Product Launches -Putting it all together -

Domestically & Internationally

Linda Johnson, MBAManager Marketing Communications

Applied Materials, Transistor and Capacitor GroupFor Marcom Resources Group, Santa Clara

Defining the New Product

• Define features/benefits• Product positioning• Benchmark the competition• Project market share• Select a product name

Getting started…..

Objectives of Launch

• Advertising - placement & frequency• Collateral - format, pages, distribution• Direct Mail - timing and distribution• Giveaways - audience and distribution• Press Release and press tour - date and contacts• Technical papers - as presentations or articles• Trade shows - launch and follow-up• www - timing and integration

Review Objectives for all the Launch Vehicleswith a focus on Integrated Marketing

Review Objectives Matched Against

• Approved launch budget• Size of the launch• Number of other launches in the company during

a similar time period

Product Launch Budget•Budget all launch elements for one year, by quarter -get approval on this budget through finance before you begin•Be realistic about projected costs and channels•Plan 6 months to 1 year out, to avoid costly rush charges•Establish vendors before the launch process so all is in place•Allow time for the internal review cycle for each project

Proposed Launch BudgetQtr 1 Qtr 2 Qtr 3 Qtr 4

AdvertisingCollateralGiveawaysGraphicsModelMultimediaVideo

Incremental New Product Launch Timeline in TotalAug Sept Oct Nov Dec Jan Feb Mar Apr May June

Advertising Creative.Survey Cahners Ion New Product phone survey 00ArticlesModel Ken Byers Delivery Nov /4 Semi Jap

Photography New Product - (2) day photo shoot

PR/IRVideo New Product: live footage, animation, interviews

Graphics 3 panels West/Jap

Collateral Brochure:New Product

Folder Design & print:New Product

Giveaways Semicon shows

PR Nov 29 Santa ClaraAdvertising Semico $10.4K per spread;-July Dec to July

Ad Solid State Tech New Product: $11,543 K per 2-page, Dec-July 8xs

Ad Nikkei Microdevices New Product: K spread 3Xs, Dec, Jan, Feb Ad Fabtech 12th Editio Banner Ads - $2K ea (for consideration)

Collateral Ad reprints:Nikkei Micro 1K

Collateral Datasheets

Direct Mail Videos and Brochures

Seminars Semicon Japan Dec 7Ad Fabtech 12th Editio New Product Single page $7,500; 2Xs

Giveaways Semicon showsAd European Semi New Product:$ 9,400 -2 page, Europa,3Xs, March-May

Ad Solid State Tech New Product Product Profile pageAd Fabtech 12th Editio New Product Single page $7,500; 2Xs

Product Launch Timeline

New Product Photo

• Schedule a new product photo shoot-Plan interesting angles & colors-Use photoshop to enchance final photo

• Re-purpose Product photo - Collateral - Direct mail - Graphic panels- Multi-media presentation- Product press release - Technical articles- Industry magazine covers- www, or intranet

Advertise to Brand your Product

•Budget•Placement and Frequency•Company guidelines •Headline, and subheadines•Add photo, graphs, charts, to draw attention•Text - keep this short, and to the point•Logo treatment - company, division, etc.•Action you want the reader to take - call, email, www

Decisions for advertising include

0.01

0.1

1

10

100

50 ÅCustomerA)50 Åusomer)

50 Å(CustomerC)45 Å(ustomerD)

35 Å(CustomerE)30 Å(CustomerF)

30 Å(CustomerG)

50%

Qbd

(C/c

m2)

ISSG OxideFurnace Oxide

Advertising with a Sports Theme

Ad Translated into Japanese in Dec 2001 Issue of Nikkei Microdeviceswith DPN 200 Advatorial and Single Wafer Ad - for DPN 200 Launch

Giveaways

•Allow enough time to order and receive - 3 to 6 weeks•Keep it simple - who is going to monitor at the show?•Have a range of giveaways - from random customer - to special executive•Plan numbers for each day of the show - so you don’t run out•Plan quantity to give out internally - everyone likes giveaways•Order a larger quantity to last through the launch, and launch extension

$8 Mousepad with design -or product photo

$3-5 Key chain or pen

$.50-$1 Candy or game

$30 Clock or watch

Plan before the launch

Trade Show Elements

• Booth space reservation,& booth services

• Collateral• Giveaways• Graphic panels• Multi-media• Video• Exhibit staff

belongings

Plan all your deliverables for the following areas:

Trade Show Elements

• Use powerpoint presentations, if budget does not permit multi-media expenses

• Prepare short (10) and long (40) versions or ppt, to target different audiences

• Simplify multi-media navigation• Repurpose video clips in the ppt or multi-media• Include flash animated screen saver to catch attention• Distribute CD with multi-media, ads, technical papers

Multi-media / Presentation:

Product Display

•Plan Product Display:The larger the new product introduced,the longer lead time to order the product for display at a trade show

•Plan display expenses:-Cost of displaying versus selling-Custom mounting expense -Set-up and dismantle expense-Shipping expense to and from show-Drayage expense on the show floor-Booth staffing expense for demo

Plan Product Display and Related Expenses

What can you do when the new product is not available for display?

Use of a model-Can be easily shipped to multiple shows-Construction cost spread over events-Less expensive than shipping large item-Hidden product attributes can be shown-Easy to gather around at shows

Large equipment-Expensive to ship-Expensive to set-up -Takes up too much floor space-Difficult to have 1 to spare for shows-Can be damaged in shipment, I&D

Models

Product Video

•Budget: creating a video can be the most expensive launch item•Location of video - tradeshows, CD to consumers, lobby, etc•Company guidelines for video content•Catchy opening, and images are key•People, live interviews, animation, music add interest•Text - keep this short, and to the point; translation?•Logo treatment - company, division, etc.•Action you want the listener to take

Decisions to make when deciding on a video

Translated into Koreanfor Semicon KoreaSeoul, Korea,Feb 2001

Overseas shows

•Contacts: -Plan with local office or exhibit management•Exhibit: -Ship American booth or do a build and burn•Timing: -Ship display with enough lead time to clear customs•Packing: -Pack well, so elements cannot shift and be damaged •Attendance: -Go yourself for better implementation•Registration: -Hire local talent to staff desk and speak in local language•Hospitality: -Check local rules

-food and alcohol in Europe-tea, coffee, snack in Asia

Overseas shows•Allow time and budget for additional expenses•Translate: collateral, signage, multi-media, video•Staff: local office reps

Semicon Japanproduct launch

Measure Launch Success

• Advertising -Look at hits or benchmark studies

• Awards and recognition -Apply for awards in your industry

• Direct Mail -Evaluate response card numbers

• Press release, analysts, press tour -Evaluate where your press release was posted, whether articles were written in the trade press, meet selectively with financial analysts

• Trade shows -Evaluate booth traffic & inquiries

• Technical presentations & seminars -Look for parallel opportunities

• www -List site on ads, collateral, mail, etc.

Review Success of all the Launch Vehicles

www.appliedmaterials.com

Product Launch Resources:

Product Launch books: by Catherine Kitcho The Launch Doctor www.launchdoctor.com

High Tech Product LaunchesFrom Idea to Launch at Internet Speed

Product Launch software:Ross Beheshi rbeheshti@Eloquent.com

Eloquent - Web-based Live and On-Demand Product Launch Solutions

Good Luck!

For more information contact:Linda Johnson

Manager Marketing CommunicationsTransistor and Capacitor Group

Applied Materials2727 Augustine Drive M/S 0756

Santa Clara, CA 96054408-563-1771

408-563-1756 faxlinda_johnson@amat.com