Chip Hysler from CM Marketing presents "Launching Your Product- Are You Ready?" Part of an ongoing education series, presented by the Nashville Technology Council and Nashville Entrepreneur Center

1. Launching Your
Product –
oduct
Are You Ready?
Dec 17, 2010
Chip Hysler
Product Management Consultant
CM Marketing
www.cmmarketingpro.com
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2. Agenda
• Introduction
• Need for Product Launch Planning
• Product Launch Process
• When to Launch?
• Launch Planning
• Product Launch Checklist
• Summary
2

3. CM Marketing
• Chip Hysler
• , g
Owner, Product Management Consultancy y
• 25 Years Experience in Product Management and Product Marketing.
• Launched over 35 Technology and Consumer Products
Our approach is based on a mix of proven industry methodology
and industry experience in assisting companies with managing
their products within any stage of the "Product Life Cycle".
• Product Management • Marketing Strategy
• Product Strategy • Market Research
• Product Launch • Project Management
www.cmmarketingpro.com
3

4. The Need to Plan…
According to the Harvard Business Review –
• “on average 40% and 90% of all product launches
fail” meaning almost 1 in 2 product launches fail.
• “47% of first movers have failed, meaning
approximately half the companies pioneering new
products later pull out of those businesses.”
d t l t ll t f th b i ”
• The study finds the main reason –
“a disconnect that could have been addressed
“ di t th t ld h b dd d
through a more effective launch process”.
Product Launch Failure
Harvard Business Review – December 2007
4

5. The Need For Product Launch Planning
Probability of Failure
New to the 35
Company
30
hnology
25
Product/Tech
Adjacent to
Current 20
Offerings
15
10
Same as Current
Offerings
10 15 20 25 30
Same as Adjacent New to the
Present To Present Company
Intended Market
Harvard Business Review – December 2007
5

6. "If we don't succeed, we
d 't d
run the risk of failure."
--Bill Clinton, President
6

7. 7

8. Product Launch Process
A proven, effective product launch process results in
proven
the difference between success and failure in your new
business – soaring profits vs. painful losses.
A quality “Product launch Plan and Process” makes it
much easier and less stressful to launch right
consistently.
- 280 Group
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9. When To Launch?
Idea
Launch Timing
Measure Strategy
• Different Stages
• Market Window
• Business Readiness
• Channel Readiness
• Customer Readiness
Launch Design
• Type of Product
• Type of Launch
Build
Test
9

10. Ideal Product Launch Timing
• Review Business Strategy and Objectives
• Market Timing
M k t Ti i
• Day of Market Availability - Marketing/PR hit the road
• Preannounce before availability
• Set a goal and work backwards
– Ideal: Start planning and work 6 months prior to ship date
• Worst Case: Announcing too early
g y
– Customer attempts to purchase but isn't able to
– May purchase competitive product
– Unable to get coverage when p
g g product becomes available
– Lose mindshare with press & customers
– Take pre-orders but can’t fulfill
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11. Elements of a Successful Product Launch
1. Clear Goals
2. Plan for product launch early in research and development cycle
3. Defined Value Proposition & Positioning Statement
4.
4 Team Planning – Launch Planning at every meeting
5. Internal and External Communications
6. Market Timing
7. Effective Marketing Mix
ff i k i i
8. Compelling Messaging
9. Budget to Achieve Goals
10. Message Reaches Target Customers
11. Product Readiness
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12. Launch Goals
Establish and Track Goals Based on the Business Case –
• Gain market share and market penetration
• Introduce competitive argument
• Create initial product/brand/company awareness
• Solid financial performance, drive revenue, including sales
• High q
g quality and customer satisfaction
y
12

13. Creating the Launch Plan
1. Rollout Strategy
2. Channel Strategy
3. Sales Training Plan
4. Customer Service Plan
5. Test Marketing and Customer Trials
6. Supply Chain Management
13

14. Rollout Strategy
Types of L
T f Launches
h
Long Release Cycles: Rolling Release Cycles:
(Major New Product) (Minor Product)
“Soft” Launch
Soft “Soft” Launch
Soft
Minimal Launch Minimal Launch
Full-Scale Launch
14

