The 5 Keys to Effective Brand Launches
Photo by Paweł Czerwiński on Unsplash.
I’m breathing easier because I just completed a project for a new client.
I love new clients, even though they’re not broken in. They’re so full of excitement and energy. And reality hasn’t reared its ugly head. And they haven’t seen my bill.
This new client was investigating launching a new brand and wanted a marketing plan.
Great. Brands should have marketing plans; we’re all in favor of that. It fits in perfectly with our approach to brand and product development.
However, this client wanted a marketing plan on the quick and cheap, which meant:
- A super-fast turnaround; and
- No market research.
I wonder sometimes why so many brand and product launches fail so quickly, and then I see things like this and I know.
Let’s be really blunt here: There is no quick and cheap path to effective product and brand launches. The only approach that works is deliberate and systematic.
What are the keys to an effective, systematic approach to brand and product development? Over 20 years of developing products and brands, I’ve identified five:
Know Your Market
Seems obvious, right? And in this case, the client had been in the market for many years and understood the players and the market dynamics from a seller’s standpoint.
That’s a really good first step – but that’s just a first step. In our case, we augmented their knowledge with demographic research. You’d be amazed what the Census Bureau has available via its American Fact Finder tool.
Many times a company that’s been selling into a specific geographic or demographic market for years has no idea how the demographics of that market may have shifted, and what new opportunities there may be.
Photo by thom masat on Unsplash.
That sort of tunnel vision is one of the best reasons to hire an outside firm to study your market. You know it from the inside out; let them study it from the outside in.
Actually Confirm That You Know Your Market
You want to do this right? Do some solid market research on the front end.
We’re not talking a DIY Survey Monkey here; we’re talking hiring a firm to study a scientifically selected, statistically significant sample of your market, looking at (at a minimum) brand perception, concept evaluation, price resistance, and demographic differences.
Of course it’s not cheap; on the other hand, it beats losing millions.
The best process I’ve seen for using market research to launch a brand or product is:
- Assess the market
- Create the concept
- Test the concept
You might want to throw in some qualitative testing, soft launches, field studies, and such, but in essence this is the way to go. And yeah, it will cost you. But it will also save you.
Think I’m crazy? If you think you know your market, follow this process and compare the end result to your initial market perceptions. Will they align? I’m betting not.
Photo by Caleb Lucas on Unsplash.
Figure That A Subset Of A Subset Of People Will Want Your Product
One of my favorite (and most painful) stories illustrates this point perfectly.
A company was preparing to launch a product that it felt would redefine a market, primarily because it would open up several key new demographics that previous products had been unable to penetrate.
It studied the market in great detail, found that there were receptive audiences for the product, and calculated sales projections that looked amazing. This product was going to make millions, and catapult the company into the top three of that vertical within two or three years.
Investors rushed in, expecting humungous returns. And it never happened. Never came close.
Why? The company assumed 100 percent penetration into its target markets.
No matter how good your product and how many people you think will buy it, always remember that someone saying they’re going to buy something is not the same as someone actually buying something. In fact, they couldn’t be more different.
If the research suggests a sales projection of x, I tell clients to cut that in half, and see if they can make money at that. If they can, I have them cut it in half again and ask them the same question.
If your product is profitable at that point, it will probably do well for you. If not, you’re playing with fire.
Photo by Mike Petrucci on Unsplash.
Acknowledge That Your Reason For Selling Is Not The Same As Their Reason For Buying
A product that meets your needs is great … for you. But the market wants something that meets their needs, and really doesn’t give a rip about your needs.
Ignorant as you may deem your market to be, you have to give them what they want in a way that lets you make money.
Too many organizations look at research that provides a template for a product the market wants and says, “Nah. We’ll give them this.”
No. Give them what they want – if you want to own their market, that is.
Whatever You Budget To Launch, It’s Going To Cost Twice That
I was talking with the CFO of the same company that blew their sales projections, asking him about the launch budget for the new product.
“Oh, we’re good,” he said. “We’ve got $5 million.”
“What if you need $10 million?” I asked.
“We won’t,” he replied confidently. “$5 million will be more than enough.”
It wasn’t, of course. In all honesty, $10 million may not have been enough, though it would have been close. They gave up on the product within a year.
Every significant new-product launch I’ve been around – and I’ve been around a few – has greatly underestimated the money it takes to successfully launch a product or brand.
It boils down to this: Consumers need to be educated, and education is expensive. And unlike a product category, where other brands can help lift awareness of a product need, when you’re launching a brand it’s all on you. And with nowhere to spread the cost, things get expensive.
I don’t know if this new brand will make it. I hope so. But if it does, it will be a happy accident. And there are all too few of those in the world of brands and products.