Launching a product for which there is no market; issues with timing and manufacturing as well as insufficient or poor research are just some reasons that product launches fail.
According to statistics, some 80-85% of product launches fall foul of such hurdles. In truth, less than 3% of new consumer packaged goods exceed first-year sales of $50 million, the benchmark of a highly successful launch[1].
With 2020 bringing unprecedented challenges and lingering uncertainty in the wake of the pandemic, creating a successful launch plan for your new product can seem like mission: impossible. Here, we outline frequent product launch flaws – learn what you need to avoid for a successful product launch.
Prefer to discuss your launch strategy direct? Call 01565 632206 for a no obligation chat with a member of the Think Beyond team.
4 reasons why product launches fail
Even well-established brands such as Amazon, Nike and Coca Cola have stumbled when it comes to bringing a new product to market. Let’s examine some of the common reasons for failure:
- Marketing is an afterthought: in the rush of prototypes, sourcing manufacturing partners and product development, marketing strategy suffers so that identification of buyer persons, target markets and channels are forgotten. Stay ahead of the game by getting your marketing strategy in order, unlocking audiences, your value proposition and competitive advantage. In fact, one in three product launches fail because of a lack of marketing and market research support.
- Manufacturing stumbles as demand grows: having no plan to fall back on if a product takes off can hurt your growth, customer base and social proof. In this case, not all news is good news – long wait times or a decline in product quality due to manufacturing change are two of the quickest ways to stall a successful launch.
- Believing “build and they will come”: sometimes, there is no market for a product or service and it is marketed in the wrong manner to the wrong audience. Case in point: Segway. Initial projections suggested sales of 10,000 units a week to B2C. The reality was 24,000 units sold in 5 years; the main audience for this product is now tour guides and warehousing.
- Inflexible timing: entering the market before your product is properly tested (hello, “product recall”); before you have had a chance to educate your audience or launching when there are other seasonal variations to consider can hamper your launch.
The above list is far from exhaustive. A good product launch relies on marketing, sales, compliance, branding, PR and more. Within certain sectors, such as food export, the rate of digital transformation is rapid, encompassing marketing, systems, warehousing and more.
How to market a product launch effectively
In summary, if you want to avoid a product launch fail, you need to:
- Align your marketing resources to appropriately support your upcoming product or service launch rather than waiting until after the launch.
- Seek to increase your marketing effectiveness to adopt a fully integrated approach that ensures your marketing capabilities are running effectively.
- Break down silos so that even with Covid, multi-discipline teams and less role certainty than ever before, communication lines and workspace sharing continue.
Ultimately, true marketing ROI occurs when you measure better results than a solid benchmark. Strategy and accountability go hand in hand.
Plan your product launch with the right marketing support
Find your “good” by booking a marketing audit or a product launch plan with the Chartered Marketers at Think Beyond. Call 01565 632206 or email sales@think-beyond.co.uk to secure your spot your free one-hour review.
Additionally, you can request more information about our marketing support services by filling in our easy contact form.
Finally, expand your knowledge of what a successful product launch looks like with our product launch marketing tips.
[1] https://hbr.org/2011/04/why-most-product-launches-fail