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Companies need to determine the factors which can influence the product acceptance in market by analysing the following.
1. Industry : Normally companies will try to follow or replicate the best practices prevailing in their industry to achieve higher customer retention.
2. Market Trend: In this changing world companies will try to adopt new trends in market which are grabbing higher customer attention like Few decades back the generation gap in customers is around10 years after that it got shrink to5 years now it is less than1 years. It means the product which is well accepted in market will get continue to enjoy its dominance or survival up to10 years. Now a days marketers need to add new flavors or features with in1 year to enhance customer experience to maintain market share.
3. Past Performance: Companies need to identify core strengths for which customer is accepting your product like Micromax mobiles got success in India because they offer new updated featured mobiles at affordable price and due to this they constantly launch new mobiles with upgraded features to retain their image in customers mind.
4. Product Innovations: Companies need to adopt new technological innovations which will act like a game changer in market like Samsung who taken full advantage of Android platform and its competitors like Blackberry and Nokia taken back seat who resisted or ignored the change.
5. Competition: We need to analyse each competitor and evaluate each competitor's product by SWOT analysis method which will help us to design our strategy.
Hi Shahnawaz
Thanks for placing a relevant question and also I find replies of all respondents quiet agreeable and interestingly with most of relevant factors already answered.
Still, I wish to explain it through an generic example, we have this beautiful Gillette product called MACH Series Blades with a value proposition of a Smooth & Faster Shaving results. Now this product is standardized but yet is customized with Improvements in every new series, you can see MACH2, MACH 3 , MACH4 , MACH5...So this product is centered around a single value proposition but with different form factors and every subsequent product release has a higher level of utility for the end consumer.
As the trust in brand develops & thus increases the willingness to pay, customers are expecting higher level of commitments & increased level of Utility for the consumer.
Risk of Obsolescence :The risk of obsolescence of older versions of product increases & these may have to be phased out. So the demand planning becomes critical , and in such cases Sales force forecast has to be based on Aggregate Output Planning. To offset for such a risk, all new launches are generally priced very high & eventually their price reduces with economies of scales & efficient production..
Learning Curve Of production:How fast the production engineers can learn producing the customized product? is something to assess for. This should not interfere with a old production.. Generally, all companies have dedicated production teams to work on a new launch.
Packaging: New Packaging to have a positive impact on Brand Equity. There have been products like Maggi who once changed its wrapper, observed a decline in sales.
Distribution: Distribution is absolutely important for a new launch. Demographic study of acceptance of high priced product should be carefully done, accordingly distribution shall be carried out. I am assuming that you have well set distribution channel.
For new launches, it is first recommended to use the Direct Channels of distribution available, depending on the sophistication/complexity of usage of product.
I hope this should be useful for you. Thanks for enlightening me as well :)
Is your question related to a product already launched for consumption with all PD checklist done and certified standardized?
Frankly 'Standardized & customized' though are very Important elements but are now comes under 'Basic' requirements of the products to even consider a 'Fit in' in the category.
Thus, it will not act as an edge or as competitive factor as most competition will also have standardized & highest quality products.
Though Geography where it is launched is equally important, thus my answer will be based on GCC:
1) Launch or Introduction of a range should be first cleared of all Municipality, regulatory labeling requirements (Without which legally any product cannot be sold in UAE)
2) Ensuring the 'Pricing Methodology' is carried out effective. Based on the competition & your Margin requirements the pricing to be laid. Though GCC is tax haven (No taxes) there are some 'Entry Barrier' & regular Investment requirements which has to be covered in the margin. ('Entry Barrier' - In the form of High Listing Fees, Rentals for higher display, Fees for promotion etc)
3) Ensure based on the Target Market, products must be easily available thus should be listed in all Major chains firstly than ND should be improved (ND = Numerical Distribution by increasing presence in smaller outlets, van sales etc)
4) Based on the Budgets available, must involve in ATL & BTL activities (Thus to create awareness against1000's of competitor's available "In-Category"
5) Ensuring proper display , shelving & merchandising (Try to implement 'Eye-Level' display if possible) - As this will give more attention from consumer point of view, as research proves that 60% of the customers buy items that are easily available)
Though there are endless requirements, above are some of the basic requirements or essentials for Launching as well being competitive & profitable. :-)
The important factor to be considered while launching a new product.
We normally launch products which are customized and standardized specially if we aren't the innovator or the1st to launch such product. That's why its a bit harder as a product manager. Thus, you must be vigilant and creative to be notice. Always go back to the extensive SWOT analysis you have done for the product. Also, the4 P's should always take into consideration.
