How to Launch a New Product

When considering how to launch a new product, you need to be aware that a serious strategy is needed in order to be successful. To learn how to launch a new product, you must plan properly ahead of time to make the product a great success. You should conduct research on similar products and their particular features and special offers. You can then tailor your own product to address weaknesses elsewhere and promote the superiority of your design.

Building a Website

Many products have a website. This site must support SEO, or Search Engine Optimization, and standard policy so that your website appears on search engines such as Google. Do remember that this site is the base home of your product. You should promote it alongside your press release and product in order to drive traffic towards the site

The site should provide content alongside useful information such as contact details and where your product can be purchased. This is an essential step in learning how to launch a new product. The content should be informative and powerful enough to keep your readers engaged. It must also be informative and factual, giving readers a detailed understanding of your product without boring them to tears.

Writing a Press Release

Alongside your site, and although its importance has decreased in recent years, you should also consider publishing a press release. This should contain your unique selling point, as it is an effective means to improve your sales and is a key point regarding how to launch a new product. It is also a good idea to include testimonials in your press release to promote the support your product has already received. You may also choose for your press release to have a comparative analysis of other products on the market, but remember to highlight why your own design is better than your competitors. Send this press release to relevant publications and your followers.

Social Networking

Social media is a great tool to increase the sale of any product online. Several sites offer to advertising schemes at an agreeable price. For example, Facebook operate on a pay-per-click scheme. As these sites also allow you to target certain demographics, they give great scope to promote your product to those who really care.

Besides advertising, you can create a page or a group for your product so that there is an area for you to engage with your customers… This will facilitate free but effective marketing of your product.

When considering how to launch a new product, strategy is very important but not the most important thing. The most important thing is the quality of your product. If your product quality falls below the mark, or if it fails to go ahead of other similar product in terms of quality, you may fail to do expected business. Now, you should know how to launch a new product.

Businesses Pursuing New Product Development

With the aftermath of globalization, companies are carefully thinking about the best ways to extend their product and service offering. Thus, product development strategy is critical for their success. Yet, many companies are in defensive mode and merely want to maintain the position in the market place.

However, staying in a holding position is a definite way for companies to be left behind. Innovative thinking that allows for product/service growth is a too sure way for sustainable success. In today’s discussion, we will explore the importance of product development for the growth of businesses, especially in a competitive market.

Launching into new product offerings is not easy. According to one market research, approximately 75% of consumer-packaged goods and retail products fail to earn even $7.5 million during their first year. Harvard Business School Professor, Clayton Christensen, who is the world’s foremost authority on disruptive innovation, suggests that the failure rate of new products may actually be as high as 95%. Product failure rates relate to the number of products that are launched commercially but fail.

Geoffrey A. Moore, the author of Crossing the Chasm, maintains the challenges of product deployment: “… the less successful product is often arguably superior. No content to slink off the stage without some revenge, this sullen and resentful crew casts about among themselves to find a scapegoat, and whom do they light upon? With unfailing consistency and unerring accuracy, all fingers point to-the vice president of marketing. It is marketing’s fault!” Thus, new product development is a risky proposition to senior executives making these critical positions as well as the organization as a whole.

Businesses that want sustainable growth must develop new product and services often and consistently. Philip Kotler and Kevin Keller, authors of Marketing Management, “In an economy of rapid change, continuous innovation is a necessity. Highly innovative firms are able to identify and quickly seize new market opportunities.”

In taking any actions on new product development, businesses should think strategically about their product development. Alexander Chernev, the author of Strategic Marketing Management, further argues that managing growth is the most preferred route to profitability compared to just cutting cost.

He outlines four key issues in managing growth, which include: (a) gaining and defending a market position, (b) managing sales growth, (c) new product development, and (d) product-line management. Chernev maintains, “New products and services are the keys to sustainable growth; they enable companies to gain and sustain their market position by taking advantage of the changes in the market to create superior customer value.”

