In the modern business environment various commercial enterprises are competing with one another for capturing the largest share of the market. Every entrepreneur desires that his product should be the first preference of every customer. Ingenious entrepreneurs are always looking for new and innovative ideas to capture more customers and maximize their profits.
Launching a new product is one of way to capture new customers and creating a new market segment. But a new product launch requires a strong business plan and a strategic execution.
Here are some of the key processes which should be kept in mind while launching a new product:
Idea generation Idea germination is the first step towards launching a new product. Ideas for new products can be obtained through an intensive research of the business environment. Various factors like consumer preferences, strategies used by competitors, features of other products and different technologies available for production etc could be accessed using SWOT analysis.
Idea screening It involves a preview of factors like additional benefits offered by the new product, size of the market segment, amount of competition, technical feasibility and profit earning capacity of the product that has to be launched.
Business Analysis This includes estimating various key factors like selling price based upon competition and preferences of customers, sales volume based on size of market, profitability and break even point.
Technical implementation This involves proper scheduling and implementation of various activities like engineering operations, logistics, allotment of tasks to various departments, selection of right place, hiring business relocation services if required, logistics planning and communicating with suppliers.
Effective marketing The newly launched product has to be marketed intelligently so that it captures the attention of customers. Various mediums for advertising such as newspaper, television, Internet, radio etc could be used. Sales promotions are another way of advertising. Sales promotions include contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts.
Appropriate pricing The price of a product plays a key role in attracting customers. The variable and fixed costs incurred have to be covered and a provision for earning profit has to be created through effective pricing. Price of a product is a true reflection of the quality that it offers. Customers generally compare the prices of various products of identical quality. In some instances higher price acts as a status symbol and products with higher price are preferred by the elite customers.