Bringing New Products to Market

The introduction of new products is both a gamble and a challenge even for the most successful companies. This statement is borne out in the facts that 86% of new product ideas never get to market and 50%-70% of those that do fail. The products fail in my opinion because the people, and companies bringing them to market do not have a plan, a structured process, or an understanding of what they are getting into. Since there are no guarantees the twelve-step program laid out in article will assist in this process and help especially new companies, and entrepreneurs in improving the rate of success and entry into the marketplace. Even though my background is in the retail arena and though this steps here are aimed at consumer products they can be applied to most companies selling a product or service.

The steps are:
1) Understand the overall U.S. marketplace.
The retailers involved with your product line, the competition for your product, the typical price points, the required quality levels, the places where the product is usually produced, the type of profit margins the retailers require, and the costs of entry into the market place. You must do this research because you may in the end partner with someone in the marketplace already.
There is a difficult road for a one product company in today’s retail environment and unless your product is totally unique and patented you are at an even greater chance of failure.
2) Understand your market segment.
Once you have the broad overview of the marketplace and the various retailers the next step is to identify the area of the retail store your product would be displayed and the methods in which it is displayed.
3) Identify the latest in design and color trends.
Almost all products sold at the retail level have a need to be in line with the latest looks in both fashion and color. Organizations such as Pantone can help in understanding what are and will be the latest trends.
4) Identifying the target consumer
Based upon your research completed in steps one and two you now you need to decide which consumer you will attempt to reach and thereby which type of retail outlet you will be selling.
5) Develop your marketing story.
The next step requires the development of the strategy that will be used to the sell the product, and the story behind your branding process. The product can be marketed as the lowest priced, best quality, most features, etc.
6) Tradeshows as a method of becoming known.
As a new entry into the marketplace a method of gaining exposure and building credibility for a new product or company is to participate in trade show either regionally or nationally.
7) Develop the specifications to having the product produced.
In order to have your product produced, and produced properly there must be complete specifications and drawings made available to potential vendors. This will include methods of packaging.
8) Find the source for your product.
Sourcing of your product either internationally or domestically or both must be accomplished carefully, and with the understanding of what you are seeking as a final cost for the product. If your product is patented or not, have a non-disclosure form available for potential vendors to sign.
9) Understand the importing and purchasing of products.
There are a number of issues and costs that come with the importation of products into the US. There are ocean freight costs, duties, customs brokers fee, domestic freight costs, and others that will add to the total cost. Payment terms and alternatives must be understood as well.

10) Determine your method(s) of distribution and setting them up.
Once you have determined where you are going to purchase your product then you have to determine the method of distributing the product. Established companies will use their present methods, however, new companies should look at third party logistics providers as an alternative to doing it themselves.
11) Required information to make a sale.
In order to sell product to retail there are certain basics that a company and the products must have. These basics include establishing a UPC (uniform product code) vendor number for the company and an individual UPC number for each product the company wishes to sell.
Other specific details pertaining to the product will be needed as well.
12) Make the sales presentation and the sale.
Now that you have established your marketing and selling story with the benefits of your product over the competitors, the method of how to produce and package your product, and the resources to produce and ship your product to the customers and the selling prices for the product. Then you are ready to put these pieces together and make presentations to potential customers.

Bruce Rubin
BHR Global Associates
Email: bhrglobal@aol.com
Phone: 267-664-5165