December 11th, 2024 at 1:55 pm
The ABC of launching a new product
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14 minutes reading

Seeing a new product on the market is always thrilling. That goes double if you’ve needed it for quite some time. You see the price, and it’s exactly right. It makes you wonder where it has been all that time. Why has no one thought about it so far?
Well, the truth is that if you are about to launch a new product, there is quite a checklist you need to follow to make it work. Worst of all, a new product can fail at any stage if numbers don’t support its existence. Creating a product for the product’s sake is a recipe for disaster, especially if it’s your first big one.
So, today, we will talk more extensively about launching a new product, from the idea’s inception to making this product a hit. If you think product creation is easy and market hits happen out of nothing, you are in for a surprise. Behind every big product, there is a lot of work, numbers, and research.
So, let’s start from the very beginning.
Find a need?
The golden rule of marketing states that a successful product solves a customer’s need. So, naturally, a new product should solve a client’s particular need. Now, that doesn’t mean each product should be an innovation. In fact, your product can be a replica of an existing one but with a twist. For example, razors have been around for centuries. However, there are constant small innovations in how they operate. In their inception, they were simply sharpened blades attached to a wooden handle. Then they became switchblades, their evolution continued, and now we even have electricity and battery razors we can safely use at home. Behind each of these innovations, a customer need was addressed. So, each new product should answer one simple question: “Why would anyone buy it?”.
Naturally, the best ideas come from products you already use. You can always find something missing in a product. Is it too heavy? Or is it too stiff? Does it need a lot of maintenance? How can the user experience be improved? Later, this will become your unique sales proposition, putting you ahead of your competitors. The main point is for your product to offer a relevant additional value to your customers. Even if it overshadows your own product, it’s better to create a new generation of the same product rather than letting a competitor beat you to the punch.
Of course, if you think a product requires an upgrade or if you feel there is an untouched need, that doesn’t mean your product will be successful. For it to work, you will have to do extensive research.
Research your market
You may have noticed how we place research as a cornerstone step in every how-to blog post we make. That’s because research is everything. Data is knowledge, and knowledge is power. Having data is behind every good decision and consistent success. Anything else is pure luck, and luck is not the best business partner.
Launching a new product is no different. You must collect data and make an educated guess on whether this product will satisfy customer’s needs. Data will show you if there is a niche in the market, whether the audience is open to new suggestions, what competition is there, and what barriers help you form a budget. Naturally, all of these are subject to different research.
Target audience research
The audience research is arguably the most important. There is no point in launching a new product if no one is willing to buy it. So, the best place to start your research is among your existing customers if you have them. Review your sales data and see your customers’ demographics, purchasing habits, and history. If you are going to upgrade an existing product, this will give you a point of reference of who would be interested in this new version.
Gathering data can take you a long way, but you need first-hand knowledge to make decisions. So, simply ask your audience for some feedback, pain points, and preferences. Most people will gladly share their view of how a product they enjoy can get better.
If you don’t have existing customers, conducting audience research is a bit harder. Still, you must gather industry reports and publications and carefully segment which one would apply to your niche. This will give you a reference point for the market size, demographics, customer trends, and behavior. This will provide you with an insight into the broader market landscape.
Still, knowing your primary target, you can expand your research and contact potential customers directly to ask for their opinions. With the internet and social media, this is easier than ever. Just post a carefully thought out question in relevant online communities like Reddit, social media like LinkedIn, Facebook, or X, or simply find some forums. Sure, it’s a bit more work than merely writing a mass email to all your existing customers, but it would be far more effective, as customers won’t be influenced by who is sending the message.
Competitor research
Having some competition is not a bad thing. Quite the opposite. Competitors in an industry show there is potential. Naturally, just seeing some competitors won’t give you enough of an idea of what the market offers. You need more in-depth research.
For starters, you must identify your main competitors. Look at those that offer products similar to the ones you are preparing. Check out how many are there, what their online and offline presence is, whether they have a huge following on social media, and what the general feedback from customers about the product type is.
Then, go through other competitors that offer similar products or substitutes. Though having a slightly different target audience, they can give you a great idea of how to expand your customer base.
The next step requires you to conduct a SWOT analysis. This includes identifying the strengths, weaknesses, opportunities, and threats.
Understanding your competition is a vital step in creating a successful product. So don’t look at this as a boring, mundane task without implementation. It can make the difference between success and failure.
Market research
Next on the list is the market research. Now, many would suggest starting with it, but before you know your market, you must know your audience and competition. It gives you a different perspective when researching the market.
Start with calculating the rough size of the market. This includes people who are already interested and those who may be interested if you offer a good enough deal. A new product always aims to enlarge the market size and customer base.
Next, analyze the specifics of the market. This includes whether customers prefer a showroom or are ready to buy online. Also, what are the preferred communication channels? Does the product need a demo? How are the supply chains working? Are there enough resources to cover your needs? For instance, if your product requires a specific lens, you must see if a supplier can cover your needs. If there is only one supplier in your location and they already operate at full capacity, you may struggle to acquire this vital part for your product. So, ensure the market in your area can sustain your production line.
