Create a product launch strategy

Bob Domenz, founder and CEO of Avenue, reveals what marketers can do to ensure product launches don’t fail

Introducing a new product or service can boost sales and market share, and fuel growth. Yet most studies of product launch success reveal 60–70 per cent of new product launches fail.

Companies end up making two fundamental mistakes that reduce their likelihood of a successful launch:

1) They focus so much on developing the new product, that by the time they hand it off to marketing to launch, there is not enough time to complete the work necessary to get the product ready to market.

2) They assume the marketing strategy and launch strategy are one and the same, so overlook the need to develop a holistic strategy that accounts for the requirements and roles across the entire organisation – beyond marketing.

At the source of these scenarios (and their related missteps) is this: a total launch strategy was not developed. Instead, the launch strategy was thought of as ‘something marketing does’ after the product is complete.

The total launch strategy

The total launch strategy is a holistic business strategy for introducing a new product into the marketplace, and the support required to sustain it. The total launch strategy accounts for the roles and requirements of all functional areas across the organisation, including sales, distribution and channels, legal, customer service, marketing and more. The strategy includes five essential elements:

1. The planning team

Who is really responsible for the product launch? (Hint: it’s not just marketing). The most successful launches employ a ‘whole organisation’ approach. The optimal launch team is composed of at least one member from each functional area of the business including leadership, marketing, sales, service and legal etc.

It is imperative for this team to be assembled early – minimally, before new product development is complete – ideally, concurrent with the development of the product, not after.

This team can provide the product development team with valuable insights into the viability of the product. And it gives the launch team an opportunity to identify and address any issues and potential obstacles early on.

2. Foundational strategies

Foundational strategies include the mission and vision of the product launch; business case and objectives; brand strategy; fit within the overall product portfolio; and uncertainties and risks.

These strategies must be developed within the context of the overall business strategy and product portfolio strategy, and are important to define early. They serve to provide direction and clarity for what is needed to launch the new product (the short-term) and sustain it in the marketplace (the long-term).

Foundational strategies help anchor and align the myriad of viewpoints, perspectives, opinions and expectations that arise during the launch process. Skipping the step of defining your foundational strategies will inevitably lead to unproductive confusion internally and a sub-optimal launch externally.

3. Audience specific strategies

Audience strategies define how your product will ‘go-to-market’ for internal and external audiences such as distributors; national accounts; key customers; union labor; suppliers and partners; installers and technical support among others.

These audience strategies must be coordinated and complementary with one another, and support the foundational strategy.

4. Operating strategies

Integrated operating strategies include the plans for every functional area of the organisation – including finance, product, sales, legal, customer service, regulatory, training, IT and analytics and marketing.

These strategies are more tactical in nature and build the operational capabilities needed to deliver the high-level strategies.

5. Three launch phases

Too many launch plans are just that, ‘launch plans’ focused on the launch phase as a moment in time. A total launch strategy encompasses the three distinct phases of a new product introduction: pre-launch, launch and post-launch.

Pre-launch is a crucial period for B2B product launches. Preparations for distributors and buyer groups, and training among sales reps, distributors, technical and field support can often require months in advance of the actual product launch.

Post-launch is often the forgotten chapter. This plan accounts for what can and will happen after the product is in market: how to monitor and respond to feedback, when/if to make pricing adjustments, how to respond to competitive reaction, and more. Product launches rarely go completely as planned. Anticipating and being prepared is the best way to optimise your outcome.

Keep it simple to start

Developing a total launch strategy doesn’t require the creation of a 100-page document. The critical success factor is making sure your cross-functional team discusses and makes concrete decisions for all layers of strategy: foundational, audience and operating – and considers the three phases.

The size and complexity of your launch strategy will depend on several factors including the complexity of the product, the significance of it to the business, the number of individual audiences targeted, the number of functional groups required/affected within the organisation, and the time horizon of your plan. B2B companies who follow this approach will improve their odds of successfully launching new products or services.

 

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