Introduction of a new product to the market by scientists. Instruction: how companies bring a new product to market. We weren't ready for the high demand

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

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 - to invent New Product, successfully launch it on the market, make everyone happy and get rich terribly! It is very difficult, but remember the main thing - do not be afraid!
You must memorize and repeat to yourself thirteen commandments every morning, here they are:

To get a really worthwhile new product, you need to consider at least 20 ideas, of which 2-3 already seemed brilliant to you.
Don't believe the marketers who say people buy what they need - people only buy what they want.
People rarely want what they need.
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.
Oddly enough, people buy cleaning powder to clean the bathroom.
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.
A little improvement, you can sell hundreds of times more.
If they don't buy it, let them want to buy it.
People will not want to buy until they are interested in the product.
If there are no rumors and legends about your product yet, spread them yourself.
Attract only the first hundred buyers with a low price; the next thousand will pay for them.
Before embarking on an ocean voyage, swim in the bay on a clear day: test your product on buyers.
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 former president 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 he was not too lazy, retyped the letter and sent it to his colleagues - today his company entered the New York Stock Exchange with ADR.
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 from Nobel's gunpowder factories, a candidate of mineralogical sciences, scoured the whole of Turkey and half of China, got rich and immediately went bankrupt into default. 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 milk powder production (study and analysis of the competitive environment, suppliers' offers, opportunities to work with suppliers of raw materials; project payback assessment).
A 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.
A low-budget study most parameters for the successful launch of a new product for the market - fruit ice.
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 (the payment was several boxes of ice cream, distributed free of charge at the school by "members of the expert council" - high school students).
A 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.
A 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; made recommendations on 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 planning of the launch of the brand and a careful approach to its concept would help the company avoid losses associated with opening a salon under a new brand. Moreover, a preliminary market analysis would help to correctly position the brand and get 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 - help desk ritual services and develop an advertising strategy for unusual conditions 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, development corporate identity and advertising strategy.
A 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 an 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.
Luckily found name trademark 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 was already compromised by the Chinese, "Germany" - they sew good men's shoes there, and we have 80% of women's. We settled on Austria: it seems to be German quality and at the same time something elegant, feminine. You know, there, "Tales of the Vienna Woods" , " Bat", "Who can compare with my Matilda?"? The name was chosen by poking a finger into the German-Russian dictionary, and one finger hit the right place - Walzer! In the translation "waltz". Ideas for videos immediately sprung up: the girl tries on her mother's shoes and waltzes , or a lady flirts with a gentleman and hides a note in her sandals?
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 in trading floor and I remember how clients assured: 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."
A 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 design) to a clothing exhibition in Paris.Experts brought a trend analysis: what will be fashionable in next season depending on clothing (fashion in Russia at that time was about a year late compared to European).
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. Nevertheless, the new collection could not help attracting their attention at all: they approached the shelves 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 most a simple circuit which can be relied upon in 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 idea of the product is usually formalized: a description of the product is drawn up, its distinctive features, nuances of technology are indicated, 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 new product will supplant which ones it will add. 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 retrofitting 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 specifications - TS) for the parameters and external design of the product indicating the necessary technical characteristics (color, size, weight, etc.), determining the most effective distribution channels and promotion methods, clarifying the price range and obtaining other information necessary for drawing up a business program (business plan) for launching and promoting 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, sample polls, 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 must be clearly understood that it is impossible to directly use all the values of similar parameters when preparing a test sample to calculate the planned cost! 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 weak sides, possible risks.
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 (no matter where in 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 received in block 5, a detailed plan work with a new product for marketing and sales departments, 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 presented scheme is the most general algorithm for working 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!!!

New products appear on the market with enviable constancy - it can be all kinds of gadgets, as well as miracle cures for weight loss. How do people find out about the release of the next new product? What helps to bring the product to the top positions in sales?

The secret to quickly bringing new products to market lies in a special strategy consisting of the following points:

"promotion" of the product through the media;
collecting information about competitors;
improvement of the properties and qualities of a new product;
good product PR.

