Product Innovation Management

The report discusses successful product launch, technical forecasting, IP protection, and marketing communication campaigns in the context of product innovation management. It also provides insights into social media spending budget and actual spend vs budget. The report is relevant for students studying product innovation management in any college or university.

Running head: PRODUCT INNOVATION MANAGEMENT
PRODUCT INNOVATION MANAGEMENT
Student’s Name
University Name
Author’s Note

2PRODUCT INNOVATION MANAGEMENT
Table of Contents
1. Introduction.........................................................................................................................3
2. Discussion...........................................................................................................................3
2.1 Factors for successful product launch in Australia......................................................3
2.2 2.2 Strategies for technical forecasting.......................................................................3
2.2.1 ATAR Forecasting Model....................................................................................3
2.3 Core product designs and marketing innovations.......................................................4
3. Strategies for protecting IP of a business firm....................................................................5
4. Recommendations...............................................................................................................5
4.1 Implications for the product launch.............................................................................5
4.2 Implications for marketing communication campaigns..............................................5
4.2.1 Heightened Appreciation Model..........................................................................5
5. Conclusion..........................................................................................................................6
6. Social media spending budget............................................................................................6
7. Actual Spend vs Budget....................................................................................................10
8. Spending by Month...........................................................................................................11
9. Total Cumulative Spend...................................................................................................13
10. Allocated Budget...........................................................................................................14
11. Year to date Spend........................................................................................................14
Reference List..........................................................................................................................16

3PRODUCT INNOVATION MANAGEMENT

4PRODUCT INNOVATION MANAGEMENT
1. Introduction
The Brand DNA is launching its new all in one make-up package in the Australian
market. The thing which the brand has done is the introduction of anti-ageing components
in products like face powder and so on. The report contains the detailed description of the
factors affecting successful launch, strategies for calculation of market demand,
innovations by the brand along with the recommendations for the further growth by the
brand.
2. Discussion
2.1 Factors for successful product launch in Australia
For successful product launch in Australia, the only factor which is to be considered is the
endorsement of the product perfectly with the help of vloggers and beauty bloggers in the
internet, which is now a days the right arm of all the people. As per the study of Harding
and Kohl (2016), other factors are not important because the cosmetic industry in
Australia is continuously growing despite of economic growth and fall.
2.2 2.2 Strategies for technical forecasting
2.2.1 ATAR Forecasting Model
ATAR model stands for Awareness, Trial, Availability and Repeat. In this model, firstly
people are made aware of the product and then when they will to try the product, they end
up buying the product and the company limits the amount of product to see the demand
and repeats the same to again see the demand before the final launch. In the case, the
company will make use of beauty bloggers to endorse the product in the market. By the
blogger, the consumers will search the product in the market and they will end up buying
the product. With the limited amount of the stock provided by the company, Loh (2016),

5PRODUCT INNOVATION MANAGEMENT
opines that the company will note the number of demands and enquiries made after the
limited amount being sold off. In this way, they will be able to forecast the market
demand of their product and the rate of growing demand in the market, they are currently
expanding.
Figure 1: The ATAR Model Implementation
(Source: Raj and Chandrul 2016)
2.3 Core product designs and marketing innovations
The product design in the company are made by the world class product designers and the
thing that will definitely increase the sale of the product is the compactness of the
product, which will ease the owner to carry it anywhere. The main thing which is given
importance by the company is the compactness and quantity, the product is not only
compact but the quality of the product compared to the standard product in the market is
high. For instance the face powder included in the all in one makeup package includes
250 gm. of powder at a competitive price of AUD $14.99 compared to other brands
starting at a price of AUD $ 16.99 for 200gm (Ramli 2015). Another thing that will help
This is the process of making consumers aware of the product to be launched with the help of
fashion bloggers and brand ambasadors.
Awareness
This is the process by which the consumers desire to try the new products that are shown by
the endorsers.
Trial
This is the process by which the company limits the first batch of the product to see the
demand in the market after the batch being sold off.
Availibility
This is the process by which the previous processes are repeated to measure thge increased
demand of the specific product to be launched.
Repeat

6PRODUCT INNOVATION MANAGEMENT
the company to grow is the integration of Anti-ageing components in the face powder and
the beauty benefits cream provided in the package along with a guarantee of 24 hrs.
Smudge free black colour with the use of Mascara provided in the package.
3. Strategies for protecting IP of a business firm
The introduction of Anti- Ageing cream in the face powder and the Beauty benefits cream
is the one of the thing which is introduced by the company before anyone in the
Australian market and as it is the intellectual property of the company, the company
patented the formula and the management of the company also decided to make use of
copyrighting to protect their ideas and concepts in the market, which will result in the
protection of the intellectual property of the company and income of money when the
other company will try to use their formulas.
4. Recommendations
4.1 Implications for the product launch
The most important thing related to product launch is the discount and offers. The
company should provide 10% discount to all of their customers in the first month. Another
great move that the company should follow is the introduction of invite system. In this invite
system, the customers have to visit the website of the company and share the product link
with the friends, relatives and so on, the people clicking on the specific link would be counted
on the website and when the counting will cross 100 click, the customer who shared the link
would be provided with 30% discount on the all in on makeup package. This will not only
increase the customer base but also help the product to get more and more popularity in the
market.
4.2 Implications for marketing communication campaigns

