How to bring a new product to market. Bringing a new product to market. Stages and information support Ways to bring new products to the market

The success of modern business organizations depends largely on the quality strategic planning and management. The ability to timely and effectively plan and carry out the renewal of the assortment portfolio is the basis for the competitiveness of the enterprise and its products on the market. No company producing products for consumer markets will be successful for a long period of time without taking steps to develop and improve their products. This need is due both to the existence of the life cycle of each individual product, which must be monitored and adjusted as necessary and possible, and to the constantly changing needs of consumers of goods. In addition, various factors external environment may cause changes in market activity and commodity policy enterprises.

New products may be different in nature and origin. The classification recognized in world practice is shown in Figure 1.

Figure 1. Classification of varieties of new products

Shorter deadlines (due to unstable, too rapidly changing economic situation, and weaknesses in the strategic planning of organizations);

Making decisions on the creation of a new product at the will and order of the management, and not based on the results of an assessment of the conditions and necessity;

Priority of the product over the consumer during development (mostly the target group is selected later, for the finished product);

Orientation to Western samples and their copying;

- "pseudo new" products (release of cheaper products by reducing the cost of production, reducing the number of ingredients or replacing them with cheaper analogues);

Accounting for the preservation of state regulation and socio-political interests in a number of sectors of the national economy, the operation of national programs for the development of the economy;

Mass import substitution of products on the market.

The strategy for developing and bringing to market a new product includes nine main stages, presented in Figure 2.

Figure 2. Stages of a new product development and launch strategy

First of all, the relevance of a new product and its success in the market depends on the correct choice of the search direction. Choosing a direction serves four main purposes:

1. Determines the area in which development should be carried out,

2. Helps to direct the search efforts of all company structures,

3. Concentrates the attention of developers on the assigned tasks,

4. The need to develop directions acceptable to all members of the leadership contributes to their advance thinking.

Idea generation is a systematically organized process of finding and generating ideas for new products. In 2014, experts from the scientific and socio-political journal of the Russian Academy of Sciences "SotsIS" conducted a survey of managers of research departments, during which the frequency of passing new ideas through further stages of development was found out. The survey results are shown in Figure 3.

Figure 3. Percentage of new ideas passing further development stages

Among the most common and used in companies, methods for generating ideas are: the method of listing features, forced combination, morphological analysis, determining the needs and problems of consumers, brainstorming (storming), synectics.

The idea selection stage is aimed at identifying suitable and rejecting unsuitable proposals. During the initial evaluation of proposed projects for new products, it is necessary to answer questions about the benefits that consumers and society can see in them, the benefits for the company, the compatibility of the project with the goals and strategy of the company, the complexity of its development, advertising and distribution.

The next stage in the development and testing of the concept of a new product involves the creation of a system of basic orienting ideas of the manufacturer about the product being created, its market opportunities and characteristics, and testing the impact of this concept on target consumer groups.

The development of a marketing strategy is based on the creation of a system of marketing activities through which the company intends to achieve the planned sales and profits. The structure of the strategy presentation is presented in Table 1.

Table 1 - The structure of the presentation of the marketing strategy for a new product

After the concept and marketing strategy of the product are formulated, more specific questions arise about the likelihood of matching the actual value of sales volumes, market share and profits from the sale of the novelty planned in the project. This probability can be estimated by economic or business analysis.

Business analysis is a more detailed evaluation of a new product idea in terms of the required investment, expected sales volumes, prices, costs, profit margins, and projected return on investment.

The economic analysis of an idea includes a forecast of costs associated with product development, market entry and sale, an assessment of competition and sales volume, a profitability analysis, and accounting for uncertainty and risks.

If a new product successfully passes the business analysis stage, it moves on to the prototyping stage, during which it turns into a real product. At this stage, it will be found out whether the concept of the product lends itself to being translated into a product that is cost-effective, both from a technological and commercial point of view, and whether the ideas embedded in it are feasible in practice. Finished prototypes are tested. Prototypes that have successfully passed the test for quality and reliability go to the trial marketing stage, where they are tested under conditions close to market ones.

As part of a strategy for developing and launching a new product, the test marketing stage is one of the most important components and should not be ignored. It is a transitional link, meaning the completion of development and preparation for the release of the product. Companies that do not pay enough attention to test marketing or want to save time and money by neglecting it, as a result, lose disproportionately large amounts of money after introducing a fully untested product to the market, when changes can no longer be made or it costs huge efforts and costs. In addition to being able to assess consumer response to new product and making the necessary adjustments, trial marketing allows you to select the most appropriate and effective marketing tools and distribution channels for use in the commercialization stage, having previously verified their effectiveness. When using trial marketing, consumer product companies typically choose one of three methods - standard, controlled, or simulated trial marketing.

In case of a positive decision based on the results of trial marketing, the project enters the commercialization phase. The commercialization phase means mastering series production and the launch of a new product on the market, requiring significant costs. When introducing a new product to the market, there must be clear decisions on the four issues presented in Figure 4.

Figure 4. The content of issues that need to be worked out when bringing a product to the market

By the end of the product development process, during which sales are zero and costs rise as we approach the final stages of the process, the product enters a new stage in the life cycle - introduction to the market, usually accompanied by a gradual increase in sales. The beginning of the stage is the first appearance new products on sale. Even if a new product is very successful, it takes time to conquer the market. Significant funds are needed to attract distributors and create stocks.

When introducing a new product to the market, a company may adopt one of several strategies. The enterprise can adjust the level for each of the variables - price, promotion, distribution and product quality. Recommended strategies for bringing new products to market are presented in Table 2.

Strategy Variable level Meaning Application conditions
gradual extraction maximum profit The price is high,

sales promotion costs are low.

A high price helps to maximize the profit per unit, and low promotion costs reduce overall marketing costs. The small size of the market and the awareness of buyers about the product, with their willingness to pay for it. A small number of competitors.
Accelerated extraction of maximum profit High price level and sales promotion. Allows you to expand the circle of knowledgeable consumers, contributing to the volume of sales. Income must cover the cost of incentives. The market is small, the bulk of buyers have a poor understanding of the product and measures are needed to alert and convince them.
Accelerated market conquest The price is low, the cost of promotion is high. Provides the most rapid and complete conquest of the market and the capture of its highest share. The market is large, buyers are price sensitive, unfamiliar with the product, competitors are dangerous. The lower the cost, the larger the scale of production and the richer the experience of the firm.
Gradual market conquest Weak sales promotion, low price. Systematic introduction of the product to the existing competitive market with low opportunities and low ambitions of the company. Limited finances do not allow spending large amounts on withdrawal.
Average market penetration parameters Average price level and average sales promotion. The product is intended for the middle class, does not try to stand out, competes on the basis of quality, emphasis in advertising and positioning on high quality at an affordable price. Predominantly in the market of necessary goods, with a focus on buyers who are more responsive to quality rather than price, and are also quite knowledgeable, have some idea about the product.

The company chooses a strategy for bringing the product to the market in accordance with the intended positioning of the product. Choosing a strategy for the launch phase of a product is the starting point of a plan for the entire life cycle of a product. The company focuses its sales on those buyers who are most ready to buy and holds events that allow them to try out a new product or interest consumers in it.

As world practice shows, a rather small part of new products is a commercial success. According to some experts, only 20% of innovations are successful in the market.

Reasons for new product failures are usually as follows:

Lack of a clear and adequate novelty concepts;

Solution of technical and technological problems by the product without meeting the basic needs of the consumer;

Poor coordination of efforts of employees and departments when launching a new product;

Expectation by the management of an instant financial effect from the novelty, unpreparedness for long-term investments and promotion;

Low quality of goods;

Wrong pricing policy;

Untimely launch of the product to the market;

Weak distribution and lack of marketing support for sales.

Factors that complicate the development of new products include:

Short life cycle of goods and technologies;

Existing state regulation innovation processes;

Significant amount of necessary capital investments;

Relative similarity of basic technologies for enterprises of certain industries;

High costs for the development and implementation of products.

The key success factors for new products are:

The superiority of the product (the presence of unique properties that bring additional benefits to the buyer, contributing to better perception and interest);

Marketing know-how (better understanding of the market, development focus on the market and the client);

Technological know-how.

In addition, success factors include: intensive initial analysis, precise formulation of the concept, development plan, control of all stages of bringing the product to the market, access to resources, the time factor, as well as a correct assessment of the degree of risk.

Thus, when forming a strategy for developing and launching a new product on the market, it is necessary to take into account all the factors of success discussed above and the causes of failures, as well as a thorough study of the stages of creating a product and choosing tactics for its introduction to the market, corresponding to its positioning and the established price level and sales promotion. The combination of these measures and a strategic approach to the processes of developing and bringing a new product to the market contribute to:

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  • Izmalkova S.A., Tronina I.A., Tatenko G.I., Magomedalieva O.V., Laushkina N.S. Strategic Analysis: A Modern Concept of Management: A Textbook for Higher Professional Education. - Orel: FGBOU VPO "State University-UNPK", 2013. - 315 p.
  • Izmalkova S.A., Tronina I.A., Tatenko G.I. Strategic management and marketing / study guide. - Orel: FGBOU VPO "State University-UNPK", 2011. - 325 p.
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    Stages of bringing a new product to market

    The process of bringing a new product to market requires a significant amount of upfront work. Preparation for launching a product on the market can be divided into five stages:

      Stage 1. Development marketing strategy

      The purpose of this stage is to identify the most promising market segments or select the target audience by analyzing the market situation.

      To achieve the company's goal, it is necessary to conduct various studies of consumers, their behavior and attitudes towards the product; as well as the methods of sale and promotion used in the target market. Possession of such information will allow the company to identify the most promising market segments in terms of the promoted product. As a result of analyzing this information, the company develops one or more suitable marketing strategies.

      Stage 2. Definition of the concept

      At this stage of developing a new product, the company's work with potential consumers is especially important. It is their opinion that should be decisive in the process of developing the concept of a new product. Market research tools such as expert brainstorming, creative group discussions, and in-depth interviews are used to generate conceptual ideas.

