How to do a manufacturing & marketing budget for New product?!?

Question

Hi,

I'm currently doing this New Product Marketing module, which I have problem to build up the manufacturing & Marketing budget section.

Tried searching the net, but can' t find anything that helps much.

Do anyone know where can I get such information, if I'm to launch the new product in the real market?

Let say the new product is something like DVD player?!

Thanks alot for help!

Regards, ^__^

Answer 1

when all else fails then go back to what the older folks did in many years past.  You said that it was like a "DVD Player" then I would look to see what it is going to cost me per unit to make. If I am building this in house then I have to figure the cost of labor as well as material. If this cost more that 75% of what a DVD player would cost at Best Buy then I would most likely not make it. I know that there are those that would tell you to bring it to market but remember that Sony and the rest of them have been around a long time and are known for their quaility, you are brand X after you have estabished yourself in the market place then you can think about a little bit higher price (sounds kind of like a game) If you bring a product to market as an unknown and are  significantly then you are going to fail with your product.

I will give you an example of what I am talking about. The KIA auto is no selling for a lot more than when it first came out it is now also looked at a lot differently than when it first came out. It now is thought to be a pretty nice inexpensive car and people are no longer afraid to buy one of them.

The cost to market the product is really up to you. You have to determine this cost your self. You should figure into the cost packaging the product. demographics, part of the country where a product is to be sold.

Example; Back to the auto business. Mitsubishi Lancer  a vehicle that has been around for a bunch of years and very very mundane. Mitsubishi was in trouble and it looked very bleak for them in the near future. They repackaged their old car and have given themselves a big shot in the arm now the Lancer is is dressed to kill for and they have replaced the shifter with a paddle shifter and have over all made it very sporty,......you might say that packaging has gone a long ways for them and it will for you too. I don't know if any of this helps but I hope so.