Finally, check for potential barriers and complications you may face. Some products require licensing and other legal obligations. Make sure you can acquire those before you start operating. We suggest hiring a legal assistant to take care of this part, as legal requirements vary depending on your location.
When it comes to complications, you can only guess what could go wrong, but a common problem in many parts of the world is corruption, which you should consider as a factor. Local institutions may try to extort you with a bribe, and although we won’t condone or tell you how to enter this shady business, we need to acknowledge that this aspect of the market exists.
Test a prototype
Once you’ve reached your conclusions from your research and they show potential, it’s time to test the real thing. Now, starting an expensive production line out of the blue is a bit of an overkill. There are several ways where this can go horribly wrong. First and foremost, you don’t have data on how your audience and customers would react to the real deal. Moreover, since the product is brand new, the technology behind it may be flawed. Configuring a whole production line and getting a defective product at the end could bankrupt you.
So, the obvious solution is to make one or just a few prototypes and see how they will be received. Yes, each individual prototype will be a bit more expensive than it would be if mass-produced, but it’s always better to polish the design and technology before you start producing in mass.
Once your prototypes are ready, you can conduct field tests with focus groups and receive first-hand feedback. This is essential if you want to avoid any negative reviews on the real deal; this can not only damage your reputation but destroy your entire business.
If you don’t have the budget to conduct a full-scale focus group testing, ask your parents, friends, and colleagues to help you improve your product. It won’t be ideal, but it’s much better than simply going forward.
Make adjustments
Once the test results and feedback are in, it’s time to analyze once again. You will notice that about 50% of all the work while launching a new product is analyzing results and making data-driven decisions.
So, once all the information is analyzed, it’s time to make adjustments. Making some subtle changes to your product may seem frustrating, but it can lead to much better results. Moreover, you need to get rid of all problems, thus improving the quality of your product.
You should also consider each and every suggestion given during the customer focus group and test runs. However, don’t fall into the trap of implementing all of them into your product. Make your analysis and find the ones that will enhance your product’s value. After all, your product is for the customers, so their input is invaluable.
Once you’ve adjusted your product, you can do a second prototype trial if you have the budget for it. Otherwise, going straight into production is also feasible, as you already have enough data. But before you start production, there are several other steps you need to do.
Crunch the numbers
Your product is ready to start mass production. Your customers are happy. You know the market, what customers are willing to pay, and everything. Unfortunately, knowing all of this doesn’t guarantee profitability. To make sure your product won’t be a waste of resources and ultimately cost you more than you can make, you need to crunch the numbers. This would also help you determine how many products you should produce, which is instrumental if you don’t want to pay massive storage costs.
So, there are several things to consider. First and foremost, what is your potential customer base, also known as the Total Addressable Market (TAM), and is it worth producing the product? The TAM is calculated by multiplying all market customers with the annual customer value.
Some high-tech products have a minimum TAM that is considered profitable. For example, SaaS products need at least 300 million dollars of TAM to be considered potentially profitable.
Calculating your product’s TAM along with SAM (Serviceable Addressable Market) and SOM (Serviceable Obtainable Market) is a complicated process, which we won’t discuss in this blog post. However, finding this out is instrumental, as your product is doomed to fail otherwise.
So, consider all the numbers you’ve gathered and make sure your product can be profitable. Once you are ready and you know there is potential, it’s time to start building the infrastructure.
Build a supply chain
To mass produce a product, you need to be able to meet demand. This means all necessary resources must be available at all times. In other words, you must have reliable vendors working with you.
However, before you start looking at vendors, you must assess all the materials and components your product requires. More importantly, consider the quantities you will need. This is easy, as you can already assume how many products you will produce for the next few months.
Next, explore various sourcing options based on factors like cost, quality, production capabilities, location, and sustainability practices. Consider both domestic and international suppliers, weighing the advantages and disadvantages of each.
Once you’ve found all potential vendors, list those who offer the best quality for the price ratio. Then, request quotes that detail pricing, lead times, minimum order quantities, payment terms, and quality control procedures. Negotiate terms to secure the best possible deal that aligns with your needs and budget.
Choosing simply the most affordable of the good options is not ideal. You must also consider factors like reputation, reliability, responsiveness, and ability to scale production. For example, if you work with someone who answers you with a five-day delay and is working at 100% capacity, whenever it’s time to scale your operations, you will have to go through the whole vendor choosing again. So, signing with a slightly more expensive but reliable and ready-to-accommodate partner is much better.
Finally, make sure to have a contingency plan. This can be achieved by having a small quantity of the needed resources in storage or having more than one vendor. This way, you can avoid depending on the failures of other businesses.
Create the online infrastructure
When you are launching a new product, you must be able to show it online. Naturally, you will need some online infrastructure to take care of before you start producing and selling. It will help you generate leads, implement your marketing strategies, and even sell the product itself.
If you’re not a new brand, you already have a website. Still, that doesn’t mean you should simply put your product on the existing website and be done with it. Sometimes, your product needs more space. Occasionally, it requires an entirely new website.
When do you need a new website?
