24 Oct Three Phases of a Successful Product Launch (3/3)
The Love-it-or-leave-it Phase is the most painful. As we know most product launches fail. In my last blog we spoke about how to make the right plans so that the most can be delivered for a newly launched brand. Unfortunately, we are often called in after the fact to try and diagnose what went wrong, to determine if it can be fixed or whether the new product needs to be abandoned. Tough decisions. Nobody wants to make them, but sometimes, many times, that’s what’s necessary.
MarketSim provides a fact-based analysis of actual media, pricing, distribution and brand imagery so that options can be determined that can rescue the brand. Sometimes it can be rescued based on existing budgets. Sometimes more needs to be added. Sometimes there is no rescue. Should the company keep fighting the good fight or retreat and live to fight another day.
IRI reports there were over 9,500 new CPG products launched in 2013, yet only a handful were actually successful. These 5 were over $100m in revenue:
Dannon Light & Fit Greek – $145m
L’Oreal Advanced Haircare – $142m
Yoplait Greek 100 – $135m
Lime-a-rita – $113m
Monster Energy Ultra – $270m
Tide Pods – $325m
Clearly these brand launches were successful and even when considering cannibalization of sister SKUs and brands these launches probably led to significant increases in volume, revenue and profit.
Yet most launches, over 9,000, weren’t successful. Not only did they take critical resources from the company, but they probably took critical resources from sister brands. Now these may also be failing. All-around a bad situation.
What’s required is a capability to simulate the entire category. To understand the influences of the to be launched brand on sister brands and then determine what the right actions need to be to rescue the brand. If given media budgets can’t deliver what’s required then the tough decisions need to be taken. The product is failed and it needs to be pulled from shelves. Resources must be redirected to more profitable opportunities.
These three phases represent the critical requirements companies need to consider when bringing new innovation to market. We’ve worked throughout all phases and have been able to successfully help companies make significantly better decisions in all three areas. Help ensure product launch success!
Let me know your thoughts. Look forward to it.