The new product launch plan presents in seven parts the elements that make it possible to plan and control the launch of an innovation to the market. It follows the marketing plan approach and emphasizes: locating the new product (its distinguishing characteristics); The market potential to be addressed (the characteristics and expectations of consumers, the expected volume); Medium and long-term sales goals (volume and profitability goals); Strategy and launch plan (with primary objective and extended objective); Budget and return on investment (within 3 to 5 years).
7 keys to launching a new product
Why do we use it?
The goal of the new product launch plan is to formalize:
- Determining the location and advantages of the new product in the market;
- launch strategy and communication procedures;
- Payback period.
The launch plan for a new product is implemented for each innovation to be brought to market: a new product, product repositioning, or a disruptive innovation such as a product from Me too.
How to use it?
- Collect data to assess the new product’s chances of success: market potential in terms of volume, rate of intent to purchase, rate of replacement of existing product, and new uses.
- Determine the position of the new product: its characteristics, the added value offered to users and the translation of this position in communication and in arguments.
- Create a SWOT diagnosis for the new product.
- Set medium and long-term sales goals.
- Define the launch strategy with different objectives: primary and extended target, descriptors and influencers, distributors…
- Plan actions for communication, event and promotion for new product launch: budget and performance indicators.
- Build short and medium term budget and show return on investment.
Methodology and advice
“80% of the success of any new product is attributable to the initial stages and 20% to the refining stages, while the costs are reversed.” Source: Cnam
The main factors that made possible successful launches are:
- Correct identification of the market and existing actors;
- good differentiation between new product and existing solutions;
- Encouraging and stimulating business dynamics.
Traps to avoid:
- Absence or mismanagement of new product intensification;
- The verification and/or launch process is very complex;
- Poorly evaluated business plan.
- The launch plan formalizes the characteristics of the new product and the actions envisaged.
- It provides a framework that can be shared by all product managers in the same department.
Precautions to be taken
- Calculate the data as accurately as possible: estimate potential, return on investment, deadlines and budget for each action with performance indicators.
- Maintain the same approach for all product launches to compare performance.