Did you know 70% of all new product launches fail?
While manufacturers may feel a sense of urgency to introduce a new product or service to market, testing thoroughly before launch can mean the difference between success and failure. After all, simply launching a new product will not guarantee its success.
Lack of Market Understanding
Why do so many products fail? The answer is simple: failure to understand the market. Misunderstanding the market is equal to destroying a product before launching it.
We’ve all heard the old adage “If you don’t have time to do it right the first time, why do it at all?” Instead of rushing to get several products to market with incomplete research, sales support, or inventory, manufacturers should consider planning for a few, well-thought out products in a given time period for higher profit margins and faster growth.
For a successful product launch, manufacturers must involve customers from the early stages of research and development. Consider market discovery research to identify the most important problems that customers are having. After aggregating this information and developing a prototype, conduct focus groups to assess whether your product innovation fulfills the needs you’re attempting to address.
Investing your time and money into understanding the market first dramatically reduces risk at launch, and ensures your product meets potential buyers needs before it goes to market.
Skipping Steps in the Product Launch Process
There are several stages to a successful product launch. Failure to connect the dots between these stages can result in a poorly planned product launch.
To eliminate error in front-end work, consider New Product Blueprinting, a step-by-step methodology to drive market-changing product innovation. Steps include:
- Perform market research to identify the most attractive opportunities in the industry
- Use qualitative discovery interviews to uncover unmet needs
- Prioritize customer needs with preference interviews
- Utilize side-by-side testing to understand your competitive offering
- Create a detailed design to pinpoint product objectives
- Identify solutions through technical brainstorming
- Justify costly development with a business case
Complete all of these steps before moving into product launch to ensure success the first time around.
Lack of Updated Promotional Tools
A successful launch is contingent on the work you do before and after your product hits the shelf. Do you have a plan for promotion? This should be an early area of focus for your team. Do not wait until the product is being produced to start preparing sales support materials. Communicating and training your sales team should start months before the product is available to purchase.
According to our 2019 State of Northeast Ohio Manufacturing Report, 50% of manufacturers plan to align marketing and sales efforts this year. Of those manufacturers, 27% plan to develop new products and services.
Your launch plan should identify a mix of online and offline marketing tools and distribution channels to maximize sales. If email has proven to be a successful venue in the past, consider an online campaign to attract and convert the right types of prospects.
The right materials can give your marketing and sales teams the means to grow business more effectively by helping them understand prospects and meet sales targets.
Let Us Help You Prepare for Your Next Launch
To ensure you’re equipped with everything you need for your next launch, discover the essential processes of a successful product launch when you contact or manufacturing growth experts. Request your free onsite consultation.