Launch a product

economic-dictionary

The launch of a product is the process that aims to introduce a new product to the market.

To begin with, the launch of a product is a complex process that requires a great effort and a great deal of study and research. This, because it is the way to present a new product to the market to be marketed, so a proper launch is important to ensure the market.

It should be noted that the launch of products becomes more complicated because companies are increasingly faced with more and better competitors. In the same way, the needs, interests and preferences of consumers change. For a product launch to be successful we must direct it to the correct target audience and carry out appropriate planning to avoid wasting time, money and acceptance.

Of course, a good product launch contributes to the growth of the company. This, because the company can increase its sales and income by expanding its markets to potential customers that have not yet been touched. For better results, the most important thing is to enter the market at the ideal time and choose the correct customer or segments.

What to take into account when launching a product

It is important to mention that most new product launch processes fail. This can be extremely costly for both business owners and employees. That is why the product launch must be based on sound market research. This should initially include the size, growth and profitability of the market.

In addition, the market segments must be identified and the specific needs of the customers of each segment must be known, as well as the competing products that exist in each segment must be recognized. This, before launching the product.

Given the above, detailed information must be gathered both qualitative and quantitative during the development and launch process. The process of launching a product can vary from one industry to another, or from one product to another.

Characteristics of the product launch process

Although launch processes can vary from company to company, most have several characteristics in common:

1. The process must have the support of the executive level

The launch of a product must have the support of the executive level of the company, since only then can resources such as the time and money necessary to carry it out be obtained.

Above all, support from the executive level is essential for a successful launch. In addition, it helps the people involved in this process to focus on their organizational tasks. It is required to apply a set of knowledge from the different functional areas of the company. This corresponds to the areas of finance, human resources, research and development, marketing and sales.

In any case, none of the steps in the planning process can be neglected for the product to be successfully launched on the market.

2. Basic studies of qualitative and quantitative aspects

On the other hand, there are some qualitative aspects that must be known to carry out the launch process.The most important are the motives, habits and behavior of the consumer.

While the most important quantitative aspects to consider are the size and characteristics of the market.

3. Knowledge of the customer and the segments

Above all, the target market and the segments to which the product is directed must be defined and updated as precisely as possible. This, given that the product that is being launched must cover the needs of this market and these segments. This makes all actions and strategies suitable for these market groups.

4. Knowledge of direct and indirect competition

Certainly, when launching a new product, you can't ignore the competition. For this reason, it is necessary to analyze and evaluate the response that both direct and indirect competition will have.

5. Protection of the new product

Every new product has its weaknesses and its disadvantages. This makes it necessary to carry out an exhaustive analysis of all the elements that facilitate the introduction of the product to the market. The company may avail itself of some financial agreements. Also, some special deals or agreements on delivery, marketing, product display, among some that can be mentioned.

6. Determination of the service that accompanies the product

Similarly, the service that the company will offer must be in accordance with the product that is introduced to the market. These service activities accompany the tangible product before and after sale or marketing. If it were an intangible product, before and after the consideration.

7. Sale price and profitability

Now, to determine the launch price of the product, several important aspects must be considered. These include costs, the proposed sale price, competitive prices, profitability, and expected profit margin.

8. Stocks and supplies

The launch date should also be planned to ensure that the supply and stock of the product is adequate. All financial capital investments that will be necessary to ensure the adequate amount of product in its presentation to the market should be considered.

9. Communication and distribution system

Likewise, the most appropriate communication and distribution channels will be determined. This, to carry the communication message and to get the product to the potential customer. The channels should be the most appropriate depending on the type of target customer or the chosen segment.

10. Legal aspects

In the legal part, it must be verified that all legal requirements are met. These can be items such as licenses, permits, and authorizations that must be current for the product launch.

Undoubtedly, to achieve this, it is required that they be requested with the appropriate and opportune time, so that all these documents are available at the appropriate time or that they are requested.

Product launch strategies

The main product launch strategies are:

1. Entry into all markets simultaneously

In the first place, this strategy is used when the competition has the advantage of being able to enter the market quickly. In this case, the best benefits are obtained by the company that reaches the market first, since it manages to obtain the best distribution channels.

Likewise, the companies that arrive first obtain a better image within the market because they are considered innovative companies. Using this strategy implies for any company to have many risks, especially financial ones.

2. Gradual entry of the product

Second, in this strategy the product is introduced gradually and sequentially in the different types of market. This is done in order to evaluate the results obtained in each segment. So, if a problem is found in a certain segment, the problem is corrected before entering the next segment.

Naturally, in this strategy the risk that the company runs is lower. For this reason, this strategy is recommended to be used in products that are difficult to imitate by competitors.

Product launch
Launch strategies

Basic questions to answer to launch a product

The basic questions that should be reviewed before launching a product to the market are:

1. Where is the product launch convenient?

  • In which market should the introduction be made.
  • Which market to follow.
  • The export market should or should not be included.

2. When should the product be launched?

  • Choose the best time for the launch.
  • Know the current situation and economic prospects.
  • You must take advantage of some special effect or seasonal influence for the launch.

3. Who should the product be directed to?

  • Find the best prospects in the market.
  • Identify buyers who would quickly adopt the product.
  • Who will be the frequent users.
  • Which buyers are the opinion leaders.

4. What are the most appropriate communication and distribution channels?

  • Media.
  • Direct, indirect or mixed channels.

5. What will be the pricing strategy used?

  • Low prices or market penetration.
  • High prices or market skim.

6. What resources are needed?

  • Financial capital.
  • Human Resources.
  • Weather.

7. What reactions do we expect?

  • Reaction of customers and buyers.
  • Competitors response.

8. What modifications should we make?

  • In the product.
  • Packaging.
  • Communication strategies.
Product launch
Basic questions

Finally, we conclude by saying that the product launch must be reviewed and refined to prevent something from going wrong. It should be taken into account that the entire launch process is a chain, so each step must be reviewed. But the most important thing to be successful is entering the market at the most appropriate time and choosing the appropriate target audience.

Tags:  accounting passes markets 

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