Launching a new product to the market: create your strategy based on accurate analysis
Create your strategy to launch a new product to the market based on accurate analysis
How will the new product perform, and what brands will he distract customers from? Or will he divert attention from the products of the same brand? Modern services and analysis tools allow you to find answers to all questions related to the launch of a new product on the market and help develop the right strategy for positioning and promoting the product. Let's talk about it in detail!
How do evaluate the effect of the launch of a new product?
The manufacturer can know everything about the composition of the product, and production technology, and can understand how to organize its logistics. However, it is difficult to analyze the reaction of buyers to the novelty. This is because there are a whole host of factors to take into account: changing consumer preferences, seasonality, and market and societal trends. We should also not forget about the indirect impact of pandemic restrictions or similar difficult-to-assess factors. How to take into account the maximum possible number of variables when introducing a new product?
Our specialists in business consulting and analytics use the Num8erz service to analyze data from loyalty cards of a large retail chain. The service helps to study and evaluate the behavior of customers when launching a new product and adding it to the assortment of the network, how they interact with it, how they buy and with what, as well as which brands have been abandoned in favor of the new product. The Num8erz reports show the real picture in numbers, not the information from surveys that people tend to distort with their perceptions of themselves and their preferences. Let's see how it works.
Would you like to learn how Num8erz analytical tools work on case studies of large retailers and manufacturers? Watch the presentation on how Num8erz.InsightsPanel helps to analyze the switching of demand from a well-known juice brand and the launch of a new beverage. Click to download the presentation! If you have any questions, please write to [email protected] or fill out the consultation request form.
Analytics when launching a new product
Information from checks linked to loyalty cards provides a valuable basis for analysis, based on which you can make informed decisions on brand development and develop a strategy for bringing a new product to the market.
With the help of the service, specialists will be able to give you an understanding about:
- was the client bought a novelty for the first time, that is, whether he made a trial purchase or not;
- has he made a repeat purchase;
- whether did he continue to buy analogs of the product or completely switched to a new product.
The value of the analysis is that it is possible to study information for different segments of buyers. The service does not allow you to see the person, but reveals the consumer's portrait and reactions based on data from loyalty program management systems and sales history. That is, analytics makes it possible to track the customer's commitment to a particular brand and how his "behavior" in the check will change when a new product is introduced.
This analysis allows you to view the process from different angles and provide the manufacturer with the necessary retrospective. Next, let's talk about what insights the analysis provides, and how it will help in the output of the product.
Where did the traffic come from when launching a new product?
Let's say you are a supplier and launch a new product on the market, put it on the shelves of the network, and want to understand how your new product is being sold.
Experts conduct an in-depth analysis and can show in numbers:
- what competitive brands have customers switched from;
- what part of the sales the novelty "took" from the products of its brand;
- categories from which consumers have moved, if they have never bought similar goods before;
- how many customers added the new product to their usual shopping cart;
- the growth rate of new customers.
To obtain qualitative data on the withdrawal of a novelty, it is recommended to analyze it for 8 weeks. The research period depends on the product: what category it belongs to, food or non-food, turnover, package size, and other characteristics. All this analysis allows you to determine the sources of growth, compared with a competitor, and understand the response of the target audience when introducing a new product. The data obtained helps to build a further strategy for launching a product to strengthen its position in the market.
C4R experts provide customer behavior analysis services using proven services and based on their experience in implementing projects of various sizes in the field of retail audit and retail consulting. To find out more, fill out the callback request form.
What does the analysis of the introduction of a new product give the supplier?
When analyzing the transferable demand, the report will show what part the novelty took from the sales of competitive brands and the switching index.
This information allows you to clearly understand:
- who is the target audience when launching a new product;
- where there has already been a switch in demand and where there is a growth zone;
- what product is a competitor of the product;niches in the market where you can enter to display goods;
- what steps to take for the future: develop a new taste or develop a new price segment;
- other opportunities to launch a new product on the market.
With such knowledge, you can reasonably build a marketing plan for bringing a new product to the market, plan activities and optimize the promotional budget.
The figures in the report give a clear understanding of whom the new product competes with, where the product will be successful on its own without advertising support, and at what points it is really necessary to make efforts to strengthen the positions.
"To be or not to be" a new product?
Is it possible to estimate how the novelty will be sold if its launch is still planned? Specialists can collect analytics of the output of products similar to yours. You can analyze this data and decide whether to launch such a product or not and what strategy to choose.
Relying on guesses and sensations in the information age is irresponsible. Modern algorithms, artificial intelligence systems, and the experience of analytics specialists will help you weigh the risks, accurately assess the benefits and build a launch product strategy.
Do you want to know more about the possibilities of using analytical systems for your business, or have questions about audit and consulting services for retail and supplier? Write to [email protected] or fill out the form below.
The author of the article is Andrey Shevchuk,
Head of Business Consulting C4R,
