Stop Taking Chances!
You only get one shot at launching a new product and yet nothing is more critical to determining its success or failure. Why take chances? Remember, it’s not ‘One Day’, its ‘Day One’.
The most important question in the world of business is this: Why do some products succeed where others fail? Innovation gurus Cooper and Kleinschmidt found that there is a simple truth about success; Money. Noticeably, successful companies spend about $650,000 on their launches, whereas those who didn’t succeed, less than one-sixth that amount.
Spending on market research alongside R&D is an investment in success. You need to be able to understand the equity in your brand and how far it can stretch. As for new brands entering the market, you need to distinguish the rules so you can learn to adapt to them. Market research is fit for purpose in both of these scenarios to help with launching your new product.
Additionally, whilst social media, influencers and technology have all made an impact on how we launch, market research and consumer insight still remains a foundational building block to getting the product and communications in line with the target audience. By creating a product that doesn’t fulfil a clear need or gap in the market, you will struggle to succeed.
Here are five key market research elements you need to give your launch every chance of success:
1. Getting To Know The Customers
If you market to everyone, you will find that you’re ultimately marketing to no one. The most important research you will do, will answer two simple questions: Who will buy this product and Why? For example, if you’re designing a product to appeal to a niche audience, it may struggle if you don’t know how to correctly market to them.
You will need to recognise the consumer needs. What are the problems, tensions and what job needs to be done. Its imperative to research the gap in the market because if there is no gap, there is no need (for the product), and therefore, a recipe for failure.
Market segmentation and creations of personas with a set of emotional needs, triggers and barriers are critical for a successful launch plan.
2. Potential Consumers In The Market
You need to understand the number of available customers that are in your swimming pool and how many of them you need to reach to achieve your sales goals. This is known as market viability.
Market research is ideal for helping you to size the potential in your market and chosen audience. To help you portray the picture, you can also draw insight from desk research; ABS data, or other consulting tools to help you come up with the necessary market-sizing estimates.
3. Understanding The Competitive Set
How cluttered is your potential market? Being aware of how many competitors you’re up against and how your concept tests against them is necessary. You’ll also need to know how vulnerable or substitutable you are when it comes to appealing to your target audience in the market. When entering a new market, you need to know the new rules in order win at the game.
Concept testing with both Qualitative research and Quantitative research can help you grasp a better understanding in the market, market dynamics, target audience, vulnerability and ideally, help optimise your product for launch.
4. Knowing Your Point Of Difference
To stand out in the crowd your product needs a simple point of difference to give you a competitive advantage in the market. It’s important to conduct market research to understand how unique your idea is and how to position it more effectively amongst your competitors.
If your consumers understand its uniqueness, what makes it different and the idea is compelling for them, you will have a greater chance of success. Consumers can also help you express that idea, giving you a competitive advantage in consumer-friendly terms for killer messaging.
5. Choosing Channels
It is essential to make sure your output aligns with your brand messaging, and ensuring it reaches the correct audience. There is a plethora of channels available, but you need to be able to determine which of those is more prominent in reaching your target audience. Market research can help you accomplish this by not only ensuring where you market your products, but how you connect with your audience.
Traditional platforms such as television, radio stations, newspapers and even established websites will all be able to tell you what kind of people their channels reach, in terms of age, income and product loyalty.
More commonly, companies invest heavily in a social media presence but if you haven’t done your research, you may be throwing your money down the drain. Influencers or brand ambassadors come with hype and fast awareness, but also negative impacts. Research to align your brand properties with the influencer’s brand properties are important and you should run this past your audience.
Ready For Success
You should now have all the information you need to plan a successful product launch. The hard work of planning is complete. The work of refining and improving the marketing and distribution of your product will continue for well into the future and market research should be planned to help you shape and manage your new product life cycle into ongoing success.
To get started on your successful product journey, gain insight with edge and recommendations you can action, speak to us at Ruby Cha Cha. We’ll pour our passion, enthusiasm and creativity into helping your new product reach its fullest potential!
Want to know more? Get in touch