      Remark 1

      The analysis of the developed concept is carried out according to the SWOT scheme - strengths and weak sides product, market opportunities and market threats.

      Stage 3. Create a product formula

      This step is to test various characteristics product: starting from its taste, color, planned and possible functionality, etc., ending with the attitude of consumers to the product. Testing is conducted among consumers using focus groups and quantitative research and helps determine the optimal formula for a new product.

      Remark 2

      With the help of focus groups, hypotheses are put forward that require testing by quantitative research methods.

      Stage 4. Reinforcement of the finished product

      Reinforcement of the finished product is carried out with the help of the brand, packaging and other elements. marketing mix. This go-to-market phase involves testing the brand name, packaging, and other elements of the company's communications policy, as well as determining buyers' price sensitivity.

      Stage 5. Comprehensive brand testing

      Before the product is launched directly on the market, final testing is carried out, which gives the company the opportunity to make a final decision on the withdrawal of the product or refusal to withdraw.

    Possible reasons for failure

    • "Inadequate idea" of management - sometimes the head of the organization overestimates his knowledge of the market, and employees do not draw his attention to negative factors and possible problems;
    • The product does not meet the needs of consumers - a typical situation for technically complex products: technical specialists direct all efforts to improve the product using new technologies, without taking into account the needs of the target audience;
    • Lack of preliminary research - launching on the market without marketing research or their low quality leads to the company receiving irrelevant information and, accordingly, erroneous management decisions;
    • Lack of control or its insufficiency;
    • Expecting an immediate effect from the launch of a new product on the market;
    • Wrong choice or implementation of elements of the marketing mix;
    • Time to market entry

    Features of bringing the product to the market in Russia

    The process of bringing a new product to the market in Russia is specific, which is expressed in the following:

    • Short deadlines - due to the instability of the economy and the market, as well as the low level of strategic planning. Getting a product to market quickly allows you to get ahead of the competition, but increases the risk of failure.
    • Voluntarism - the creation of a new product is initiated by management, and not by market necessity;
    • Priority of the product over the consumer - when developing the product, insufficient attention is paid to the potential consumer;
    • Orientation to Western models - experience is used in the development of new products Western companies, foreign technology, imported raw materials, etc.
    • "Pseudo" products - under a well-known brand, products are sold from other, cheaper analogue ingredients or components, which reduces the cost of production.

    Introduction

    In conditions modern market companies are provided with a range of marketing strategies to maximize profits. The offer of a new product is the prospect of high earnings, but at the same time, it is also a risky adventure. A successful marketing campaign is the most appropriate vehicle for developing and bringing a new product to market. Finding out what exactly the consumer wants to buy tomorrow is the main task of advanced firms. The development and launch of a new product (service) on the market is due to the following factors:

    - the need to protect the company from the consequences of the inevitable process of obsolescence of existing products;

    - the need to expand production at a faster pace than is possible with a narrow range of manufactured goods;

    - the need to ensure a faster and more gradual increase in the overall profitability of the company;

    - the need to maintain the status of the company.

    Global trends are such that the space is compacted by the number of goods, the range of products offered is growing at a high pace. In Sweden, a country of 9 million people, the number of beers has increased from 50 to 350 in ten years, and former Walt Disney CEO Michael Eisner said they are creating a new product - be it a movie, a comic book, a CD or whatever. also every five minutes.

    The combination of these factors determines relevance selected topic.

    object research is the company «MarsLLC».

    Subject research is Mars LLC's practice of developing and bringing new products to market.

    Target of this work - to analyze the features of the development and launch of a new product on the market using the example of MarsLLC

    The set goal predetermined the decision of the following tasks :

    – To study the essence and stages of development and launch of a new product on the market

    – Determine the role of marketing research in the development of a new product

    – Highlight the main mistakes and risks when developing a new product and bringing it to the market

    – To study the process of creating a new product and its launch on the market using the example of MarsLLC

    Degree of development this problem is determined significant number studies of a number of Russian and foreign scientists, as well as analysts and marketers, such as F. Kotler, G.Ya. Goldstein, A.P. Egorshin, G. Armstrong, T. Ambler, H. Eriashvilli.

    Practical contribution It boils down to the fact that the study of this issue allows minimizing risks and avoiding major mistakes in the development and launch of a new product on the market, taking into account all sorts of nuances of the target market.

    Theoretical contribution of this work lies in the fact that when considering three specific cases of entering the new MarsLLC market, problems in positioning were identified and the features of marketing campaigns conducted by the organization in Russia were analyzed. It has been established that the mental differences between Russians and Americans played a role important role when introducing a new product to the market. This study will be useful in the field of positioning and advertising.

    Work structure next: the work consists of an introduction, two chapters, six paragraphs, a conclusion and a bibliography.

    1. The process of developing and bringing a new product to the market: essence, stages, risks

    1.1 The essence and main stages of the development and launch of a new product on the market

    The development of a new product is one of the most important areas of marketing activity. To do this, you need to find out what is included in the concept of "new product".

    At least 50 interpretations of the concept of "new product" are known. There are three main approaches to the definition of the concept of "new product":

    1. Proceeds from the time criterion: any newly manufactured product is referred to as new. The criterion of novelty in this case is not the qualitative originality of the product, but the time of its development and production.

    2. Based on the requirement to highlight the criterion for distinguishing a new product from its analogues and prototypes. As such a criterion, it is proposed to use the principle of generating and / or satisfying a previously unknown need with goods. A new product is also called any progressive change that distinguishes a product from previously known ones. These changes may affect raw materials, materials, designs, technologies, external design, and more.

    3. It is based on the following premise: it is necessary to proceed not from a single criterion, but from a certain combination of them, characterizing certain aspects of the novelty of the product. In this case, for example, four levels of product novelty can be distinguished:

    - changing the external design while maintaining the existing consumer properties;

    - partial change in the consumer properties of the goods due to the improvement of the main technological characteristics, but without fundamental changes in manufacturing technology;

    - a fundamental change in consumer properties, making significant changes in the way the corresponding need is met;

    - the appearance of a product that has no analogues.

    Modern management is based on innovation. Not every discovery and not every development acquire material life. To translate a new idea into a concrete form, there is often not enough confidence in its successful implementation. The task of marketing is precisely to carry out such work that will not allow innovations to fail in the market.

    The development and launch of a new product (service) on the market is due to the following factors:

    - the need to protect the company from the consequences of the inevitable process of obsolescence of existing products, which is caused by competition or obsolescence. The decrease in the profitability of manufactured goods or services rendered can be compensated in the long term only through the introduction of a new product (service) that would be in demand by the consumer. The introduction of a new product or service into the assortment is necessary to protect the funds already invested in the company;

    - the need to expand production at a faster pace than is possible with a narrow range of manufactured goods, to distribute commercial risk over a wider range of goods and services, to reduce the impact of competition on a separate area of ​​the company's activities;

    - the need to ensure a more rapid and gradual increase in the overall profitability of the company, expressed as a ratio of profit to invested capital, by maintaining and increasing competitiveness, more rational use production waste, more complete use of production capacity and staff capabilities and, as a result, more even distribution of some overhead costs, reduction of seasonal and cyclical fluctuations in the level of production and sales.

    According to the concept of the product life cycle, each product goes through stages from the idea to the end of production. In connection with the globalization of the world economy, increased competition, the development of technology and technology and the accelerating change in consumer preferences, life cycle product space is shrinking, requiring businesses to make faster decisions and reduce product development and time to market. Reducing the time means reducing the opportunities for high-quality project development and increasing risks, which significantly increases the requirements for the quality of management and support, including financial support, at all stages of projects, for the timely identification of inefficient and risky projects, insurance of risks, minimization of losses, achievement of target results.

    The first step to starting work on a new product is to develop a project. Depending on how innovative the product is, the level of materiality of the project is determined. Allocate the following requirements for projects:

    a) projects must be limited according to the following criteria:

    – time

    – resources

    – risks

    b) projects must be realistic;

    c) criteria for success should be clearly defined, measurable and achievable.

    The process of developing and bringing a new product to the market takes place in several stages:

    c) test sales

    4. Bringing goods to market.

    Due to the fact that the first stage involves the direct generation of an idea or the search for an idea for a new product, we can give some options for its passage: buy information from external sources, invent the new kind product or service, improve an existing product, attract new partners to develop a product. Participation in the product development process of consumers will save time due to the timely correction of the idea, as well as get the first customers, but it creates the risk of information leakage to competitors. Based on this, there are three approaches to the development of a new product:

    1. Type "A" - characterized by minimal technological and financial requirements, as it implies minor changes to an existing product;

    2. Type "B" - strict requirements for technologies and equipment, high financial costs in connection with the creation of a fundamentally new product;

    3. Mixed type - closer to either type "A" or type "B".

    Realization of an idea is a concept test of a new product, which involves testing on a group of target consumers to find out their reaction. The reliability of test results is higher when the tested product is as close as possible to the final product. Consumers react differently to new products, it depends on their preferences in a particular area. There are 5 types of consumers according to the speed of reaction to a new product:

    1. Innovators - those who buy the product immediately, as soon as it appears or in advance (2.5% of them);

    2. Followers - those who buy the product immediately, as soon as someone has already bought it (13.5% of them)

    3. Early majority (34% of buyers)

    4. Late majority (34% of buyers)

    5. Conservatives - those who buy the product later than everyone else, or do not buy it (16% of buyers)

    Based on this, it is very important to choose the right marketing strategy. One of the main strategies are pricing strategies. Among them are the strategy of "skimming the cream", the strategy of expanding the market, the strategy of average market prices, differentiated prices, non-rounded prices and "round" prices. The choice of strategy directly depends on the product being developed. However, no matter which strategy is chosen, the first part of her plan describes the scope, target market structure, consumer behavior, intended product positioning, as well as sales figures, market share, and planned profits for the next few years. The second part of the plan contains information about the planned price of the product, the principles of its distribution and the budget for marketing expenses during the first year of release. The third part of the marketing strategy plan provides long-term sales and profit figures and a long-term approach to marketing - a mix. This plan forms the basis for the business analysis that needs to be done before management makes a final decision on a new product.

