Releasing new products is vital for companies and brands because it helps drive growth, create new revenue streams, and keep up with changing consumer demands. A product launch introduces a new product or service into the market. The term product launch is also known as product introduction or product rollout. The success of a product launch is determined by factors such as sales, customer feedback, and market share.
Teams inside an organisation that are typically responsible for launching new products include product management, engineering, design, marketing, and sales. Other groups, such as supply chain, logistics, and customer service, may also be involved depending on the product and industry.
Historical Timeline of Product Launches
The 1950s: The term “product launch” is first used. During this decade, major product launches include the introduction of the first commercial microwave oven by Tappan and the launch of the Polaroid camera by Edwin Land.
The 1960s: Major product launches during this decade include the launch of the Ford Mustang, the first miniskirt, and the introduction of the first home computer, the MITS Altair 8800.
The 1970s: This decade saw the launch of several iconic products, such as the Sony Walkman and the Atari 2600 video game console.
The 1980s: The 1980s were marked by the launch of several now-iconic products such as the IBM PC, the first Apple Macintosh computer, and the launch of the first mobile phone, the Motorola DynaTAC 8000X.
The 1990s: This decade saw the launch of several groundbreaking products, such as the first web browser, Mosaic, the first digital camera, the Kodak DCS 100, and the launch of the Sony Playstation, which revolutionised the gaming industry.
The 2000s: This decade was marked by the launch of several products that have had a significant impact on our lives today, such as the launch of the first-generation iPod by Apple, the first smartphone, the Blackberry 5810, and the launch of the social networking site Facebook.
The 2010s: In this decade, some of the most notable product launches include the launch of the first iPad by Apple, the launch of the first smartwatch, the Samsung Galaxy Gear, and the launch of the first self-driving car, the Tesla Model S.
The 2020s: This decade saw the launch of 5G networks, folding smartphones, and the Clubhouse app, which became popular in this era.
While this timeline is not exhaustive, it is also important to note that the term “product launch” is used not only for new physical products but also for services and digital products, as well as updates and upgrades to existing products.
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What factors cause a product to fail when launched?
There have been several notable product launches throughout history that have been considered disasters or failures.
One of the most widely cited examples of a failed product launch is the launch of the Segway in 2001. The Segway was marketed as a revolutionary new mode of transportation that would change how people move around cities. However, it failed to live up to the hype, and sales were much lower than expected. One of the reasons for its failure was its high cost, which made it unaffordable for most consumers. Additionally, many cities had laws that restricted the use of Segways on sidewalks, which limited their usefulness.
Another example of a failed product launch is Google Glass in 2013. Google Glass was a wearable device that had a small display in the corner of the user’s eye. The product was heavily criticized for its high price, lack of practicality, and privacy concerns surrounding the device’s camera.
Other failed product launches include the launch of the Amazon Fire Phone in 2014, which was unable to gain traction due to its high price and lack of unique features, and the launch of the Zune music player by Microsoft in 2006, which failed to compete with the dominant iPod.
While these products are considered failed launches, it doesn’t mean they were not successful on some level. For example, the Segway is still used in some niche applications, and Google Glass is used in some enterprise and industrial areas.
The percentage of new product launches that fail varies by sector. However, generally speaking, the majority of new product launches fail. According to some studies, the failure rate of new products can be as high as 90%.
In the technology sector, the failure rate for new products is estimated to be around 60-90%. This can be due to the rapid pace of technological change and the high level of competition in the sector.
In the consumer goods sector, the failure rate of new products is estimated to be around 30-40%. This can be due to the high level of competition and the need to adapt quickly to changing consumer preferences.
In the Pharmaceutical industry, the failure rate for new products is estimated to be around 80-90%. This can be due to the development process’s complexity, high research, and development costs, and strict regulatory requirements.
In the retail sector, the failure rate of new products is estimated to be around 30-40%. This can be due to the high level of competition and the need to adapt quickly to changing consumer preferences.
What have been some of the notable product launch successes?
A successful product launch is determined by its sales figures, impact on the market, and ability to change how people live. There have been several notable product launches throughout history that have been considered highly successful.
One of the most widely cited examples of a successful product launch is Apple’s launch of the iPhone in 2007. The iPhone was a revolutionary new product that combined the functionality of a smartphone with the ability to access the internet and run third-party apps. The launch of the iPhone was met with widespread acclaim and high demand, and it quickly became one of the best-selling devices of all time. The iPhone’s launch was a significant turning point in the industry and is considered to have set the standard for the modern smartphone.
Another example of a successful product launch is the launch of Coca-Cola in 1886. Coca-Cola was one of the first soft drinks, and it quickly became popular across the United States and eventually worldwide. Today, Coca-Cola is one of the world’s most recognised brands and is considered one of the most successful product launches in history.
Another example is the launch of the Post-it notes by 3M in 1980, revolutionizing how people organise their work and personal lives.
Do product launches look different for different industries?
Product launches can differ for different industries, such as FMCG (Fast Moving Consumer Goods) and technology.
For FMCG, the product launch process can focus more on distribution and logistics, as these products typically have a quick turnover and are widely available in retail stores. The process may also involve more traditional forms of advertising and promotional activities such as print, television, and outdoor advertising.
