Don't Leave New Product Launches to Guesswork

Don't leave it to guesswork

With all of the new products jostling for consumer mind share, how can you improve the chances of your new product being accepted?

Great leadership, a disciplined new product development process and a quality product are essential, of course. Still, assessing and meeting consumer needs - or identifying and solving a consumer problem -- are critical to market acceptance. What are consumers really looking for and does your product meet their needs?

Once you have determined that your product meets those needs, you need a marketing plan that effectively reaches your target audience. A comprehensive market research system that integrates consumer behavior with intended marketing plans allows you to establish, before launch, if your product meets consumer needs and satisfies your business objectives. Such a system can help you understand how modifying your product or your marketing plan will impact sales volume.

Recently, a technology manufacturer commissioned us to estimate sales for a new product. The product was highly featured and carried a premium price. Through our research, we discovered that consumers did not need the advanced product features. A product with fewer, advanced features and a more reasonable price would allow the company to realize as much as 50 percent greater profit.

After 25 years of testing new products, we have learned that, ultimately, your new product has to satisfy the following:

Need fulfillment

First, the product must meet a basic consumer need. Does it allow the consumer to do something faster or more easily than before, as with digital camera photo printing? Does it provide a better quality experience than is currently available as with the introduction of DVD's? Perhaps it offers a new level of convenience or entertainment, as do Personal Video Recorders?

A new technology may even serve a need that consumers have not yet recognized. There will always be a group of "early adopters", people who will buy new products because they like to own the latest gadgets. But if a product is to be adopted by a broader market, it must fulfill a need or solve a problem for consumers.

A clear advantage

The product must provide an advantage over existing products. Whether it is better quality, a better price or improved features, consumers must be able to clearly see the added advantage to the new offering.

Ease of use

The product must be easy to communicate, understand and use. Product and service benefits must be clearly outlined. Products that are difficult to use will leave many consumers feeling frustrated. Consumers want to know that once they get the product home, they will be able to set it up and use it immediately. If consumers feel confused and frustrated by the purchase process, they will reject the product.

Value

Consumers buy products that they consider to be a good value. The perceived value of a new product is more closely related to purchase probability than any other factor. This is true regardless of the absolute price of the product.

Understanding consumer needs and meeting them are, of course, two distinct challenges. Even if you have adequately assessed consumer needs, it is important to measure how well the product meets those needs, at each step in your product development process.

Experience has shown that a validated sales forecasting system can greatly improve a company's chances of launching a successful new product.