New product
Promoting a new product in the marketplace is one of the most exciting, albeit challenging, tasks for marketers. It is almost impossible to predict at the start how effective even the most elaborate advertising strategy will be. The most thorough analysis does not guarantee a positive result and 100% hit the point of audience needs.
To be confident in the correctness of the developed strategy and to count on the indicators of success defined in it, it is necessary to adhere to an important algorithm of product introduction:
- Identification and analysis of the target audience;
- Creating a company image, brand development;
- Choice of advertising channels and tools;
- Choice of online promotion tools;
- Development of step-by-step instructions for an individual approach to clients;
- Attracting opinion leaders, influencer marketing;
- The mechanics of receiving and analyzing feedback.
Bringing a product to market is a complex and multitasking process
The need to introduce a new product to the market may arise not only for a new company, but also for an existing business. Because even the most successful business strategy is not limitless, and companies need to develop and grow, expanding the range of products and its target audience.
When introducing a new product to the market, you can't rely on superficial knowledge about the market and the industry, intuition and personal opinion of business owners. Unprepared and ill-conceived market entry is fraught with losses and disappointment. Therefore, the best decision for the business will be to delegate such a strategically difficult task to experienced specialists. Their area of responsibility is conducting market research, developing a comprehensive action plan and achieving positive economic results.
The main stages of the launch
- Market analysis, study of the target audience and its consumer sentiment. Segmentation of the audience and identifying the most promising market segments.
- Development of an innovative idea for a new product. The concept includes an analysis of the competitiveness of the product, opportunities and risks, its compliance with the needs of the market and potential consumers.
- Test production. Preparation and release of test samples of the product. At this stage, adjustments and refinements of the product characteristics are possible.
- Sales planning. Specialists conduct marketing reconnaissance, surveys among the target audience, collect and analyze feedback. A test sale is made.
- Determination of the market position of the product, development of a marketing plan. Specialists develop a promotion plan for a new product, determine advertising channels and peculiarities of communication with the target audience.
- Comprehensive evaluation of the product. Test of product quality, external appeal, ergonomics and environmental friendliness, price positioning.
- The launch of a new product on the market. The product is put into mass production and appears on the mass market.
Common mistakes when launching a new product
Unsatisfactory analysis of the market and target audience. Neglecting to thoroughly collect information at the first stage is one of the most common mistakes in preparing to launch a new product. A mistake that is fraught with loss of time and material resources of the company in the future. The task of the team is to accumulate as much data as possible, conduct an in-depth analysis of the market and make the right conclusions.
Disregard for the opinion of the company owner and sales specialists. The consequence of such an error is the release of goods which are unnecessary to consumers and uncompetitive in the market. At the conception stage of a new product, its viability in the market should be evaluated by the CEO and marketing specialists.
Incorrect budget planning. When calculating production and financial expenditures, special attention is paid to the amount of funds for production and new products and the first time they enter the market, but they often overlook expenditures on subsequent advertising campaigns, product promotion and the maintenance of interest in it. Making such a mistake in the preparation for the product launch, you will get incorrect data to calculate the cost of the product.
Lack of strategy update. No matter how successful the initial plan was, you cannot use one strategy over a long period of time. Market conditions, marketing trends, consumer sentiment and preferences change fast and sometimes rapidly. A new product always needs to stay relevant and up-to-date to succeed.
Recommendations in the creation of new products
Project-based approach. The process of creating and preparing to market a new product is labor-intensive and creative. It involves a whole team of company employees who are responsible for the successful result of the development. The introduction of the project approach and project management system in this process will streamline the work of the team, allow you to carefully control each stage and avoid common mistakes. Setting clear tasks and deliverables, deadlines for their implementation, distribution of roles and responsibilities within the team will increase the overall effectiveness of its work.
Formation of an analytics department. When creating a new product the most important stage is the collection, systematization and analysis of data about the market, its trends and changes, and about the target audience. It is impossible to collect and process such an amount of information correctly by untrained personnel. A product development team should operate with clear and truthful data, facts, trends. Then decisions will be well-reasoned and strategically correct, and key performance indicators will have a clear reference point. At the stage of product launch on the market and mass sales start, the analytics department will become a source of up-to-date information about the success of novelty implementation and an intermediate controlling link between the manager and the sales department.
A thorough analysis of the target audience. The image of a new product should be based on a profound knowledge of consumer behavior, interests and needs of buyers. It is important to know by what criteria consumers choose a product, what advantages of the competitor are decisive in their choice. And it is equally important to understand that the idea of the developer of the product does not always coincide with the idea of the consumer, and the decisive one is still the interest of the buyer. Research, open communication and a well-established system of feedback collection are the key to the correct positioning of a new product and the formation of its value among the target audience.
Analysis of product distribution channels. When developing a new product, it is important to analyze its distribution channels and the peculiarities of dealers' activities. The current trend among distributor-retailers is a preference for their own brands. The trend is especially noticeable in retail: supermarket retail chains first of all tries to present and sell goods produced under its own brand at a profit. Therefore, when strategically planning channels for sales of a new product, an analysis of dealers' behavioral patterns, trends in related markets is critically necessary.
Material support for the promotion of the product. The modern market is oversaturated with offers, the choice of goods is so wide that it is necessary to really fight for the attention of the consumer. To form the recognition of a new product and to support the stable interest to it you need not only a clear promotion plan, but also a steadily allocated budget.
Reorganization of the team structure. During the initial stages of new product development it is necessary to reconsider the internal structure of the company, and to replace the position of Product Manager in the development team with the position of Brand Manager, a specialist on brand development and strengthening of its market position. The Product Manager will work with the product after its development and serial launch.