5 Best Questions To Answer Before Launching A New Product
5 Best Questions To Answer Before Launching A New Product
You'll wisely note the title of this blog post is the 5 best questions to answer before launching a new product.
I don't propose you ask a question to give you insight into whether a product launch is worth both your precious time and money.
The key here is to take the time to answer the questions and gather the data you need to make informed product development decisions.
I have worked with many companies that enjoy driven leadership, product and marketing teams that are perfectly positioned for success.
These blue chip teams risk ending up with excess inventory on hand that clogs up their warehouse space as well as the bottom line on monthly P&L reports.
My goal for you in this blog post is to create a timeline that forces you and your team to evaluate opportunities and challenges BEFORE you invest money and time into your next project.
Questions To Answer Before Launching A New Product
I'm sharing 5 of my driving questions that I use before launching any new product.
My experience is deep when it comes to developing physical consumer products - gift, home and children - for various markets.
I have failed MANY times and thankfully have succeeded too.
Start by asking and then answering the following five questions to benefit from my experience and turn your decisions into successful product launches.
What problem does it solve?
Does your new product improve upon an existing product or idea?
Or is your product a revolutionary new product that has never been seen (or tested) in the marketplace?
Consider these two product types carefully.
As you well understand, it's much easier to drive interest to an improved product whose basic elements are already recognized in the market.
Conversely, a brand new product that may serve a very painful problem is yet NEW and unknown.
Consider the customer education that must accompany a brand new product.
How do you plan to share your message to your target audience?
How do you know?
Survey your existing audience and to the extent possible research new members of your market.
Use surveys and social media platform ads to create and publish ads for 'look alike' customers in your niche.
Conduct your research for pennies when you use tools like Google Forms that will populate data into Google Sheets that you can search, sort and share with team members.
Incentivize participation when you offer coupon codes to those who share their insight including consumption habits and frequency.
Simply add a coupon code to the Thank You page on Survey Monkey or Google Forms.
Pricing for Profit
How will you sustain the product either in an existing product line or in a new product channel?
Determine your manufacturing or sourcing costs down to the penny.
Product costing should include every. single. dime. you'll spend to bring your product in your doors and send them out again.
I'm talking about:
- material
- labor
- testing
- packaging
- labeling
- insurance
- shipping - to and from your location
Now determine what your wholesale and retail price will be in order to turn a profit to both make more product and invest in the future business.
If you're not experienced in costing, don't make it hard on yourself.
Simply refer to invoices and receipts, start writing down those expenses on a sheet of paper and then project the quantity or product you can make with those resources and divide expense by the number of units.
Market Positioning
How will you promote it and what will it cost to do so?
Begin by doing your homework to find similar products or brands and research their format and reach.
Where will you reach your customer?
Bricks and mortar stores? What size? Independent, specialty chain, mass market?
Online? Social platforms? Your own website? Third-party sales websites such as Amazon?
In-person on a local scale? Farmer's Markets? Fairs? Events?
Customer Lifecycle
In most businesses 20% of clients generate 80% of a company's revenue.
It's essential that new product launches include a plan to best serve customers.
You may capture information from your existing customers when you send out your survey, but be sure to target your 20% for the best intel.
Reach out personally by phone, text or email to survey your VIP customers for their feedback.
Don't take more than 5 minutes to ask them a few questions about whether they might be interested in trying or using your product, how it might fit into their current routine and how much they would consider paying.
As a thank you, offer free product or a discount code for spending their valuable time giving you golden information.
After you've asked the 5 Best Questions To Answer Before Launching A New Product
When you've taken the necessary steps to answer these product launch questions, you'll have the insight to make the right decision.
If any of the answers concern you, carefully consider your next steps.
It's true that it's not an idea, but the energy and research to drive an idea that yields success.
Connect for Business Coaching
If you'd like help digging into these five questions above to evaluate your product's viability. Reach out here and let's brainstorm!
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