NEC/NTC Education Series: How to Launch Your Product

Launching Your Launching Your Product Product ––oductoduct

Are You Ready?Are You Ready?

Dec 17, 2010Dec 17, 2010

Chip HyslerChip Hysler

Product Management ConsultantProduct Management Consultant

CM MarketingCM Marketingwww.cmmarketingpro.com

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Agenda

• Introduction

• Need for Product Launch Planning• Need for Product Launch Planning

• Product Launch Process

• When to Launch?When to Launch?

• Launch Planning

• Product Launch Checklist

• Summary

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CM Marketing• Chip Hysler

• Owner, Product Management Consultancy, g y

• 25 Years Experience in Product Management and Product Marketing.

• Launched over 35 Technology and Consumer Products

Our approach is based on a mix of proven industry methodology and industry experience in assisting companies with managing

their products within any stage of the "Product Life Cycle".

• Product Management• Product Strategy

• Marketing Strategy• Market Research

• Product Launch • Project Management

www.cmmarketingpro.com

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The Need to Plan…

According to the Harvard Business Review –

• “on average 40% and 90% of all product launches fail” meaning almost 1 in 2 product launches fail.

• “47% of first movers have failed, meaning approximately half the companies pioneering new

d t l t ll t f th b i ”products later pull out of those businesses.”

• The study finds the main reason –

“ di t th t ld h b dd d“a disconnect that could have been addressed through a more effective launch process”.

Product Launch FailureHarvard Business Review – December 2007

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The Need For Product Launch Planning

35New to the

Probability of Failure

35

30

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New to theCompany

hnol

ogy

20

15

Adjacent toCurrent Offerings

Prod

uct/

Tech

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3025201510

Same as CurrentOfferings

3025201510

Same asPresent

AdjacentTo Present

New to theCompany

Intended Market

Harvard Business Review – December 20075

"If d 't d"If we don't succeed, we run the risk of failure."

--Bill Clinton, President

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Product Launch Process

A proven effective product launch process results inA proven, effective product launch process results in the difference between success and failure in your new

business – soaring profits vs. painful losses.

A quality “Product launch Plan and Process” makes it much easier and less stressful to launch right

consistently.

- 280 Group280 Group

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When To Launch?

IdeaIdea

StrategyStrategyMeasureMeasure • Different Stages

Launch TimingLaunch Timing

• Market Window• Business Readiness• Channel Readiness• Customer Readiness

DesignDesignLaunchLaunch

Customer Readiness• Type of Product• Type of Launch

BuildBuild

TestTest

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Ideal Product Launch Timing

• Review Business Strategy and ObjectivesM k t Ti i• Market Timing

• Day of Market Availability - Marketing/PR hit the road• Preannounce before availability• Set a goal and work backwards

– Ideal: Start planning and work 6 months prior to ship date• Worst Case: Announcing too earlyg y

– Customer attempts to purchase but isn't able to– May purchase competitive product– Unable to get coverage when product becomes availableg g p– Lose mindshare with press & customers– Take pre-orders but can’t fulfill

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Elements of a Successful Product Launch

1. Clear Goals

2. Plan for product launch early in research and development cycle

3. Defined Value Proposition & Positioning Statement

4 Team Planning – Launch Planning at every meeting4. Team Planning Launch Planning at every meeting

5. Internal and External Communications

6. Market Timing

ff i k i i7. Effective Marketing Mix

8. Compelling Messaging

9. Budget to Achieve Goals

10. Message Reaches Target Customers

11. Product Readiness

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Launch Goals

Establish and Track Goals Based on the Business Case –

• Gain market share and market penetration

• Introduce competitive argument

• Create initial product/brand/company awareness

• Solid financial performance, drive revenue, including sales

• High quality and customer satisfactiong q y

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Creating the Launch Plan

1.1. Rollout StrategyRollout Strategy

2.2. Channel StrategyChannel Strategy

3.3. Sales Training PlanSales Training Plan

4.4. Customer Service PlanCustomer Service Plan

5.5. Test Marketing and Customer TrialsTest Marketing and Customer Trials

6.6. Supply Chain ManagementSupply Chain Management

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Rollout Strategy

T f L hT f L hTypes of LaunchesTypes of Launches

Long Release Cycles: (Major New Product)

“Soft” Launch

Rolling Release Cycles: (Minor Product)

