Product Deployment Strategy
Whether a company is launching its first product or one of many, there is a certain protocol for a new product introduction or deployment. Much of the work begins before the product launches. The success of a new product is contingent upon acceptance in the marketplace. Companies need to have initial feedback from consumers to make sure they are meeting customer needs. Take into account production and distribution considerations along with packaging, pricing and advertising. There are ways to ensure the proper deployment of your new product launch.
Testing Your Product Concept
A product begins with an ideation or idea about how it will look, taste or feel, depending on the nature of the product. Engineers, marketing or brand managers and financial personnel should meet and discuss the initial product concept. After that, a company should conduct both qualitative and quantitative marketing research with end users or consumers. Ask them if they like the product and determine their likelihood of purchasing it. Qualitative research like focus groups will help determine the optimal mix of features as well as a base point for determining price. Quantitative research done through surveys will help verify the reliability of any research. Moreover, quantitative research will also help you identify key demographic or socioeconomic groups (i.e. age range, household income) that would likely be your primary customers or target audience.
Production
Once you have established the features or main characteristics of your new product based on marketing research, you will need to determine produce it. You will also need to do an initial sales forecast to determine how many units of the product you will need. Accomplish this by studying secondary research on the sales of competitive brands. You can estimate first-year sales and beyond by developing an initial distribution plan and selecting the number of initial locations where you will sell your product, according to Michael T. Brandt at Inc.com.
Packaging, Pricing & Promotion
Design the package for your product. Make use of designs or colorful schemes that will attract attention on store shelves if you are selling retail. Based on your research, you can now price your product according to the price elasticity of the market. Start with a higher price if your strategy is to sell a premium brand product. It is always easier to lower the price than to justify raising it--at least in the consumer's mind. Allocate and train your sales representatives for the new product launch. Determine your advertising mix: Television, print, in-store promotions, Internet marketing.
Managing the Product Life Cycle
You cannot simply introduce product and forget about it. You need to manage the new product through the introductory, growth, maturity and decline stages. Initially, you will be spending more on advertising. The product may not turn a profit in the first year because of all the start-up costs. Then again, your product may sell like gangbusters and warrant a slight price increase. As your sales volume grows, increase your distribution. Increase you advertising and continue to find ways to reach your key target market.
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