    Bringing a new product to the market by a manufacturing company is an important complex, multifunctional organizational task. It directly affects such functional areas of the enterprise as marketing, sales, purchasing, production, R&D, finance and other functions. In addition, the introduction of goods to the market is the subject of both strategic and tactical, as well as project and operational management at the enterprise.

    Any introduction of a new product to the market is a risky undertaking. It is noted that innovations succeed in 65% of cases (according to surveys of 700 English companies), although only 10% of them were truly new, and 20% were only new versions of goods. Thus, introducing a new product to the market is a kind of statistical game. A large number of intermediate stages before launching a product to the market is designed to reduce risk, but all this takes time.

    At the stage of commercialization of a new product, the company either incurs losses or its profit is very small due to insignificant sales and high costs of organizing distribution channels for the product and stimulating its sale. The cost of promotion reaches its highest level at this time, this is due to the need to concentrate efforts on promoting the new product. Need to inform potential consumers about a new product unknown to them, encourage them to test the product and ensure that this product is distributed through trade enterprises.

    Manufacturers produce only basic versions of the product, since the market is not yet ready to accept its modification. Firms focus their sales efforts on consumers who are most prepared to make a purchase. Prices at this stage are usually higher.

    An important role at the stage of bringing goods to the market is given to the choice of distribution channels. Distribution, as well as strategy, is selected depending on the characteristics of a particular product. When choosing distribution channels, the firm decides which customer segments will be reached through certain intermediate sales stages. For most products, there are many alternative distribution channels, but the choice of a particular channel, in addition to its profitability, is influenced by the image of the product and the company. There are two main types of marketing. In direct marketing, the product goes directly to the consumer. Direct marketing makes sense for large transactions, as well as for the sale of large high-tech products that need guarantees and technical support. Often in international trade the concept of direct marketing is used - marketing without the participation of intermediary firms of one's country. Most manufacturers should use the services of intermediaries and trade, since trade enterprises can carry out marketing functions with greater efficiency and lower costs than the manufacturer himself. Intermediaries play an essential role in providing a variety of products on offer, which allows buyers to save time by purchasing several products in one transaction. The manufacturer himself can harm the offer of a range of related products.

    Based on the information studied, the process of developing and launching a new product on the market consists of several successive stages, the observance of which allows the company to most effectively prepare for the release of a new product and its distribution, as well as to get an idea of ​​the reaction of consumers to it in advance, and to predict sales volumes and arrived.

    1.2 Marketing research and its role in the development of a new product

    The development of a new product cannot be carried out without marketing research, since it is marketing research that can minimize the risks of failure in the market. So, marketing research is a systematic and objective identification, collection, analysis, dissemination and use of information to improve efficiency, identify and solve marketing problems. They allow us to clarify the current situation in the external environment, to draw the structure of satisfaction of needs in a certain territory. Marketing research can be divided into 3 groups:

    1. Market research (capacity, demand status, commodity structure, market development prospects, geographical position)

    2. Consumer research (segmentation, ways to use the product, motives for buying, ways to buy, unmet needs)

    3. Research of competitors (main competitors, dynamically developing competitors, brands of competitors, forms and methods of marketing, features of goods)

    Market research is the most common direction in marketing research. It is carried out in order to obtain data on market conditions to determine the activities of the enterprise. Market research allows you to systematically collect, analyze and compare all the information necessary to make important decisions related to market selection, sales volume determination, market forecasting and planning.

    Objects in this case are trends and processes of market development, including analysis of changes in economic, scientific and technical, demographic, environmental, legislative and other factors. Its structure, geography and capacity, sales dynamics, the state of competition, the current market situation, opportunities and risks are also being studied.

    When developing a new product, an important role is given to market capacity. Market capacity is the possible volume of sales of goods at a specific level and price ratio. It is measured in natural and monetary terms and is always determined for a given territory.

    The main results of market research are forecasts of its development, assessment of market trends, identification key factors success. The most effective ways conduct of competition policy and the possibility of entering new markets. Segmentation of markets and selection of target markets and market niches are carried out.

    Consumer research allows you to identify and study the full range of incentive factors that guide consumers when choosing goods (income, social status, gender and age structure, education). The objects are individual consumers, families, households, and organizations. The subject of the study is the motivation of consumer behavior in the market and the factors that determine it. The structure of consumption, provision of goods, trends in consumer demand are being studied. In addition, the processes and conditions for satisfying the basic rights of consumers are analyzed. The developments here are the typology of consumers, the modeling of their behavior in the market, and the forecast of expected demand. The purpose of such a study is consumer segmentation, selection of target market segments.

    Competitor research is about obtaining the necessary data to provide an advantage in the market, as well as finding opportunities for cooperation and cooperation with possible competitors. To this end, their strengths and weaknesses are analyzed, their market share is studied, the reaction of consumers to their marketing tools (product improvement, price changes, trademarks, the behavior of advertising companies, the development of the service). Along with this, the material, financial, labor potential of competitors, the organization of business management are being studied. The results of such research are the choice of ways and opportunities to achieve the most advantageous position in the market (leadership, following the leader, avoiding competition), the identification of active and passive strategies for providing a price advantage or an advantage due to the quality of the goods offered.

    In addition, the study of product promotion and sales stands out, which aims to determine the most effective ways, methods and means of quickly bringing the product to the consumer and its implementation. The main objects here are trade channels, intermediaries, sellers, forms and methods of sale, distribution costs (comparison of trading costs with the amount of profit received). The studies also include an analysis of the functions and characteristics of the activities of various types of wholesale and retail, identifying their strengths and weaknesses, the nature of the existing relationship with manufacturers. Such information allows us to determine the possibility of increasing the turnover of the enterprise, optimize inventory, develop criteria for choosing effective channels for promoting goods, and develop methods for selling them to end consumers.

    Conducted market research may be ineffective if you do not take into account the possible actions of competitors. If competitors are knowledge-driven, then research will help predict their moves, but vice versa. Therefore, it is better for the company to design actions that will be the opposite of the results of the study.

    Thus, the role of marketing research in the development and launch of a new product on the market is extremely large, since it is research that allows you to determine the effectiveness of the idea implementation as accurately as possible.

    1.3 Risks and errors in the development of new products and their introduction to the market

    There is a group of factors that affect the introduction of a new product to the market negatively, it includes: the lack of a distinctive feature or unique advantage of the product, the fuzzy definition of the product or market before its development, the imbalance of the technical, production and research capabilities of the company, the inefficiency of technological operations, overestimation market attractiveness. The most common problem is that as the product is promoted, the company's management shifts attention from the needs of consumers to their own.

    Common mistakes made when developing a new product include:

    1. Managers tend to focus on "where" rather than "how" to compete. Thinking about how to produce and how to deliver goods and services can often be a better source than how to sell. However, when developing products and bringing them to markets, questions of marketing “where” receive more attention: which markets to serve, which promotion channels to use, issues of product placement on shelves.

    2. There is insufficient emphasis on uniqueness and adaptability. If a company does not emphasize the uniqueness of new products, then it is unlikely that it will achieve it. Most of the proposals for the creation of new products are evaluated mainly on the basis of assumed financial results: what revenues, market share and profits are projected for a fixed period of time. But if similar products appear at this time, then the forecasts may turn out to be too high. It is important that the product be adaptable enough to survive and profit from unpredictable developments.

    3. Little attention is paid to the question of when to start competing. Products driven by new technologies can quickly become obsolete as competing technologies emerge. Even when the time to launch a product is absolutely correct, the company must assess whether it has the strength to enter it first, and if not, adjust its investment and development strategies so that it takes place at least second or third. player.

    5. Companies use standard performance measures. As a rule, indicators of short-term profitability are used, instead of assessing the receipt of income in the long term.

    The risks of not being in demand for new products may be due to the following reasons:

    - the dynamics of changes in consumer preferences (what is the probability that by the time a given product meets the consumer, the totality of utilities contained in it will fully correspond to the consumer's value system?);

    - inconsistency in the cost estimates of goods (services) by consumers (what is the probability that the company's ideas about quality, price and terms of sale will completely coincide with the consumer's ideas?);

    - scientific and technological progress (what is the probability that investments in the development, production and sale of a given product will give the expected return before a technologically new product appears on the market that will be able to displace it?);

    - action competitive forces in the relevant market (what is the probability that our product (service) will be more preferable for consumers than competitors' analogues?);

    - consumer uncertainty (what is the probability that we will be able to overcome consumer uncertainty (skepticism) about the product / service we offer?).

    In addition, the most serious mistakes are errors in product positioning. Here an important role is played by such environmental factors as: geographical location, historical aspects, ethno-cultural characteristics, religion, socio-economic condition, politics, demography and ecology of the area where the target market is located. When choosing a specific segment, it is necessary to correctly build not only the image of the product, but pricing. The wrong pricing strategy can have a detrimental effect on product sales. For example, the market has already been mastered by other manufacturers, the organization begins to produce similar products with minor qualitative changes, and the price is unreasonably high - this will lead to the fact that they will not buy the product. It is important that the concept of a new product be as harmonious as possible, taking into account all the features of the target segment.

    Thus, the most typical mistakes in the development and launch of a new product on the market are considered, the avoidance of which significantly increases the efficiency of implementing the idea of ​​a new product.

    The work carried out made it possible to single out the main stages of the process of developing and bringing a new product to the market, to determine the degree of importance of marketing research in this issue, as well as to identify risks and errors in the implementation of a new product project.


