In this step by step to launch a new product guide you will learn how to launch a new product from a simple idea until the product reaches the hands of your customer
Summary
6 big steps to launch a new product successfully:
All starts from an idea
Oftentimes ideas come from no where and show up randomly. So be prepared to write your ideas down immediately and never say you are going to remember.
Read more about how to handle a new idea in the details below.
Validate your Idea
Your idea could be brilliant, but if there is no market for it.. it makes no business sense to spend time and effort to execute it. Having that said, keep your idea in mind, because market conditions change all the time and your idea may become very appealing to a large number of potential customers.
Read more about how to validate a new idea in the details below.
Make a plan
Once the validation phase shows high potential that there will be demand for your product. It is time to put a plan together to start working on brining your idea to life.
Read more about how to make a plan for a new product in the details below.
Test the water
Make couple prototypes of your product and give them to a small group of people who are in the same segment of your potential customers. This helps you receive constructive feedback that you can use to enhance and adjust the quality and the features of your final product before the big launch.
Read more about how to test the market for a new product in the details below.
Finance
The hardest part is to figure out the economics of the new product. Profitability is key to be able to attract the right finance for your product.
Read more about the economics of a new product in the details below.
Marketing & Supply Chain
This is when the fun begins. Planning is one part and executing is a completely different beast that you have to master and watch very closely for your product to make it to the market successfully.
Read more about how to bring your product to the final target customer in the details below.
The devil in the details; Breaking down each of the 6 big steps provides more guidance.
How to handle a new Idea ?
Be prepared to write down any idea that comes to your mind. You never know what idea is going to make you the next millionaire / billionaire. Make this your habit and take it very seriously.
Once you have written your idea down, make sure to read it couple times a week and spend more time thinking about it. By doing so, you are able to improve your idea and expand it further or you come to a firm conclusion to park it for now or permanently. It all depends on your preliminary evaluation.
If your idea is appealing enough and seems to be doable, now you have to put it through a validation test.
How to validate your idea ?
Start the validation process by answering the questions below:
- Is it a new opportunity in a established Market that requires a new product? example; Furniture products.
- Is it a new Technology with no Market? example; use of new material in making clothes.
- Is it a new product built around an established technology? example; Printer with ink tank.
- Is it a new production process to make the same product? A new process to make food or a chemical substance.
- Is it an improvement of an existing product by introducing additional features? Battery that lasts longer.
- Is it a high risk product due to market uncertainties high regulations? example; Pharmaceutical or health specific product.
- Is it a complex product made out of multiple subsystems? example, a new car such an electric car or a robot.
How to make a plan ?
Start by the famous 5 questions, why, What, when, Where, and How. The answers to these questions will constitute a good foundation of the overall plan.
- Why launch this product? The answer should tackle the problem (pain) that the new product is going to solve.
- What, provides an overview on the mission and the goal of launching this new product.
- When, should answer the timelines in general and in detail for each phase of the new product launch.
- Where, should answer the location geographically of the potential customers but also the distribution channels where the new product is going to be sold.
- How, to shed the light on who is going to do what, in terms of financing, marketing, sales, prototype, manufacturing…etc…
It is important to mention that any plan is dynamic in its nature, therefore, it is always helpful to start with an initial plan, however, a certain degree of agility is crucial as things may deviate slightly knowing that this is a new product launch.. meaning, the chance to walk into a lot of unknowns is very high.
How to test the market for your product ?
Testing the market is not an easy task. It should be done in a very meticulous way to avoid your idea to get stolen before the final product is even launched; it happened many times.
Make a limited number of samples of the final product that you aim to launch and share it with a limited circle of people who belong to the targeted segment (market niche).
Then collect their feedback about :
- the price that they are willing to pay for it.
- whether it serves to resolve the problem that it was made for.
- places where would they look for such product; online, specialty stores, regular stores etc…
- any features or options that are missing which they would like to be added
Once the this step is complete, now it is time to figure out the market size to estimate the demand.
What are the economics of a new product?
to be added soon
How to bring your product to the final consumer ?
to be added soon