Launch a new product or service

Launching a product or service is a critical step for a start-up or early-phase business. Done successfully it can set the business on the path to growth and viability. Botched it can set the business back years in its development or worse. So it is critical that the launch is successful.

Steve Wood, director, SEEDA

Most new product trials fail because businesses have simply not planned their approach in sufficient detail and eventually run out of cash. These points should act as a guide for where to start and hopefully ensure you avoid the worst pitfalls.

•    Be clear about the customer need that you are answering

Most successful new product launches are those that meet specific customer problems.  The really successful ones have first hand experience of these needs from working within their prospective customers’ businesses. 

•    Complete an initial sanity check

Talk to prospective customers (or their representatives) in general terms about what their needs. But remember that secrecy is the best form of defence at this stage, so be careful not to give away too much.

•    Draft a product description and Frequently Asked Questions (FAQs) 

Share this with your team, allowing time for them to digest, understand and debate the product proposition. Their contributions are invaluable and this will get them thinking about what is required to get the product to market. Many brains help overcome potential problems at an early stage.

•    Do detailed market research and competitive analysis

Make sure that the product addresses a clear, strong, growing market. Understand the customers, their segmentation and the channels to market and estimate their profitability.   Don’t believe that there is no competition; customers almost always have an alternative.

•    Understand the mechanics of getting the product from the drawing board to the customers

Consider the value chain in detail, from product development through marketing, manufacturing, sales and customer management. Those activities crucial to the success of the product should probably be managed in-house. If not, consider whether they can be outsourced without affecting quality or service levels.

•    Formulate a launch plan

Break down the work and establish what will be delivered when and by whom, then track progress against this plan.

•    Cost the plan

There is nothing wrong with being ambitious, but be realistic. You need to ensure your money doesn’t dry up before the cheques start coming in. All too frequently prospective clients seek instant investment to complete their product launch.

•    Take appropriate steps to protect your product

From here on in you will need to start talking in detail to prospective customers so your secrecy cover will be blown.  Consider patents, registering design rights, trademarks, web sites etc.

•    Will the dog eat the dog food? 

Once you are happy with the design, produce a prototype and run customer field trials.  This is an iterative process that will show up any unexpected shortcoming. This feedback is invaluable and this process frequently gives you your launch customers.

•    Finalise the “Go to market plan” 

Ensure all the processes are in place and finalise the launch plans. Review the marketing and launch programme, stock build, train sales and customer services and ensure back-office structures are in place. A final review is vital to maximise your chance of success.  And make sure you have contingency plans … just in case!

•    Now Go For It 

Set a clear launch date.  It’s a critical event, so everybody on your team should know about it and help to support it.  Keep a watchful eye that all the “moving parts” come into place as planned and be prepared for last minute refinements.  

•    Don’t relax once you are in the market 

Operate a period of “intensive customer care”. New products usually take at least three months to bed in when it is important to pay close attention to both your product and general market trends and respond quickly to any problems. By doing this you will maximise your prospects of gaining a strong foothold in the market.

Steve Wood is hub director of the Gatwick Diamond & West Sussex Enterprise Hubs, part of SEEDA’s Enterprise Hub Network, which helps the South East’s high potential entrepreneurial businesses to get off to the best possible start.

www.enterprisehubnetwork.co.uk

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By Steve Wood  on   Jul 11,2008

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Keywords

launch a product    launch marketing    FAQs    competitive analysis    market research    business plan      

Comments

Winston Barlow
There's some nice ideas here. Look at this new product launch example: http://www.impactexecutives.com/for-clients/client-successes/new-product-launch.html Report Abuse