A product launch is when a company introduces a new product in the market. A product launch can also be considered as a marketing strategy to attract the consumers in large number and to boost the sales of the product from its very first day in the market.
A product launch is not only organized for new products, but it is also organized to introduce an existing product with up-gradation and further innovation. In the present competitive environment, companies use every possible technique to maximize the sales of their products in a short period.
Therefore, a company spends a lot of time to plan the launch of a product, and a series of events are organized to make the grand release of the product.
A product launch is made of various elements. Let us learn about them one by one.
- A clear marketing positioning and messaging tagline.
- Features and capabilities of the product as per the current marketing needs.
- The product launch should make an influential impact.
- Predetermined goals of the product launch.
- The pre-decided and proper time of launch.
These elements are essential to make a product launch successful. Plan and work on them before you throw your product open in the market.
In the next section, you will learn about the advantages and disadvantages of a product launch, and you will learn about the different types of product launch to choose for the launch of your product.
Advantages of Product Launch
In the present competitive environment, companies spend a million dollars on the product launch of a product to get the attention of customers and to get the maximum sales in the initial months when the product is launched.
A new product or the upgraded version of an existing product can be introduced in the market with enthusiasm using a product launch event.
A well-planned and good product launch help in the followings:
#1. Creates awareness:
A well-planned product launch can be used as a marketing opportunity for the product. It creates awareness about the product, and people learn about the features that the product has to offer. A proper product launch helps people to make up their mind to buy the product.
#2. Boost sales in the initial months of the launch:
As people become aware of the features of the products. They can buy it as soon as it is launched in the market. In this way, companies can earn a big portion of the expenditure that they made in the production and marketing of the product. Initial few months right after the product launch are very important for the sales of the product.
As the product has the latest features and is sold at the full price and as the product becomes, old companies have to reduce the prices of the product to keep the sales up of the product. Therefore, it is very important to recover the maximum cost in the initial months.
#3. Creates publicity:
A well-planned and organized product launch is a great source of publicity for the product. People consider the product of great value if it is launched using proper marketing tactics.
For example, if you invite a celebrity to launch a product, then the followers of that celebrity will automatically establish a liking for your product. In addition to this, you can pay media to telecast and broadcast your product launch so that it can reach more and more people.
#4. Planning and staffing required for the product:
A product launch gives you an estimation of the demand for the product. Based on that information, you can design and implement strategies and other requirements such as the staff required and the training provided to them.
In addition to this, you can prepare for other resources and all other preparation that you are required to make to launch the product in the whole market.
#5. Provides a competitive edge:
A product launch provides an edge over your competitors in the market. If you plan product launch properly, then you can increase its fan base easily and can make people choose your product over the product of your competitor.
A product launch can create a positive image of the product, which helps make the brand name and image in the market.
#6. More Business Opportunities:
A right product launch can provide you better opportunities to expand your business. For example, if you own a start-up company, then launching your product can get you more business offers from the companies larger in size then your company.
For example, they might want to invest in your company based on revenue generation, or they might want to acquire your company. You can decide whether to accept the offer or not.
Disadvantages of a product launch
#1. Additional Work:
Your product launch must go right. A successful product launch requires a lot of additional work.
It is important to plan the product launch properly if you want the right results from it. The planning might require you to have an expert team which can plan your product to launch a successful event.
#3. Additional expenditure:
Planning, preparation, and the organization of the product launch can be an expensive event which might require a separate budget. Having a separate budget sometimes is not possible for the small budget and startup companies.
#4. Can put negative impact:
If a product launch goes wrong then rather than creating a positive brand image, it will put a negative impact on the image of the brand.
#5. Your ideas can be stolen:
A product launch is an initial stage when the product is launched but is not yet available in the market. Your competitor companies can take advantage of that period and also produce similar products to give competition to you and to share your market share.
This can not only impact your revenue generation but also give choices to people to choose from different options available.
Types of Product launch
There are two different types of product launch. A company can choose the type that suits their product and budget most.
Followings are the two different types of product launch:
#1. Soft Launch:
A soft launch of a product is done in a specific area or for a limited target audience. The purpose of the soft launch is to check the performance of the product and to make the required changes in the features or price of the product before launching it completely for all customers.
A soft launch is a test launch of the product to get the feedback of the customers so that the quality of the product can be improved.
#2. Hard Launch:
A hard launch of a product is done with full excitement and fervor. The word of the product launch is spread all around the world with full marketing efforts.
The purpose of the hard launch of a product is to grab the attention of customers and boost the sales of the product as soon as it is launched.
If you want to know more about it, here are the 7 Awesome Steps of Product Launch.