As difficult as it may seem and even when many specialists assure that 2021 will be a year of many financial challenges, innovation will have a fundamental place for business, where the launch of a new product will be, for many companies, the necessary way to survive .
And it is that given the very pressures of the market that will add to instability and uncertainty on the part of the consumer, perhaps the best way to compete is to venture to compete in new markets or, better yet, try to develop a new one.
To give us an idea of the role that these types of launches will play, it is enough to know the leading role that has been given to innovation for some years ago.
In principle, it is fair to recognize that today more than ever, innovation is an obligation for brands. Research signed by Simon-Kucher & Partners indicates that 90 percent of companies say that pressure on price is increasing, with which 75 percent of organizations say that product innovation is the best measure to counteract the effects of these pressures.
Along these lines, it is not surprising that, as reported by Gartner, 83 percent of the budget that a brand allocates for marketing is used in the innovation of the product or service it offers.
The truth is that landing this investment in really profitable projects or that are seen as real innovation is not always easy.
Data published by TNS indicate that of what brands identify as ‘innovation’ in their offer, only 15 percent correspond to proposals that comply with this concept, with 82 percent referring to line extensions and 3 percent to relaunches.
While reversing these figures will be a necessity, the truth is that brands will not have a great margin to try and fail either.
With reduced budgets, launches should guarantee success almost from planning to deliver business results in the short term.
In this sense, it is worth recognizing some aspects that will be crucial to improve the chances of success of a new product in this interesting but challenging 2021:
Identify the buyer persona
Although it is possible to think that a new product could speak to anyone and be bought by everyone, the truth is that now more than ever for brands it is necessary to identify their value buyers. This becomes more relevant when launching a new product. It’s about targeting the right target at the right time to create value.
Different proposal to capture attention
Perhaps the most complicated conflict for the products that now compete in the market, is being seen by the consumer.
The large amount of offer available in the market makes it easy for any new proposal to quickly lose visibility.
Thus, the launch plan must be focused on capturing attention where aspects as basic as the price and the differentiated taxes as well as other more complex ones such as the emotional value of the same must be highlighted from the first moment.
While innovating is crucial, the truth is that investing all or large amounts without actually knowing the possibilities of generating business is a mistake that could lead to bankruptcy for any company.
Thus it is important to determine a consistent budget and adjust all actions in it. At this point you cannot lose sight of the fact that nothing is free; Each move has a value in business terms that must be considered.
Product life cycle
Not all products are the same, nor are they aimed at the same audience, therefore it is necessary to measure development and analyze possible customer behaviors. In this sense, every detail must be considered to adjust the proposal in time before it begins to generate losses.
Although this aspect has been crucial historically, the truth is that at this time it takes on greater importance.
The consumer looks for products that give confidence and have high levels of credibility at a time when everything seems uncertain.
Thus, from marketing and packaging to communication and promotion strategies must be supported by the credibility of the product.