Entrepreneurs dream of a new product that is eagerly snapped up by consumers. And when that happens, the arguments are there for the taking. It is a great product, it was a good advertising campaign, influencers made a significant contribution, the product performs well on social media, and so on. But what were the predictions for launching the new product? And can factual evidence of its success be provided during the analysis? In hindsight, it is difficult to pinpoint exactly what contributed to its success. If that were the case, it would provide a solid foundation for future new products. Unfortunately, most new products do not achieve the desired result, hence the tips below.
Success rates of new product
Launching new products has a low success rate. A new product in an existing market has a success rate of 10%, whereas in a new market it is only 5%. This means that the process from idea development through to sales must be well prepared. Several phases can be incorporated into this: idea development, product definition, prototyping, validation/testing, and commercialization. Marketers who handle this well have a greater chance of success.
Idea development
There are three ways to apply idea development: doing it yourself, in collaboration, or outsourcing. Doing it yourself with specialists and employees from your own company is a possibility. However, a certain degree of corporate blindness can play a role. Collaborating with third parties has proven to be more successful. It is important in this regard that various disciplines contribute to the idea. Outsourcing has the disadvantage that you are less involved yourself. There is greater dependency, and it can cost more.
Traditional idea development has a lower chance of success because less information is obtained. The genetic algorithm (GA) is the artificial intelligence that can be used to find solutions to optimization and search problems. This tool enables the automated development of many hundreds of concepts.
Product definition
A clear, complete, unambiguous, and precise statement of the technical and functional requirements of a product and of the procedure to be followed to determine whether these requirements have been met.
Prototype
The prototype must be examined and analyzed down to the smallest detail. This is of primary importance, as it will be discussed further. Naturally, the question arises as to whether the product can still be improved. Some of the most critical factors are the lineup, pricing, and packaging. Additionally, marketers must optimize the go-to-market plan. Use the tools to improve the prototype based on consumer input and preferences.
Validation
Validation is the checking of a value or method for validity or correctness. In essence, through verification or qualification, it is demonstrated against a number of pre-established requirements that the new product is capable of delivering the intended results with a high degree of certainty.
Now the questions arise: do I have a successful product, is my plan optimized, and can expectations be met? Research has shown that there are a number of crucial factors, such as the product’s distinctiveness. Is the value proposition distinctive and does it attract attention? Is the communication of the message clear, targeted, and simple? And what is the product’s appeal? Does it meet a consumer need? Are there competitors? Is the marketability well-developed? Is the product easy to purchase? Is the pricing attractive? Answer all these questions and compare them with the proposition.
Commercialization
Even if all of the preceding steps have been executed perfectly, that is no guarantee that the product will be a success. The final phase, commercialization, is necessary for that. For without that final phase, over 35% still fail.
Create a complete sales plan and phase the steps to be taken within it. Many aspects such as website, target audience, sales opportunities, distribution, pricing, advertising, etc., need to be prepared in detail. Once all of this is clear, the launch can begin.
