This is one in a series of articles from the Baublitz Briefs, quick-study guides to LBM marketing and communications. Click here to see a list of other articles.
To create new revenue streams, manufacturers, distributors, dealers, and others along the supply chain often rely on the introduction of new products and services. But while a growing reliance on product development makes fiscal sense, the realities of the marketplace create significant barriers to success for any new product.
A few of the key challenges:
- Competition. More players are introducing more products into more categories every year, so capturing share in a shrinking market becomes increasingly difficult.
- Market resistance. The market is predisposed to ignore new products. In fact, 52% of consumers said they would adopt a new product only "if they absolutely needed to," according to a 2005 Schneider/Boston University report.
- A shrinking window of opportunity. Competitors now rapidly develop similar offerings to capitalize on the success of an existing product or line, which erodes new product gains more quickly.
Even the most market-conscious supplier encounters pitfalls during the launch process. These missteps may result in sluggish sales that, if compounded, may give a product little hope of survival:
- Neglecting a key audience. All too often, a dealer pushes a product into the supply chain without clearly explaining its value to all affected audiences.
- A lack of creativity. Weak or hastily developed communications can dilute the effectiveness of all other launch tactics employed.
- Omitting a key tactic. Some launches fail because marketers do not employ a critical tactic--for example, Web-based elements.
- Poor timing. Each element of a launch must be carefully timed to build a marketing framework. Yet, frequently, one or more of these launch elements is delayed, weakening that framework.
The bottom line: New products face long odds. According to AC Nielsen, 67% of all new consumer products don't make it to a second year.
Keys to a Successful Launch
The successful product launch isn't just a launch. It is a carefully orchestrated effort sustained over time. Here are a few important elements of that process:
- Create a comprehensive plan.
- Studies indicate the majority of successful new products start with a clear launch plan. Baublitz Advertising developed a proprietary program called Flight Plan to define this process. Whatever process you select, it should be detailed and rigorous.
- Explore all available tactics
- The successful launch may involve dozens of tactics, from logo development and packaging to sales kits and advertising, and everything in between. During every product launch, marketers should explore the entire universe of launch tactics at their disposal, including:
- Market research
- Training plan
- Sales literature
- Trade-show program and exhibits
- Point-of-purchase displays
- Cooperative marketing programs
- Product samples
- Direct mail
- Trade advertising
- Public relations
- Premiums
- Web site
- By considering all possible tactics when engaging in the planning phase, marketers can guard against neglecting a key step. In addition, they can explore how each tactic will work in concert with the others.
- Focus on creativity and multiple audiences.
- In the building materials and construction industry, a product launch should focus on selling through-- rather than just selling into--the distribution channel. Success is more likely for those who differentiate their product from existing options and position their product as a new solution to one or more problems. To achieve that in a crowded marketplace, a company must express a new product's essential value quickly and succinctly.
- That's why creativity offers such value. A well-crafted name, logo, imagery, tagline, and key messages define the product for users and offer greater memorability. In turn, this ensures that a company has made the best possible use of its expenditures on advertising, collateral and other promotional elements.
- Create a tactical schedule with benchmarks.
- With a new product or service launch, timing is critical. If possible, the product should be introduced during a period of receptivity, such as a particular season. Once a release date has been established, you must determine the tactics you will employ to reach your various audiences. In a successful launch, the marketing tactics aimed at one audience support and strengthen the tactics used for other audiences.
- In addition, a launch team must also create a comprehensive schedule of all the individual tactics. This ensures timely completion of tasks, but also enables the team to coordinate the scheduling of key elements--such as sales materials and training programs--that are inextricably related.
- Plan early.
- Whether you have an internal team or work with an outside marketing partner to launch a product, it pays to start your launch planning process early. One study found that more than 70% of product launches experience some sort of delay.
While the launch of a new product or services may sound daunting, those who can buck the trend will enjoy a significant competitive advantage.
Case in point: Shelly's Building Supplies
Shelly's, a building materials dealer with nine locations in eastern Pennsylvania, launched an installed sales program in 2008. Extending its service offerings made sense for a company with a strong reputation and 80 years of service in its region. Shelly's turned to Baublitz for help developing a launch program that was both effective and budget-conscious.
The program began with development of a theme--"From Idea to Installation"--that clearly explains the benefit and appeals to multiple audiences. However, different messaging was developed under that overarching theme for a variety of audiences. In addition, different tactics were employed to reach builders, remodelers and consumers.
The rollout of the installed sales program included outdoor advertising (billboards) to raise general awareness among all target audiences. Newspaper advertising, residential door hangers, job site and in-store signage, sales presentations and collateral materials all focused on program benefits for homeowners--the key target of the initial sales push.
In addition, Baublitz developed an online questionnaire that helps pre-qualify leads so they can be directed to the most appropriate contractor.
By extending brand strengths and focusing tactics on different audiences, the carefully designed launch enabled Shelly's to quickly ramp up its installed-sales program.
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Case Study: Shelly's
Launching an Installed Sales Program
Shelly's, a building materials dealer with nine locations in Eastern Pennsylvania, launched an installed sales program in 2008. Extending its service offerings made sense for a company with a strong reputation and 80 years of service in its region. Shelly's turned to Baublitz for help developing a launch program that was both effective and budget-conscious.
The program began with development of a theme--From Idea to Installation--that clearly explains the benefits, and appeals to multiple audiences. Different messaging was developed under that overarching theme for a variety of audiences. In addition, different tactics were employed to reach builders, remodelers and consumers.
The rollout of the installed sales program included outdoor advertising (billboards) to raise general awareness among all target audiences. Newspaper advertising, residential door hangers, job site and in-store signage, sales presentations and collateral materials all focused on program benefits for homeowners--the key target of the initial sales push. In addition, Baublitz developed an online questionnaire that helps pre-qualify leads so they can be directed to the most appropriate contractor.
By extending brand strengths and focusing tactics on different audiences, the carefully designed launch enabled Shelly's to quickly ramp up its installed-sales program.