{"id":42,"date":"2022-08-18T05:24:57","date_gmt":"2022-08-18T05:24:57","guid":{"rendered":"https:\/\/www.aovantage.in\/blog\/?p=42"},"modified":"2022-10-27T10:06:24","modified_gmt":"2022-10-27T10:06:24","slug":"successful-product-launch-strategy-a-little-more-than-the-usual","status":"publish","type":"post","link":"https:\/\/www.aovantage.in\/blog\/successful-product-launch-strategy-a-little-more-than-the-usual\/","title":{"rendered":"Successful Product Launch Strategy \u2013 a little more than \u201cthe usual\u201d"},"content":{"rendered":"\n

You\u2019ve created a robust launch plan, completed the customer profiling, and positioned the product vis-\u00e0-vis competition using relevant USPs, launched with innovative activities but yet the consumer pick up is slow and sales have been languishing for 3 months since introduction. It\u2019s all a bit terrifying actually.<\/p>\n\n\n\n

You are not alone, new launches have an abysmal record of success, the general consensus is that a vast majority (figures range from 80% to 95%) of new launches fail.<\/p>\n\n\n\n

A mature product can take a couple of months of slow sales and come back to robust brand health parameters \u2013 but a new product does not have that luxury. A product introduction needs constant support and high rates of customer adoption.<\/p>\n\n\n\n

There are also numerous writings on how to launch a new product in the market but somehow, a launch feels very different when you actually get down to executing it.<\/p>\n\n\n\n

While marketing strategy for a new product launch<\/a> requires all the essential aspects for a brand plan, based on my experience, there are some additional points to be considered in order to be successful.<\/p>\n\n\n\n

Here we will discuss 3 challenges and 3 areas to focus, which can help in ensuring a robust new product introduction.<\/p>\n\n\n\n

3 major challenges to a successful launch<\/strong><\/p>\n\n\n\n

1)Planning accurately for success is complex:<\/strong> Estimation of relevant market size and degree & rate of consumer adoption is difficult, especially if the concept is new. As a result, setting targets for New Introductions are tricky. In the business world \u2013 supply, people resources, promotional spends all depend on the estimation of demand. If inaccurate, it also effects morale, which is touched upon later in this article<\/p>\n\n\n\n

2)Consumer Bias towards the entrenched option<\/strong> (the product being currently used): New products ask consumers to change their existing habits, or leave their current products which they are reluctant to do. The most difficult question for me and my new launch team has been to offset the question (from non-adopters): \u201cI understand & appreciate the merits of your product, but the brand that I am using, \u2013 it\u2019s not giving me any problem\u201d. This is a tough nut to crack! (For more on this \u2013 please read about the \u201cEndowment Effect by Richard Thaler\u201d and\/or try to read \u201cWhy Consumer\u2019s Don\u2019t Buy: the psychology of new product adoption\u201d by John T Gourville)<\/p>\n\n\n\n

3)Mindset:<\/strong> Launching a product requires a different level of mental strength. The Sales teams have to be even more resilient that usual \u2013 there will be periods of time & segments of potential users which tend to lead to frustration. <\/p>\n\n\n\n

Pre-launch promises to use are often forgotten, what looks like an easy target suddenly looks insurmountable. Marketing has to be ready to listen, encourage and at times adapt. <\/p>\n\n\n\n

Business owners have to be ready for the long haul and be part of the effort, which can be trying (trying & tiring both!) at times \u2013 but it\u2019s essential to make your teams succeed. New launches are major growth engines. In addition their success is an important booster of capabilities \u2013 sales, marketing & organization\u2019s capabilities.<\/p>\n\n\n\n

3 Areas to focus upon while conceptualizing product launch strategies<\/strong><\/p>\n\n\n\n

A. Bottom Up rather than Top-down estimates<\/strong>: Creating New Launch Estimates will always be tricky but it is helpful to start at the bottom i.e. customer behaviour and then move upwards. <\/p>\n\n\n\n

Start with a focus on likely rate of adoption for each segment of user and then moving up to units used, repeat purchases, additional users. This then is converted into value. <\/p>\n\n\n\n

It sounds straight forward but most plans start from a total value of sales expected and then move downwards & consumer or user \u201cinclination to use\u201d is looked at last!<\/p>\n\n\n\n

B. Planning for Consumer Reactions<\/strong>: It may not be possible to totally prepare for customer reactions but one can use a strong framework & be prepared for some eventualities.<\/p>\n\n\n\n

(i) Establish POP as well as POD: Marketing Campaigns for New Product launches focus almost always of points of differentiation<\/em><\/strong>. This is of course essential, however, for a new concept even the points of parity <\/em><\/strong>are important. The consumer has to realize what context she has to compare this new offering with. Hence, the \u201cframe of reference\u201d becomes extremely important. This has to be incorporated early in the new product launch framework.<\/p>\n\n\n\n

(ii) Have a Plan A for most important drivers & barriers identified but also have Plan B, C, D for hitherto lower prioritized insights \u2013 consumers are likely to throw up surprises in a new launch. Also, be prepared for a Plan X, something for an issue that you did not even think of!<\/p>\n\n\n\n

C. Selecting motivated Segments:<\/strong> Consumer Bias maybe quite difficult to overcome for all, but can we look at segments of (potential) customers who may have a bias in favour of<\/em><\/strong> the new idea? <\/p>\n\n\n\n

For example, high priced environment-friendly air conditioners find traction with those who place global warming as a major threat to life on earth. T20 cricket was focused on newer audiences who did not want to spend an entire day watching a sport, it would likely not have had a positive uptake if the target audience was test match purists.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

There are various other aspects important to a new launch, I have enlisted just a few. These are points which I thought are not discussed as much but could well make the difference between success and failure.<\/p>\n\n\n\n

So whether one is a new product launch coach or a marketing head planning a winning product launch strategy, these should help giving a boost to the launch planning process.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n<\/body>","protected":false},"excerpt":{"rendered":"

You\u2019ve created a robust launch plan, completed the customer profiling, and positioned the product vis-\u00e0-vis competition using relevant USPs, launched with innovative activities but yet the consumer pick up is slow and sales have...<\/p>\n","protected":false},"author":1,"featured_media":43,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[14,13],"class_list":["post-42","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","tag-how-to-launch-new-product-strategy","tag-product-launch-strategy"],"yoast_head":"\nSuccessful Product Launch Strategy \u2013 a little more than \u201cthe usual\u201d 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