Step by step action plan

1. We identify our competitors. First of all, you need to identify the main competitors of your product. These can be firms that produce a product similar in properties, and companies occupying the same market niche. An example is the age-old struggle between the producers of carbonated drinks - Coca-Cola and Pepsi.
2. Are looking for weak spots in a competitor's product. After identifying the main “rival”, you should carefully study the properties of a competing product, and then develop a promotion strategy based on opposite qualities.
Thus, the company Procter & Gamble, having launched a novelty on the market - a mouthwash - has identified its main competitor in the face of the Listerine brand and its new product. Listerine's mouthwash had an unpleasant taste, and Procter & Gamble relied on its product's refreshing properties and attractive scent. As a result, the brand was promoted for a short time and became much more popular than Listerine rinse.
3. We work well with the media. good effect gives a conscious "information leak", which is actually part of an advertising campaign for an exclusive product. Consumers are happy to peck at various intriguing stories (not necessarily true ones) related to the new product.
By focusing on this way of promoting new items, Microsoft has "promoted" its "Xbox". 18 months before market launch game console, the media was presented with a lot of materials describing the characteristics and features of the new product, as well as the prospects for possible competition between the "Xbox" and the current leader from Sony - "PlayStation".
The more information "noise" around the product entering the market, the better.
Advertising campaign, which began with a small news item, should gradually develop into a powerful, large-scale PR campaign to promote a new brand.
4. We are constantly improving our product and advertise every improvement. Just keep in mind:
The product really must have all the properties stated in the advertisement.
Consumer trust plays a key role in growing your business. That's why:
You can afford to lose anything, but not the trust of customers.
5. We place the accents correctly. Competent PR focuses on the important properties of the product for the consumer, which, by the way, may change over time. So, Volvo cars for many years were presented as the most durable and durable. However, sales soared to the top after adverts claiming improved safety (special three-point seat belts, robust steering column, front and rear crumple zones). Later, the company began to focus on safety, which helped it maintain its leadership in the market.

Thoughtful strategic steps will allow a new product to quickly enter the market and win the favor of the consumer. As a result, your business will become successful and prosperous. The temabiz.com project team wishes all your new products a booming popularity. Stay with us!

Before getting to the buyer, a new product goes through a series of stages from concept development to commercialization. AT different sources you can see many approaches to the structure of creating and launching a new product on the market. The analysis of sources made it possible to formulate a generalized representation (Fig. 3):

Figure 3. Scheme of launching a new product on the market

commodity market risk product

Depending on the type of product, existing information about the market and the situation within the company, stages may be combined or excluded in the process of bringing the product to the consumer market. Consider the content of each stage.

1. Creating an idea for a new product.

The creation of a new product most often begins with the search or generation of ideas. There are a number of principles, the observance of which allows you to avoid mistakes:

- the company must ensure a constant influx of new ideas and proposals, give this process an organized and systematic character;

l ideas must be constantly commensurate with the capabilities of the company and the situation on the market;

- proposals should be sufficient to ensure the freedom to choose the most promising;

- focus on the potential needs of consumers in the future, and not on the needs of "today";

The company must have a communication system between departments and employees so that each responsible person has an idea about the areas of development that are most interesting for the company.

Ideas at this stage can be generated within the company (initiated by employees or by creating a special department responsible for new ideas), buying an idea from an outside organization, or hiring an employee to develop a concept.

Possible sources of ideas can be:

consumer opinions and sales agents obtained by the survey method;

l market research;

representatives of development departments, Maintenance, company management or other departments that have contact with consumers (for example, the sales department);

l competitive analysis;

ь study of secondary sources of information (printed publications, mass media;

ь opinions of industry experts (professional communities and associations), exhibitions and expositions.

Involving third-party companies for development saves time, but increases the risk of information leakage to competing companies.

