Launching new products or brands can be risky even for established companies. That's why it is essential to have a plan and use the latest techniques and methodologies to ensure success.
Ken Roshkoff, AMC Global president, draws on decades of brand launch experience in his latest article for the American Marketing Association. In it, he writes more about the process of utilizing a test market or “test and learn” strategy to take some of the risk out of launching a new product.
Ken starts out by reminding readers that, of an estimated 30,000 new consumer products that are launched each year, up to 95% fail. Based on this fact, it is apparent that companies must make sure they are on solid ground before launching a new product. He writes: “While there is no universal blueprint for innovation success, a test and learn approach to product development gives us a unique opportunity to see our brands and products through a new lens.”
The test and learn approach allows companies to garner insights “about real products from real consumers in real moments.” By identifying the strengths and weaknesses of a new product, companies and brands can have a more firm understanding of how their product will perform. “Consumer insights gathered under real-world style circumstances will naturally give us a more accurate understanding...as well as clear direction on next steps.” Test and learn can also help with pricing, supply chain and forecasting, helping to inform distribution models and mitigate risk.
There are some challenges, as companies may find it risky to use a “start up” approach, and put the product out in the market before it is perfect, in order to learn from trial and error. “It’s taking that final step and applying the learning—and failures—from this approach that can sometimes prove the biggest obstacle,” Ken writes.
Ken concludes his article by saying: “product launches of any kind are risky. It’s better to take on this risk with a deep understanding of how a product will perform by using a test and learn approach.”
For the complete article visit: https://www.ama.org/marketing-news/keys-to-a-successful-new-product-launch/