Analysis of pricing strategies for new product introduction

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.

Citation

Prasad, B. (1997), "Analysis of pricing strategies for new product introduction", Pricing Strategy and Practice, Vol. 5 No. 4, pp. 132-141. https://doi.org/10.1108/09684909710184626