After a sufficient number of ideas have been generated that can be implemented within the organization, the stage of selecting the most attractive and profitable ones begins. Before deciding on a trial release of a product / service, the following aspects are considered:

ь expected profit from the product/service;

l the ability of the company to realize the idea and take it into production;

b analysis financial position the company required investment for the project;

ь approximate assessment of the volume of the consumer market and the trend of its development;

ь a preliminary assessment of the price and the necessary distribution channels is given;

l evaluates the possibility of obtaining a patent for a product/service;

if the product is technically complex - an assessment of the existing resources for production and the cost of necessary equipment and materials.

2. Development of the concept of a new product, giving the idea of real characteristics. Most often, this stage is a test of the idea on the target group of consumers, tracking the reaction to the product. The less a new product differs from an existing one, the less costly and large-scale research is supposed to be. The result of this stage is the trial production of a product or the provision of a service, which allows you to evaluate the existing problems of production and use. According to the results of the opinions of consumers and experts, the requirements for product characteristics are adjusted. The reliability of this stage is determined by the degree of compliance of the tested product with the final one, which will go to the consumer.

If the product is technically complex, then in parallel with the study of consumer properties, at this stage, they study the features of the production process, and specialists proceed to apply for a patent. A quality control system for goods is being developed.

3. Development marketing strategy new product.

If management makes a positive decision to enter the market with a new offer, then actions are taken to develop a marketing strategy for a new product and assimilate company departments (marketing, sales, finance) to implement the strategy.

The main goal of the stage is to analyze the macro- and microenvironment of the market, the most promising and target consumer markets.

The development of a marketing strategy includes the following blocks:

l competitive analysis - identifying the strengths and weaknesses of competitors;

b study typical situations in which the consumer makes a decision to purchase (goods / services);

study of the needs and values of buyers;

ь analysis of economic indicators (market volumes, planning of sales volumes, planning of costs and profits, necessary investments and payback period, pricing);

ь formation of technical specifications / development of goods (issues of organization of production and management);

l trial marketing.

The choice of marketing strategy is largely determined by the characteristics of the product. Conventionally, the development of a marketing strategy can be divided into several blocks (Fig. 4):

Figure 4. - The main components of the marketing strategy of a new product

Most often, when developing a strategy, focus groups, in-depth interviews, quantitative surveys, retail audit, U + A studies, consumer panels are used.

The final stage of the stage is the launch of pilot production. Specialists finally formulate the so-called Marketing Mix of the product: the name of the product, the design of packaging and related materials (advertising materials, instructions, etc.), are being developed terms of reference for departments involved in the implementation of the product.

The concept of a new product is launched into trial production (the number of offers is limited and directed exclusively to the target group of consumers). This stage allows you to conduct comprehensive consumer research, assess the level and structure of costs required for serial production, and set a price.

This plan is the basis for the decision to bring a new product to the market by the company.

4. Bringing goods to market. This stage affects all functions and departments of the company: marketing, sales, production, personnel, purchasing, finance, etc. Along with strategic marketing, operational marketing begins to function. The participation of tactical and project management is required.

In most cases, at this stage, companies incur losses or have insignificant profits, since the costs of promotion and development of distribution channels are very high. At the initial stages, it is advisable to release only the main variants of the product, since the market is not yet ready to accept product modifications.

The main attention of the manufacturer is directed to the target audience, as its requests and expectations from the product are the most studied and predictable.

A significant role at this stage should be given to the choice of channels for the sale and distribution of goods. A competent solution to this problem contributes to a less expensive and faster gaining a place in the market. The choice of distribution system depends on the characteristics and features of the product, the image of the product and the company, the reputation of the company.

There are two marketing strategies available:

direct distribution - from the manufacturer, the product goes directly to the consumer. This distribution system is most adequate for the sale of high-tech solutions (requiring warranty and service maintenance), or for large, expensive transactions;
distribution through intermediary firms. Often, intermediary organizations have more resources to bring the product to the consumer and they do it with greater efficiency than the manufacturer himself. This is largely due to the fact that having a large number of supplier companies, intermediaries can provide the buyer with a choice of brands, which significantly saves their time.

