is based on current and
forecasted economic conditions.
PRODUCT LAUNCH DATA: In
addition to the normal or usual industry costs, during the launch of a product
greater costs are experienced. These costs are shown separately in the
following tables.
It is possible to isolate these costs based on past experience of product
launches.
There are a series of spreadsheet and database tables for this section, and each table will consist of a number of records for each of the specific products, markets, operations, geographic locations and competitors areas:
TABLE 
Datafile 
PRODUCT LAUNCH FACTORS 
PLA 
PL2 – PLP  
PL3 – PLT  
PL4 – PLO  
PRODUCT LAUNCH FACTORS  COMPETITOR 
PL5  PLC 
PRODUCT LAUNCH FACTORS  MAJOR CITY 
PLB 
The tables for this section provide a Time Series of 7 years (headings indicate Field names) for each of the above Sections:
PRODUCT LAUNCH FACTORS  
CODE 
CRITICALS 
A_ 
B_ 
C_ 
D_ 
E_ 
F_ 
G_ 
PL_01 
ADOPTION RATES : PRODUCT REVISIONS 
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
Year 6 
Year 7 
PL_02 
ADOPTION RATES : NEW PRODUCTS 
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
Year 6 
Year 7 
PL_03 
CONVERSION RATIOS : PRODUCT REVISIONS 
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
Year 6 
Year 7 
PL_04 
CONVERSION RATIOS : NEW PRODUCTS 
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
Year 6 
Year 7 
PL_05 
POTENTIAL FIRST YEAR GROWTH : PRODUCT REVISIONS 
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
Year 6 
Year 7 
PL_06 
POTENTIAL FIRST YEAR GROWTH : NEW PRODUCTS 
Year 1 
Year 2 
Year 3 
Year 4 
Year 5 
Year 6 
Year 7 
The above tables are then applied to the specific products, markets, operations, geographic locations and competitors for under 15 subheadings (headings indicate Field names):
Items being considered (x) 
Products, markets, operations, geographic locations and competitors  
Field Name for Item 
Field Name for Item Weight 
For example: 
Head01 
Headx01 
Product 1 
Head02 
Headx02 
Product 2... 
Head03 
Headx03  
Head04 
Headx04  
Head05 
Headx05  
Head06 
Headx06  
Head07 
Headx07  
Head08 
Headx08  
Head09 
Headx09  
Head10 
Headx10  
Head11 
Headx11  
Head12 
Headx12  
Head13 
Headx13  
Head14 
Headx14  
Head15 
Headx15 
Criticals  
CODE 
CRITICALS 
Crit_A 
Crit_B 
Crit_C 
Crit_D 
Crit_E 
Crit_F 
Crit_G 
Crit_H 
Crit_I 
Crit_J 
Crit_K 
PL_01 
ADOPTION RATES : PRODUCT REVISIONS 
1.2 
0.9 
1.0 
1.12 
0.90 
0.88 
0.75 
The above fields (Crit_A to Crit_K) represents the average VALUE for the entire Factor, Eg. for PL_01 ("ADOPTION RATES : PRODUCT REVISIONS") across all Items, Eg. for headings A to G.
Headings A to G is a Time series.
The individual cells (Axx – Kxx) represent the VALUE for EACH YEAR, Eg. Current to 2028.
Cells – where, A01K01 = A  K, etc.  
A01 
B01 
C01 
D01 
E01 
F01 
G01 
H01 
I01 
J01 
K01 
… To … 
A15 
B15 
C15 
D15 
E15 
F15 
G15 
H15 
I15 
J15 
K15 
1.10 
1.00 
0.98 
0.80 
0.70 
0.80 
Where, the xx, (i.e. 0115) represents the VALUE for each Heading (i.e. Head01 – Head15)
The Weight for each Heading is found in fields Headx01 to Headx15
Field Name for Item Weight 
Headx01 
Headx02 
Headx03 
Headx04 
Headx05 
Headx06 
Headx07 
Headx08 
Headx09 
Headx10 
Headx11 
Headx12 
Headx13 
Headx14 
Headx15 
Graphically, one can establish a base reference line for each Item (Eg. Headx) by multiplying the Crit_x field with the Headxx field, viz, Crit_A x Headx01.
Then one can plot the value of each Item in relation to the base reference line and the other Item in the set by multiplying the A01 field with the Headx01.
Time Series representation for Product Launch tables:
A_DEF 
B_DEF 
C_DEF 
D_DEF 
E_DEF 
F_DEF 
G_DEF 

C 


E 

L 

L 
x 

x 
z 
z= Base Reference (Crit_A – Crit_G) 

V 
x 
z 
z 
z 

A 
z 
z 
z 
x 
x 
x 
o 
o= Head02 

L 
o 
x 
x= Head01 

U 
o 
o 
o 

E 
o 
… Etc. 

o 

Current 
Year +1 
Year +2 
Year +3 
Year +4 
Year +5 
Year +6 

RELATIVE IMPACT ON SALES VOLUME 