Are you thinking about launching a new product? Most companies have a budget set aside for new product development. Aside from having a management degree, which is essential for any start up, there are some major factors that can kill your new product launch. However, if you do not have a masters in management, you could significantly increase your chances of success by getting one. Click here to see how to get started today.
Once you have taken a slew of fundamental business and management courses, you’re in a much better position to succeed in your venture. In this post, we will cover seven of the most critical factors that could significantly hurt your product launch even after receiving a masters business degree in management. After reading though, you will be able to avoid these mistakes and carryout out a successful product launch.
Reasons For Product Launch Failure
Here are the majore reasons your product launch may fail. Use them to reassess your product before it hits the market. If any of these mistakes are avoided, it could net you millions in added revenue. Yes, millions. Once a product launch is successful, your profit potential is sky-high. And if your launch fails, then you could be looking at significant loses.
1. Product Demand
You might have found a niche that really needs your newly developed product. However, are there enough people within your target market? If you are planning on selling to the general public, you are going to need high volume of sales to really make your business successful. Unless, you plan on selling products with a high price point. Which brings me to the next topic…
2. Product Pricing
If your target market is low to medium income individuals, you are almost always confined to lower price points (with the exception of cars, houses, etc.). However, you can price higher when selling to businesses as they are investing for a profit. Either way, your pricing needs to be value-based to your customer. They have to feel that they are getting more value than what they are paying for.
3. Communicating Your Product
New products cover a wide range of understanding. If you are launching a completely new, revolutionary product, then it’s use and benefits need to be clearly communicated to potential customers. If you are launching a new product for your company, with a slight edge above the competition, your new customers need to be aware.
4. Marketing Mix
In order to communicate effectively, you have to choose the best marketing channels to reach your customers. New and existing business can use social media promotion or the press to reach out to potential customers. You can learn more about how to create buzz for your product launch here.
5. Meeting Expectations
Your new product must meet all the expectations that you set for it. Customers must have a positive feeling attached with the purchase and use of the product. This will result in top selling reviews, recommendations and word of mouth.
6. Consistent Quality
Once you have communicated use and benefits to the customers, you need to deliver on it every time. This means having a strong production point with even stronger quality control. If you are able to deliver a quality experience consistently, you will build up a strong brand and reputation for the company.
7. Scaled Distribution
You can do all of the above correctly, but still fail. Achieving scalable distribution to sell to your customers can be the hardest and most expensive part of your launch. In order to make your launch successful, you need to make sure that you have your distribution channels set up ahead of time. Or else, you might end up with a brand new boat without water.