Action Plan II, Part 5 of 12 | Prepare to Launch |
Prepare to Launch
by Lindsey Norris
There are a host of reasons to introduce new products and services to your lineup. You can grow your business, squeeze your competitors and capitalize on new trends and technologies. But whether your aim is to increase market share or to create something groundbreaking that will forever change your industry, launching a new product is a tricky business that can trip up even the most well-established companies. A host of factors contribute to a new product’s success or failure, including the company brand, your competitors and your marketing plan. And that’s before you even take into account the quality and viability of the product itself. Here, how to get your product launch onto the right flight path.
Don’t neglect existing business
When Colin Reid decided to offer online ordering through his two Edmonton Signarama locations, he wanted to attract new customers: technically savvy ones who would appreciate being able to build signage from scratch, online, at their own convenience. But since it was in-store customer service that made Signarama’s existing customers happy, Reid had a line to balance. “That was one of the cautions I offered: we haven’t gone anywhere,” Reid says. “We still have two brick and mortar shops with all the same resources, and we still have outside salespeople that have relationships with other customers.”
Understand your brand
Many companies get into trouble when they try to grow because their brand is nebulous. For example: what emotional reaction does your company evoke in your customers? You should know. “You have to really understand your mission as an organization and be very clear about what your company does,” says Shannon Pestun, marketing expert. “You have to understand why your customers use your services, and what you offer better than anybody else.” Only then can you begin to develop products that fit your brand and avoid confusing your customers.
Understand the external environment
The market outside of your company will have a huge effect on the success of your new venture. If your competitors are faltering, now could be a good time to steal some customers, but your best bet is still your existing customers. “When there are a lot of players in the market, it’s very hard to penetrate that market,” Pestun says. “It goes back to really understanding your customers. If you see your customers would benefit, and they are using a product of yours and your new one would enhance their experience, you have a good start. When you have a strong brand, it’s much easier to introduce new products.”
Make sure it works
Thanks to intense competition, the tech sector is rife with examples of spectacular new product failures. Take Microsoft’s Windows Vista, which was roundly considered a flop. It required updates just so it would function properly, and gave its competitors enough material for years of ad campaigns. While few companies are as cursed (or blessed) with the level of media attention and scrutiny Microsoft receives, rushing your product to market rarely pays off. Employ focus groups, external testers and use it on a small scale to make sure it’s market-ready.
Go to market
Regardless of how innovative and spectacular your new product is, you must always have a plan to get the word out. Reid says that since building signs from scratch is new to the industry, he expected word to spread. “There was a misconception among us that ‘If you build it, they will come,’ and it is not that way at all,” he says. “As with anything, in the beginning people are cautious… it will take a lot of work on our part to make sure we’re talking to our clients about it.”
Next month: How to handle your tardy receivables
