5 Success Strategies for New Product to be launched [2023]

Introduction – Strategies for New Product to be launched:

Product success is both difficult to define and difficult to achieve. It is estimated that there is a one-in-three failure rate among new product introductions. Clearly, failure and success rates vary from organization to organization. In general, the failure rate is higher for consumer products than for organizational goods. Lets see 5 Success Strategies for new product to be launched

Characteristics of Success for New Product to be launched

Five characteristics influence a new product’s chances for success in the market place : Relative advantage, Compatibility with existing consumption patterns, Trialability, Observability, and Simplicity of usage.
When a product lacks one or more of these characteristics, the others may be used effectively to make up for the deficiency.
Non product elements of the marketing mix -price, promotion, and distribution—must be developed and adjusted with these same characteristics in mind.

5 Success Strategies for new product to be launched

1.Relative Advantage

The ability of a product to offer clear-cut advantages over competing offerings. Products that offer buyers clear-cut advantages over competing offerings are said to have relative advantage.
In organizational markets, relative advantage often arises when new products perform exactly the same functions less expensively or faster than existing products.
Experience and improved technology, for example may make it possible to replace metal parts with cheaper and lighter plastic ones.
In other cases, relative advantage arises from totally new technology.

For Example:

Computer systems that use spoken words as input obviously have a relative advantage over earlier generations that require typed input.
In contrast, some new products prove to have no relative advantage over their competitors.
When the Miller Brewing company test-marketed its Clear Miller Beer, the company quickly learned that its colourless beer didn’t look or taste like beer. This new product has no relative advantage.

2.Compatibility with Existing Consumption Patterns

Everything else being equal, a new product that is compatible with existing patterns of consumption stands a better change of market acceptance than one that incompatible. This is true even when the newer item has some relative advantage.

For Example:

Consider the LifeSaver Company’s Ice Breakers gum, with ‘freshener capsule” technology that allows a bigger hit of mint to be released when you chew the gum.
It is completely compatible with the existing behaviour of people who buy breath mints or chewing gum; and because it has a relative advantage, it should achieve rapid market acceptance.
On the other hand, it will take time for the market to accept the Handwriter for Windows, a digital pad on which a computer user writes or draws with a pen. The pad converts handwritten characters into computerized text and gives the pen mouse like pointing capabilities with Windows programs. Thus compatabilty is an important success strategy for new product to be launched

3.Trialability :

The Opportunity for Buyer Testing Trialability : The ability of a product to be tested by possible future users with little risk or effort.
Trial sampling: The distribution of newly marketed products to enhance trialability and familiarity; giving away free samples.
Divisibility: The ability of a product to be sampled in small amounts by consumers.
A new product has trialability when possible future users can test it with little risk or effort. A product’s trialability may be enhanced by coupon in newspapers, magazines, and the mail.

For Example :

New shampoos and laundry products are made available in small, inexpensive packages to encourage consumers to try them with little monetary risk.
When companies give away free samples to possible buyers, bringing trialability to perhaps its highest level, the process is termed trial sampling.
Sending computer discs and offering 10 or 50 hours of unlimited Internet and online service is America Online’s major means of generating new customers. Effective marketing management demands careful consideration of steps that may encourage buyer sampling of a new product.
Items intended to be sold in cases or six-packs, like juices, sodas, and other drinks, might first be offered in single digit packages or be given away by the cupful in shopping malls. Customers who are reluctant to buy 12 of a given product may be willing to try just one.
Trialability is more appropriately referred to as divisibility when it refers to the opportunity to try a small amount. Thus Trialabilty is an important factor for new product to be launched

4.Observability

The Chance to See the Newness Observability: The ability of a product to display to consumers its advantages over existing products.
Some new products enter the marketplace with attributes or characteristics that are visible to the customer.

For Example:

Kyocera’s Visual Phone is a mobile phone that can send and receive images of callers. The new product has a video screen and a small camera embedded in its upper right-hand corner. T
he gadget has a relative advantage over regular mobile phones, and that advantage is easy to see. Kyocera’s Visual Phone is a product with observability.
Other products possess definite relative advantages that are not observable or so easily grasped. A new brand of allergy tablets with an advanced formula that relieves allergy symptoms without causing drowsiness has an advantage that is not observable by most buyers. Advertisements for products with hidden qualities frequently feature experts or credible users who attest to the products’ worth, making hidden qualities observable.

5.Simplicity of Usage

Simplicity of usage : Ease of operation. This product benefit can offset any complexity in the product itself
A complex product or one that requires complex procedures for storage or use— starts out with a disadvantage. Digital cameras, at their introduction, were viewed by consumers as phenomenal. However, because it was difficult for the average person to understand the technical mechanism inside the cameras, the cameras themselves were designed for easy operation. The simplicity of usage offsets the complexity of the product itself. Compact disc digital recordings were similarly surprising to consumers, who found it difficult to grasp the system by which these recordings were played. Thus Simplicity plays an important role for new product to be launched

For Example:

Makers of early CD players carefully trained sales people to explain the new system and arranged for newspaper and magazine columnists to try it so that they could explain it to their readers.

LIKE WHAT YOU’RE READING?
CHECK OUT SOME OF OUR OTHER GREAT CONTENT HERE:

Post Views: 1,126

5 Success Strategies for New Product to be launched

Introduction – Strategies for New Product to be launched:

Characteristics of Success for New Product to be launched