Product launch is a process followed when a company decides to launch a new product in an existing or a new market. Product launch can be of an existing product which is already in the market or it can be a completely new innovative product which the company has made. Product launch involves various steps which involves understanding customer needs, product design, testing of the product, marketing & advertising and ensuring that the product reaches out to all its audience. A successful product launch provides a sales momentum for the company.
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When any new product or service is introduced in the market, it is called a Product Launch. An existing product can also be launched after further innovation or upgrades to the product. A Product launch passes through a number of steps known as the product launch process, starting from the ideation phase to development phase, testing phase, analyze phase to finally the launch of the product or service.
The market launch starts after the product or the service has been launched and encompasses the marketing plan and its implementation to ensure that the product reaches the target market. Brand launch is defined as the creation of a new brand in the marketplace and positioning it where none other exists. A good product launch helps in the following:
Launching a product or brand through articles, events and promotional events ensure that the campaign gets noticed and people become aware of the product or brand. This, in turn, can increase the customer base and sales.
The soft launch can give an idea of the strategies to be implemented, resources and staffs requirement and the training and preparation needed to take care once the product is released to the whole marketplace.
Furthermore, there are 2 approaches to launching a new product or service. They are:
A soft launch is when the approach towards the release is limited to a small set of the target audience or a limited demographics or geographic area and check if any changes are required before launching the product to the whole market.
Whereas, a hard launch is when the product is released with full force marketing efforts from the very first day in order to spread awareness and excitement to customers and persuade them.
These are the two types of product launch.
The principles & key elements for a successful product launch are the following:
a) Relating Product Capabilities to Market Needs
b) Having a clear positioning and messaging tagline
c) Setting clear goals for launch
d) Having the power of leverage
e) Having a proper time of launch
Some merits of product launches for a company are:
1. Excitement and Attention: Once the product launch is communicated to the audience through a press release, articles, social media, and events, people get aware of the launch and it will create excitement in their minds.
2. Building Trust: If people are invited to try the products through free samples, it can build trust and customers can overcome their skepticism and accept the product. This also allows the promotion of a product through word-of-mouth, social media, and communities.
3. Training and Preparation: A soft product launch gives time to train and prepare employees to deal with the public appearance and customer queries once the product is launched to the whole market.
4. Increased Revenue Streams: New products can pave the path to unexplored revenue streams. Moreover, a new product or brand launch captures the interest of different business which allows expansion of the business and entering into new ventures.
Despite several advantages, there are some disadvantages of a product launch.
1. High Investment: Launching a new brand or product needs a lot of investment of time and resources for training employees, press releases, promotional activities and events. There is a risk of the product not getting successful and the launch getting failed.
2. Proper Approach to Launch: Different types of products need different approaches to launch, whether soft launch or hard launch. If the requirement is towards quick and more dramatic results, a hard product launch is preferred.
China Launch of Forever21
In order to build a strong customer base in China, Forever21 built its Tmall global e-commerce store and used social media platforms like Weibo and WeChat. The content was shared for the Chinese audience like "best places to visit in Shanghai". The campaign was so successful that the brand has opened 16 stores in China.
Hence, this concludes the definition of Product Launch along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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