15. Rollout Strategy
Product Release Cycles
Release 1
Long Release Cycles • “Soft” Launch
(Major New Product) • Minimal Launch
• Full-Scale Launch
Release 1 Release 2 Release 3 Release …
Market 1 Market 2 Market 3 Market…
Rolling Release Cycles • “Soft” Launch
(Minor Product) • Minimal Launch
1 month N Years
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16. Channel Strategy
How are you getting your product to the market?
• Direct
• Online
• Dealers
• Distributors
b
• Partner Channels
The channel strategy you choose can impact product
design, development, packaging, and launch timing.
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17. Sales Training Plan
• Sales, Distributor, and Support Training is very
important.
important
• All documents, manuals, instruction and other materials
must be ready.
• “Train the Trainer” Concept.
• Leverage beta trials to test training and material.
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18. Customer Service Plan
• Customer service procedures
• Rolls of the channel
• Establish ordering procedures
• Warranty agreements
• Service and repair procedures
• Customer and order tracking
• Coverage 7/24/365?
• Documented
• Returns
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19. Test Marketing and Customer Trials
Try to use a test market/beta trials –
• Test product in live environment
• If the product fails, only a small portion of customers will know.
• Allows assess to customer response to the product,
documentation, packaging, pricing and use.
• Have real stories from satisfied customers to beef up your
p
promotions and sakes when y fully launch the product.
you y p
• Allows testing of logistical aspect the launch: coordination with
suppliers, manufacturing , quality, shipping, installation, dealer
interaction, etc…
interaction etc
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20. Supply Chain Management
• Know exactly who your suppliers are, what their
deliverables are and when.
when
• Be sure to over communicate with suppliers and
partners.
• Allows you to act quickly if a supplier/partner won’t
come through.
• Coordinate schedule between you and the suppliers.
suppliers
• Keep track of low-cost suppliers to improve margins.
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21. Sample Launch Plan
• Summary • Features & Benefits
• Purpose of this p
p plan • Price
• Marketing Overview • Place & Channel
• Key Market Trends • Marketing Strategy
• Launch Goals/Objectives • Marketing Tactics/Promotion
• Target Customers & Needs • Launch Budget
• Market Segmentation • Marketing Mix and Metrics
• Product • Expected ROI
• Window of Opportunity • Action Plan / Deliverable
• Ship Date Ownership
• Positioning • Rough Timeline/Schedule
• Tag Line • Key Decisions Remaining
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22. Product Launch Checklist
Planning
Technical
Operations LAUNCH
Marketing/Sales
Product Support
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23. Product Launch Checklist
Planning
• A product launch plan is prepared covering all activities to be
performed by Engineering, Manufacturing, Marketing, Sales, Product
Support, and Field Service.
Support Service
• Have a Launch Manager.
• Functional departments understand their responsibilities for launch
activities.
• Functional departments have committed the necessary resources to
support launch activities.
• The launch activities are on track to be completed as currently
planned.
planned
• A Production Readiness Review, Product Launch Review or related gate
review confirms that all preparations have been completed and the
product is ready to launch.
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24. Product Launch Checklist
Technical
• Product performance has been evaluated through testing and
qualification and the product meets its defined requirements.
• The product and the production process have been qualified or
validated and all regulatory approvals and/or certifications have been
obtained.
• All product d i d
d t design documentation h b
t ti has been completed and approved.
l t d d d
• Technical data sheets have been prepared.
• User documentation, operating manuals and maintenance instructions
have been completed.
completed
• Engineering personnel stand ready to address any issues that arise.
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25. Product Launch Checklist
Operations
• Required manufacturing process documentation or outputs (e.g., work
instructions, manning plans, etc.) are complete.
• Production processes have been proven using either pilot production
lines or actual production lines.
• The product and demand forecast data has been established in the
enterprise resource planning (ERP) system and ERP i used t plan and
t i l i t d is d to l d
manage the supply chain and production.
• All suppliers have been selected and qualified.
• Needed materials and parts are on order or in stock
on-order stock.
• Adequate capacity and personnel exist to support planned production.
• The distribution pipeline is filled with the appropriate level of product.
