How to successfully bring a new product to market? Are you doing the right thing in these 6 steps?
Reprinted from cifnews
Translated by Sultan Mehmood
It is said that there is only one chance to leave a good impression. Whether it's the first day of a new job, the parents of your better half, or introducing yourself to someone else, you want to be eloquent, elegant, and charming.
The same is true for launching a new product. Even if your product launch is perfect, there will be many obstacles later:
About 30,000 new products are launched each year, and about 95% of them eventually fail.
99% of technology start-ups will close within a year.
About 80-85% of new fast moving consumer goods (CPG) fail every year.
You need to be prepared before the product is released, and strive to expand the product's reputation and brand influence after the release.
Step 1: Pay attention to the market gap
To satisfy the market's needs. Make sure your product fills a gap in the market or solves a problem for the consumer.
Conduct or outsource some traditional market research.
Look at similar products that already exist on the market. Why should consumers choose your product? What is your unique selling point (USP)?
The best way to test a product idea is to talk to the real people in the target market. Create quick and easy email or social media surveys by using services like SurveyMonkey. What products are people looking for, what features are lacking in existing products, and what kind of products or services are they willing to pay higher prices? Collect and analyze the data.
Talk to your friends, family, and colleagues. If they have needs and interests, then you can advance the plan.
Step 2: Competitive pricing
Reasonable pricing is hard to do in one step.
Pricing has a lot to consider: how much the price is of the substitute products, how much it costs to make a product, how much it costs, and so on.
Your price needs to be competitive, but you still need to earn enough profit in each sale to sustain operations.
Here are a few common pricing strategies:
Keystone pricing = production cost x2.
Psychological pricing (also known as charisma pricing): 0.95 or 0.99 as the end of the price. People usually feel that $99.95 is much cheaper than $100.
Premium pricing: Deliberate pricing by integers gives an illusion of luxury and status. Also known as reputation pricing.
Of course, you can try discounts, partial pricing (the ratio of monthly cost to annual price), bundled sales, and more.
If you want to target a consumer group with a limited budget, then your product can be cheaper than other people's products. If you are targeting a high-consumption group, then your pricing can be slightly higher, because you are offering "high-end products." But make sure your product quality has reached the level you promised.
Pricing is not a one-and-for-all task. It is also important to monitor the pricing of competitors. Have you noticed that Amazon's price change many times a day? Wal-Mart and Target are the same.
If after selling for a while, you think the current prices can't bring you enough profit, you can consider raising the price, reducing the cost or increasing the stock. Think carefully before you decide.
Step 3: The right target customer base
Who is your ideal customer?
You need to target those target groups accurately. If you set the wrong target customer base, then the good products will also fail.
In fact, the two main reasons for the failure of new products are: 1) no market demand (this also reflects the importance of step1) pay attention to market gaps; 2) cash shortages.
(20 reasons why startups fail)
Why are companies and brands losing money? Because they waste time, money and energy on the wrong target consumers.
This is obviously not sustainable.
You need to find and track your target customer base.
Step 4: Develop (marketing) plan
Too many new companies are eager to “launch” products, but rarely consider how to market after the product launch.
This is wrong. The marketing plan is just as important as the product itself.
What is your marketing goal? What channels and strategies do you want to use? How will you judge success?
There are a few things to remember:
Make sure your product information emphasizes the benefits to the user.
Don't exaggerate or promise something you can't provide.
Where will you get in touch and interact with your target customers? Mobile app?
Answer “relevant questions” early in marketing: Why should your target customers choose your product?
Better products than competitors + better marketing plan = more successful business.
Idvert is a good marketing tool that can help you quickly find competitors' product materials and related data information behind them, helping you find business opportunities quickly and open up the market.
Step 5: Prepare for scale-up
If the product is successful, if it resonates with the target market, if it goes far beyond your expectations, are you ready to scale up to meet market demand?
You have to do it. Nothing can make new products die faster than delayed delivery and out-of-stock notifications.
Before you launch a new product, you need to develop a systematic plan to expand the scale and meet market demand.
If you are not ready to launch a new product, there is a high chance that it will fail.
Step 6: Collect customer feedback
Collect and use customer feedback. Contact each customer systematically using email, social media, phone, instant messaging, and more.
Ask customers about marketing, product itself, pricing and value-added services. Ask them how you can improve your service and how to improve your product.
Ask the customer, analyze the problem, and then improve.
Successfully launching a new product is not an easy task. Take the six steps outlined in this article to get the most out of your stress.
See how other good products are launched and look for inspiration. Learn from failed products and avoid their mistakes.
The successful launch of a new product is inseparable from these three elements: the right market, the right price, the right time.