For technology, the product launch process may be more focused on product development and testing, as well as digital marketing and social media campaigns. These products may have a longer sales cycle and require more education and demonstrations to potential customers.
Also, for technology products, the product launch process may require more interactions with regulatory agencies, such as getting the product certified for compliance with industry standards.
Additionally, the nature of the products and target audience impacts how the launch will be conducted. For example, a B2B product launch may require more face-to-face interactions and product demonstrations, while a B2C launch may focus more on online campaigns and social media advertising.
Soft launch vs. full launch
A “soft launch” is a limited product or service release, usually to a select group of customers or in a specific region. A “full launch” is the official release of a product or service to the public. Other stages in product launching may include beta testing, pilot testing, and pre-launch marketing.
Whether a product launch is a soft launch or a full launch, a successful product launch is one that meets its objectives, such as reaching sales targets and gaining market share.
What should a brand consider before embarking on a new product launch?
An organisation should consider launching a new product when there is a need or opportunity in the market or when new technologies or advancements can be leveraged. Market research can help determine if there is a need or opportunity for a new product and what features and benefits customers are looking for.
Factors that should be considered before launching a new product include legal, financial, and intellectual property considerations. It is essential to ensure that the product does not infringe on any patents or trademarks and is financially viable.
When launching a new product, whether domestically or internationally, brands should consider several legal and intellectual property (IP) considerations to ensure compliance with local laws and regulations and to protect their IP rights. Launching a new product in international or foreign markets can have its own challenges, such as cultural and regulatory differences. It is important to conduct market research and to be aware of any legal and regulatory requirements in the target market.
Some of the key considerations include the following:
Patent protection: Brands should conduct a patent search to ensure that the product does not infringe on existing patents. Brands should also consider filing for patents to protect their own IP rights in each country they plan to launch the product.
Trademark protection: Brands should conduct a trademark search to ensure that the product name and branding do not infringe on any existing trademarks. Brands should also consider filing for trademarks to protect their own IP rights in each country they plan to launch the product.
Copyright protection: Brands should consider registering their copyrighted material, such as software, images, and text, to protect their IP rights in each country they plan to launch the product.
Compliance with local laws and regulations: Brands should research and comply with all relevant laws and regulations in the target market, such as product safety and labelling requirements, import/export regulations, and advertising laws.
Trade secrets protection: Brands should take steps to protect their trade secrets, such as confidential business information, by implementing non-disclosure agreements and other protective measures.
Customs protection: Brands should consider registering their IP rights with Customs in the target market to prevent counterfeit products from entering the country.
Licensing and distribution agreements: Brands should consider entering into licensing and distribution agreements with local partners to ensure compliance with local laws and regulations and to protect their IP rights.
What are the steps in launching a new product?
Important considerations when launching a new product include market research, product development, testing, and marketing. The steps include market research, product development, testing, and marketing. These steps can include the following:
Market research: Conduct market research to determine the size and characteristics of the target market, as well as identify the needs and wants of potential customers.
Product development: Developing the product based on the findings from market research, including design, engineering, and testing.
Pricing and positioning: Determining the price point and positioning of the product in the market.
Go-to-market strategy: Developing a strategy for launching the product, including marketing, sales, and distribution plans.
Pre-launch activities: Conducting pre-launch activities such as beta testing, pilot testing, and pre-launch marketing to generate buzz and interest in the product.
Launch: Officially launching the product to the market through various channels, such as press releases, product demonstrations, and advertising.
Post-launch evaluation: Monitoring the product’s performance and gathering customer feedback to make necessary improvements and adjustments.
These steps may vary depending on the product, the industry, and the target market. Also, the timing of each stage may vary, and some steps may be repeated or iterated as the product launch progresses.
How can market research help a brand launch new products successfully?
Market research can be used to gather information about target customers, competitors, and industry trends. Research methods can include surveys, interviews, focus groups, and online research. Several different types of market research can be used before, during, and after a product launch. Some of the most common types include:
Surveys: Surveys can be used to gather information about target customers, their needs and preferences, and to assess the potential market size for a new product. Surveys can be conducted online, by phone, or in person.
Focus groups: Focus groups are a way to gather information about target customers by bringing a small group of people together to discuss a specific topic or product. They can be used to gather information about customer needs, preferences, and feedback on a new product.
Interviews: Interviews can be used to gather in-depth information about target customers and their needs. They can be conducted in person or over the phone and can be used to gather information about customer needs, preferences, and feedback on a new product.
Online research: Online research is a way to gather information about target customers and the market through online resources such as social media, forums, and industry websites.
Ethnographic research: Ethnographic research is a way to gather information about target customers by observing and studying their behaviour in their natural environment.
A/B testing: A/B testing is a way to gather information about target customers by testing different versions of a product or marketing campaign with small groups of customers.
Sales data: Sales data can be used to gather information about customer needs and preferences after a product launch.
The type of market research that is most appropriate will depend on the product, the industry, and the target market. Additionally, it’s important to use multiple market research methods to understand the target market and customer needs.
Kadence International is an international market research agency with 30+ years of experience helping brands make game-changing strategic decisions. If you want to launch a product and understand how research can help, reach out! We would love to help.
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