When we consider successful product launches, and later find out that the products failed to gain traction, we think that either the product was not that great after all or that consumers just did not want it. However, evidence reveals that this is not the case.
When it comes to successful products, well-prepared launches are more likely to satisfy expectations, whereas badly designed launches fail to acquire traction. We’re not only talking about the actions that interact with customers and may make or break a new product launch. We’re concentrating on what happens behind the scenes, internally, that can ruin even the most successful launch and even the greatest product.
🔸 Market Problems
Every business is motivated by the market; the market has an unmet need or an opportunity gap that your product can address while also making money.
However, determining the proper market and problem is not simple. If you create a solution for an issue that no one has or that is small, you risk wasting all of your time and resources.
Let’s look at marketing from the perspective of the four Ps of the marketing mix as they apply to launching a product: Product, Price, Place, and Promotion. There doesn’t appear to be a problem with the product. Companies appear to devote a significant amount of time to research and development. Pricing does not require any “preparation time,” therefore that is not an issue. Place (distribution) and Promotion are the only remaining options. In terms of promotion, It’s impossible to educate your whole market at once, but you’ll have to start somewhere. It makes sense to leverage promotional mix channels like media coverage, where you have the time and space to convey a compelling narrative to early adopters and subsequently the early majority, first. You’ve got some significant brand traction after you’ve won over the early majority.
🔸 Teams with Poor Management
Much of the time, management is the company’s heart and brain. Weak strategic choices, a communication gap between management and the team, little or no effort on product-market fit, are all examples of poor management.
🔸 Poor Planning
Inconsistent planning across departments. Some businesses just do not see the need of including several corporate departments in the planning and execution of a big product launch. Sales must be in sync with marketing and support, and engineering must be in sync with buying and production. To achieve a successful launch, everyone must collaborate.
There is no procedure in place. Many companies do not have a procedure in place or lack the knowledge to recognize that one is required to guarantee that all departments are ready for launch.
🔸 Lack of Customers’ information
If business owners don’t fully comprehend their market, they don’t have one. Offering the wrong product, failing to keep up with changing client requirements, or neglecting to do credit checks may swiftly ruin a startup. Your product might be excellent, but it is not presented to the right people. Then the whole purpose is defeated. Having through and through information about your target audience is necessary.
🔸 Cashflow Problems
Cashflow is essential to the survival of any business; no matter how passionate you are, how many users you have, or how brilliant your idea is, you must pay your workers, marketing agencies, and bills.
Some business owners fail to maintain track of their finances and, as a result, fail to take appropriate action in a timely manner.
Founders of businesses backed by private equity firms and other external investors should be acutely aware of the KPIs they must demonstrate for the next investment, such as their burn rate. Failure to meet KPIs and incurring unplanned costs with a low return on investment might lead to the company’s demise.
One must keep track of accounting and determining how long the firm can operate under present conditions. Always maintain track of the key performance indicators (KPIs) that investors will be looking for in the next round of investment. Make contact with many investors to enhance your chances of receiving money and to establish a network as soon as possible.
🔸 Poor Marketing
A great product can fail if it isn’t backed up by adequate marketing efforts. If you haven’t set up a marketing platform, your products is bound to gain less traction. Businesses who do not invest in their martech stack are at a significant disadvantage.
Because technology has advanced so quickly in recent years, your tools may be obsolete and ineffective, making it more expensive and time-consuming to interact with your target consumers. Nowadays, marketing isn’t just about increasing awareness of your product’s features; it’s also about incorporating marketing elements into the products themselves and exploring uncharted territory like influencer marketing and retargeting.
When it comes to product debuts, there is no marketing magic- rather a series of activities that help create momentum and awareness.
To sum it up, set a framework for product development with your team and stick to it. One must be clear on who is responsible for connecting with consumers and gathering feedback, as well as how much feedback is required to cause the action. Put your marketing team in place, be very well accustomed to your customer’s interest and choose your target audience wisely. The team should work in harmony and take preventative measure for cashflow burnouts.
