Marketing strategy for a new product launch
Launching a new product can be exciting and of course, everybody expects high revenues from it. However, there are a lot of things need to be done such as research, strategies, etc. In order to minimize the risk of the failure, it is necessary to use the correct marketing of a new product, the right techniques that can draw consumers’ attention to the newly emerged, little-known product, make it popular and purchase. The main thing for each business is to find its effective strategy of developing and promoting a new product.
Marketing strategy for a new product launch is a practical tool by which the manufacturer or a provider of the service can create the product needed by the consumer, where necessary, when necessary and at a price that satisfies the consumer.
Winning product launch strategies:
- Set your launch goals. What do you want the launch to look like? Is it more about awareness or maybe sales? You need to set this key performance index for the new product. It is very important since while launching the question will be “What can I do to reach my goals?”
- The second thing you need to understand when entering the market is the market itself. It is necessary to understand how it is organized, who is present on it, and how it is distributed among the participants. It is necessary to identify the volume of the market, its potential, and demand. Understand the types of consumers present in this market and determine their behavior stereotypes. Make a research on demographics and psychographics of the market.
- Define your target audience. The question is who will buy your product or use your services? Who is your target group, which consumer is interesting to you, to whom you are generally guided? Find out what their problem is and how you could solve it with your product. Without an understanding of who your target consumer is, you cannot understand what you need to do and how to sell it later.
- Research on your competitors. Choose several competitors and find out what product or service they have that’s similar to yours? Decide how you would convince a consumer to purchase your product or service? In order to do that, see the next step.
- Bring out the features and advantages as well as the benefits of your product. Taking into account the problems, needs wants and desires of your target audience, find out what can attract customers and can make your product more competitive.
- Select media and the delivery mechanism. It could be via E-mails, blogs, social media, mobile. Decide if you want it to be in text, video or audio. Set up Facebook, Instagram, Twitter and blog pages before the launch. It makes sense to create a coming soon page to make it possible for customers to get notified of when the product is going to be available by putting their name and e-mail address. People who are putting these data are interested in the release and they’re highly targeted people.
- Make it easy for people to learn more about your product with free trials, downloads, product videos, and demos. Also, you can let people vote to pick the logo which they liked the most, for example. If they invest in the creation of the product, they consider themselves a part of it and then they want to buy it.
- Create a QR Code to deliver your product’s website or app link, tutorial videos or an introductory offer.
Following these steps, you are likely to get more customers, increased revenues, and possible bigger future launches. However, it’s not always so easy, so here we decided to present the most typical reasons for new product failure.
Top Reasons why your new product launch can turn into failure
- The inadequate idea of a new product from the management of an organization. Quite often the head has unlimited authority in his organization. In this case, it is possible that the manager believes that he is well versed in the market situation and does not pay attention to the negative factors, and the organization’s staff does not pay attention to possible problems.
- The new product does not satisfy the needs of consumers. Technical specialists working on the creation of new products are “carried away” by the development process themselves and concentrate all their efforts on improving new technologies when creating a product, not on whose needs the future product will meet.
- Entering the market without preliminary marketing research or implementing them at a low level. When a firm saves on research and does not conduct it or conducts it at a low professional level, the result is inadequate information about the market and incorrect management decisions.
- The detachment of C-level managers from the process of creating a new product. The unwillingness or inability of the manager to direct and control the process of all product creation activities can lead to the fact that the goals and directions of work become vague and incomprehensible for employees. And the process of product development and its implementation depends very much on the ambitions of individual employees, which can be aimed at achieving personal goals and at variance with the goals of the organization.
- Expectations of instant effect from the introduction of a new product. Some companies, having created a new product, expect immediate effect from bringing it to the market (big profits), and without getting a quick return, they refuse this product, believing that the product is unsuccessful. Sometimes (especially with regard to technical novelties), it takes some time for the new product to “catch on” in the market.
- Lack of control over all stages of the production and promotion process of a new product. When several organizations are involved in the creation and implementation of a new product, the main producer does not always have the ability to control all the stages of this process. This is especially typical for small companies that use the services of contractors participating in various stages of product manufacturing and development.
- Wrong pricing policy. The prices for the product are set too high or too low.
- Poor quality control. An attractive product idea, but not enough to maintain stable product quality.
- Launching the product at the wrong time. The product is launched too early when the market is not yet ready, or late when the market no longer needs this product.
Now you know what needs to be done in order to make a strategy to launch a new product and we hope that we have answered your question “How to create a plan”. What marketing methods to choose in each case, of course, the businessmen should decide. But we can say that the best success brings a combination of different methods. But first of all, it is necessary to carry out those marketing activities that are able to distinguish a new product or service from among similar ones, to form a target audience for a new product and to increase the level of demand for it.
This is solved not only by correctly chosen methods of promoting a new product but first of all by their proper elaboration and effective, competent use of them.