The main elements of a marketing strategy can be (Fig. 5):

Figure 5. - Classification of distribution channels

Most businessmen dream of creating a new product. They are passionate about the idea of selling a product or service that competitors do not have. And it should be a product for which buyers will line up. The idea is good, but not many people manage to find it, let alone implement it. How to bring a new product to a new market, which will leave no chance for competitors in the future?

Task complexity

Bringing a new product to market is not an easy and expensive task. In this regard, many entrepreneurs give up their positions at the very beginning of their journey. The difficulties ahead scare off newcomers. However, bringing a new product to a new market is a feasible task. By developing the right marketing strategy in the shortest possible time, you can ensure that the product or service takes a leading position. An entrepreneur only needs to be prepared for the fact that it is unlikely that a new product will start to make a profit at the initial stages.

Choosing the right strategy

Based on existing practice, it can be concluded that the introduction of a new product into a new market is associated with significant risks. This leads to the fact that the implementation of the idea is not always successful.

To minimize risks, you need to apply right marketing and use the necessary techniques to attract the attention of consumers to a little-known product that has just appeared on the market. Only this will make it buyable and in demand. How to achieve the desired result? To do this, it is important for each manufacturer to use marketing tools that will allow producing the product that the consumer needs, selling it when needed, where needed and at the price that would satisfy the buyer.

Currently, many different methods have been developed that contribute to the introduction of a new product to a new market. In this regard, entrepreneurs and businessmen will need, first of all, to study the existing arsenal of marketing tools and learn how to use them correctly to implement their idea. Of course, in any already tested methods of strategy and methods of promoting a product or service, each manufacturer must contribute own nuances which will be dictated by specific conditions. After all, classic techniques work as efficiently as possible only if they are adapted to a specific business.

Be that as it may, the introduction of a new product to the market, before it reaches the buyer, must go through certain stages. They start with concept development and end with commercialization. The strategy for bringing new products to market can be different. That is why we will consider a generalized idea of the steps to promote goods and services.

Idea development

Where does the creation of a new product begin? From generating or searching for ideas. They can come from company employees and academics, customers and competitors, dealers, and senior management.

Considers the most logical starting point of this stage to identify the needs and desires of consumers. After all, buyers who most professionally use the products already manufactured by the company are the first to notice everything that needs to be improved in it. The company can learn about the needs and needs of customers by organizing surveys, group discussions, projective tests, as well as considering complaints and suggestions from consumers. In the history of world business, there are many examples when good ideas are born from engineers and designers after surveys were conducted of consumers talking about their problems while using the product.

To create a new product, many companies use suggestions received from their employees. Moreover, the desire to create new ideas by employees, as a rule, is encouraged. For example, Toyota employees come up with about 2 million new ideas every year. Moreover, the company implements 85% of them. And Kodak rewards employees who submit the best ideas with gifts and cash bonuses. This practice is adopted in many other companies.

Good ideas sometimes come from studying the product of competitors, through contact with dealers and sales representatives of the manufacturer. There are other sources that allow a company to start building a new product. Sometimes they are inventors, commercial and university laboratories, trade publications, etc.

Selection of ideas

Any company collects received proposals. In the future, they are considered by the head of ideas. He divides proposals into three groups - promising, doubtful, and unpromising. Those ideas that belong to the first category are further tested on a large scale. When selecting proposals received, it is important not to make a mistake. After all, sometimes companies reject good idea starting work on an unpromising direction. One example of a new product launch is installment trading. At one time, Marshall Field had a premonition of the unique possibilities of such tactics. But Endicott Johnson did not like this proposal. He called installment trading a vile system that can only create trouble.

Product release decision

After selecting the most promising ideas, the company needs to consider the following aspects:

expected profit from the sale;
the ability of the company to take the idea into production;
the likelihood of investing in new project;
an approximate estimate of the volume of consumer demand;
formation of the price level;
sales channels;
the likelihood of obtaining a patent;
assessment of available resources and the level of costs for the purchase of equipment (in the case of the production of a technically complex product).

