Launching a new product can be tricky. If you are a business owner, chances are the following scenario either has happened or will happen to you. Your team develops a product which you think will completely revolutionize the market. You spend months planning your launch strategy, marketing materials, and growth plan. Then launch day comes, the info about your product is out there, and nothing happens. Or worse, your customers are unimpressed and come back to you with negative feedback.
Unfortunately, these scenarios are all too common when bringing a new product to market. An estimated 70-90% of new products fail, according to a recent study by product research firm AcuPoll. Here are three of the most common product launch pitfalls and how to avoid them.
Uninformed pricing strategy
Many products fail because they are not priced well. Most commonly the issue is that the price is too high and customers simply cannot afford to make the purchase. But sometimes businesses price their products too low in an effort to pique people’s interest. While this may seem like an effective strategy, there are two major concerns here. First, your customers might end up shying away from purchasing because they will wonder about product quality. And second, manufacturing costs may be too high for your business to profit. If there are similar products on the market, do an analysis of those to determine how you should price your product. If your product is completely new, conduct a market research campaign to help identify a fair price.
Poor knowledge of the market
One of the fundamental questions any business owner should ask before developing a new product is: Who is going to want this? Some of the most innovative products fail because there’s simply no market for them. Others never make it off the ground because business owners are simply targeting the wrong audience with their marketing efforts. When it comes to launching a new product, it’s critical that you know your audience. A market research campaign can help you determine whether there is actually a market for your product, and if so, who you should be targeting with your marketing efforts.
Jumping the gun with product launch
Launching a new product is exciting. Sometimes it’s so exciting that business owners get caught up in their enthusiasm and rush the product to market before all the kinks are worked out. This can be problematic in a couple different ways. First, it’s likely that your customers are not going to be impressed. And they are probably going to be vocal about their disappointment. Second, a rushed launch could be catastrophic for your business. Even if your company was seen in a positive light previously, consumer trust will be down if your new product is buggy. It’s important to take the time for adequate testing to ensure that your product is actually ready to hit the market before you launch.
Many product failures can be avoided by conducting a thorough market analysis and doing enough product testing before launch. A little market research can go a long way towards ensuring your new product will be a success. A dedicated campaign can help inform your pricing strategy and laser-focus your marketing efforts on your target audience.