New Product Launch
It is unusual for a new product on its own – regardless of how innovative or breakthrough it may be – to deliver revenue for the company if the launch fails to (1) communicate the product’s promise, and (2) convert buzz into revenue.
In that sense, a product’s launch is perhaps the most sensitive step in achieving growth through innovation and new product development. Customer behavior must be altered; sales reps must be trained; the new product must make a good first impression. If these objectives can be achieved, growth will likely follow.
New Product Launch Issues and Challenges
At the core of new product launch lies a fundamental point of tension between how businesses and markets behave. Although companies rely on new products to increase share of customer wallet, erode competitors’ market share, and boost revenue, markets are more likely than not to reject new offerings – or at the very least, accept them reluctantly:
Approximately half of all new product launches fail.
Many products fail to gain a foothold in the market, regardless of how innovative or breakthrough they may be. Customer reluctance to change, overly ambitious revenue expectations, or a rush to market can all jeopardize a product’s success.
Even the most innovative products – those that revolutionize or create new categories – are also often unsuccessful when first introduced. Often a re-launch involving significant changes to the product/service’s functionalities is required to drive success.
According to one study, 47 percent of first movers have failed, meaning that approximately half the companies that pioneer new product categories later pull out of those businesses.
Over the years, Frost & Sullivan has helped clients across many sectors to launch new products or services, in most geographies around the world. We have developed a launch process that is unbiased, repeatable, and focused. Among other activities, Frost & Sullivan’s process for launch can help you:
- Time, plan, and set goals for new product launch
- Achieve precision in marketing, sales, and distribution planning
- Position products, train the sales force, work with channel partners, and communicate with customers
Frost & Sullivan’s start-to-finish approach to New Product Launch can help you:
- Carve out and articulate a new product’s niche within the larger category
- Generate interest through targeted media outreach
- Assess sales and marketing performance
- Support in the development and implementation of powerful launch programs
- Support in the operational launch with solutions aimed at addressing the typical challenges faced in a launch process, eg regulatory and registration compliance, IP protection, operational and organizational set-up, implementation of partnerships/JV, marketing and PR campaigns