Must Have Resources Before Launching a New Product
Launching a new product in the market is something that every company or business tries to achieve successfully, whether big or small. This is done to try and keep up with the growing competition and to satisfy the customers’ needs. According to publicitiy.com, an average of 30000 consumer products are launched annually and a surprising 95% of those products fail. Many small businesses attempt to launch one product after another and a number of those products fail because introducing a new product into the market is quite challenging and to execute it in a positive manner is difficult. This is due to the fact that launching a new product requires a lot of planning and a proper product launch strategy is not the easiest to come up with
Product launch strategy
Creating and devising a successful product launch strategy includes the development, launch and promotion of the product. This is can be a long process and making sure that everything is executed perfectly can be tough.
Having a successful product launch is very important for a company whether it’s a multi-million dollar company or a small business. Launching a new product is not only a time-consuming process but also expensive. Before developing a new product, the company does research, conducts surveys to see and understand what the consumers need, after which the development and promotion of the product is done. If the product fails and does not do well in the market, the business will face losses; which stem from developing the new product. So having a successful product launch strategy is paramount for any business looking to introduce a new product into the market.
Importance Of Introducing New Products
The development of new and improved products will always be the consumer’s need and satisfying customer needs is the eventual goal of all businesses since the satisfaction of customers will in turn generate more sales. The world is always looking at ways to bring down costs, satisfy customer’s needs by making specific products for a targeted audience, increase the quality of products we already have, etc. New technology and innovation is a result of new product development. New product development is a very simple concept, it is something the entire world depends on. In simpler words, it is the conversion of customer needs into a reality by creating tangible products which serve the customer needs.
Now that we have discussed why product development is important, let’s discuss how you can implement a successful product launch strategy and make it easier for your company to launch a new product into the market. Here are some of the steps to follow what will make your product easier to launch and give it a higher chance of succeeding:
1. Meeting Consumer Needs
This is one of the most important steps and arguably the most crucial one as well. Before you start developing a new product, it is vital to conduct surveys and to do extensive market research to find out what the consumers need the most and then trying to satisfy those needs in the best way possible. Asking questions regarding your product is the best way to gauge if your product will do well in the market or not. Does your product solve a genuine problem faced by consumers? Or even improve consumers’ quality of life? Is the monetary value of the product worth what the product offers? These are the questions that consumers ask before they buy a new product and thus really helps in understanding if the product is a good idea or not.
2. Knowing Your Competition
Identifying why your company and which particular product differentiates you from other companies and brand is important. This is because identifying your brand’s uniqueness allows you to then attract your targeted audience’s attention in a more effective manner. Advertising according to your brand’s uniqueness and advantages will allow you to gain the trust of consumers and tell them why they should choose your company or brand over any other.
3. Prototype Testing
Avoiding the development of a defective product or a product which in reality will not work is crucial to avoid the loss of invaluable time and resources. Hiring beta testers and testing the product through the invention of a prototype will offer excellent insight into the product and gives data on whether it needs any improvement or not. This not only saves the company time and resources but also saves them from having to deal with possible negative reviews from customers and damage your brand’s image and credibility.
4. Improving The Product
After testing a prototype of the product and examining the data and feedback provided by the beta testers, friends, family and colleagues, it is extremely important to make tweaks to the product and make the necessary changes if there are any to be made. The data provided by any of the above mentioned sources can bring about a massive change and make a lot of difference, for example, a friend or a relative might ask for a feature that you might not have thought of and adding that could make your product a lot better.
5. Running The Numbers To Check Profitability
Running the numbers and establishing your profit margins is crucial during your launch phases. This can be done by gauging your past records and sales and then going backwards to figure out what goals make most sense to you and are the most achievable as well. To do this efficiently it is important to see what your businesses’ website conversion rate is and then figuring out the actual number of people; i.e. web traffic, you would need to match that goal. According to Campaign Monitor, e-commerce websites, convert 2-3% of their overall web traffic, on an average. So figuring out the numbers you would require to match your goals is imperative.
6. Building Anticipation Through Pre-Marketing
A product launch plan depends heavily on the marketing department to do well in the market. Building anticipation through pre-launch advertising is key in promoting a product and helping it succeed. Good brand promotion during pre-launch will raise brand awareness, get people talking about your product and brand as a whole and in turn drive more and more sales through your new product. There are a number of ways to market and promote your product before it’s launch. Creating an e-mail campaign encouraging sign ups and new information about the product and brand is a great way to start promoting your product, creating a landing page on your website helps in promotion of the product and also boosts conversion rates. Advertising through multiple social media channels is becoming more and more integral with every passing day thanks to the raid growth and development of the industry.
7. Establishing a Solid Supply Chain
Having a solid inventory of their products is extremely important so that you can always meet the demand. To manage an efficient supply chain, working with vendors is crucial to gauge their sales and to also understand their maximum capacity in terms of units and then scaling your production accordingly is the most efficient way to manage and have a healthy inventory and maintain a solid supply chain.
8. Networking And Sharing The Product
Setting the launch date and sticking to that date is also important to mitigate and avoid having to update media, customers, vendors, of the changes which creates unnecessary confusion and chaos. But this is the part where it starts to get exciting and nerve-wrecking at the same time, it’s finally time to launch your product. Promote it on your landing page, send out e-mails through your e-mail campaign and advertise and promote heavily on social media. Making sure that you reach your targeted audience on all social media platforms is crucial to get as much attention of the consumer market as possible. Encouraging your contacts to share product and reposting any necessary information about your product is also quite helpful.’
9. Reaching Out to The Media Post-Release
After launching your product, when you start seeing success, the good reviews, valuable feedback, reaching out to and contacting the PR firms and media outlets that wrote about your product before it even launched and helped you in creating a buzz around the product and indirectly advertised it as well, and asking them to share another update is very helpful in numerous ways also. This takes the audience on a journey, of the product. From the origin of the idea to the development to it being manufactured and on the market, people love it. The whole story makes the customer feel like a part of the journey and helps in building trust, improves brand image and also drives more sales through the product.
10. Considering Public Feedback
After the launch of the product, the job is not finished. Replying to and considering customer feedback post sales is extremely important for a company because it tells them exactly what the consumers are liking and what they disliked. This data is invaluable for the development of the next product. The success of the launch does not always represent the performance of the product. If the product underdelivers, after overpromising, public opinion on it can be brutal and the brand could face a lot of backlash through the product. Replying to negative reviews in an empathetic way and always responding in a positive manner with greetings along with a brief solution is quite helpful. Addressing customer issues and working on the problems to find a give the consumers a fix show how invested you are in this product. This shows customers how much you value their satisfaction instead of just making money. As a result, the company improves its image and credibility and makes it more likely for people to trust them and buy their products.