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6 steps before launching a new product
Suppose you have noticed a market gap that you believe you can fill by creating and distributing a new product that people would be willing to pay for. Working out specifics is the initial step, followed by production, and finally sales.
As we know, not all products that are brought to market are successful. In fact, according to several market research, the failure rate is 40 percent. But what is the reason? Not all companies or all products are the same, and most products fail because the team got one or a few steps wrong, or didn't execute them at all:
Customer’s demand and their willingness to pay
Creating a product that nobody wishes to purchase is the right path to assured failure.
This rule may seem so basic that people often fail to give it its proper importance, without considering how essential it is to achieving success. Making sure to sell an item that the chosen target group is willing to spend money on is the real goal of product market fit. Foremost, it is necessary to understand what the need of the potential customer is and the value they attribute to it. In order to do this, market research needs to be carried out before the start of production, but also throughout the planning process and following the product launch.
A key element in this stage is brainstorming, the purpose of which is to analyze all the possible opportunities the market offers for your new product and to figure out which product is best to propose to consumers. Our advice is to implement a product development strategy that is quick and efficient, and that is based on added value creation.
Plan the entire process
Another risk is not being able to obtain sufficient funds.
You cannot proceed without understanding and planning each step of the operation, including the set goals, costs, and schedule. Every detail of the operation is planned according to the strategic plan, which includes product development, market, supply chain, and production plan strategy.
Sales and marketing strategy
Another mistake that is often made by people with little experience in the market is to expect the product to sell itself. It must be understood that nobody will ever purchase an item they are unfamiliar with or that is difficult to locate. To avoid failure in this step, it is essential to put money into marketing and sales.
In this highly digitalized age, many people think that by setting up an online marketplace using a platform, such as Shopify, or advertising their products on Amazon, consumers will come on their own and the business will be successful. Although an online company selling via e-commerce is the greatest option to market your goods, you still have to advertise it long of its life in the marketplace.
We advise you to make the most of digital marketing, the use of established influencers, the study of SEO, and the use of social media. The important thing is to know how and when to sell digitally, and especially how potential customers make their purchases and discuss with them. You should also keep an eye on what is trending.
Another piece of advice we feel like giving is not to sell your products to other companies. Instead, hire salespeople or create a sales network. To do this, you will have to approach the decision-makers within the companies. The social media marketing approach, in this case, is different, in fact, you will have to switch from Twitter or Facebook to LinkedIn. An additional point in your favor is to conduct educational conferences, organize webinars and share research papers.
Obtain enough funds
You must take all precautions to avoid having to stop production or being forced to change the original idea. Not having the necessary funds would result in a direct failure of the new product.
Therefore, you have to make a realistic estimate of how much it will cost and the timeframe for the entire production process. Afterward, you will have to make sure that you have a fund in excess of your actual need so that you have a reserve in case of a setback. Also, as you well know, it is easier to recover as profit what you do not consume rather than trying to get more.
Finally, if you don’t have a lot of experience in this field, avoid self-funding or bootstrapping because you don't want to surrender too much stock.
Find the best team
One must avoid the risk of poorly performing, or even, not performing actions throughout the production process.
The creation and production of a new product in the market is a human activity, requiring collaboration by many people who contribute with their respective knowledge and added value.
You will wind up biting your own tail if you don't have the correct team in place, from the Chief exec to the freight forwarder. For this reason, we advise you to take seriously the hiring of the people with whom you will collaborate, but also to choose the appropriate partners on the outside who are willing to change things if something is not working.
Be prepared for the unexpected
A typical failure this phase prevents is the termination of the development or selling process.
As has been pointed out in the previous topics in this article, it is vital to anticipate what will occur and to make plans for it. In fact, when things don't go as planned, it may be disastrous. Anticipating and being prepared for difficulties is one method to prevent them.
Below are a few frequent unforeseen events that might derail your product development plan:
- Unexpected costs
- Unexpected scheduling changes
- Major team members or key partners withdraw
- The logistics network isn't working together
- Competition
- Marketing isn't enough to get your message through.
- Prospects are not being converted into clients
- Outside threats (COVID-19)
- Difficulty findings funds
- Money is no longer available
- Issues with production
- Your product is not promoted by resellers
- Issues with distributing
- Negative first perceptions
- Negative feedback
Product businesses are likely to face more of these obstacles, just be aware that they exist and be prepared to respond to each one.
Partner with an experienced company
Ideally, these pointers are going to help you succeed when you launch your goods onto the market. Acknowledge that the plan is to develop an item that your market segment wants to purchase at a cost that allows you to make a reasonable profit.
Finding partners who already have accomplished this before can help ease the stress of this whole researching, organizing, financing, and shifting phase. For individuals who have worked in the product development industry for some time, the majority of these jobs are now automated. So why don't you take advantage of their knowledge?
DocShipper is among the best freight forwarders worldwide and the greatest place to look for this expertise. We offer many services, such as logistics, sourcing, quality control, and 3PL. Through our connection, we match you with logistics operators, suppliers, distribution centers, and customs agents. If you want to secure your project development success, don't hesitate to reach out to our experts.
