Whether you’re launching a new product or a service, it isn’t easy as it used to be. With a multitude of new products being introduced in the market each passing day, businesses today are under the pressure to effectively build buzz for their new product, reach their target audiences, and achieve their sales target. Also, with more than 70% of new 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 new product launch strategy is a prerequisite for today’s businesses. In this article, our experts have unveiled 5 steps to a successful new product launch in the market.
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New Product Launch: Key Steps to Follow
1: Identify gaps in the market
Before launching a new product in today’s competitive marketplace, businesses need to evaluate how well the product 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 products in the market to efficiently evaluate the market potential for their new product launch.
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 product 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 new product launch involves efficiently pricing the new 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 product pricing strategy to achieve maximum profit margins. Here are some of the major product 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 new product launch is to identify the ideal customer group. Understanding lucrative customer segments can help businesses better position new products in the market and differentiate their product offerings to meet customers’ needs and demands.
So, are you wondering how to efficiently focus on lucrative customer segments and save millions of dollars in the marketing budget? Our customer segmentation analysis can help you tackle this challenge.
4: Devise a product marketing plan
The next step is to devise effective new product launch campaigns to promote your product or service 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 new product launch campaigns.
5: Constantly review the result
The final step is to measure the results obtained and review the success rate after the new product launch. This step is very crucial for a new product launch process as businesses need to make changes in product marketing strategies and plans by constantly monitoring competitors’ strategies and actions.
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