Practice shows that new products occupy only 10% of the market. So, the Angry Birds game application became successful only on the fifty-second attempt. All other launches of the application went unnoticed by users. Only thanks to the perseverance of the developers, who did not give up after fifty failures, this game won worldwide popularity.
In this article, you will read:
- How a new product is most often released in Russia
- What are the different types of new products?
- Where to get new product ideas
- How to create a new product and market it
- How to set a price for a new product
- What are the most common mistakes when introducing a new product to the market?
What are the different types of new product
1. A revolutionary new product. An innovative, original product that has not been previously realized by anyone. The most famous revolutionary products are the first mobile phone, the first printer, the first MP3 player, etc.
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2. New for us product. Most often this is the firm's response to similar offers from other market participants. A successful new product from one company is copied by competitors with small additions in the form of bright packaging or better prices. This type of new product does not bring a lot of profit, because the idea is not original and requires high advertising costs in order to win at least part of the market from the pioneers. An example is the introduction of strong beer into the assortment of some breweries after Baltika 9 began to be in high demand among customers.
3. Next generation product, improved product. The new product is not original, but it has undeniable advantages over its prototypes. No odor, no residue, more compact, longer service life, etc. An example of such a new product: new models of smartphones with increased memory capacity, speed, camera quality, and additional functions.
4. Expansion of the product group (Line extension). The most common option on the market for the implementation of a new product. Despite the simplicity of these measures, it invariably brings good profit... On the basis of a product already known on the market, the consumer is offered:
- An old product in a new size or volume. Increased packaging of diapers with an indication of the action "20% cheaper", portioned packaging of cereals, economical packaging of washing powder of 5 kg - all these are examples of such innovations;
- Simple or improved product type. So, almost every car model today is presented by the manufacturer in two versions: economy (with a minimum of additional options) and luxury (more expensive and perfect equipment);
- An additional option for packaging a familiar product. For example: cornflakes "Lyubyatovo" can be purchased both in a cardboard box and in a bag.
5. Repositioning of the product, new packaging. Repositioning aims to present a well-known product in a new quality. This option for promoting a new product is used by manufacturers who want to reach a new level or occupy a new niche in the market. So, for example, alcoholic beverages of the Kristall brand, after repositioning, took a place in the more expensive segment of the market.
New packaging can give new life to an old product. The change in packaging is intended to increase the demand for the product, to interest the buyer. Most often, food manufacturers use this method of introducing a new product. For example, one of the milk producers has developed a new packaging that resembles the color of a cow, consumers perceived this product as a novelty.
Introduction of a new product: how they do it in Russia
1) In a short time. The development and promotion of a new product in Russia is carried out at a faster pace than, for example, in European countries. The volatile economic environment makes it difficult for manufacturers to rely on long-term prospects. Sometimes such a rush and financial savings lead to the fact that the company deliberately ignores the standard procedure for the development and promotion of a new product. There are times when a hasty introduction of a new product to the market gives an advantage over competitors and allows you to take a leading position in the market, but more often the haste affects the quality of the product.
2) As voluntarists. In our country, it is not uncommon for a new product to be developed and introduced to the market in a short time only because such a task was set by the management. The order of the management must be executed on time, no matter what efforts. Even active financial investments in a new project do not guarantee the quality of the resulting product.
3) With the priority of the product over the consumer. Only after the introduction of a new product on the market, the manufacturer realizes that the product is not in demand and begins to select the target audience for it.
4) Focusing on Western samples. The overwhelming majority of new products launched on the Russian market over the past five to seven years are of imported origin. These are either adapted products of Western firms, or goods made on the basis of imported raw materials, technologies and ideas. These are food products, household chemicals, and many other goods.
5) Presenting "pseudo-new" products. In the conditions of the financial crisis, more and more manufacturing companies are resorting to the release of "pseudo-new" products. Under a well-known brand, the consumer is presented with its most budgetary option. In connection with the saving of money in the production, less quality domestic raw materials are used, the weight or composition of the product changes. These changes cannot go unnoticed by the consumer; a decrease in quality can also lead to a decrease in consumer demand.
