Yet, new products have a poor success rate. Only about one in five survives longer than a year, and new product launches are six times more expensive than line extension launches. A product launch will not guarantee the success of a product.
The Beginner’s Guide to Successful New Product Development
A good launch cannot overcome a flawed product. As you begin to develop your product launch strategy, answers to the below questions will help you better develop your approach:. Keep in mind that the launch and product are separate efforts and therefore need their own measures. Also, different products need different types of launches. There is a myriad of reasons to add a new product to your portfolio.
All new products are worthy of being properly launched into the market, but not all products are worthy of the same launch effort. Launches of any kind take resources, people and cash. It is helpful to have a method to determine what kind of launch is appropriate for what kind of product. The kind of launch should be determined by the reason why you are adding the product and its role in your business. We often recommend that you have a method for organizing your new products in launch classes. Different classes merit different efforts.
For example, you might create three classes: X, Y and Z. A Z class might be a product that fills a gap in an existing family of products, offsets some customer risk and brings your competitiveness back to equilibrium. An X class might reflect products that are innovative and completely new to the market, products that are disruptive and give you a competitive advantage. Clearly there is a difference between a Class X and a Class Z product.
While they are both important, your plan level of investment will be different. Once you establish your launch classes, then you can decide how you will launch each class to your various stakeholders, such as your existing customers, existing partners, influencers such as the press, analysts and other industry experts, and of course your internal stakeholders in sales, customer service, production and so on.
Define what channels and touch points you will deploy for each stakeholder for each class. One tactic you might want to try is coming up with a value-driven statement, says Joshua Ness, a New York City-based innovation strategist and co-founder of StrategyHack , which specializes in helping established companies collaborate with startups to develop new products and services.
The Strategic Difference
Ness says that one of the first things any company should do before spending a lot of time on the creative process is examine why you're developing the product and who it's for. That may seem like an obvious step that will take about 30 seconds, but Ness says that he has seen many owners and their teams spend a few hours debating all of this.
If you're simply developing a basic add-on for your business, like developing that fourth or fifth flavor of soda, some of this may be overkill. But generally, when you're trying something new, these statements can help keep you focused. For instance, Ness says that he worked with a ride-sharing service that, before he came along, spent a year brainstorming ways to compete with more well-known ride-sharing services.
It wasn't until they crystallized their value-driven statement that they came up with a different business model, in which they catered to crowded places like airports and trade show conferences. There are a lot of innovation specialty firms that work with companies.
In short, they assist in discovering new products and services and even train business owners, managers and employees to innovate. And, sure, that won't be cheap.
Product development that works | IMG
But assuming you hire one that's reputable and comes with a lot of recommendations, you might end up saving a lot of money in the long run. Smart says that innovation doesn't come about due to luck or even having the right skills in your team. It's impossible to say, of course, whether an innovation firm is right for your company. It depends on the firm you hire and how in sync their company is with yours. But a good innovation consulting firm, according to Smart, will help you stay focused on successful market outcomes, keeping your innovation costs down and will conduct front-end market research from the point of view of the customer.
That last part is critical, according to Smart. Whether or not you bring in a consultant, business owners and consultants tend to agree on this next point—consider looking for inspiration and ideas beyond your company. If you're really ambitious, you could put together a task force of your best and brightest employees to study what the competition is doing and have them report back with their findings in a few weeks or months, whatever you think it'll take.
That's something the U. Navy did a couple years back, creating their own innovation task force. You might make a habit of going to more trade shows to look for inspiration at what your peers are doing. You could begin holding focus groups with your loyal customers to see what they wish you were doing. Or if your business is full of younger employees, you may want to hire someone who has been working for a few decades.
You could also reach out and find a mentor at SCORE , a nonprofit in which volunteers, working and retired professionals offer free advice to business owners. But while those outside voices are important, let's not throw the inside ones under the bus.
Product Development – An Overview: From Idea To Product
Consider soliciting opinions from everyone inside your company and those associated with it. It may be beneficial to speak to anyone who could have a role in getting your product or service off the ground, says LaKiesha Tomlin, owner of Thriving Ambition , a career coaching website for executives in science, technology and engineering. That could mean any key personnel who works in production, quality control or your global supply chain. She also suggests talking to any other organization that you consider crucial to your product development success.
Learn more ways to get business done.
- How to Bring New Products to Market Successfully | IndustryWeek?
- Product Development - An Overview: From Idea To Product!
- 4 Important Steps To Turn Your Idea Into a Successful New Product.
- Related posts!
- Product development that works.
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