    2. Development and launch of a new product on the market on the example of the company " Mars LLC »

    2.1 Study of the company's product range " Mars LL FROM"

    1. DOVE® - silk chocolate; ice cream

    2. MARS® - a bar of milk chocolate, nougat and caramel; ice cream

    3. SNICKERS® - a bar of milk chocolate, nougat, caramel and peanuts; ice cream

    4. TWIX® - 2 sticks of crispy biscuits with creamy caramel in milk chocolate; ice cream

    5. Bounty® - coconut pulp in milk chocolate; ice cream

    6. M&M'S® - glazed chocolates (with and without peanuts)

    7. Celebrations – ® candy sets in original gift boxes

    8. SKITTLES® - glazed fruit gummies

    9. Rondo® - refreshing mints

    10. STARBURST® fruit gummies and lozenges

    11. Tunes® - throat lozenges for the first symptoms of a cold

    12. Orbit® - chewing gum in sticks and sticks

    13. Extra ® - chewing gum in pillows

    14. Eclipce® - chewing gum in pillows

    15. Wrigley's® - chewing gum in sticks

    16. Flavia® - teas and instant coffees

    17. CirkuHelth® Cocoa Drinks for a Healthy Diet

    18. PEDIGREE® - healthy food for dogs

    19. Chappi® - hearty dog ​​food

    20. WHISKAS® food for happy cats

    21. Kitekat® - food for energetic cats

    22. Sheba® - Elite Cat Foods

    23. RoyalCanin® - professional food for dogs and cats

    24. Korkunov® - elite Russian chocolate

    25. Gurmania® - ready-made soups

    26. UncleBen's - instant rice, sauces

    27. Dolmio - sauces.

    This list shows that the company manufactures products in five main areas: sweets (12 brands), chewing gums (4 brands), drinks (2 brands), pet food (6), food (3).

    Mars is one of the most professional companies in the FMCG market, entering this or that market, the concern builds large enterprises and the Russian market is no exception. Mars activity in Russia was started in 1991 (CJSC Masterfoods, since 1995 Mars LLC). At the end of 1993, the first regional office(Vladivostok), in 1994 a network of marketing branches was deployed in other regions of the country.

    The first production site is a plant in Stupino, which went into operation in 1995; in 1996, the head office of Mars LLC was removed from Moscow to Stupino. Subsequently, production facilities were opened in Lukhovitsy near Moscow and in Novosibirsk. In 2008, the construction of two factories in Ulyanovsk began, one for the production of chocolate bars, the other for the production of pet food, the location was well chosen from a logistical point of view. In addition, on April 28, 2008, Mars announced the purchase of Wrigley, the largest chewing gum manufacturer in the United States, for $ 23 billion. In the world market, according to experts, this transaction allowed Mars to gain leadership in the chewing gum segment, but in Russia, thanks to the Odintsovo confectionery factory, which produces products under the brand "A. Korkunov and 80% owned by Wrigley since 2007, the company significantly expanded its portfolio of chocolate brands and took second place in this market, almost catching up with the local leader United Confectioners. Mars is strong in the segment of chocolate bars, and the manufacturer was not represented in the traditional Russian segment of packaged chocolates, so the acquisition of Wrigley greatly advanced the company. In general, in the market of packaged chocolate products in cities with a population of more than 100 thousand inhabitants in 2007, Mars occupied 6.3% by value, “A. Korkunov" - 13.9%. The combination of assets brought the company to second place after United Confectioners (23%) with a share exceeding 20%

    The company considers the expansion of production to be promising, as consumption of its products is growing: according to Rosstat, in total in 2006 Russia produced 1.05 million tons of confectionery. According to Nielsen Russia expert estimates, the volume of the chocolate bar market in December 2005-November 2006 is 11.67 billion rubles. (growth dynamics - 14%) in monetary terms, or 55.68 million kg in kind (8% growth). The volume of retail sales of food for cats and dogs in Russian cities with a population of more than 10,000 people for the whole of 2006 increased by 24% in value terms and amounted to 16.33 billion rubles. In physical terms, feed sales increased by 14% to 190,929 tons. Despite the recent financial crisis, sales volumes remain at a fairly high level - the increase in revenue in 2009 amounted to 11%. Problems arise only at the distribution level. Some regional retailers and distributors may delay payments. The company is ready for retailers going bankrupt on the Russian market. The Mars distribution network was developed during the 1998 crisis, it is based on the consignment principle (almost all the risks are assumed by the supplier.), which makes life easier for distributors. Mars is firmly committed to the principle of mutual benefit - if the retailer convinces the company that it is necessary to reconsider the basis of cooperation, otherwise it will not survive, then manufacturers, having considered the issue carefully, can go forward.

    The company spends annually 10% of its turnover on marketing and promotion. Mars usually first imports a new product to the target market, analyzes sales volumes and, if successful, opens local manufacturing plants, but there are a number of products that are specifically designed for specific areas only, examples of such developments will be discussed in paragraph 2.2.

    Thus, MarsLLC on this moment is one of the largest chocolate producers in the world, in addition, it produces food and pet food. The company's brand portfolio is very diverse, however, this does not interfere with the successful work of the organization.

    2.2 Development and marketing of chocolate Dove

    The history of Dove chocolate began in 1939, when Greek-American Leo Stefanos opened a candy store on the south side of Chicago, calling it Dove. The name was chosen for a simple reason - Stefanos believed that the family shop should symbolize peacefulness, like a dove. The recipe for chocolate itself was developed much later - in 1956. The fact is that Leo was very worried about his child buying ice cream in a mobile van, he considered it unsafe. Then the caring father began to cook popsicle on his own - an ingot of ice cream planted on a stick was dipped in chocolate to make it especially tasty, Leo experimented with chocolate recipes. Dove turned out to be very tender due to the finest grinding of cocoa beans.

    Leo died in 1977 and the entire business was taken over by his son Mike. In 1984, Mike presented signature chocolate and ice cream at an exhibition in Washington, after which he began to receive a large number of orders for his products from all over the country.

    In 1986, Mars bought Mike's business and that's how the Dove brand fell into its portfolio. Now chocolate and ice cream under this brand can be bought in more than 30 countries around the world, and annual sales amount to about 30 million bars. It is noteworthy that in the UK these products are sold under the Galaxy brand.

    In Russia, Dove chocolate first appeared in the 90s, but it was almost immediately withdrawn from the market, as it was not sold due to too high a price. Since 2007, the production of this chocolate has been launched at the plant in Stupino. By introducing Dove to the market, Mars entered a new bar chocolate segment, making an accurate calculation - “400 rubles per 1 kilogram is not too high a price for the premium segment, so the company may well occupy about 15% of the premium chocolate market,” the chairman believes. Board of Directors of the company "Konfael" Irina Eldarkhanova. According to Anastasia Zaslavskaya, Corporate Affairs Manager at Kraft Foods, the growth potential in the premium chocolate segment is obvious. And according to the Deputy Managing Director of the United Confectioners Evgeny Shilov, the manifestation of the interest of a large corporation in the premium segment is justified right now: “premium” has already been adapted by such companies as Lindt, Ritter Sport and A. Korkunov.

    The company decided to conquer the Russian market with the help of beautiful advertising. Dove is positioned not only as a premium-class chocolate, its unique silkiness and delicate taste are emphasized.

    Despite the fact that the advertisement is carefully designed and the product is clearly positioned, some Russians are still skeptical about this chocolate, refusing to buy it on principle. The thing is that Unilever has Dove soaps and shampoos in its brand portfolio. In this regard, many people simply think that chocolate is tasteless and smells like soap. There is nothing in common between these products. The fonts and the dove symbol used on product packaging are similar. This can be seen when comparing them.

    Thus, the company for bringing Dove chocolate to the Russian market did not live up to expectations, although the peculiarities of the economic situation in the country, as well as the segmentation carried out, were taken into account. Despite the fact that the sale of premium-class chocolate bars in Russia is promising, the company can occupy no more than 15% of the market at best, but it firmly holds 2/3 of the chocolate bar market in its hands.

    2.3 Bad company experience

    As noted earlier, MarsLLC is known in the world as one of the largest chocolate companies, however, it has been quite successful in capturing other markets, for example, dog and cat food under various brands are sold in large volumes. At first, Russians were skeptical about Whiskas, Kiticat, Pedigree and Chappy, as it was not clear what the products were made of, and the price was quite high. However, sales began to grow marketing companies for each brand allowed the goods to consolidate their positions.

    In an attempt to more and more develop the Russian market, Mars launched the production of Derzhava loose sweets in 2000.

    Mars had all the ingredients for success: almost a century of experience in the confectionery market, a turnover of $18 billion, its own confectionery factory in Stupino near Moscow, and well-known companies involved in the creation of Derzhava. Deciding to make a brand specifically for the Russian market, in 1998 Mars hired McKinsey consultants who recommended that the client master the widest segment of the chocolate market - to produce loose chocolates. They accounted for about half of the market at the time. According to Mars and McKinsey, in the late 90s, about 1,200 types of loose candies were produced in the country, but there were no real brands among them. Numerous "bears", "red caps", "squirrels" could be considered such only conditionally, because they were produced by different factories. Although most of them worked according to the same GOSTs, the taste of sweets varied greatly: for example, in some waffles were thicker, in others they were more crunchy. Because of this, all Russian consumers preferred local products, the taste of which they are accustomed to. Mars in November 1999 decided to launch the production of "Derzhava" for the New Year's season 2000. A team of 78 people was given 11 months to create and launch a new product.

    Together with the design studio Ikon, which is part of the BBDO Russia group of companies, the Russian division of Mars studied all the design options for Russian candies and identified 15 thematic groups. For example, the candies Kara-Kum (camel), Swallow, Bears, Squirrel, Crustaceans could be classified as “animals”, there were also works of art and heroes of fairy tales - Alyonushka, “Gulliver”. Mars decided to create 10 of its own thematic series - "Countries of the World", "Heroes of Fairy Tales", "Russian Emperors", "World Masterpieces" and some others, on the reverse side of the candy wrappers of these sweets, stories about the country or the emperor were printed. As conceived by the developers, informative texts on the wrappers were supposed to enliven traditional tea parties. This was reflected in the advertising slogan of "Derzhava" - "Treats for communication." Mars also decided not to experiment with the taste of sweets and used Soviet recipes from the 60s and 70s. last century.