6) Releasing new products despite the crisis. Some new products, the development and promotion of which began in the pre-crisis period, enter the market in new economic conditions, because a running process cannot be stopped. There is a chance to promote products participating in the import substitution program. European brands that have left the domestic market are being replaced by domestic goods. Competition has dropped sharply, and in some niches it has completely disappeared.
Why introduce a new service
Vladimir Mozhenkov, General Director of the "Audi Center Taganka" Company, Moscow
Before introducing a new service to the market, determine the ultimate goal of the event. Services can be conditionally divided into:
Services whose purpose is to generate income.
Non-profitable services aimed at increasing customer loyalty .
These directions are completely different. It is important to decide whether you want to make a profit as a result of launching the service, or, conversely, are ready to spend money on it.
Determine the ultimate goal of the service requiring the cash injection. This can be a PR of a company, support for the sale of a profitable product or service. Each of the pursued goals must be clearly formulated and subdivided into tasks. If you want to increase attention to a product, indicate who your target audience is, how the attention will be attracted, what you will get in the end and whether it is worth the upcoming costs. Every service that requires a financial injection should ultimately generate income by expanding a consumer niche, for example, or by returning old customers.
Launching a new profit-driven service is like launching a new product. Most often, even highly profitable services exist under a well-known brand and do not receive their brand, with rare exceptions. Banking services, for example, are almost never presented as a separate brand, but are presented as a complex. The same applies to areas such as insurance, tourism and other types of services. The main goal of a new service of a well-known brand is to increase sales and maintain an image. Therefore, each stage of development and promotion of a new service must be worked out to the smallest detail.
Creating a new product: 5 options for where to look for ideas
Option 1. Learn from nature. All organisms around us consist of particles (cells), which, when combined under the influence of a program set at the DNA level, create countless unique specimens. Taking an example from nature, use a modular system in your new product development. All your developments, products, services, programs can be combined in different combinations, getting an original product without much effort and cost on your part.
Option 2. Play with the names of your services. In the process of creating a new product, use fresh names, design, details, methods of presentation. An old product, modified, presented with the use of additions, in new conditions, with a different order, is perceived by the consumer as a novelty, despite the fact that you do not make fundamental changes.
Option 3. Mix and match a product from various unusual elements. The competent use of this method of releasing a new product allows not only doubling, but increasing the desired result. If there is a lack of internal resources, attract external ones, invite outside professionals - your costs will be recouped many times over. The principle - "combine the incongruous" gives unlimited scope for creativity and creation of original products and services.
Option 4. Tie your products to the most important needs and demands of people. The safest options are new product types that focus on human core values. Health, food, beauty, safety are the needs that are relevant for every person at all times. When presenting a new product to the attention of the consumer, demonstrate what requests it is capable of satisfying.
Option 5. Follow the news. Be always aware of new trends, trends, technical innovations, social and political processes. Thus, you can not only correctly assess the relevance of the introduction of a new product on the market, but also get fresh ideas for new products and services. An example is the Olympic theme, which was actively used by manufacturers in 2014.
How is the development of a new product
New product development is the process of creating original goods and services by inventing innovative products, improving off-the-shelf proposals, conducting scientific research and testing prototypes.
Let's highlight the main stages of the process of launching new products:
Stage 1. Generation of ideas - collection of information about new products. The generation of new ideas begins with the development and projects of the company's internal services (marketing department, R&D, sales department), the most popular requests of the target audience, the experience of competitors, materials from specialized media, new exhibitions, recommendations of consulting companies are also investigated.
Stage 2. Selection of ideas - a thorough analysis of the collected information, screening out the most irrelevant and unpromising options. As a result of this work, the main idea of the future new product emerges.
Phase 3. Concept development and validation - The concept is implemented in the form of a conceptual sample, which is tested in a focus group. Monitoring studies allow assessing the prospects of a product on the market. A focus group can evaluate a product based on a description or graphic.
