By Emma Sturgis
Your business is expanding and you’re ready to pursue a new avenue of growth. Or maybe your current product lines are starting to saturate the market and you need a new revenue stream. No matter the reason, you’ve decided you’re ready to launch a new product line. There are four key steps you should take before making the leap to ensure you are successful.
Do thorough consumer research first
Depending on what study you look at, new products fail anywhere from 80-95% of the time. That’s a scary statistic. But why do most of these products fail? The vast majority of the time, it’s because solid consumer research wasn’t done first. Let’s say you’re one of the first silicone mixing equipment suppliers in the U.S. You want to launch a new line of equipment, but don’t know the size of your target market or their interest in the new equipment. Not a recipe for success.
In the case of introducing a new product in an untouched market, surveys can be beneficial. You might not have resources to research past success in the market, but you can approach your target audience with questions. This will help you determine what their priorities are for a product and what they would be most likely to buy.
Don’t take resources away from your currently successful product lines
Before you launch a new product line, make sure you have the financial, manufacturing, and human resources to handle it. Your current products have gotten you to where you are today. If you take resources away from a successful line to apply to a new line, you’re looking for trouble. A new product line needs to be an add-on that takes on a life of its own. Be established in your current product line before you make the decision to take on any more.
Engage in a “build-up” campaign
Before your launch, start social media, email and print campaigns that build up excitement about what’s to come. Start a few weeks, or even months, in advance. Slowly “leak” out information about the new product offering without giving away all the details until the set launch date. This strategy will get consumers excited about what’s to come. It’ll create engagement and a sales boom on launch day.
Make your product launch an event
When launch day finally arrives, it’s the culmination of your build-up campaign. Make it count. Let people know that you’ll be going live on Facebook and YouTube at a specific time with the official announcement. Then bring the excitement to your viewers. Or, hold an in-person event at your location with plenty of freebies and food. Make it a party-like atmosphere.
Launching a new product line is no easy task
Successful new product lines don’t happen overnight. They take plenty of planning, preparation and strategy. By following these four steps, you’re on your way to experiencing success in your business expansion.
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Emma Sturgis is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2.
