Most business people dream of creating a new product. They are passionate about the idea of selling a product or service that competitors do not have. And it should be a product for which buyers will line up. The idea is good, but not many people manage to find it, let alone implement it. How to launch a new product on a new market, which will leave no chance for competitors in the future?
Difficulty of the task
Bringing a new product to market is not easy and quite costly. In this regard, many entrepreneurs give up their positions at the very beginning of their journey. The difficulties ahead scare off newcomers. However, bringing a new product to a new market is a feasible task. By developing the right marketing strategy in the shortest possible time, you can ensure that the product orservices are at the forefront. An entrepreneur only needs to be prepared for the fact that it is unlikely that a new product will start to make a profit at the initial stages.
Choosing the right strategy
Based on existing practice, it can be concluded that the introduction of a new product into a new market is associated with significant risks. This leads to the fact that not always the implementation of the idea is successful.
To minimize risks, you will need to use the right marketing and use the necessary techniques to help attract consumer attention to a little-known product that has just appeared on the market. Only this will make it buyable and in demand. How to achieve the desired result? To do this, it is important for each manufacturer to use marketing tools that will allow them to produce the product they need for the consumer, selling it when needed, where needed and at the price that would satisfy the buyer.
Currently, many different methods have been developed that contribute to the introduction of a new product to a new market. In this regard, entrepreneurs and businessmen will need, first of all, to study the existing arsenal of marketing tools and learn how to use them correctly to implement their idea. Of course, in any already tested methods of strategy and methods of promoting a product or service, each manufacturer must introduce its own nuances, which will be dictated by specific conditions. After all, classical techniques work most effectively only ifif they are tailored to a particular business.
Be that as it may, the introduction of a new product to the market, before it gets to the buyer, must go through certain stages. They start with concept development and end with commercialization. The strategy for bringing new products to market can be different. That is why we will consider a generalized idea of the steps to promote goods and services.
Developing an idea
How does a new product start? From generating or searching for ideas. They can come from company employees and academics, customers and competitors, dealers, and senior management.
The marketing concept considers the most logical starting point of this stage to be the identification of the needs and desires of consumers. After all, buyers who most professionally use the products already manufactured by the company are the first to notice everything that needs to be improved in it. The company can learn about the needs and needs of customers by organizing surveys, group discussions, projective tests, as well as considering complaints and suggestions from consumers. In the history of world business, there are many examples when good ideas are born from engineers and designers after surveys of consumers were conducted, talking about their problems while using the product.
To create a new product, many companies use suggestions from their employees. Moreover, the desire to create new ideas by employees, as a rule, is encouraged. For example, Toyota employees every yearoffer about 2 million new ideas. Moreover, the company implements 85% of them. And Kodak rewards employees who submit the best ideas with gifts and cash bonuses. This practice is adopted in many other companies.
Good ideas sometimes come from studying the product of competitors, through contact with dealers and sales representatives of the manufacturer. There are other sources that allow a company to start building a new product. Sometimes they are inventors, commercial and university laboratories, trade publications, etc.
Selection of ideas
Any company collects received proposals. In the future, they are considered by the head of ideas. He divides the proposals into three groups - promising, doubtful, and unpromising. Those ideas that belong to the first category are further tested on a large scale. When selecting proposals received, it is important not to make a mistake. After all, sometimes companies reject a good idea, starting work on a hopeless direction. One example of a new product launch is installment trading. At one time, Marshall Field had a premonition of the unique possibilities of such tactics. But Endicott Johnson did not like this proposal. He called installment trading a vile system that can only create trouble.
Product release decision
After selecting the most promising company ideas, the following aspects should be considered:
- expected profit from sales;
- company's ability to acceptidea into production;
- probability of investing in a new project;
- a rough estimate of consumer demand;
- price level formation;
- sales channels;
- probability of obtaining a patent;
- assessment of available resources and the level of costs for the purchase of equipment (in the case of the production of a technically complex product).
Concept development
What is the future plan for bringing a new product to market? The most compelling ideas should then turn into product concepts that can be tested. What does she represent? The concept of a product is understood as an already developed version of a promising idea, which is expressed in a form that is meaningful to the consumer.
Let's consider this most important of all the stages of launching a new product on the market using the example of a company operating in the food industry.
Suppose that its management decides to launch a powder that, when added to milk, can increase its taste and nutritional value. This is just an idea for a product. Further, it must be turned into a concept, which may not be one. For example:
- Who will be the user of the product? In this case, they could be infants, children, teenagers, or adults.
- What are the benefits of the product? Energy boost, refreshing effect, nutritional value or taste?
- When will consumers consume such a drink? During breakfast, lunch, lunch, dinner or latein the evening?
Only by giving answers to all these questions, it will be possible to start forming the concept of the product. So, the drink supposed to be produced can be:
- Soluble. It will be for adults only. It is planned to be consumed as a quick nutritious breakfast.
- Childish. The product will have a pleasant taste and can be consumed throughout the day.
- He alth enhancing. Such a drink will be necessary for the elderly to drink in the evening.
At the next stage of launching a new product on the market in marketing, a categorical one is selected from all these concepts. It will determine the area of product competition. For example, an instant drink will become an alternative to eggs and bacon, cereals, coffee, muffins, as well as other products included in the breakfast menu.
Building a Brand
What is the future plan for bringing a new product to market? The product concept at the next stage should turn into a brand concept. A new drink needs to be significantly different from those already on the market. This applies to its average calorie content and price. A company should not position a new product with existing brands, otherwise it will be quite difficult to win its place in the sun.
