How to introduce a new product to the market in 5 steps?
January 10 2021
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You have an idea for a product and want to sell the item? Or maybe you feel it’s time to enhance to offer of your company? No matter the situation and your internal motivations, the process of new product introduction is always similar and it’s not easy. What is worth remembering? How to guarantee yourself success? Learn how to introduce the product to the market.
Every new business move is linked with risk. Especially when it comes to introducing a new product on the market. It requires a lot of time, attention, and resources. You have to prepare for it – it will increase the chance of success.
How to introduce a new product to the market, step by step
It depends on what your product really is. Some factors will be crucial, some not important at all. However, some things you have to think over and plan for. You have to analyze and define needs, behavior, and customer journey. Only when you’ll have this kind of knowledge, you will be able to plan the strategy of introducing a new product on a market, its further development and promotion. It will also help you decide on sales, marketing, and distribution elements. How the whole chain of events leading to introducing a new product on a market should look like?
- Defining client persona and the needs
Every product should offer some value to the customer. It usually is designed to fill the needs of a very specific target group. Defining its needs is very important – you have to know what you want to exactly sell, to whom the marketing messaging is targeted and why a member of a target group would want to buy it. Start with needs. The best tool for this purpose? Professional marketing research (quantitative and qualitative). The other way is to go ahead with an audit in your retail locations.
2. Market and competition analysis
Market analysis is also a must. You should make a sales prognosis for the whole category, SWOT analysis, and all similar market research gimmicks. Then, find all companies that make your direct competition and get familiar with their products. Pay special attention to factors that make people buy from these companies. Find out what customers are praising, and what would they gladly change. Try to also think about what are the reasons they come back and shop again.
3. Sales strategy for the new product
Sales strategy should always begin with the holistic definition of the product itself. If you want to create a brand, turn your product into something more than yet another, let’s say, razor blade. Do you differentiate because of the quality of the product? Ecological value? Maybe price? This last thing should not be the ultimate factor, but rather a bonus. To find out what direction will be the most beneficial for a new product, define it by using:
- SWOT analysis,
- pricing strategy,
- sources for recommendations
- target groups
- buying personas
- USP (Unique Selling Point)
When you will have all that, it’s easier to create a marketing strategy.
Define distribution channels and quantitative goals for sales. Choose ways to reach different target groups and marketing messaging methods.
4. Marketing strategy
Then, define the tone and the way the brand communicates with the customer. Even the best and perfectly crafted offer will be for nothing if the customer won’t know about its existence. Remember to include the USP in the messaging – make it the star of your content efforts. It’s crucial to pair the information and ways to display it with the nature of your audience.
Explore the behavior of your customers. The language they use, values that are important to them. It can be the created shared value (CSV). Analyze the competition, learn from their mistake, and create your code of conduct. Improve internal processes to better serve the target group.
5. Product lifecycle
Every product has its own lifecycle. Here are stages for it:
- introducing the product to the market,
- increase in sales
- product maturity
- decline of sales
Every stage requires a different approach to marketing and strategy. The key to success is about staying agile and being able to adapt to dynamic market conditions. But the most of all – optimization of marketing strategy.
How to introduce a product to the market? A brief summary
The introduction of a new product to the market starts long before it’s even being produced. You have to know all there is to know about the customer and market reality. Weaponize your knowledge, create a sales and marketing strategy for every stage of the product lifecycle.
If for some reason you can’t, think about business consulting.