Today, launching a new product on the market is much more difficult than in the past. Having a good product at a good price no longer works alone, and product development teams have to coordinate with many other departments before even getting started on the rough outline of a new product.
Competition, the changing market, and customer-centric strategies have turned product launches into almost megalithic works.
The Early Work
At the very start, you want to begin with a pricing analysis of the market.
Here, marketing, sales, and design have to work side by side to thoroughly research each market in which you plan to launch your new product. For example, there might not be competition in your home country, but there is competition in other regions that you serve. If so, a geographic pricing strategy won’t be enough to support the product launch. You will have to thoroughly study the competition and their products before starting the design.
If your idea is good, but the competition has a better product and at a cheaper price, it is almost better to take a step back and find another way.
In this early phase of the product development, all information is good. There is never too much data and everything you collect will help you later to develop a good communication strategy for your launch.
You have to test the product before launching it.
Make several prototypes or open it up for beta access. The more people who test it, the better. Start with your employees and extend the test to your neighbors, friends, and family if you have to. What you want is data from people who know nothing about the product but are close enough to your target audience. That way, you’ll get a sense of what customers will think and be able to anticipate their doubts about your product.
Getting your proof of concept is incredibly important. At this time, you will get insights into what needs to be improved, helping you design and launch the best version of your product.
The Product Launch Plan
Here comes the pure and simple marketing.
Everything you have done so far helps you prepare a good campaign. You already have the pain points that your product solves, you know what your competition does, and you have the experiences and opinions drawn on from the test.
This is the moment when you can choose your pricing strategy. Two good options are penetration pricing and skim pricing. Pay special attention to a skim pricing strategy, as it can come in handy when you want to increase margins early as you gain market share.
Two out of 3 consumers consider the opinions of other users before purchasing a product.
In every launch, the quality of the product is critical, but that doesn’t mean you can overlook the consumer. They are the ones who have to make the purchasing decision and a happy customer is a repeat customer. (And, importantly, recommends your product to others).
An INITEC study on the impact of digital marketing on Spanish consumers revealed that 2 out of 3 consumers consider the opinions of other users before purchasing a product.
Just as launching a product does not start with the design, it does not end when it is on physical or digital shelves. It is not enough to put it on your website, launch a marketing campaign and let it flow. Study the reactions of your customers, when they buy, how they buy, and if they recommend your product. If any stage is struggling, this information will help you to adapt your marketing strategy and your pricing strategy so as not to lose traction after the initial product launch.
Overall, you must plan ahead. Do not wait for the last minute because you will end up overlooking important details that can completely change the outcome of your product launch, even if you have the best product and the perfect price.