    The first candy "Derzhava" appeared on sale in November 2000, simultaneously with teasing advertising. “The streets will soon be empty”, “The husband will return from work on time”, “Thousands of women will savor the details” - such billboards intrigued the Russians on the streets, only to soon change to the image of sweets, which the whole country was supposed to talk about. The advertisement was very intriguing, but the clue did not appear for too long, so people began to lose interest in it.

    In addition, big problems were created by the packaging of sweets. The thing is that the North American consumer protection law, which Mars was guided by in its work, requires that the product must be intact. This means that the packaging of the product must guarantee its integrity from the moment of production to the moment of consumption. Such a guarantee would have come in handy in Russia, but the trouble is that it was not applicable to Russian sweets, the wrappers of which can be easily unwrapped and wrapped back. Nevertheless, the American corporation demanded the integrity of its candies in Russia as well, so the project team spent a lot of time developing the technology for the "inviolability" of each individual candy. The company tried to seal the candies with small stickers, but they also did not guarantee the integrity of the package. It was not possible to find a technological solution, and the only thing left for the Russian division of Mars to do in order not to disrupt the release date of the product was to pack Derzhava in boxes. Since this was not planned in advance, the sweets had to be packed into half-kilogram promotional boxes prepared for New Year's gifts.

    It was this misfortune that became fatal. Due to the new packaging, Derzhava ended up in the wrong market segment that it was aiming for. Boxed sweets in Russia are most often bought as a gift, so they are considered expensive products, and the trade margin for them in 2000 reached 100%. Bulk sweets are usually bought for themselves, and the markup on them is 15 - 40%. The corporation was initially going to sell the weighted "Derzhava" for 105-140 rubles. per 1 kg, but the retail sellers charged the usual markup on the box, and the price of 0.5 kg of sweets rose to 105–120 rubles. Thus, the sweets ended up in the wrong environment at an unreasonably high price. Mars headquarters tried to fix the situation: the chairman of the board of directors of the corporation, John Mars, was so interested in Russian project, which allowed the release of "conditionally sealed" sweets sealed with special stickers. But additional costs for packaging equipment have led to higher prices for sweets. Following its rules, Mars ensured the integrity of each Derzhava candy, but at that time such a packaging format was not justified from an economic point of view. Shops were not allowed to reduce the price either. When the loose-packed Derzhava nevertheless came to replace the packaged one, the sellers simply doubled the price of boxed sweets and began to sell candies by weight at 210-240 rubles per kg - twice as expensive as competitors' products. Such sweets were not in demand because of their high cost.

    In just two years, the company spent $3 million on advertising.

    But Mars did not manage with one sad experience of bringing a new product to the Russian market. The second failure occurred when promoting ready-made meals under the Gurmania brand.

    When launching Gourmania, Mars took into account all the mistakes - it did not compete with cheap dry soups and get involved with products whose packaging would be contrary to American standards, but decided to create a premium segment of ready-made liquid soups. Soups for Mars were also practically a new product: in addition to Russia, the company produces them only in Canada, but using a completely different technology. Work on the Gourmania project differed little from the launch of Derzhava. The production of liquid soups was launched in Lukhovitsy near Moscow in 2004. Mars invested $10 million in the construction of the plant alone. According to experts, millions of dollars were spent on promoting the product in retail chains, expanding distribution and advertising it.

    Mars launched a brand that turned out to be expensive for most of the target audience of such products and did not fit into the concept of ready-made fast food. From the very beginning, Gurmania was not precisely positioned on the market and sold poorly. Thus, the largest distributor Mars sold one pallet (pallet for wholesale deliveries) of the product per month in Moscow. The thing is that the Russian population is not ready to accept this kind of food, such food often does not inspire confidence, many people do not even want to try it, and Russian housewives love and know how to cook themselves. In addition, when developing dishes, the taste preferences of Russians were not taken into account, most soups were recognized as tasteless, only red borscht and Gurmania pea soup were in demand.

    In December 2009, Mars officially announced that it would be phasing out soups and began selling equipment from the factory. Gurmania is not the first soup to be taken off the Russian market. Unilever's similar Knorr-branded soups were discontinued back in 2007 for the same reason. Now Campbell's is trying to fill this niche, offering ready-made broths for making soups of the same name.

    The category of liquid soups has shown a dramatic decline, as well as the entire segment of "culinary". According to the Nielsen agency, retail sales of these products in physical terms in Russian cities with a population of over 10 thousand people from December 2008 to July 2009 decreased by 22% compared to the same period in 2007-2008. In comparison, sales of other products (including noodles, condiments, fast food, instant food, etc.) decreased by 10% over the same period. In monetary terms, the market of liquid soups sank by 14% and for the period from December 2008 to July this year amounted to about 322 million rubles.

    This leads to the conclusion that even giant companies make mistakes when developing and bringing new products to the market. The unsuccessful experience of MarsLLC is a confirmation of the fact that innovative activity is risky. The enormous costs of research and advertising are not always justified. When developing and launching a new product, it is very important to take into account the characteristics of the target market down to every smallest nuance. Perhaps if Mars had released Gurmania 10-15 years later, given the trends of modern Russia, it would have taken root and sold successfully. As for the Derzhava sweets, they should not have been advertised on such a large scale. As a rule, there is no advertising on the Russian market of loose sweets, instead of it, the so-called “word of mouth” works - if the sweets are tasty, then consumers will advertise them themselves.

    The work carried out made it possible to analyze the entry of Mars into the Russian market. In general, sales volumes are very high and the organization is a major player on a global scale, but nevertheless, not every project becomes a recognized brand. Studies have shown that the main mistake of the company in the development and launch of new products on the Russian market is inaccuracies in positioning, as well as ignoring the peculiarities of the mentality, culture and economic situation of Russians.

    Conclusion

    The work carried out made it possible to analyze the problem of developing and bringing a new product to the market, to identify the main risk factors using a practical example.

    In the first chapter, the need to develop new products was substantiated by establishing the following facts:

    1. gaining competitive advantages by organizations;

    2. Expansion of production at a high rate;

    3. protection against obsolescence of the product range;

    4. increase the profitability of the enterprise.

    The main stages of the process of developing and bringing a new product to the market were considered, namely:

    1. Create a new product idea

    2. Development of the concept of a new product (reification of the idea)

    3. Development of a marketing strategy, including:

    a) analysis of production and marketing opportunities, potential sales volume, cost and profit forecasting, price planning;

    b) product development (production technologies and positioning);

    c) test sales

    4. Bringing goods to market.

    Following the order of the steps in the process allows the organization to most effectively prepare for the release of a new product and its distribution, as well as to get an idea of ​​​​the reaction of consumers to it in advance, and to predict sales and profits.

    It has been established that the role of marketing research in the development and launch of a new product on the market is extremely large, since it is the research that makes it possible to determine the effectiveness of the idea implementation as accurately as possible.

    Possible most typical mistakes in the development and launch of a new product on the market are considered, among which are:

    1. incorrect segmentation;

    2. fuzzy positioning;

    3. non-compliance of the product with the target market;

    4. counteraction of competitors;

    5. Wrong choice of pricing strategy.

    The following conclusion is drawn: awareness of these errors will allow to take into account the likelihood of their occurrence, as well as help to avoid the most typical problems in the development and introduction of new products to the market.

    The second chapter is practical part, in which, using the example of the world famous company MarsLLC discusses the features of bringing the product to the market, as well as problems in the development of the product and its positioning. Diversification of production, combined with private ownership, allows the company to maintain a leading position in its target markets.

    The attempts by this company to bring three new products to the Russian market, two of which were specially developed only for Russia, which did not bring positive results, were studied. It has been proven that the mental differences between Russians and Americans played an important role in bringing a new product to the market.

    Vedomosti

    Vedomosti

    Vedomosti

    To implement a special project, it is necessary to determine the usefulness of the product for buyers, since the existence of the highest demand is possible only with its functionality. However, many do not attach importance to the very process of bringing the newest product to the market.

    This article will present an algorithm of actions for bringing a new product to the market, the nuances and features of this topic, possible problems and errors, as well as ways to solve them and useful tips.

    To bring new products to the market, you need to spend a lot of time, effort, and invest some money. This leads to the fact that most entrepreneurs decide not to take risks once again, but to act according to proven schemes. Most often this is inherent in beginners.

    It is necessary to develop the right marketing strategy that will allow you to achieve success in the shortest possible time, this process is quite feasible and not as complicated as it seems. It is important to remember that initially it will not work for some time to receive income from this type of product, this is absolutely normal.

    Competent strategy

    Current practice shows that the process of introducing a new product to the market is always accompanied by significant risk. This leads to the fact that the implementation of the idea is not always successful.

    Answers to the 4 main questions necessary to promote a product / service can be viewed in this video:

    It is very important to use the right marketing and use the necessary techniques that will help promote a new little-known product. This will help increase its sales in the initial stages and make it more widespread.

    To achieve results, you need to make the choice of the right marketing tools.

    It is also very important to consider the implementation environment and the cost that is satisfactory for buyers. Since the ways effective withdrawal there are a lot of new products on the market, you need to analyze and study all of them, as well as gradually put them into practice.

    Of course, most of the tried and tested methods and strategies for promoting goods and services are subject to correction by each businessman, taking into account the existing conditions and various features.

    The classical technique will show itself most effectively if it is adapted to a specific occupation and specialization. The passage of the main stages is a mandatory element of all new products even before they are introduced to the market.

    First of all, you need to think through the concepts, take the time to commercialize, etc. You can follow several strategies at once, but one of them should prevail to some extent.

    Search for ideas

    The beginning of the creation of all popular projects are spontaneous or intentionally generated ideas. They are based on surrounding organizations, scientists, customers, competitors, dealers, top management etc.

    Initially, it is very important to determine the needs and desires of people, then think about ways to meet them. It is the buyers who are inherent in the feature of an objective analysis of any product, comments on its advantages and disadvantages, as well as thoughts on improvement.

    The organization of surveys is considered the best way to determine the dominant needs and needs of people. You can also use projective tests, group discussions, consideration of complaints and suggestions from the consumer.

    The company needs to pay attention to initiative employees who are trying to put forward some new ideas, it is necessary to encourage this process in every possible way and contribute to its development. This method is actively used in many large organizations.

