The true test of any marketing strategy comes in the introduction of a new product to a new market. Unlike with what has been tested and proven, you know where to hit, what to do, and what not to do. It simple, you just need an effective SWOT analysis, you get your guns out and you are good to go. When dealing with something new on top of the numerous challenges that go into creating the new product the market is untested and the consumer response unknown.
There is nothing quite as hard in business as breaking new ground. Given the investment that goes into a new product and the potential profits, an effective strategy needs to be drawn right down to crossing the t’s and dotting the I’s. Ignorance is not an excuse and nothing can be left to chance. Know what pointers you must have in your strategy for an effective delivery.
- Minimal investment in the feasibility period
One thing you must understand is the life cycle of a new product right from the unsure stages of feasibility through the boom and the latter stages when the fanfare dies out. One important thing is to minimize the investment when the product is in the early stages of discovery. It goes without saying that if the product does not pass the feasibility then the investment will go do down the drain.
However, even in the event it does not, a huge investment is still a bad idea since, not only does it place too much hope on the outcome, but it places too much pressure creating subjectivity in the launch and maturity of the product as well. The result is that the peak during the boom of the product will not be realized and too much time is taken in the growth period. A great tactic is to launch the product in selected circles and gauge the response before launching into the market.
- Brand well for the right audience
Know the audience of the product, whom exactly you are targeting, and what the consumption patterns of the target market are. You simply cannot launch a new product without knowing the demographics. With any product, there is the primary consumer and the secondary consumers. What feature will they seek from the product and how will they look for it.
This helps in determining the placement of the product the pricing and even the branding. If you target the youth then it has to appeal to them and you place your product where they frequent the most. Branding of a product communicates a message about the product and you want that message delivered to the right people.
- Get the distribution right
Once you know your target market and their consumption patterns, then determining the lines of distribution becomes an easy task. Distribution determines the growth of the product in the market. You want to reduce the time taken for growth and prolong the time when the product is a hit in the market. Even if your product is rightly branded and consumers love it, it does little to your profits if they cannot access it. Proper access and distribution lines widen your scope of coverage and increases both primary and secondary consumers.
- Know your opponents
Every product has a competitor in the market. Another brand out there is either directly competing with yours or another product that meets certain needs of your consumer lowering the numbers of your target audience. Keep your friends close and your enemies even closer. You will do well to know what you are competing against and what incentives do you need to add to seal the deal with the consumer.
If a buyer has to buy something else to complement your product, the minute they will get a product that fulfills their needs all in one, then you will have lost them. Always keep your consumers hooked. Whether or not there is a new product.
- Make hay while the sun shines
Finally, once you have successfully introduced the product done your promotions and gotten your position, ensure that you fully utilize the peak of the life cycle to gain maximum profits because like all things, the fizz will die out and you want to come out with the most that you can when you can. After that, you can embark on the next product or rebranding of the old.