“Soft” LaunchSoft Launch

Minimal Launch

Full-Scale Launch

Soft Launch

Minimal Launch

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Rollout Strategy

Product Release Cycles

Long Release Cycles(Major New Product)

• “Soft” Launch• Minimal Launch

Release 1Release 1

Release 1Release 1 Release 2Release 2 Release 3Release 3 Release …Release …

• Full-Scale Launch

Market 1Market 1 Market 2Market 2 Market 3Market 3 Market…Market…

Rolling Release Cycles(Minor Product)

• “Soft” Launch• Minimal Launch

1 month N Years

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Channel Strategy

How are you getting your product to the market?• DirectDirect

• Online

• Dealers

b• Distributors

• Partner Channels

The channel strategy you choose can impact product design, development, packaging, and launch timing.

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Sales Training Plan

• Sales, Distributor, and Support Training is very importantimportant.

• All documents, manuals, instruction and other materials must be ready.

• “Train the Trainer” Concept.

• Leverage beta trials to test training and material.

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Customer Service Plan

• Customer service procedures

• Rolls of the channel• Rolls of the channel

• Establish ordering procedures

• Warranty agreementsWarranty agreements

• Service and repair procedures

• Customer and order tracking

• Coverage 7/24/365?

• Documented

• Returns

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Test Marketing and Customer Trials

Try to use a test market/beta trials –• Test product in live environment• Test product in live environment

• If the product fails, only a small portion of customers will know.

• Allows assess to customer response to the product, documentation, packaging, pricing and use.

• Have real stories from satisfied customers to beef up your promotions and sakes when you fully launch the product.p y y p

• Allows testing of logistical aspect the launch: coordination with suppliers, manufacturing , quality, shipping, installation, dealer interaction etcinteraction, etc…

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Supply Chain Management

• Know exactly who your suppliers are, what their deliverables are and whendeliverables are and when.

• Be sure to over communicate with suppliers and partners.

• Allows you to act quickly if a supplier/partner won’t come through.

• Coordinate schedule between you and the suppliers• Coordinate schedule between you and the suppliers.

• Keep track of low-cost suppliers to improve margins.

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Sample Launch Plan

• Summary

• Purpose of this plan

• Features & Benefits

• Pricep p

• Marketing Overview

• Key Market Trends

• Launch Goals/Objectives

• Place & Channel

• Marketing Strategy

• Marketing Tactics/Promotion• Launch Goals/Objectives

• Target Customers & Needs

• Market Segmentation

• Marketing Tactics/Promotion

• Launch Budget

• Marketing Mix and Metrics

• Product

• Window of Opportunity

• Ship Date

• Expected ROI

• Action Plan / Deliverable Ownership

• Positioning

• Tag Line

• Rough Timeline/Schedule

• Key Decisions Remaining

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Product Launch Checklist

PlanningPlanningPlanningPlanning

TechnicalTechnical

OperationsOperations LAUNCH

Marketing/SalesMarketing/Sales

Product SupportProduct Support

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Planning

• A product launch plan is prepared covering all activities to be performed by Engineering, Manufacturing, Marketing, Sales, Product Support and Field ServiceSupport, and Field Service.

• Have a Launch Manager.• Functional departments understand their responsibilities for launch

activities. • Functional departments have committed the necessary resources to

support launch activities. • The launch activities are on track to be completed as currently

plannedplanned. • A Production Readiness Review, Product Launch Review or related gate

review confirms that all preparations have been completed and the product is ready to launch.

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TechnicalTechnical

• Product performance has been evaluated through testing and qualification and the product meets its defined requirements.

• The product and the production process have been qualified or validated and all regulatory approvals and/or certifications have been obtained.

All d t d i d t ti h b l t d d d• All product design documentation has been completed and approved.

• Technical data sheets have been prepared.

• User documentation, operating manuals and maintenance instructions have been completedhave been completed.

• Engineering personnel stand ready to address any issues that arise.

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OperationsOperations

• Required manufacturing process documentation or outputs (e.g., work instructions, manning plans, etc.) are complete.

• Production processes have been proven using either pilot production lines or actual production lines.

• The product and demand forecast data has been established in the t i l i (ERP) t d ERP i d t l denterprise resource planning (ERP) system and ERP is used to plan and

manage the supply chain and production.

• All suppliers have been selected and qualified.

• Needed materials and parts are on order or in stock• Needed materials and parts are on-order or in stock.