    Another in an efficient way can become a study of products competitive companies. This can be done through dealers, sales representatives manufacturing firms. Due attention should also be given to inventors, commercial and university laboratories, trade publications, and the like.

    Idea selection

    Absolutely all companies should analyze all the collected material, highlighting best deals. The idea manager needs to work on dividing all ideas into several groups:

    • Promising.
    • Doubtful.
    • Unpromising.

    The first category includes projects that have the greatest chance of success, which is why they are further reviewed on a large scale. This process must be done very carefully, as making mistakes can be very costly.


    Scheme for creating a product formula.

    It must be remembered that companies have a quality that makes them immediately reject good idea and give preference instead to unpromising projects. Installment trading is the clearest example of this phenomenon.

    Making decisions regarding the release of goods

    After completing the process of classifying all existing projects of the organization, you need to pay attention to:

    1. Expected profit from the moment of realization;
    2. The ability of the company to take the idea into production;
    3. Probability of investing in a new project;
    4. An approximate estimate of the volume of consumer demand;
    5. Formation of the average cost;
    6. Sales channels;
    7. Probabilities in the patent;
    8. Evaluation of the required level of resource and financial investments for the purchase of equipment.

    Conceptual component

    The next step will be to draw up a product concept, it must be thought out to the smallest detail in order to successfully pass all future quality checks. The form of a well-developed version of a promising project is considered a concept, it should mean a lot to buyers.

    To consider this important stage, it is necessary to analyze the example of an organization whose specialization is the food industry.

    It must be assumed that the leaders decide to launch the production of an admixture that can be added to milk, increasing its palatability and nutritional values. At this stage, this can only be considered an idea of ​​a possible product.

    After that, you can start developing one, but preferably several concepts. To do this, do the following:

    1. Determine the portrait of the consumer of this product. AT given example should include infants, children, adolescents and adults.
    2. Determine what benefits the product has. The idea under consideration boasts a refreshing effect, nutritional value, pleasant taste and energy boost.
    3. Set the time of day when the product will be consumed by consumers. Can it replace breakfast, lunch, lunch, dinner or a late night snack?

    Only by solving all the tasks set, you can start the creation of the product concept.

    The concept of the example under consideration will include the following elements of the goals achieved:

    • Since the quality of solubility is inherent in the product, it is ideal for adults and children.
    • The use of the product is possible for breakfast, snack or lunch, as it is very nutritious and healthy.
    • Since the product is aimed at strengthening health, it can also be safely consumed by older people in the evening.

    Thinking through distinctive qualities

    Further, the drink must be endowed with distinctive properties, characteristic features so that it does not look like most of the existing products on the market. You need to set its average calorie content and price.

    Verification stage

    At the next stage of the marketing strategy, you need to test the selected concept. This can be done by giving the opportunity to evaluate the product. Their reaction will be key indicator and show you what needs to be improved.

    Drawing up a certain conceptual form of the product is one of the elements of the plan for bringing new products to the market. It is divided into symbolic and material.

    Employees of the company must make a graphic or verbal description of the product, all its characteristics.

    You need to design a project using computer skills, make a plastic model of each option. Ultimately, several toys or small household appliances may be created. Such layouts will help customers in drawing up ideas about the external qualities of new products.


    Market analysis and verification.

    Virtual reality is another element that deserves attention, as it allows you to complement all previous processes. It allows you to simulate objects of the surrounding world using a computer, you just need to connect touch devices, namely, use glasses or gloves.

    Such a program is often used for informational purposes, establishing the client's attitude to the planned project, for example, this is very important in drawing up interior design before carrying out construction works and the purchase of furniture and decor items.

    Marketing strategy and its creation

    This structure can be modified in the future, it all depends on possible situations, very often developers have to make adjustments.

    Strategy development should include three parts.

    • Part No. 1. Providing information about the structural and volume components of the target market, characteristics of all buyers. You also need to think about product descriptions, possible sales volumes, planned income. This should be calculated over the next four years.
    • Part No. 2. Entering data on preformed product prices into the generated one, you also need to take into account information on costs and sales in the first year from the start of the sale.
    • Part 3. Here you need to deal with indicators for the implementation of product development and focus on increasing future income.

    Production and sales

    This stage involves consideration of the business attractiveness of proposals. It is necessary to analyze the calculation of the received data on costs, income and sales.

    It is necessary to achieve full alignment with the goals of the organization. When a positive effect is achieved after such checks, it is necessary to start developing a specific product.

    Product creation

    The initial stages include the preparation of production moments for the successful release of the planned product. It is necessary to carry out the development of technology, to manufacture the required equipment, to purchase additional tools and materials.

    After that, you need to start manufacturing a prototype, with its complete perfection, for several batches. These moments are final.

    Next, you need to do the preparation and implementation of trial sales. This is the implementation of a small part of the experimental products. Such a step will help in conducting an additional test of the market, clarifying the needs of people in the developed products.

    From the very beginning, there is no need to place high hopes on achieving the planned income indicators. This is just a way to check the attitude of customers towards products in order to correct its shortcomings and promote it.

    You will learn what social marketing is and how it is carried out.

    Market entry stage

    This moment of introducing the newest product to the market involves the participation of all departments and affects each of the functions of the organization. This includes the production process, sales, purchasing and financial matters, distribution of work among staff, etc.

    Usually this stage is considered the most unprofitable, the organization manages to receive only a small share of the expected income. Most Money you will also have to spend on promoting the product and improving it if necessary.

    In addition to all of the above, you need to properly analyze the target audience, draw up its characteristics, you can even classify buyers into separate subgroups.

    The implementation system is determined by the features and distinctive properties of the product, the image of the company, its reputation and place among competitors.

    When developing sales strategies, you need to pay attention to:

    • Direct distribution. This option involves the direct delivery of the product to consumers from manufacturers. It is most suitable for companies specializing in high-tech goods and those who seek to make expensive and large transactions.
    • Distribution with the participation of an intermediary company. Very often, a trading organization boasts of the resources that can bring the product to end users. In addition, they are able to provide customers with a wide range of products of different brands, which is very popular with many customers due to the possibility of saving time.

    Smaller organizations are characterized by the lack of funds in the first couple. Therefore, they often use word of mouth, contextual advertising, social networks etc.

    What determines the success of bringing a product to the market - see the details here:

    This stage also needs to determine the cost of a marketing campaign, draw up promotion programs, and find ways to interact to carry out such work.

    From the very beginning right decision will be the method of selling products using an online store or your own website. You can also use social networks.

    You can find out what is event marketing and what are its key features.

    Conclusion

    Many businessmen aspire to create a new unique product. They are inspired by the fact that competitors cannot compete with them in this case due to the lack of a similar product.

    The successful entry of new products to the market is determined by many important points. Each stage of the development process of all elements of the product must be carried out through an integrated approach.

    This will enable the new product to become popular among customers and will bring the company a stable income.

    Prostova Natalia Head of EMC Projects Department
    Renard Andrew Vice President EMS
    Magazine "Company Management", No. 10, 2005

            In every work, especially creative work, there is always a problem of maintaining a balance between theory and practical experience. When introducing a new product to the market, many companies try to follow the best theoretical developments, while any entrepreneur has his own experience in the market - both successful and not very successful?
            In this article, we tried to figure out to what extent, when launching a new product, one should rely on the methodology, and to what extent - on one's own experience, what tools it is advisable to use in this case. In addition, we wanted to answer the question of how to effectively combine the conflicting goals of a project to work with a new product. To what extent we have succeeded is up to you, dear reader.

            Before us is an obviously crazy idea.
            The only question is, is she crazy enough to be right?
            Niels Bohr

    Part one. Manuscript found in the mailbox (electronic)

    "Dear FRIEND! You have to surprise the world - come up with a new product, successfully launch it on the market, make everyone happy and get terribly rich! It's very difficult, but remember the main thing - don't be scared!
    You must memorize and repeat to yourself thirteen commandments every morning, here they are:
    1. To get a really worthwhile new product, you need to consider at least 20 ideas, of which 2-3 already seemed brilliant to you.
    2. Don't believe the marketers who say people buy what they need - people only buy what they want.
    3. People rarely want what they need.
    4. People love new things if they have something to compare them with; but more often than new, people buy what they know from the cradle.
    5. Oddly enough, people buy cleaning powder to clean the bathroom.
    6. If you do not remember what the girl you like is wearing, when you return to the ballroom, you will not find her; the same applies to the packaging and the name of the product.
    7. A little improvement, you can sell hundreds of times more.
    8. If they don't buy it, let them want to buy it.
    9. People will not want to buy until they are interested in the product.
    10. If there are no rumors and legends about your product yet, spread them yourself.
    11. Attract only the first hundred buyers with a low price; the next thousand will pay for them.
    12. Before embarking on an ocean voyage, swim in the bay on a clear day: test your product on buyers.
    13. Products exist not because of beautiful names, but because it benefits everyone.
    This text was written in Shanghai in the 15th century. and hasn't changed since then. Do not throw away this letter, but rewrite it 20 times and send it to your friends and partners. And then you will be happy!
    One president of a former large holding began to laugh and gave the letter to his secretary. And for five years now, the holding has not existed, and the former president himself works as a night watchman.
    Another commercial director was not too lazy, retyped the letter and sent it to his colleagues - today his company went public with ADR on the New York Stock Exchange.
    And there are a thousand of these examples!
    One woman, who traded from a box near the metro, copied this letter all night, sent it to her friends, and now owns a chain of haberdashery stores in New Orleans and Stary Oskol.
    The industrialist Nobel drove away the messenger with this letter, and soon a revolution broke out - he lost all his oil mines and powder factories right in Petrograd itself. And the great-grandson of a loader gunpowder factories Nobel, a candidate of mineralogical sciences, swooped through the whole of Turkey and half of China, got rich and immediately went bankrupt. And, exactly when he decided to commit suicide, he got this letter; he did everything right, and now he has a chain of supermarkets all over the country. He called her "Thirteen" in honor of the number of commandments. Happiness came to him exactly on the 1028th day after sending the last letter.
    And if you do everything right, then happiness will come to you, maybe even faster!.."

