The Executive Suite: How to Launch a New Product

Saturday, May 18, 2013

How to Launch a New Product

Developing and launching a new product takes time and capital. You believe in it and, when it's ready, you want to show the world what it can do and convince those in your target market that they can't live without it. Your goal is to sell enough to pay you back for its development and then to make a steady and increasing income in the future. However, if you aren't methodical about the development and launch, you may be cheating yourself out of sales.

Product Development

Provide the proper manufacturing process. Once your development is streamlined for mass production, you will know the exact amount of capital necessary to produce your first batch.
Set the retail price of the product based on your manufacturing costs and what the market will bear for something of similar performance
Test the finished product to ensure quality control. Pull samples from different batches to check for uniformity of brand and consistency of performance.
Distribute the finished product to a designated test market. Have a list of questions to be completed by each tester accompany the product. Have group discussions with testers to ensure that no issues go uncovered.

Evaluate the feedback from your test market and implement changes that you deem necessary to respond to defects or upgrades that will improve your new product.

Find your target market. Analyze your product and figure out what type of person would benefit most from it. Decide on such criteria as the age range, location, lifestyle, educational level and occupation.
Research your competition. Buy all products that are most similar to yours to become familiar with them and are able to differentiate your new product from those already on the market.
Develop a marketing strategy. Start by budgeting enough to give away your new product to members of the press or other key individuals or businesses in your target market. If your item is outstanding, it may create buzz by those who are using it. Add online marketing to include a website, blog and social networking. Ensure that the advertising you plan will give you the most impact for your money.
Hire the right individuals to sell your new product to stores and members of your target market. They should believe in what the product delivers and convey that to prospects. Train your staff fully so they will be prepared to answer any questions about your new product and that of the competition.
Create brochures and other handouts that explain the product features. Have your sales force leave them behind after meetings with potential customers. This will give the prospect an opportunity to read information that was forgotten or not covered in the meeting.