• Adequate capacity and personnel exist to support planned production.

• The distribution pipeline is filled with the appropriate level of product.

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• Market receptivity has been evaluated by key customer feedback, focus groups, test markets, or beta tests prior to launch.

• If the product is being used by beta customers, testimonials or case studies have been prepared.

• A promotion and advertising plan has been developed.

• Advertising copy has been developed and media contracts and arrangements have been made.

• Promotional materials and sales literature have been developed, ordered and are ready to distributeordered, and are ready to distribute.

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• Sales and distribution channels have been identified and established.• Final packaging has been designed, approved and ordered. • Product pricing has been established and approved.• Marketing Mix determined and in place.• Sales personnel have been trained.• Sales personnel have sales literature support material and product samples• Sales personnel have sales literature, support material and product samples.• The sales forecast has been updated based on the latest market demand. • The website has been updated. • Press releases have been prepared and are ready to distribute.Press releases have been prepared and are ready to distribute. • Industry analysts have been briefed as planned. • A product release and/or general availability has been announced.

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The Marketing Mix Checklist

• PR Activities– Press Releases– Review Program

l C

• Channel Programs– Spiffs– Retail presence

ll h– Analyst Coverage– Digital Pressroom

• Advertising– Print/Radio/TB– On-Line Banners

– Resell purchase program– Collateral

• Promotions– Rebates– Introductory PricesOn Line Banners

• Direct Mail– Customer list– Purchased Lists

• E-mail Campaigns

Introductory Prices– Co marketing

• Collateral– Brochures– White Papers

– Customer Lists– Purchased Lists

• Website– Search engine Optimization

Ad Words/ Yahoo/MSN

– Success Stories– Presentations

• Sales Tools• Product Demo• Video Testimonials– Ad Words/ Yahoo/MSN

– Blogging• Social Media Programs

– Related Groups– Affiliated Marketing

• Video Testimonials• Trade Shows/Conferences• Launch Event• Customer Events• Webinars/Seminarsg

• Virtual and Guerrilla Marketing– Blogs/Bloggers– Online Forums

• Webinars/Seminars• Speaking and Panel Engage.• Trade Associations

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Product SupportProduct Support

• Support Processes in place.• Return process in place.• Necessary support resources are hired and in place. • Service and support personnel have been trained.• Frequently asked questions (FAQ's) have been identified and

responses prepared. • Troubleshooting guides, installation guides, and service manuals.• Spare part requirements have been planned.

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Communications

InternalInternal ExternalExternal

• Launch Plan Presentation

W kl l h

• Channels

• Key Customer • Weekly launch team

meeting

• Track deliverables

y

• Key Influencers

• Press / Analysts

• Clarify blocking issues

• Assign action items

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Why Product Launches Fail

• There are no goals for the product launch.

• The launch team isn’t a team.

• The launch strategy is based on a set of deliverables from a launch “checklist”.

• The launch plan contains unrealistic timeframes and expectations.

• Sales enablement training is based on product features.

• Significant effort is spent creating collateral and sales tools for people who never read it.

• No single person is responsible for driving product l h llaunch results.

• The launch plan mimics your competitor.

• Existing customers are not adequately considered in th l h lthe launch plan.

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Tips For a Successful Product LaunchTips For a Successful Product Launch

1. Have a formal plan2. Create a unique value proposition3. Have a team4. Target ideal customers5. Communicate 6. Create the hype around the product launch7. Press releases8. Dress rehearsal9 Th9. The events10. Keep audience captivated11. Celebrate12 Back to reality12. Back to reality13. Product launched successfully?14. Follow-Up/Get feedback15 Lessons learned15. Lessons learned

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The Value of a Successful Launch

• Creates initial momentum to ramp sales

C t titi t th• Creates competitive strength

• Provides start for next release

• Provides good ROI

New GrowthNew Growth

• Helps company reach its goals

New RevenueNew Revenue

New CustomersNew Customers

New ProductNew Product

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Summary

• Have a Launch Plan

h l i i l• Launch Planning Is Essential

• Start Early in Product Development

• Have a Launch Team

• Time Your Launch

• Follow a Product Launch Checklist

• Have a Successfully Launch

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Thank youThank youThank youThank you

Have A Successful Have A Successful L h!L h!Launch!Launch!

Chip HyslerCM Marketing615-818-6623

chiphysler1@att [email protected]

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Resources

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