According to research conducted at Harvard, about 30,000 new consumer products launch every year. However, only 5% succeed as the other 95% fall victim to inefficient marketing.
However, at Harvest Growth over 50% of our product launches are profitable within the first 6 months - that's 10 times the normal success rate. The other 50%? Many of them become profitable by year 2. The formula we use that boosts the likelihood of success by these astronomical rates is a proprietary method we like to call the Perfect Launch Formula.
The Perfect Launch Formula
The Perfect Launch Formula is a 10-step process that involves research and careful planning. A successful product launch takes time and effort, but if you follow the right formula you are much more likely to make your product the next home run.
1. Video
Video is the most powerful and efficient way to market a new product. Videos are a fast, entertaining, and personable platform to demonstrate a product or service. Videos allow you to explain and promote your product all while setting the tone of your brand. It is an essential part of a successful product launch.
According to Insivia, 95% of viewers retain the message of the video after watching it, compared to the mere 10% that retain the information after reading about it.
Tubular Insights found 64% of consumers make a purchase after watching branded social videos. The platforms consumers engage most with social branded videos are Facebook (49%), YouTube (32%), Instagram (24%), Snapchat (22%), and Twitter (22%).
However, it's important to hold the consumer's attention throughout the video. Organization is at the heart of a well-written script, which essentially boils down to dividing the writing process into three parts.
Step One: The Creative Brief
While it may be tempting to skip this step, don't. Skipping the creative brief will only sabotage the video before you've even started working on it, as this step lays the foundation for the video. The creative brief allows you and the production team to get on the same page from the very beginning.
The creative brief clearly lays out the following to the production team:
- The purpose of the video. In the case of a product launch, you will be introducing the product to the public (most likely) for the very first time. How will you do so? Will the video explain the product or intrigue the viewer to further look into it in stores or online? What are the key features and benefits? What is your call to action (CTA)?
- The metrics used to measure success. How will you determine whether or not the video was successful? Will users be encouraged to purchase right away? Will they be surveyed? Are you going to rely on the comments?
- Where the video is airing. What channels will you be broadcasting the video to as well as what social media platforms it will be uploaded to.
- Your target audience. What demographic are you trying to appeal to? How can they relate to your product and video?
- The tone. Are you going for bold and serious or light and funny? How does this line up with the tone of the brand?
Step Two: The Script
Once you've outlined the video during the creative brief, move on to writing the script. The script should identify the problem your product/service is solving, focus on the benefits your product/service is bringing to your target market through its key features, build credibility through testimonials or other similar means, and draw to a close with the CTA.
Step Three: Pre-Production
Once the script is finished, it's time to make sure the video production matches the goals of the written script in a visually compelling manner. Make sure your videographer and any other directors involved are also on the same page in terms of the vision. The final touches, such as lighting adjustment and special effects, should be handled by the video editing team.
2. Return on Investment (ROI)
Return on Investment (ROI) is the ratio between net profit and the cost of the investment. A high ROI means the investment is profitable, whereas a negative ROI means the investment lost money.
You should begin keeping track of the ROI immediately. When you focus on ROI from the start of the marketing process, you are able to grow your reach organically by having your advertising pay for itself. This also enables you to catch problems early on, before they become systematic.
Platforms like Facebook and Instagram make it easy to track your product launch online. These platforms offer real-time statistics that chart both views as well as engagements. They are also high-traffic platforms with exponential reach.
3. Market Research
Research has been a staple in the Madison Avenue marketing world for well over a century. With today's technology, you can do all of your own market research at almost zero cost, thanks to search engines, social media platforms, and a plethora of other online resources. When you start your market research early on, you save the brand from making expensive mistakes in the future.
4. Credibility
Reviews are especially crucial, as they speak on behalf of the credibility of the brand and product. Whether you are launching on Amazon or a platform such as Shopify that allows you to build your own eCommerce platform, customer reviews can be the biggest indicator of success. Those early reviews can make or break your launch.
According to an article on Looka.com, 92% of consumers read reviews online before purchasing a product. Testimonial Engine found 72% of customers don't take action until they have read over reviews.
However, you should not buy fake reviews. This diminishes the credibility of both the product and the brand. Instead, let the product speak for itself. The quality and customer service should drive customers to leave a review.
5. Don't be Afraid to Borrow
Learn from your competitors - and this doesn't mean copy them. Instead, look at their launches and marketing campaigns. This is also apart of the research process. What did they do right? Or on the contrary, what did they do wrong? Reframe an approach similar to that of your competitors’ most successful marketing techniques while you are still developing a unique positioning in the industry.
6. Know Your Audience
Your audience is a part of the three pillars of marketing. The three pillars are the Audience, Offer, and Messaging. Figure out who your key demographic is and target them in ways they can relate to your product and brand. Don't hold back. Really take the time to identify and research your audience.
More often than not, a product that could have been perfectly successful falls on its face due to targeting the wrong audiences. Find and target the perfect audience for your product.
7. Perfect Your Offer
The second pillar is your offer. First, you have to make sure your offer is profitable. Typically, you should aim to sell your product at 4 or 5 times the manufacturing cost.
Then, in order to make sales you have to make sure your offer is compelling to your audience. How is the consumer benefiting by choosing you over your competitor? Consider luring them in through special offers, such as free shipping, BOGOs (buy-one-get-one sales), or start them off on a low-cost/free trial. Lowering the price isn’t always the answer. We have run several campaigns that drastically increased not only their profits but even their unit volume by INCREASING their price. In some categories, a higher price can signify higher quality, and therefore the perceived value of the product can go up with an increase in price.
8. Optimize Your Messaging
The way you phrase your Facebook posts, emails, blogs, video scripts, etc... determines how you will captivate your audience and motivate them to purchase your product. Digital marketing allows you to test several different types of messaging to determine which is most successful before scaling up to mass marketing.
9. Optimization
Optimization is another process made simple and affordable thanks to the digital age. While our experts here at Harvest Growth learned how to optimize through the hundreds of national television campaigns we launched, social media has made campaign optimization simpler and faster in recent years.
Remember, success rarely happens within the first week. Even if it does, your product and brand can always benefit from further optimization through strategic data analysis.
10. Vendors
You don't have to be a one-man band. Inventors rarely have the skillset to handle doing everything all on their own. As you expand, you will have to hire specialists to help you with the product launch as to not overwhelm yourself. Work with companies that are experienced in product launches specifically, because it is widely different from marketing pre-existing products that already have a consumer base.
Our Perfect Launch Formula is a 10-step process that we have had immense success with here at Harvest Growth. A successful product launch requires taking time and making the effort to get to know your audiences, your competitors, the industry, and the overall market. Luckily, the digital age has made it even easier and widely accessible for businesses to expand their market reach and optimize their success.
If you'd like to speak with one of our Product Launch Specialists to answer any questions about your product launch, please book an appointment at HarvestGrowth.com, or call 720-633-2377. For the latest in marketing and more, head on over to our blog.