With that said, new product development meaning having the ability to take a product or service idea and convert it into a tangible offering that customers want. The following are the steps that more products undergo for market consumption: (a) idea generation, (b) concept development, (c) business analysis, (d) product development, (e) market testing, and (f) business deployment.

The Ansoff Matrix is a strategic tool for product development, consisting of market penetration, market development, product development, and diversification. In market penetration strategy, organizations seek to grow using its existing product offerings in existing markets. With this strategy in mind, organizations try to increase market share. In a market development strategy, companies try to expand into new markets like new buyers using their existing offerings. In product development strategy, businesses seek to create new products and services targeted at its existing buyers.

In a diversification strategy, an organization tries to grow its market share by introducing new product offerings while at the same time entering a new market. Diversification is the most-risky approach due to simultaneous making new changes (new product, new market). Kotler and Keller further maintain the difficulty of sustainable product success: “It is increasingly difficult to identify blockbuster products that will transform a market, but continuous innovation can force competitors to play catch-up.” The concept sounds easy. However, it is riddled with problems.

Without a doubt, many companies know that product development is a risky business. Although many consumers will proudly proclaim the success of many innovative products like Apple and Google, these same buyers are not aware of the numerous product launch failures in this country. In our discussion, I demonstrated the importance of product development for the growth of businesses, especially in a competitive market. Failures often lead to innovation.

American great inventor, Thomas Edison, had his own share of failures, but learned how to innovate because of them: “I have not failed. I’ve just found 10,000 ways that won’t work.” Likewise, today’s businesses can also achieve success if they understand how to deploy their products and services to the marketplace strategically. Although there is enormous danger in failure, there is also the opportunity of unforeseen growth. Don’t wait until it’s too late.

© 2017 by DD Green

Relevance of Identifying New Product Metrics

Launching a new product amidst a very competitive business industry is a very challenging feat. To help ensure success, relevant new product metrics would have to be determined.

Launching a new product to the market is a big gamble on the part of a manufacturer or distributor. This is so because substantial investment would have to be spent in marketing and advertising this new item. This activity is very crucial as this is how prospective clients or target customers are informed about the product.

Without these promotional activities, it would be very difficult, or impossible even, to create demand for the product once it hits the stores and other retail outlets. Likewise, these promotional activities would also have to be done in a regular basis to maintain customer demand especially in the early stages of product distribution.

These days, new products are introduced either as a brand extension or a product extension. Brand extension, also called as brand stretching, is a well-used marketing strategy wherein the company uses an existing brand to market a new product that is usually belonging to another product category. This is usually done by companies to use sustained brand equity or a brand’s long-term sustainability and net worth to their advantage.

The effectiveness of brand extension however, depends on how consumers strongly relate to the values and goals of certain brands. In the 1990s, it was revealed that about 81% of the new products in the market were launched through this strategy. This was seen as an effective way of reducing financial risk resulting for promotional activities as well as improving the perception of consumers on core brand value. Nevertheless, companies that use brand extension as a strategy should still be focused on the successful launch and promotion of new product as this may also potentially damage brand equity or lower the value of core brand.

A new product may also be launched as a product extension. This marketing strategy paves way for the introduction of a new product serving another market segment but is closely associated with an existing product. In short, it is a new version of the parent product. Several firms have taken on this strategy to take advantage of brand awareness and brand loyalty. Normally, consumers are likely to buy a new product if it carries with it a brand name that they trust. Among the companies that have successfully implemented this is Coke when it launched its Diet Coke product.

Unfortunately, brand extension or product extension is not a recourse that all companies can use. Many companies have had to start from scratch as they come up with new and innovative products to offer the public. For these companies, it is mandatory that their managers should come up with new product metrics that they can use to assess how well the product is doing in terms of sales and market reach. In addition, these metrics will provide an accurate information support that managers can use as basis for their future actions regarding their new product offering.