Proof of concept
What should be the next marketing strategy to bring a new product to market? At the next stage, the company needs to test the chosen concept. This can be done by testing the product with a specific audience of target consumers. itwill let you know their reaction.
A plan to bring a new product to market may involve presenting a product concept in some form. It can be either symbolic or material. At this important stage of launching a new product on the company's market, a graphic or verbal description of the product is sufficient. However, it is worth bearing in mind that the effectiveness of the test will be most reliable when there is a large similarity that can be seen between the tested concept and the finished product.
An example of bringing a new product to the market at this stage is designing it on a computer with the manufacture of a plastic model of each of the options. Thus, toys or small household appliances can be created. These replicas will allow customers to get an idea of the appearance of the new product.
One of the steps to bring a new product to market is the creation of virtual reality. This is a computer simulation of the surrounding reality when using touch devices such as glasses or gloves. Such a program is often used to familiarize the consumer with the new interior of his kitchen, the furniture from which will be purchased from this company.
Developing a marketing strategy
How will the new product be brought to market in the future? In marketing, the next stage in the implementation of a promising idea involves the development of a preliminary strategy plan. It represents certain stepsthat a company has to go through to sell its product or service. In the future, some corrections and clarifications may be made to the strategy for bringing a new product to the market, depending on the current situation.
The developed plan should consist of three parts. The first of them contains information about the volume and structure of the target market, as well as the behavior of consumers on it. It also describes the positioning of the product, expected sales volumes, planned profits and market share. All these data are calculated for several years ahead.
The second part of the marketing strategy plan contains data on the pre-formed price of the product, its further distribution, as well as the level of distribution costs during the first year of sales.
The third part of the marketing plan includes indicators of product implementation and revenue generation in the future.
Production and sales capabilities
At the next stage of product promotion, it is important to consider the business attractiveness of the offer. This can be done by analyzing the calculation of estimated sales and costs, as well as profit.
They must all be consistent with the goals of the company. In the case of positive results of such a check, you can begin to develop the product itself.
Creation process
At the initial stage, it is necessary to prepare production for the release of a new product. To do this, they develop technology, manufacture the necessary equipment and purchase additional tools.and equipment. Further, the production of prototypes or a batch of newly created products is carried out. This completes the creation of a new product.
At this stage, test sales should be prepared and carried out. They represent the implementation of a small number of experimental products. Such a move will allow for an additional check of the market, clarifying the need of the population for the created product. When introducing prototypes of a product to the market, one should not hope to receive the planned profit. At this stage, it is important to check how customers feel about the product and, if necessary, adjust the methods of its further promotion.
Going to market
At this stage of the launch of a new product, all departments are involved and all functions of the company are affected. These are production and sales, procurement and finance, personnel, etc. At the same time, operational marketing is connected to strategic marketing, which will require the participation of a tactical as well as a project manager.
As a rule, at this stage, the company's work is unprofitable, and if it makes a profit, then it is insignificant. It's all about the costs of promotion and further development of distribution channels, which are quite high. That is why, at the initial stages of a product entering the market, it is necessary to offer consumers only those options that are basic, because customers are not yet ready to consider modifications to a new product.
In addition, when introducing a product to the market, manufacturers should focus ontarget audience. In it, product expectations and requests are the most studied and predictable.
At this stage, an important role belongs to the distribution channels and further distribution of products or services. They should be given special attention. With a competent solution to this problem, a place on the market will be won in the shortest possible time and at minimal cost.
What will be the choice of implementation system? It depends on the features and characteristics of the product, the image of the company and the product, as well as the reputation of the company.
When developing a marketing strategy, two options can be considered:
- Direct distribution. In this case, the product from the manufacturer goes directly to the consumer. This scheme is most acceptable for the sale of high-tech goods, as well as for expensive and large transactions.
- Distribution with the participation of intermediary firms. Often, trading organizations have a large amount of resources necessary to bring the product to the end consumer. In addition, they provide the buyer with a wide variety of brands to choose from, which allows the client to significantly save time.
When forming a sales strategy, a marketing plan for promoting the product should be drawn up. At the same time, it should be borne in mind that there is no universal tool that would allow introducing a new product to the market. For example, large firms in this case invest impressive amounts in advertising on radio, television and on the Internet. They place outdoor advertising, as well as carry out the promotion of goods in places of itsimplementation.
Smaller companies are deprived of such an opportunity due to lack of funds. As a rule, they use word of mouth, contextual advertising, social networks, etc. In addition, marketers recommend doing everything possible so that a new product placed on store shelves compares favorably with offers from other companies, is attractive and bright.
If all the efforts invested in the promotion of the product did not bring the expected result, then experts recommend making changes to the promotion strategy. In this case, you will need to use other types of advertising and promotions.
At this stage of introducing a new product to the market, determining the size of the advertising budget, drawing up a promotion program, and also finding the means of communication through which such work will be carried out is of particular importance.
Introducing a new product to consumers should be bright and memorable. To do this, advertising should focus on the features of the product and its differences from existing analogues. In the early stages of launching a new product on the market, it will be more rational to sell it via the Internet through participation in specialized exhibitions, etc.
As you can see, many factors influence the success of a new product on the market. That is why at each stage of the project implementation, the company must approach the matter comprehensively. This will allow new products to gain a foothold in the market, winning the hearts of consumers and bringing a stable profit to the company.