Below are the checklist:
You may get really excited about launching a new product, but there are many steps to follow for doing this. The marketplace is not always well organized and you should not let things get out of hand. There is a full product launch checklist of things that have to be considered at the start. If one or more of them are skipped, things can end up badly. Any individual who wants to start with product marketing should consider the following checklist:
1. Study Your Competitors
Check the products of your competitors and try to understand what are their weak points and their strong points. Get their brochures and watch their ads. See how they made their launch, if this is possible. Verify if your type of products is already on the market and if other companies have launched such a product.
2. Review Your Budget
This is a very important point from the product launch checklist. You will have to check the amount of money that are spent on the development of the product first. The total budget is used for many things, such as development, production, promotion, paying employees, etc. You can calculate how much will remain for the launch. Any product launch involves the need of a budget.
3. Planning and Establishing Goals
Product launch planning is important for all the activities that are necessary: manufacturing, marketing, product support, sales, etc. The required resources must be allocated. Everything and everyone must be prepared for the launch. Normally, goals are established during the development process. What you have to do now is just to review them.
4. Test Your Product Before Launch
Depending on its type, your product can be tested in different ways. You can use your family members, neighbors and friends for testing. The staff of your company can also test the product. It is better for you to find the issues yourself instead of being found by customers. Testing can be good for eliminating any issues that your future customers may have with the product.
5. Run a Sales Test
You have to test your business model and this can be performed by running a sales test. Your sales personnel should be well trained before a test is performed. This test can help you have an idea about how your team will perform when the actual selling campaign will start. Once you train the team, the team can begin to sell and you can get feedback from its members. You will be able to find out what the best means of getting sales are and what the proper tools are.
6. Use Case Studies for the Launch
Once you test the product and the sales, you can write customer testimonials. In this way, you will have case studies for your product at the launch, instead of making a presentation of the potential benefits of using your product. The prospects will be able to see that the product has already been used by other customers and that they are pleased with it.
7. Target Your Customer Base
Before launching your product, you have to know who will actually buy it. Focus on the market area that will provide more prospects for you, as this will help you to succeed. There are many mistakes in the business world that are related to this aspect, because many people ignore this step. You may have to slowly draw in customers from your competitors, but this will not be possible if you don’t have everything prepared.
8. Make Your Inventory Ready for Sales and Distribution
You should have all the things that are needed for storage and distribution prepared. You surely don’t want the promotion to be a success before you can actually deliver the product to your customers. After the inventory is prepared, it should have the proper levels and must be maintained. You have to be ready to replenish the stock in case every product sells. Reacting in time to the demand of consumers is one of the key factors for success.
9. Pack Your Products Well
Take care of the packaging needs. Your products will have to be fully packed and the packaging must include all the necessary information. In this way, customers will be more likely to choose your products instead of selecting products from your competitors. The packages should include the product and any instruction manuals, warranty documents and other papers that come with the product.
10. Get Ready for Promotion
You can prepare the ground for promotion in different ways, depending on the means that are used for promoting your product later. For example, you can start writing lots of web content. Your future customers can in this way understand the reasons for which they should buy the product. You could write the content explaining that the product will be available at a certain date. You can also create videos, banners, infographics, fliers, etc.
11. Establish Your Pricing
Pricing is not something to be neglected, because it can directly affect the amount of money you will make from sales. You established a business to make profit, right? The pricing of your product has to meet the following requirements: volume, margin and profit. Sales promotions are included in this as well. You need to know if you will have sales promotions or not.
12. Last Minute Verification The last objective of this product launch checklist is to perform a last minute check of the product and everything related to it right before launch. Make time to verify if your product is fully ready for sales. You don’t want to ruin everything just because you missed one small thing. The day of the launch should not be neglected.
Conclusion
Releasing a product is not easy, especially when you have a lot of competition. Even if your product is not unique, you can achieve success with it if you make a full product launch checklist and respect it. Serious money is invested in the development, the launch and the marketing of a product. Because of this, launching is very important for a business and has to be performed in the proper way. Once you have launched the product, you have to monitor the campaign and understand what works best.
The introduction of a new product can be a very exciting process, it can also be stressful if everyone isn’t on the same page and there isn’t a solid plan in place before the kick-off occurs. Here are some suggestions to keep in mind while devising a launch plan:
1) Keep everyone on the same page
2) Understanding the Competition
3) Unveil the product at an event
4) Getting in Front of the Right Customer
5) Start with your core stakeholders
