Whether you’re launching a new product or a service, it isn’t easy as it used to be. With a multitude of products being introduced in the market each passing day, businesses today are under the pressure to effectively build buzz for their offerings, reach their target audiences, and achieve their sales target.
Also, with more than 70% of product launches failing in the market, businesses are under the pressure to overcome the challenges coming their way and plot a clear path for success. In this context, savvy companies have realized that an efficient product launch strategy is a pre-requisite for today’s businesses. In this article, our experts have unveiled 5 steps to a successful product launch in market.
New Product Launch: Key Steps to Follow
1: Identify gaps in the market
Before launching products in today’s competitive marketplace, businesses need to evaluate how well it will stack up against the competition. Also, it becomes imperative for companies to conduct qualitative and quantitative market research and monitor the sales potential of similar offerings in the market to efficiently evaluate the market potential for their new products.
Small and medium enterprises can conduct customer surveys to collect and analyze market data. However, conducting customer surveys cannot completely help companies gather complete market insights and identify gaps in offerings. This requires the support of the right intelligence partner.
2: Price products competitively
Once the gaps in the market are identified, the next step to a successful launch involves efficiently pricing the product. There are several factors to consider while setting the price for a new product. The factors include manufacturing cost, overhead expenses, raw material prices, and workforce investment. Also, product pricing strategies differ from one product to the other. Hence, businesses must choose the right pricing strategy to achieve maximum profit margins. Here are some of the major pricing strategies you can consider during a new product launch.
- Penetration pricing strategy
- Economy pricing
- Price skimming
- Promotional pricing
- Value pricing
3: Target the right audience
According to our market research experts, “Major brands run out of money as they waste time, resource, and effort on targeting the wrong audience.” Therefore, the third step to a successful product launch strategy is to identify the ideal customer group. Understanding lucrative customer segments can help businesses better position a new product in the market and differentiate their offerings to meet customers’ needs and demands.
4: Devise a product marketing plan
The next step is to devise effective campaigns to promote your offerings. However, this step requires identifying channels and tactics to promote products, constantly measuring the marketing results, and making changes in marketing initiatives when required. Also, constantly reviewing competitors’ strategies and marketing plans can support businesses in devising efficient campaigns.
5: Constantly review the result
The final step is to measure the results obtained and review the success rate after the product launch. This step is very crucial as businesses need to make changes in marketing strategies and plans by constantly by monitoring competitors’ strategies and actions.