Now, when you introduce a new product, you might be tempted to build an entirely new website just for it. And that’s not out of the question if you want it to live a separate life.
Usually, a brand-new website is recommended for products that are entirely outside the scope of the brand and can lead to a harmful backlash. This way, if the brand succeeds, you can always promote your brand publicly. However, if it fails, you can distance yourself from the project and don’t bear the negative publicity.
However, if your brand name holds some weight in the industry and is renowned for its high quality and authority, separating your product from your brand will harm both. On the one hand, your brand will miss enlarging its portfolio, and on the other, the product won’t receive the already accumulated authority and trust.
When do you need a subdomain?
So, if you want to separate your new product into a completely new website, a better solution is to create a subdomain. This allows you to focus on the particular product’s features and benefits while still maintaining brand association with your main website. Usually, sub-domains are preferred when you want to relay a vast amount of information regarding the product. More high-tech solutions need such sub-domains, which must be introduced in detail. This way, you can create a separate customer experience for that new product without sacrificing your brand’s identity and authority. On the contrary, your product will be enhanced by your reputation.
Most often, B2B products require a sub-domain, while B2C products can go for a simple landing page.
When do you need a landing page?
Landing pages are the simplest way you can introduce your new product. It is by far the easiest and least demanding online infrastructure. Naturally, the product must be much more straightforward for a landing page to work. It should be easily recognizable and in line with your brand.
A landing page is a goldmine for your marketing strategy as it allows quick changes and offers the opportunity for invaluable A/B testing. This helps you gather user feedback and optimize your approach before fully integrating the product into your main website.
Regardless of which one you choose, it’s obvious you need a robust website infrastructure. This means you must secure the services of a reliable hosting provider who can guarantee your websites, sub-domains, or landing pages will always be operational. HostArmada offers precisely this. We ensure your website is always operational, quick to load, and fiercely secured. This gives your customers the peace of mind that if they decide to purchase your product, they can be sure their data won’t get into the wrong hands. Most importantly, however, your product won’t fall off the internet if it becomes too viral. We guarantee all our customers a 99.9% uptime, making their website practically online 24/7/365.
That’s precisely the infrastructure you need to make your new product a resounding success.
Spread the word
So, once you have secured HostArmada hosting for your product’s online infrastructure, it’s time to spread the word. For a successful product, you need to create some buzz. A great strategy would be to build up anticipation within your target audience and create initial incentives to purchase and try the product. These efforts will only pay off if you plan them in advance.
You must consider the lead generation streams, the separate customer journeys, and how to draw attention to your product after the initial buzz fades away.
In marketing, there is no golden rule on how to act. Instead, you need to consider your audience, which is its preferred communication channel, what its pain points are, and, of course, what your product’s specifics are. We’ve discussed some marketing best practices in our blog, so don’t hesitate to check them out and draw some inspiration to build your own marketing strategy that will fit your product perfectly.
Launch the product
Once you’re done preparing, it’s time to launch your product. Make the launch a celebration of the product. Make sure people will notice this is the day. You can create an event on social media, share live streams, make special offers, and do anything else to capture the customer’s attention.
Naturally, if you have the budget, make sure to flood all channels with the news of your product launch. This includes offline channels like billboards, TV, Newspapers, fliers, and anything that will draw attention.
Also, avoid setting your launch date when there are other major events. Sure, you can’t predict when Russia will attack a neighboring country and whether a Tsunami will hit Japan, but you can predict the US elections, the 4th of July, and other major holidays. The launching day should be entirely dedicated to your product. No distractions.
So, plan your launch day carefully, and make sure it’s memorable. And don’t forget to celebrate the launch as well. You’ve earned it. Plus, your job is hardly finished.
Listening to feedback
Surprisingly, the final stage of launching a product is not the launching itself. Instead, it’s the results you will get. Once your product has been on the market for some time, make sure to check if your marketing and sales strategies are working. Ensure your product reaches the predetermined benchmarks and review the KPI targets regularly. Also, look closely at all customer feedback, especially the bad reviews. Yes, having mostly brilliant reviews is quite a success, but there is always room for improvement, and 2-3-star reviews are the perfect place to start your research.
Remember, though your product was successfully sold, it doesn’t mean you should forget about it. Instead, you should work on customer retention and maximizing your customer’s lifetime value.
Conclusion
Launching a new product is a long and hard process that requires a lot of resources, hard work, and dedication. If this is your first product, the preparation time can last for more than a year. The idea alone may take months to crystalize in your mind. The hardest part of being a small startup with a brilliant product in mind is that you have to do everything on your own. The research, the number crunching, the supply chain building – everything. So, whenever you have the chance, make sure to outsource work so you have time and energy for the more critical issues.
A prime example is your online infrastructure needs. Creating a strategy, building a website, and enhancing it based on customer experience is hard enough. Maintaining a server and all the hosting infrastructure surrounding a website would be impossible for a single person. It requires a lot of work, precision, and 24/7 surveillance. That’s why you need a trusted partner like HostArmada.
We will ensure your customers can reach your product in a fraction of a second, have constant access to your website, and have their data secure from malicious attempts.
Just contact our team and push your new product one step closer to success.