Concept development

What is the future plan for bringing the new product to market? The most compelling ideas should then turn into product concepts that can be tested. What does she represent? The concept of a product is understood as an already developed version of a promising idea, which is expressed in a form that is meaningful to the consumer.

Consider this important of all stages of bringing a new product to the market using the example of a company operating in the food industry.

Let's assume that its management decides to launch a powder that, when added to milk, can increase its taste and nutritional value. This is just an idea for a product. Further, it must be turned into a concept, which may not be one. For example:

Who will be the user of the product? In this case, it can be infants, children, adolescents or adults.
What are the benefits of the product? Energy boost, refreshing effect, nutritional value or taste?
When will consumers consume such a drink? During breakfast, lunch, dinner, dinner or late at night?

Only by giving answers to all these questions, it will be possible to start forming the concept of the product. So, the drink intended for production can be:

Soluble. It will be for adults only. It is planned to be consumed as a quick nutritious breakfast.
Children's. The product will have a pleasant taste, and its use is acceptable throughout the day.
Strengthening health. Such a drink will be necessary for older people to drink in the evening.

At the next stage of bringing a new product to the market in marketing, a categorical one is selected from all these concepts. It will determine the area of product competition. For example, an instant drink will become an alternative to eggs and bacon, cereals, coffee, muffins, as well as other products included in the breakfast menu.

Brand creation

What is the future plan for bringing the new product to market? The product concept at the next stage should turn into a brand concept. A new drink needs to be significantly different from those already on the market. This applies to its average calorie content and price. A company should not position a new product with existing brands, otherwise it will be quite difficult to win its place in the sun.

proof of concept

What should be the future marketing strategy for bringing a new product to the market? At the next stage, the company needs to test the chosen concept. This can be done by testing the product with a specific audience of target consumers. This will allow you to find out their reaction.

A plan to bring a new product to market may involve presenting a product concept in some form. It can be either symbolic or material. At this important stage of launching a new product on the company's market, a graphic or verbal description of the product is sufficient. However, it is worth bearing in mind that the effectiveness of the test will be most reliable when there is a large similarity that can be seen between the tested concept and the finished product.

An example of bringing a new product to the market at this stage is designing it on a computer with the manufacture of a plastic model of each of the options. In this way, toys or small household appliances can be created. Such dummies will allow buyers to get an idea of appearance new product.

One of the steps to launch a new product on the market is the creation of virtual reality. This is a computer simulation of the surrounding reality when using touch devices such as glasses or gloves. Such a program is often used to familiarize the consumer with the new interior of his kitchen, the furniture from which will be purchased from this company.

Development of a marketing strategy

How will the new product be brought to market in the future? In marketing, the next stage in the implementation of a promising idea involves the development of a preliminary strategy plan. It represents certain steps that a company has to go through to sell its product or service. In the future, some corrections and clarifications may be made to the strategy for bringing a new product to the market, depending on the current situation.

The developed plan should consist of three parts. The first of them contains information about the volume and structure of the target market, as well as the behavior of consumers on it. It also describes the positioning of the product, expected sales volumes, planned profits and market share. All these data are calculated for several years ahead.

The second part in the marketing strategy plan contains data on the pre-formed price of the product, on its further distribution, as well as on the level of sales costs during the first year of sales.

The third part of the marketing plan includes indicators of product implementation and profit in the future.

Possibilities of production and sales

At the next stage of product promotion, it is important to consider the business attractiveness of the offer. This can be done by analyzing the calculation of estimated sales and costs, as well as profits.

All of them must be consistent with the goals of the company. In the case of positive results of such a test, you can begin to develop the product itself.

Process of creation

At the initial stage, it is necessary to prepare production for the release of a new product. To do this, they develop technology, produce the necessary equipment and purchase additional tools and equipment. Next is the production prototypes or batches of newly created products. This completes the creation of a new product.

