What Is Product Launch And Why Does It Matters In 2022?
February 11, 2022 Edwin Kooistra
Now and then new products get introduced to the market, targeted towards different needs of different market segments. Today we will look at what exactly goes into bringing these products or services directly to the customers through a product launch.
- What Is a Product Launch?
- Why Does Product Launch Matter?
- Benefits Of Planning a Product Launch
- Example Of a Tech Product Launch
What Is a Product Launch?
Product launch or a new product release is essentially the process of introducing and bringing a new or improved product or service to the market. It is a planned effort that involves thorough strategic planning, involving different stakeholders from all realms of the market.
Product launches generally require months of planning after the product has been developed and tested, to be finally deemed fit to enter the market for their targeted market segment.
Product launch management is an essential skill especially for organizations operating in the tech ecosystem where products and services are introduced overnight and sometimes require newer versions or optimized features within a week of their launch.
Product launch plans essentially help you in determining a sequence for the steps and events that must take place essentially before bringing the product to the market, while you are at introducing it to the market and even sometimes durations after the launch itself.
Product launches can be categorized into a variety of different types based on a multitude of factors including market size, budgetary constraints, and even the nature of the product or service itself. These types include the following:
This is usually done with the product being launched having just a few tweaks or improved features and therefore does not require a huge marketing budget, to be put out again in the market.
This is the preferred mode of launch where there is not much hype or marketing effort. For B2B tech-based products or services this is the launch of choice because of two main reasons.
The first is the nature of the industry itself, secondly, the majority of the products or services in the tech space for the B2B industry are usually customized according to the client’s needs therefore putting in heavy marketing budgets for a fancy launch campaign does not make sense.
This type of product launch is executed when you want your whole market segment, competitors, and all those that make up a part of your competitive sphere to not only be aware of the product or service but also learn about its features and value proposition.
This type of launch requires heavy marketing budgets and is usually spread across a longer time duration, with different marketing campaigns and activities executed across the whole launch period.
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Why Does Product Launch Matter?
Launching your product is as important as developing your product. You might have a groundbreaking product or service with immense potential in your hand, that you have developed with insightful knowledge and skills but if you’re not able to communicate its value proposition to your target segment and introduce it into the market in an effective manner to get the message across, then the product, unfortunately, might fail.
If you do not launch your product in a well-suited manner your target customers will not become aware of the product, and this might backfire and result in reduced brand awareness and reputation, and eventually translate into loss in terms of financial investment.
Therefore, always remember to work on your product launch as early as possible and even deploy the professional services of product launch agencies that specialize in introducing new or improvised products to the market.
4 Benefits Of Planning a Product Launch
Let us now look at some of the benefits that you can derive from planning and executing a product launch.
1. Catching Customer Attention
If your target customer has not known about your product or service advance, they would be hesitant to buy it. Therefore, product launches are not only great and early at catching your customers’ attention but also making them excited about using the product or service.
2. Generating Leads
Depending on how you plan and execute your product launch, you will not only be able to generate new business leads but will also be able to tap into new market segments and expand your customer base. A well-planned and well-executed product launch can also bring in investor interest that might help you grow in the longer run.
3. Increased Revenue
With an increased customer base, new leads, and increased sales, you will have an increase in your revenue. Research has proven that companies who invest in product launches versus companies who do not invest in product launches, reach break-even points and eventually increased profitability quicker.
4. Improved Market Reputation
A product launch is all about introducing a product for catering to your target market’s needs. In a sequential event, once you do that effectively, you will not only receive admiration and praise from your customers for identifying and catering to their pain points, but you will also impact the general market in a positive manner, which will not only increase your brand awareness but will also improve your market reputation.
Example Of a Tech Product Launch
An example of a successful tech product launch in recent times is that of Robinhood. It is a stock trading service that allows its users to trade stock while paying zero commission. This proposition of course makes it extremely attractive for everyone who has ever had an interest in trading stocks.
Before its launch, it offered a private beta version with only invite-based access, which placed you on a waiting list. With over 1 million individuals waiting to gain access to the service, not only was Robinhood able to generate buzz and create brand awareness but it also became known for one of the most effective launches in history that had displayed success even before its official introduction.
This example shows and displays the importance as well as the power of a product launch. Hence, as a business owner or decision-maker, one should put in directed effort for introducing a product or service to the market.
Once you have launched the product it is highly recommended that you understand the following key concepts to ensure your product is up for success.