    Part two. Examples and counterexamples

    There is no doubt that by remembering all 13 commandments and having certain qualities (or experience) as a manager and marketer, you will always be able to organize the launch of a new product on the market. Most likely, in this case, you will pursue two opposite goals: save budget funds and get into the top ten with a new product. Can these goals be combined? Let's turn to current practice.
    In the press, in books and in life, we will find many examples of "correct" and "wrong" launches of new products that turned out to be successful in the end. It happens that everything is done correctly, but ends in failure, it happens the other way around - faith in the idea of ​​a new product, contrary to all forecasts, leads to a win. Consider a few typical examples from the practice of EMC.

    1. A classic example.
    The preliminary study served as the basis for the rejection of the launch own production powdered milk - a new product for our customer.

    Period: summer - autumn 2000
    Scope of work: marketing research of the feasibility of opening your own production of powdered milk (study and analysis of the competitive environment, suppliers' offers, opportunities to work with suppliers of raw materials; assessment of the project's payback).
    Comment. As a result of the project, based on the recommendations of EMC, the customer decided that it was not advisable to invest in its own production of powdered milk. According to the customer, "this project helped save more than $300,000."

    2. The example is original.
    The low-budget study provided most of the parameters for the successful launch of a new product for the market - popsicles.
    Customer: Metelitsa is an ice cream manufacturer.
    Period: Summer 2000
    The content of the work: conducting focus groups to select the most interesting taste of fruit ice, as well as the packaging concept and the name of the new product. Focus groups were held with the involvement of schoolchildren practically free of charge (several boxes of ice cream, which were distributed free of charge at school by "members of the expert council" - high school students, served as payment).
    Comment. According to the results of the study, two of the four tastes proposed by the technologists were left. Based on the proposals of the focus group participants, the packaging was developed and the most successful name was chosen, under which this product is sold today - fruit ice "Ldinka".

    3. The example is sad.
    An entrepreneurial approach to the launch of a new brand of cabinet furniture did not allow to realize a wonderful idea.
    Customer: furniture factory near Moscow (name not disclosed for confidentiality reasons).
    Period: Winter 2004-2005
    Content of the work: a detailed study of the company's actions to launch a new brand. Evaluation of the effectiveness of the brand in the market.
    Comment. As part of the project, all areas of the company's work on the brand were explored; an assessment was given to the actions of the company and its managers to bring the brand out; areas that have not been worked out are indicated; recommendations are given on the necessary work with the brand at the current stage of market development; measured market indicators of recognition, brand perception, etc.
    As the project revealed, more detailed brand launch planning and a careful approach to its concept would help the company avoid losses associated with opening a salon under new brand. Furthermore, preliminary analysis market would help to correctly position the brand and get a good profit, since the entrepreneurial idea itself was really in demand by the market.

    4. An unusual example.
    Preliminary marketing research revealed the need to provide new service in the market - a reference service of funeral services, as well as to develop an advertising strategy in the unusual conditions of this market.
    Customer: Office of Funeral Organizations and Services (UROS).
    Period: autumn - winter 1998
    Contents of the work: marketing research of the feasibility of creating a reference service for funeral services, the problems of its formation and implementation, the choice of a name for the service, the development of corporate identity and advertising strategy.
    Comment. The customer set the task of creating a reference service for funeral services with its subsequent use as a tool for promoting the services offered by the holding companies. At the same time, the task was to bring the specified service to the market - from choosing a name to developing advertising campaign. Marketing research was conducted with the aim of finding marketing steps that allow you to distinguish yourself from competitors in the eyes of the client, as well as finding and modeling the name of the service.
    Unfortunately, the true goal of the customer was different - to obtain public support for the future deputy.
    In addition, the desire to follow the competitor's strategy forced the customer to blindly copy his moves - and not use any of the available effective developments.

    5. An example to follow.
    A successfully found brand name and a well-thought-out research program made it possible to bring a new brand to the shoe market in a short time and increase the customer's turnover tenfold.
    Customer: American company (name withheld for confidentiality reasons).
    Period: 1993-1995
    Content of work 1. "Business owners set us a difficult task: the name should be sonorous, like Monarch, and carry some kind of legend. Immediately the idea arose to choose the place of origin of the goods. In fact, write "France" - they will not believe it, "Italy" - it has already been compromised by the Chinese, "Germany" - they sew good men's shoes, and we have 80% female. We settled on Austria: like German quality and at the same time something elegant, feminine. You know, there, "Tales of the Vienna Woods", "The Bat", "Who can compare with my Matilda?"? The name was chosen by pointing a finger at a German-Russian dictionary, and one finger hit the right place - Walzer! Translated "waltz". Ideas for commercials immediately sprung up: a girl trying on her mother's shoes and waltzing, or a lady flirting with a gentleman and hiding a note in a sandal?
    Then the problem arose - where to produce? After marketing, we prioritized costs: it turned out that the cheapest place to produce is in the women's colony near Mozhaisk, China is in second place, and Portugal is a little more expensive. Believe me, I really wanted to sew in Russia, just to avoid customs. After all, shoes are like peaches: you’re late for a week and you won’t be able to sell a batch. In addition, there are subtleties. For example, women's shoes can be sewn in Russia, and shoes can be ordered in Italy, while men's shoes, on the contrary, are best made in Slovakia or China, and shoes in Russia. But even with all the overhead in Russia, it turned out to be more expensive: our factories include in the price in advance their inability to work five years in advance. Therefore, the first batch of sandals was sewn in the Chinese province of Shenzhen, in the free economic zone. But the legend won over reality, and soon the owners tore apart the Austrian design, and then the production was transferred to Austria. And here's what's interesting. Even our Austrian counterparty immediately believed in the original Austrian origin of the brand: how, I remember, there were such shoes!
    By the way, it was very important to come up with not only the brand of goods, but also the name of the company. Here, everything is the other way around - no foreignness, soviet conservatism is needed so that small wholesalers are not afraid that they will be "thrown". One boy in the team came up with: Soyuzintorg. The choice turned out to be very accurate: I then worked on the trading floor and I remember how clients assured me: they say, we have been working with you for 12 years! As a result, the company's turnover in 1993 increased tenfold! And still Walzer shoes are in demand in "Puddle", the center wholesale trade footwear price Russia | Moreover, we have already found a lot of fakes that are produced in eight countries of the world - Taiwan, Italy, Austria, Russia and Eastern Europe. And it is symbolic that one of the strongest designers in the world, Roberto, is working with a trademark that originated as a swindle."
    Comment. Following the success of the first Walzer collection and a significant increase in turnover, the company was able to place orders in production. More than 800 models were presented to create a new collection "Spring-1995". Such a volume cannot be explored by classical methods. An attempt to involve experts in this process proved ineffective. The marketing research program for the new collection was built adventuristically, but at the same time adventurism was involved in the methodology. The study was targeted, but the points were chosen in accordance with the specifics of a particular market.
    A. Renard (EMC Vice President, project leader at that time) says: “In my memory, this was the cheapest and most effective study of all that we and our competitors conducted. First, they sent two girls (a style expert and an expert on design) to a clothing exhibition in Paris.Experts brought an analysis of trends: what will be fashionable next season, depending on clothing (fashion in Russia at that time was about a year late compared to Europe).
    After preliminary selection on the basis of the presented analysis, the prepared collection was placed on the trading floor for demonstration to wholesalers. During this period, wholesalers were interested in the winter collection, and it was very difficult to distract them for research, even for two or three short questions. Nonetheless new collection could not help attracting their attention at all: they approached the racks and carefully examined the models that interested them. And a cheap chip (less than $1) was sewn into each pair, which reacted to the number of detachments of the model from the stand. Thus, the most interesting models for wholesalers were identified. "Leaders" were worked out separately. And from the "middlings" the most promising models were chosen, with which the agents went to other shoe companies as representatives of China, offering to put them into production. All together gave an assortment card. As a result, the collection was a very great success, and minimal funds were subsequently spent on further promotion.
    We clearly understood that our customers are wholesalers. By conducting a preliminary research on fashion trends, we helped them sell our products to the final consumer. Having studied the offers of competitors, we determined the optimal ratio of assortment positions so that there was nothing superfluous in the collection and in volumes and everything was enough. Moreover, everything was done in the shortest possible time and with a very modest budget. Yes, and save money on promotion. "

    Part three.

    Instructions for geniuses
    Who needs a methodology when bringing a new product to the market and why? If we talk about entrepreneurs, "sales geniuses" and "intuitive marketers" (not to be confused with "managers" and "marketers"), then the technique is most likely harmful to them. Imagine a centipede that was asked on which foot it starts its journey and in what order then rearranges these legs?
    There will always be examples of brilliant finds, guessed by the flair of goods, prompted by technology. It is not known, however, how many such "guessed", "prompted" and "brilliant" failed miserably, causing a complete collapse. But if you consider yourself a genius, then don’t bother reading this tedious article further: the technique will not be useful to you - it will only interfere with listening to your inner voice.
    Forward!!!

    Part four.

    Methodology for mere mortals
    This part is intended for us, mere mortals, managers and marketers who ask themselves the age-old question: is it possible to reach the level of talent (we don’t need a genius) with the help of some technology, while maintaining at least the average profitability in the market? Consider the simplest scheme that you can rely on when answering this question.
    It is assumed that we have already pre-selected new product ideas and selected a few of the most attractive ones. The very process of selecting ideas, methods of evaluating and comparing completely different ideas is the topic of a separate article. There are certain methods and approaches that allow you to manage the emergence of ideas, the methodology for their phased selection, etc. Here we will not consider this block of work. Let's start with the already chosen idea (see picture).
    Let's consider this method step by step.

