1
Running Head: Product Introduction
Product Introduction
[Writer’s Name]
[Instructor’s Name]
2
Running Head: Product Introduction
Product Introduction
Introduction
The launch plan of any novel product is a serious thing. Mostly products have two targets for its
goods and services that is skill customers who store the product and customers who buy it. In
current years, product introduction has become a talent which can type or breakdown a product.
A fruitful launch makes possible customers conscious of the novel product and intense to try it.
Earlier customers could try the product, however, it was significant for eatables to gain the
provision of its skill customers. Retailers had to interpret it as obliging in heartening customers
to come their shops. If the product had become unsuccessful in attracting the customers’ interest
retailers and suppliers, the prices of investment would not have been encountered and they would
not have kept the product. In this paper, a situation is created where Amazon.com is going to
launch its new product and they want to prove it unique among all other brands. The product
name is luxury beauty site in which all the products and services that are related to beauty is
concerned will be displayed for the users.
Journey of product from retailer to store
Now, this product is 90% female oriented whereas men can be interested about 10%. So, target
market is female industry. Online giant Amazon launched a new Luxury Beauty store on Friday.
This website will be exclusive for the market for 12weeks approximately. No other brand is
allowed to copy or narrate a same website as this is. The new unit of the site structures a clean
plan and internal shots of the products, which majorly involve cosmetics, gorgeousness products
and colognes. Moreover, many new discounts and amazing offers will be available.
3
Running Head: Product Introduction
They also have some bonus shoppers and gift hampers available for the customers. The website
is sorted into separate portions like beauty care, skin care, hair care, body care, men’s saloon
products etc. There were convinced key necessities to the co-ordination of the product launch:

Confidentiality had to be dominant

Dealers who had recognized the breach in the market had to put effort closely with
persons from investigation and development as well as other outside agencies.

Industrial operations, in combination with advertising and finance, had to assess a new
factory asset for Board endorsement.
The product launch has following steps to be followed :1. Designing attractive wrapping
2. Identification of target market
3. Implementation of a creative slogan
4. Knowing the competition of target market
5. Contacting the best channel member
6. Writing a product sheet/brochure
7. Launching of websites
8. Giving replies to customers
9. Delivering the products with a positive feedback to consumers/whole sellers.
4
Running Head: Product Introduction
These steps are the fundamental factors which help in introducing a product, making it valuable
for customers and achieving customer satisfaction.
A channel Decision Strategy
Mostly producers of products utilize marketing mediators to trade their products to the
consumers. The marketing arbitrators usually organize a positive marketing channel. Marketing
channels for Amazon are defined to be the sets of interdependent organizations involved in the
process of creation a product or service available for its utilization or consumption. The
marketing overpowers the period, place, and limitations that focus particularly on the separation
of goods from services. Particular of the purposes that channel members accomplish are:

All the information required

Appraisal

Bargaining

Order for delivery

Budgeting

Risk taking

Physical ownership

Imbursement

Heading
5
Running Head: Product Introduction
Amazon. Com believes on depending on the levels of channels to be adopted during different
time of needs. There are following levels of distribution channels that they follow:1. Direct marketing approach – that is a zero level channel having a straight linkage
between the manufacturers and consumers.
2. One level channel – indirect marketing approach in which a retailer is between the
consumer and producer.
3. Two level channels – they have wholesaler and retailer both between the relationship of
consumer and producer. For example, shoes are manufactured in the store by
manufacturing company; they are brought to whole sales like big stores and shopping
malls then delivered to the retailers like Amazon and other stores. From here the
customer takes it to home for physical ownership.
Moreover, longer channel levels also exist for other companies. It depends upon the
organizational environment. A channel design strategy making decision involve examining
consumers’ anticipated service stages, channel purposes of the company. Consumers desired
provision levels have investigated in the various areas by Amazon and then the decision is taken
depending upon the situation and type of product or service they are selling.
Moreover, there are four key steps to effective channel management:
• Channel policies and programs
• Partner onboarding
• Communications reporting and encouragements
6
Running Head: Product Introduction
• Watching & Checking approach
Pricing issues in channel management
A Sturdy channel management can help defend brand value, permitting vendors to vend their
goods with the finest quality, while permitting the channel to sell the services in a high price than
before. It is the basic rule that if quality is high, up-sell the proper services and sustains offerings
that encounter the client’s needs. Channel management can also switch price discounts, which
can sluggish the price erosion process. In count, it can spread a vendor’s perceptibility over
products and services through the station to stop diversion and the risk of leaden marketing,
where goods are leaked or unfocused outside of the official channel. Maybe most importantly,
robust channel management aids create and uphold customer faithfulness while consolidating the
channel companion relationship by defensing the investment in the sellers’ products and the
companions’ post-sales provision and care.
This paper is worth for having knowledge of setting the price of the product created by Amazon.
Now the question is what should be the cost of the luxury beauty website and the internal
products costing. Amazon always believes on customer-friendly approach and puts a pricing
strategy that is comfortable with the low income, high – income and middle – income people.
Now it depends upon the marginal revenue curve which will set the credentialed of the price in
market. According to the research, if the marginal revenue is concave purpose is strictly
concave, then the producer chooses an inferior product excellence level than if marketing the
product straight to customers and vice versa for other case. But if the revenue marginal function
7
Running Head: Product Introduction
is convex, then the producer selects a high quality of product. In that case, price can be settled
upto high scale proving it to be the best brands among target market.
Minor companies can use a quantity of pricing strategies for new goods. Some corporate
companies’ owners practice a cost-plus process for pricing. They estimate production and
publicity costs then add a fraction to their unit prices. Other businesses have a precise return on
asset in mind for novel products. Whatever the situation, business possessors must study the
marketplace and race before locating a price for new products. Following are the factors that will
be considered while setting the prices of the products displayed in the luxury beauty website : Demand
Amazon usually analyze demand for industry goods before setting a novel product price.
Demand may be moderately elastic in the target market, meaning customers are delicate to price
changes. Consequently, the amount that consumers request will reduce as prices upsurge.
Disobediently, demand may be extremely inelastic. Inflexible demand refers to the consumers
are not excessively anxious about the price.
 Types
Amazon uses a price skimming technique sometimes for the penetration of price setting process
for new product. Companies that practice a price skimming strategy will characteristically set
prices comparatively high against competitive products. Inversely, businesses that use a diffusion
pricing strategy will typically price their novel products lower than modest products. A company
may also value its product proportionate with modest products.
 Benefits
8
Running Head: Product Introduction
Amazon basic aim is to generate profit hence, they need the money to create more products and
upsurge advertising expenses. The advantage of a penetration pricing plan is that it can quickly
rise the market share. Meeting modest prices is just a safe substitute. Customers are already
paying a convinced price for present products.
 Function
Most original pricing strategies are momentary. Amazon.com cannot linger on to keep prices too
little or high. The business will risk trailing potential customers with high fees and sacrifice
incomes with low fees. Though, a business proprietor can endure to offer infrequent price
discounts for new products. For instance, some businesses offer refunds on new goods, where
consumers will obtain money at an upcoming date.
 Considerations
The finest way to know the price of a new product is by having an interview with the interested
customers about the product. After the survey, an analysis can be presented, by which average
prices can be considered temporarily as price of new product and later on it can be changed.
A push promotional strategy to this situation
The push strategy in marketing can be originated in the coordination between vendor and
consumer. Liable to the medium castoff, the coordination can be either communicating or noninteractive. For instance, if Amazon make the promotion of luxury beauty website by television,
or radio, it may not be possible for the consumers to interact with them in response. On the other
hand, if the coordination is completed by call or internet, the consumer has possibilities to
network with the vendor. In the first situation information it is obvious that information or
9
Running Head: Product Introduction
publicity is being pushed to the consumers whereas, in the second situation it is conceivable for
the consumer to claim the needed evidence according to their necessities.
Hence, a push strategy is being applied to this situation and displaying advertisement on websites
and online media is enough to promote the product’s features and specifications. Production and
distribution choices are founded on long term predictions. Based on historical orders expected
from retailer's storeroom, push strategy can be effective in the following situations :
Incapability to meet altering demand patterns

Great and variable manufacture batches

Intolerable service levels

Extreme inventories due to the essential for large safety shares

Less spending on promotion than pull strategy
Conclusion
Keeping the prices aside, it is important to think about the market brand. The value and quality
of the brand is important to be analyzed. Consequently, the company ethos of proposing
innovation in their production also had to put effort on marketing stages. They have been quick
to hold digital skills, and have capitalized heavily in together digital and communal media
networks – it's authoritative to recognize the importance of communal media or social
networking websites like youtube, facbook, twitter, tumbler etc. Brand loyalty and trust is
10
Running Head: Product Introduction
customers’ attention to be followed. They have originated that expending online platforms has
been one of the most profitable and influential habits to engage with possible clients.
Uprightness and practicality are also important when considering the business to business and
business to customers clients. Companies like Amazon.com are usually quick to understand the
monumental move in consumer buying power, that extensively gone are the days where what the
brand says drives, so it is obvious to put everything to their customers’ hearts. Their company
policy is to refund the variance if an item can be bought for a cheaper price from another vendor;
even if a consumer was not conscious a discount was on suggestion. Fruitful brands build client
loyalty by observing after the customer. It's not continuously about creating a fast buck.
Though Amazon.com has seen good times with respect to profit generation and brand loyalty is
connected, so they had to choose the best ways available to them. They did not compromise on
quality. This is the reason why customers trust them and their names. Specific distribution
partners of their products owe the business and implement the brand’s philosophy to make it to a
big success. The channel distribution strategy and pricing packages decision is like the journey
of rollercoaster for the company. But Amazon had always belief on their customers’ retention
and positive feedback. That is why they are here today.
References
TheBev, Teresa, How to launch a product. Wikihow. Retrieved from :
http://www.wikihow.com/Launch-a-New-Product
11
Running Head: Product Introduction
Peter, J. Paul; James H. Donnelly (2002). A Preface to Marketing Management. McGraw-Hill
Professional. p. 132. ISBN 0-07-246658-
Terry P. Harrison, Hau L. Lee and John J. Neale (2003). The Practice of Supply Chain
Management. Springer. ISBN 0-387-24099-3.
Martin, Michael J.C. (1994). Managing Innovation and Entrepreneurship in Technology-based
Firms. Wiley-IEEE. p. 44. ISBN 0-471-57219-5.