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26. Product Launch Checklist
Marketing/Sales
• Market receptivity has been evaluated by key customer feedback, focus
groups, test markets, or beta tests prior to launch.
• If the product is being used by beta customers, testimonials or case
studies have been prepared.
• A promotion and advertising plan has been developed.
• Advertising copy has been developed and media contracts and
arrangements have been made.
• Promotional materials and sales literature have been developed,
ordered,
ordered and are ready to distribute.
distribute
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27. Product Launch Checklist
Marketing/Sales
• Sales and distribution channels have been identified and established.
• Final packaging has been designed, approved and ordered.
• Product pricing has been established and approved.
• Marketing Mix determined and in place.
• Sales personnel have been trained.
• Sales personnel have sales literature, support material and product samples
literature samples.
• The sales forecast has been updated based on the latest market demand.
• The website has been updated.
• Press releases have been prepared and are ready to distribute.
• Industry analysts have been briefed as planned.
• A product release and/or general availability has been announced.
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28. The Marketing Mix Checklist
• PR Activities • Channel Programs
– Press Releases – Spiffs
– Review Program – Retail presence
– Analyst Coverage
l C – Resell purchase program
ll h
– Digital Pressroom – Collateral
• Advertising • Promotions
– Print/Radio/TB – Rebates
– On-Line Banners
On Line – Introductory Prices
• Direct Mail – Co marketing
– Customer list • Collateral
– Purchased Lists – Brochures
• E-mail Campaigns – White Papers
– Customer Lists – Success Stories
– Purchased Lists – Presentations
• Website • Sales Tools
– Search engine Optimization • Product Demo
– Ad Words/ Yahoo/MSN • Video Testimonials
– Blogging • Trade Shows/Conferences
• Social Media Programs • Launch Event
– Related Groups • Customer Events
– Affiliated Marketing
g
• Webinars/Seminars
• Virtual and Guerrilla Marketing
– Blogs/Bloggers
• Speaking and Panel Engage.
– Online Forums • Trade Associations
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29. Product Launch Checklist
Product Support
• Support Processes in place.
• Return process in place.
• Necessary support resources are hired and in place.
• Service and support personnel have been trained.
• Frequently asked questions (FAQ's) have been identified and
responses prepared.
• Troubleshooting guides, installation guides, and service manuals.
• Spare part requirements have been planned.
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30. Product Launch Checklist
Communications
Internal External
• Launch Plan • Channels
Presentation
• Key Customer
y
• W kl launch team
Weekly l h
meeting • Key Influencers
• Track deliverables • Press / Analysts
• Clarify blocking issues
• Assign action items
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31. Why Product Launches Fail
• There are no goals for the product launch.
• The launch team isn’t a team.
• The launch strategy is based on a set of deliverables
from a launch “checklist”.
• The launch plan contains unrealistic timeframes and
expectations.
• Sales enablement training is based on product
features.
• Significant effort is spent creating collateral and
sales tools for people who never read it.
• No single person is responsible for driving product
launch results.
l h l
• The launch plan mimics your competitor.
• Existing customers are not adequately considered in
the l
th launch plan.
h l
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32. Tips For a Successful Product Launch
1. Have a formal plan
2. Create a unique value proposition
3. Have a team
4. Target ideal customers
5. Communicate
6. Create the hype around the product launch
7. Press releases
8. Dress rehearsal
9.
9 The
Th events
10. Keep audience captivated
11. Celebrate
12.
12 Back to reality
13. Product launched successfully?
14. Follow-Up/Get feedback
15.
15 Lessons learned
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33. The Value of a Successful Launch
• Creates initial momentum to ramp sales
• Creates competitive strength
C t titi t th
• Provides start for next release
• Provides good ROI
• Helps company reach its goals
New Growth
New Revenue
New Customers
New Product
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34. Summary
• Have a Launch Plan
• Launch Planning Is Essential
h l i i l
• Start Early in Product Development
• Have a Launch Team
• Time Your Launch
• Follow a Product Launch Checklist
• Have a Successfully Launch
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35. Thank you
Have A Successful
Launch!
L h!
Chip Hysler
CM Marketing
615-818-6623
chiphysler1@att.net
chiphysler1@att net
Cmmarketingpro.com
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36. Resources
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