    Block 1. Checking the idea
    At this stage, the product idea is usually formalized: a product description is drawn up, its distinctive features, technology nuances, competitive advantages- everything that will allow him to find his niche in the market.
    Such a description, as a rule, does not contain precise characteristics, such as weight, size, color, etc. Rather, when formalizing the idea, ranges are indicated for the specified characteristics and consumer qualities are formulated, for example, taste, smell, usefulness, convenience, etc.
    Here it is very important to describe, as a first approximation, the differences between a new product and its analogues or direct competitors.
    Don't skip this step! Otherwise, there is a great danger that different departments of your company will model, research and prepare the production of completely different products! It is known how unsteady and inaccurate oral stories are!
    After compiling a description of the product, it is necessary to analyze its place in the current assortment of the company: which products the new product will replace, which ones it will complement. This analysis often leads to a timely abandonment of a new product: because, for example, it crowds out the most profitable or successful product available?
    I remember many examples of how a new product itself did not reach the planned indicators, and significantly reduced the amount of revenue from existing products. This was the case in example No. 3, when the new brand “ate off” part of the consumers from the old one, but itself did not reach the volume that would pay for these losses.
    It is very important to understand what place in the company's product range it will be assigned to before launching full-scale research of a product. It is at this stage that the first significant screening of ideas occurs: out of 10-20, 2-3 remain.
    Don't worry if some ideas are discarded! This happens not only when the new product concept doesn't "fit" into the market, but also when it doesn't "fit" into your product range.
    If it seems promising to you, work it out separately!
    There are cases when such an idea is easier to implement in the form of a separate business.

  • formalization (description according to the scheme) - preliminary requirements (wishes) for sales, production; consumer properties of the product; planned differences from competitors, etc.;
  • comparative sales modeling.

    Block 2. Primary study
    In this block, a request for marketing research and technological development of a new product is formed. In this case, the study can and should be small, low-budget, but giving answers to precisely asked questions: how will buyers react to a new product, how much are they willing to pay for it, what analogues do competitors offer?
    At the same stage, it is necessary to determine the possible options for the technologies used, as well as to explore the limitations and possibilities of the existing production, the need to purchase new equipment, recruit new qualified personnel, etc.
    The combined results of these two studies will assess the prospects of working with a new product on the market. It often happens that the existing production cannot ensure the manufacture of a new product at acceptable market prices, and re-equipment is too expensive.
    The analysis carried out will make it possible to assess the real possibilities of the company - both internal and external - to launch this particular product and to abandon it in a timely manner, saving a lot of money. In this case, it is better to spend a few thousand dollars on research than to lose hundreds of thousands of dollars on the equipment of a new production, based on intuitive assumptions. It was this case that was considered in example No. 1. According to our estimates, between $600,000 and $1 million were saved.
    If you are not going to produce a new product yourself, but are ready to place an order at one of the existing production facilities or work with product manufacturers, this stage still cannot be skipped.
    It is necessary to analyze the capabilities of a potential supplier, conduct marketing of possible alternative channels, etc.
    And this is the second point of selection of ideas: now only one of the three remains.
    Used methods / tools:

  • diagnostics of production - modeling of opportunities;
  • analysis of the results - it is possible to use the SWOT analysis in a reduced volume.

    Block 3. Refinement studies
    The tasks of this block of work are the development of an exact technical task (and technical specifications - TS) for the parameters and external design of the product, indicating the necessary specifications(color, size, weight, etc.), determining the most effective distribution channels and promotion methods, clarifying the price range and obtaining other information necessary to draw up a business program (business plan) for launching and promoting a new product.
    As our practice shows, at this stage it is quite possible to get by with low-budget research (see examples No. 2 and No. 4). To do this, it is necessary to conduct regular monitoring of the needs and preferences of the company's customers, as well as the competitive situation in the market. In addition, the study in this block may be less expensive if the previous steps in the methodology have been worked out carefully and successfully.
    At this stage, the name of the product, the main positioning parameters, as well as the most significant aspects of the promotion strategy are determined. At the same time, it should be taken into account that the work of this block is closely related to the next stage of bringing the product to the market.
    Used methods / tools:

  • request for marketing research (terms of reference) - parameters, criteria, completeness and depth, resources, terms;
  • marketing research program - development, implementation;
  • marketing research - methods are selected depending on the specific request and product: open sources, selective surveys, etc.;
  • analysis of results.

    Block 4. Trial production
    A very important stage, after which it becomes clear how much our calculations coincide with reality. In production, this stage is also known as "prototype".
    Samples of the product are made, their comprehensive technical and technological expertise is carried out. Checking packaging options.
    Here you can also clarify the profitability (profitability) of the future product. At the same time, it is necessary to clearly understand that in order to calculate the planned cost, it is impossible to directly use all the values ​​of similar parameters when preparing a test sample! It is still impossible to calculate labor costs, rejection of materials and raw materials, etc. Nevertheless, many parameters are being "clarified".
    Upon completion of this stage, the production technology of the product, its weaknesses, and possible risks are specified.
    If you do not have your own production, you still need to get prototypes of the future product, already made in accordance with our specifications, in our packaging, and not the "model samples" of the manufacturer. At this stage, it is advisable to send engineers or technologists to future production (whatever the end of the world it is!), so that they can analyze not only the quality of the product obtained, but also the quality of its production organization.
    At this stage, we can and must analyze real (and not hypothetical!) production possibilities, model the cost of a new product and determine its economic feasibility for the company.
    Upon completion of this stage, a decision is also made on the advisability of launching a new product into mass production.
    Used methods / tools:

  • terms of reference (TS) for the product - technical and technological characteristics, requirements for raw materials, materials and equipment, restrictions, etc.;
  • examination of samples - expert assessments, "focus groups", "quality circles", etc.;
  • cost calculation - in accordance with accepted norms and accounting rules; overhead accounting, variable costs etc.

    Optional: "trial sale"
    Sometimes, for completely new products on the market, it makes sense to prepare and conduct so-called "trial sales".
    Trading companies very often use this method - do they have such a term "take a sample"?
    When organizing "trial sales" it is necessary to draw up a precise sales program: what exactly do we want to test with this promotion?
    In no case should you set yourself the goal of selling a trial batch of a product with a planned profit - it is much more important to check the accuracy of the choice of packaging, price, promotion methods, distribution channels.
    Used methods / tools:

  • "trial sales" program - tasks, conditions, methods, terms;
  • organization of "trial sales" - logistics, instructing sellers, collecting information;
  • analysis of results.

    Block 5. Output program (promotion)
    The results of the third and fourth blocks of work (and sometimes "trial sales") provide a basis for developing a business program (business plan) for launching and promoting a new product. The detail and elaboration of this program depends on the specific situation: the product, the market segment, the degree of its saturation, etc.
    For example, a program might consist of the following sections:

  • description of the product (including its strengths and weaknesses);
  • product positioning;
  • sales markets and target audience;
  • sales policy (including a description of the "ideal" buyer);
  • distribution channels (existing, new);
  • sales promotion (tools used);
  • separate special marketing projects and their implementation (special projects aimed at promoting a new product, for example, participation in an exhibition, "promotions", etc.);
  • trading conditions (relationships with buyers) and pricing policy;
  • advertising and PR;
  • marketing budget.

    When developing the program, all available information from the market and production is checked once again, the calculations are refined. Ideally, the program should pass the examination.
    It is quite possible that specialists will find significant flaws in it that will either force them to return to previous levels, or even abandon the release of a new product. Example #3, already mentioned, was just such a project. However, our specialists carried out an examination of the program after the fact, when certain losses had already occurred (which, in fact, was the reason for the examination). You can avoid many mistakes by consulting with experts in a timely manner.
    The most loyal customers, independent market specialists, partners, specialists and consultants in management and marketing can be involved as experts at this stage.
    Used methods / tools:

  • examination of the program - expert assessments, the results of "trial sales", a survey of buyers, etc.;
  • SWOT analysis - the presence and content of winning promotion strategies.

    Block 6. It finally happened!
    And now, when all the difficulties have been overcome, all the checks have been made, it is necessary to proceed with the implementation of the planned.
    Based on the program obtained in block 5, a detailed work plan is drawn up with a new product for the marketing and sales departments, and the production plan is adjusted accordingly.
    According to experts, for a period of one to two years, a new product should be in the area of ​​close attention of all top managers. Constant monitoring of the situation will allow timely identification and correction of errors and inaccuracies. This minimizes the risk of failure with a new product. And there will always be mistakes and blunders, since even the largest and most expensive research does not give a 100% guarantee of success.
    An effective method is considered to be the allocation of a separate "product manager" assigned to a new product. The entire "chain" should be in the zone of his attention and control - from the purchase of raw materials to final sales. The task of the "product manager" is to inform the management in a timely manner of any cases when the actual development of the situation deviates from the planned plans and indicators. It would be logical to tie his salary to the results of serial sales of this product.
    Used methods / tools:

  • the structure of the promotion program - the required volume, the degree of detail;
  • production plan - dynamic, including an adjustment mechanism;
  • cost adjustment program - based on the results of actual labor costs;
  • algorithm and plan for launching the product into production;
  • distribution of control functions - for the period of launch and output to the "design capacity" of a new product.

    Part five. Summing up

    What does the proposed method give us?
    First of all, it allows you to break the entire project for the launch of a new product into separate stages, after each of which a decision is made to continue the project or exit from it.
    Each stage has a certain cost and a specific result, and this is the key to successful planning and organization of work, as well as the ability to control the project.
    Depending on the situation in the company and on the market, one or another stage of the project can be significantly reduced or skipped altogether.
    The concept of bringing a new product to market as outlined here requires some ingenuity in putting it into practice and making real improvements to the company's work on new products. Answers to the vital questions "how?", "In what way?", "In what ways?" not easy to generalize. A launch program that is successful in one case can often be unusable and often dangerous in another. That is why we focused on the main, fundamental steps - the stages of work on a new product.
    The diagram shown is the most general algorithm work on a new product. It takes into account most of the commandments and allows them to be remembered. For complex situations (an innovative product, a saturated market, etc.), the scheme can be detailed and supplemented with other necessary blocks.

    We wish you, dear reader, successful new products! It is not necessary to rewrite this article 20 times, but three or four photocopies for office managers will not hurt!
    Good luck!!!