At this stage, you should prepare and carry out test sales. They represent the implementation of a small number of experimental products. Such a move will allow for an additional check of the market, clarifying the need of the population for the created product. When introducing prototypes of a product to the market, one should not hope to receive the planned profit. At this stage, it is important to check how customers feel about the product and, if necessary, adjust the methods of its further promotion.

Access to the market

At this stage of the launch of a new product, all departments are involved and all functions of the company are affected. These are production and sales, procurement and finance, personnel, etc. At the same time, operational marketing is connected to strategic marketing, which will require the participation of a tactical as well as a project manager.

As a rule, at this stage, the company's work is unprofitable, and if it makes a profit, then it is insignificant. It's all about the cost of promotion and further development distribution channels that are quite high. That is why at the initial stages of a product entering the market, it is necessary to offer consumers only those options that are basic, because customers are not yet ready to consider modifications to a new product.

In addition, when introducing a product to the market, manufacturers should focus on the target audience. In it, product expectations and requests are the most studied and predictable.

At this stage, an important role belongs to the distribution channels and further distribution of products or services. They should be given special attention. With a competent solution of this problem, a place in the market will be won in the shortest possible time and at minimal cost.

What will be the choice of implementation system? It depends on the characteristics and image of the firm and product, as well as the reputation of the company.

During development, two options can be considered:

Direct distribution. In this case, the product from the manufacturer goes directly to the consumer. This scheme is most acceptable for the sale of high-tech goods, as well as for expensive and large transactions.
Distribution with the participation of intermediary firms. Often, trading organizations have a large amount of resources necessary to bring the product to the end consumer. In addition, they provide the buyer with a choice of a wide variety of brands, which allows the client to significantly save time.

When forming a marketing strategy, a marketing plan for promoting the product should be drawn up. At the same time, it should be borne in mind that there is no universal tool that would allow introducing a new product to the market. For example, large firms in this case invest impressive amounts in advertising on radio, television and on the Internet. They place outdoor advertising, and also carry out the promotion of goods in the places of its sale.

Smaller companies are deprived of such an opportunity due to lack of funds. They tend to use word of mouth, contextual advertising, social media etc. In addition, marketers recommend doing everything possible so that the new product placed on store shelves compares favorably with the offers of other companies, is attractive and bright.

If all the efforts invested in the promotion of the product did not bring the expected result, then experts recommend making changes to the promotion strategy. In this case, you will need to use other types of advertising and promotions.

At this stage of introducing a new product to the market, it is of particular importance to determine the size of the advertising budget, draw up a promotion program, and also search for the means of communication through which such work will be carried out.

The presentation of a new product to consumers should be bright and memorable. To do this, advertising should focus on the features of the product and its differences from existing analogues. At the first stages of bringing a new product to the market, it will be more rational to sell it via the Internet through participation in specialized exhibitions, etc.

As you can see, there are many factors that influence the success of a new product on the market. That is why at each stage of the project implementation, the company must approach the matter comprehensively. This will allow new products to gain a foothold in the market, winning the hearts of consumers and bringing a stable profit to the company.

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 of a 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 new product development, it is especially important for a company to work with potential consumers. It is their opinion that should be decisive in the process of developing the concept of a new product. The following tools are used to generate conceptual ideas. marketing research like expert brainstorming, creative group discussions and in-depth interviews.

Remark 1

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

Stage 3. Create a product formula

This stage consists in testing various characteristics of the product: from its taste, color, planned and possible functionality, etc., to consumer attitudes towards 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 complex. 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 direct launch of the product on the market, final testing, 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 prior research - market launch without marketing research or low quality leads to the receipt by the company of 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 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 designs - when developing new products, the experience of Western companies, foreign technologies, imported raw materials, etc. are used.
"Pseudon" products - under a well-known brand, products are sold from other, cheaper analogue ingredients or components, which reduces the cost of production.