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Post: Introduction

Launching a new product or service requires a lot of efforts from management which includes proper marketing, deciding the launch date, customer surveys and availability of the product/service after launch. Many of the organizations have failed on maintaining the availability of the product/service and one of the recent example of this is MoviePass where they launched the service to allow customers to watch one movie a day. After the launch of this service this company show the customer growth by 300 percent which management never expected which put a delay on availability of this service and customer waited for more than a month to enjoy the service. Availability of the products affects the brands reputation and company also loses the trust within customers.

However, during launch of the new product store-level product availability information is very viable for marketing and wrong assumption could create the risk of misinformed managerial decision making. To resolve these issues organization needs to study below mentioned topics:

• Dynamics of consumer versus retailer preference: This topic allow managers to quantify the extent to which the dynamics of retailer preferences versus consumer preferences for different SKUs of the brand's market share performance.

• Retailer stocking preferences: The retailer stocking model can help manufacturers gain critical insights which will allow the manufacturer to decide which product needs to be manufactured at what rate.

• Product line extension and cannibalization of retailer shelf space: study of this topic allows the increase of the overall consumer utility for a brand (Shah 2015).

• Fine tune forecast: Accurate forecasting is vital and projected sales calculations should be based on factors such as historical sales figures, promotion, economy, predicted growth.

During launch of the product and services organizations needs to consider the product availability and promotional strategies as they both are promotional to each other. Better promotional strategies result in high demand of the product for which forecast has to be done correctly otherwise company's branch will have adverse effects. Also, company has to be more careful and should not manufacture which could result in loses if demand doesn't meet.

Reference: SHAH, D., KUMAR, V., & Yl, Z. (2015). Diagnosing Brand Performance: Accounting for the Dynamic Impact of Product Availability with Aggregate Data. Journal Of Marketing Research (JMR), 52(2), 147-165. doi:10.1509/jmr.13.0530