7PRODUCT INNOVATION MANAGEMENT
4.2.1 Heightened Appreciation Model
According to the model, the brand have to point out the most important attribute of
the product and use that for the marketing and convince people to buy the product. By going
with the model the recommendation will be, the brand should highlight the use of anti-ageing
cream in the products like face powder and Beauty benefits cream and use this attribute for
marketing. This will not only attract the customers, but only differentiate the brand from
other brands in the market.
5. Conclusion
The brand DNA is going to introduce an all in one makeup package in the Australian
market. The first thing the brand is doing the market survey to observe the demand of their
product in the market. The unique thing the brand has done is the integration of anti-ageing
components in the products like face powder and so.
6. Social media spending budget

Running head: PRODUCT INNOVATION MANAGEMENT
Budget Categories Total Budget Year To Date
Spend
Budget
Remaining
%
Remaining
Development of raw content $80,000 $58,000 $22,000 28%
Management of web content $30,000 $18,000 $12,000 40%
Preparation of licensed promotional content $14,000 $2,140 $11,860 85%
HRM cost $60,000 $47,000 $13,000 22%
Advertising and promotional cost $36,000 $34,150 $1,850 5%
Promotions and Agency service fees $28,000 $22,000 $6,000 21%
Computer set up $2,40,000 $2,32,000 $8,000 3%
Software Licenses $35,000 $17,500 $17,500 50%
Graphic layout desgning $17,000 $15,200 $1,800 11%
Production of promotional video $25,000 $21,000 $4,000 16%
Totals $5,65,00
0
$4,66,99
0 $98,010 17%

9PRODUCT INNOVATION MANAGEMENT
Budget
Categories
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Developm
ent of raw
content
$15,00
0
$15,000 $12,000 $15,000 $1,000
Managem
ent of web
content
$500 $20,000 $100 $50 $20 $30 $50 $75
Preparatio
n of licensed
promotional
content
$300 $600 $200 $40
HRM cost $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $4,570 $5,000 $1,450
Advertisin
g and
promotional
cost
$500 $30,000 $650 $1,500 $1,000 $500
Promotion
s and
Agency
service fees
$20,00
0
$39,000 $1,000 $500
Computer
set up
$20,00
0
$20,000 $20,000 $20,000 $16,200 $18,400 $18,000 $20,000 $20,000 $20,000 $20,000 $19,400
Software
Licenses
$12,00
0
$2,000 $300 $1,000

10PRODUCT INNOVATION MANAGEMENT
Graphic
layout
desgning
$50 $340 $3,000 $400 $200 $50 $200 $20 $15
Production
of
promotional
video
$0 $10,000 $5,000 $1,000 $10,000
Totals
$73,35
0
$1,39,340 $47,600 $42,350 $21,750 $24,970 $24,240 $36,030 $25,070 $25,160 $27,500 $20,850
$73,35
0
$2,12,690 $2,60,290 $3,02,64
0
$3,24,390 $3,49,36
0
$3,73,600 $4,09,63
0
$4,34,700 $4,59,860 $4,87,360 $5,08,210

11PRODUCT INNOVATION MANAGEMENT
7. Actual Spend vs Budget
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$80,000
$30,000
$14,000
$60,000
$36,000 $28,000
$240,000
$35,000
$17,000 $25,000
Actual Spend vs Budget
Year to Date Spend Budget

12PRODUCT INNOVATION MANAGEMENT
8. Spending by Month

13PRODUCT INNOVATION MANAGEMENT
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Spending by Month

Running head: PRODUCT INNOVATION MANAGEMENT
9. Total Cumulative Spend
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Total Cumulative Spend
Cumulative Spend Total Budget

Running head: PRODUCT INNOVATION MANAGEMENT
10. Allocated Budget
$80,000
$30,000
$14,000
$60,000
$36,000
$28,000
$240,000
$35,000
$17,000
$25,000
Allocated Budget
Development of raw
content
Management of web
content
Preparation of licensed
promotional content
HRM cost
Advertising and
promotional cost
Promotions and
Agency service fees
Computer set up
Software Licenses
Graphic layout
desgning
Production of
promotional video
11. Year to date Spend

16PRODUCT INNOVATION MANAGEMENT
$58,000
$18,000
$2,140
$47,000
$34,150
$22,000$232,000
$17,500
$15,200$21,000
Year to Date Spend
Development of raw
content
Management of web
content
Preparation of licensed
promotional content
HRM cost
Advertising and
promotional cost
Promotions and
Agency service fees
Computer set up
Software Licenses
Graphic layout
desgning
Production of
promotional video

17PRODUCT INNOVATION MANAGEMENT
Reference List
Harding, C. and Kohl, U., 2016. Human rights in the market place: the exploitation of rights
protection by economic actors. Routledge.
Loh, X.J. ed., 2016. Polymers for Personal Care Products and Cosmetics. Royal Society of
Chemistry.
Munsie, M., Lysaght, T., Hendl, T., Tan, H.Y.L., Kerridge, I. and Stewart, C., 2017. Open for
business: a comparative study of websites selling autologous stem cells in Australia and
Japan. Regenerative medicine, 12(7), pp.777-790.
Raj, R.K. and Chandrul, K.K., 2016. Regulatory Requirements for Cosmetics in Relation
with Regulatory Authorities in India against US, Europe, Australia and Asean Countries. Int
J Pharma Res Health Sci, 4(5), pp.1332-1341.
Ramli, N.S., 2015. Immigrant entrepreneurs on the world's successful global brands in the
cosmetic industry. Procedia-Social and Behavioral Sciences, 195, pp.113-122.
Roos, G. and Cheshire, A., 2018. Conclusions for South Australia From the
Analysis. Harnessing Marine Macroalgae for Industrial Purposes in an Australian Context:
Emerging Research and Opportunities: Emerging Research and Opportunities, p.171.