According to a LinkedIn report, 75% to 95% of new product launches fail to enter the market annually. Is it possible that businesses will rush to launch the new product? What measures can you learn from newly launched products that do well? All this boils down to a careful assessment of your new product. It helps to lay the right foundation to ensure a successful takeoff. Here are some tips to help predict new product success in this digital age.
1. Survey and test the market for acceptance before the launch
Testing the market is a necessary step to take before launching a new market. Remember that consumers already have options with existing brands, all seeking attention. Moreover, many consumers are already loyal to brands they know, making it difficult to draw them away. The question is, why should they leave a known and trusted product for yours? The best way to answer this is to test the market first. There are two ways to do this. First, a survey seeks to get into the minds of the target audience or consumers, and you can consider conducting conjoint analysis at this stage to help.
As a business, you want to be familiar with the elements that influence consumer decisions. A carefully crafted questionnaire makes it easy for responders to answer as truthfully as possible. Even better, the survey provides an idea of what the market wants. The second part is to start on a pilot basis. Statistics indicate that products test piloted have an increased chance of winning more customers. This is because a pilot test is an indirect way to introduce a new product onto the market. People would have become familiar with the product and ready to patronize it fully.
- Assess the prospects of growth and transformation
Apart from the concerns of getting a new product onto the market, there is the issue of longevity. Sustained relevance is also crucial here and requires planning adequately for product growth. This has worked for many successful brands around the world. A classic example is the evolution of the mobile phone. In 1984 when Martin Cooper, a Motorola engineer, developed the mobile phone, few did not envisage the progress it would make.
Almost four decades later, the mobile phone has evolved. Out of the first mobile phone, there are now smartphones that continue to evolve yearly. This is what you should be thinking about before launching a new product. Indeed, the world continues to change, and technology is driving this rapid transformation. If you can marry your new product to one technological area, there will be chances of increased growth. That will be enough reason to go ahead with the launch.
- Favorable pricing
A new product will have future success when it is accepted on the market. However, the market looks out for certain things before accepting the latest newbie on the block. One such thing is affordability. As an entrepreneur, you already know that the market is segmented, and pricing will be viewed from different perspectives. For example, the low to middle-income classes want something they can easily afford. In another breath, the upper class and high-income earners would pay anything above average once it is valuable. What category of consumers defines your audience? In effect, whatever favors your primary audience will contribute to the success of your new product. A favorable pricing system will also play a huge role in how often consumers buy the new product when it’s finally launched.