How new products are promoted: step-by-step instructions
Step 1. We develop a marketing strategy for bringing a new product to the market
It is necessary to analyze the state of the market and identify the most interesting segments and consumer groups. For this, the following data is collected and examined:
- the state and structure of the market, the pros and cons of similar competitors' products and their promotion;
- conditions accompanying the purchase of the product;
- consumer's attitude to brands, signs of brand popularity;
- consumer habits and moods;
- consumer requests and the most frequent purchase motive;
- a social group to which a potential buyer can be attributed, a psychological portrait of a buyer.
Research that allows this information to be obtained:
1) Studying motivation (work with focus groups, various polls);
2) Study of consumption and reaction to a product (U + A studies, quantitative surveys, including face-to-face);
3) Analysis of sales (retail audit) allows you to get information about the volume of sales, sales figures of competitors, the quality of presentation at distribution points, helps to find new ways of promotion;
4) The introduction of consumer panels allows us to assess the frequency of purchase of a product, brand loyalty, changes in brand perception and trends in demand. Tools used: (diaries, tables, periodic surveys of a specific consumer group).
As a result of the research, the shortcomings of the marketing policy and potential sales markets are revealed. The next step will be the choice of marketing policies and activities aimed at promoting the product.
Step 2. Determine the optimal concept of a new product
At this level of new product launches, there is an active search for ideas in several directions: consultation with experts, general discussions, consumer surveys.
The selection and testing of new product concepts is carried out by both the manufacturer and third-party experts and consumers. The collected materials are researched to find the strengths and weaknesses of the product, market features, "pitfalls" encountered during promotion.
Step 3. Create a product formula (product description)
The following tests are carried out:
- product quality: composition, color, smell, taste, etc .;
- the buyer's reaction to the product;
- the pros and cons of the product from the point of view of the buyer;
- areas of application, product benefits.
A combination of qualitative and quantitative research yields optimal results. Both types of analysis are aimed at achieving their specific goals. The qualitative methods include focus groups and direct interviews, the quantitative ones - in-hall, in-home.
Focus groups and personal surveys provide an opportunity to assess the attitude of consumers to a new product and analyze their perception of the product as a whole. Quantitative tests aim to prove or dispute the results of qualitative research. Often, the results of quantitative studies are not taken seriously by the manufacturer; more economical group surveys are preferred. However, it is quantitative analysis that makes it possible to identify the most successful product formula.
Step 4. We reinforce the finished product with packaging and other elements
After the stages of choosing a concept and creating a product formula are completed, the Marketing Mix is held. These are additional activities such as:
- analysis of the brand name (does the consumer remember it well, does it cause negative emotions, is it associated with the desired group of goods);
- analysis of the appearance of a new product (convenience for the consumer, attractiveness of design, availability of information contained on it);
- assessment of the consumer's reaction to the declared value of the product, the compliance of the price with their expectations.
To study spontaneous reactions, focus groups and direct interviews are used, after which the necessary amendments are made. Then quantitative research is carried out.
Step 5. We carry out comprehensive brand testing
Before the final introduction of a new product, comprehensive testing is carried out, on the basis of which a verdict is issued - approval of a new product or refusal to launch it on the market. At the same time, the decision to close the project does not mean financial losses, since promoting a hopeless product will become much more costly than all previous research activities.
For final testing, quantitative tests are carried out:
- Concept - Use Test determines how the concept and formula of the product match, and whether it meets customer expectations.
- Simulated Test Market simulates natural market conditions, makes it possible to assess the likely volume of sales and profits. Several variants of this analysis are known. Here is an example of testing: consumers from among the target audience are invited to familiarize themselves with advertising for a new product and a similar product from competitors. After they got acquainted with the product, they are brought to a conventional store with a certain assortment and the presence of price tags, where they have to choose a product among other analogues and purchase it, paying with conditional money. The purchased item can be picked up and tested at home. After a while, the participants in the experiment return the test sample, they are given the opportunity to purchase the product already in fact for their own money. The pros and cons of the new product, impressions of use, and meeting expectations are discussed with consumers.
The results are processed according to a certain scheme, which makes it possible to calculate the percentage of the total market volume that the product can receive over time. For calculations according to this scheme, the customer needs to provide information about the desired sales volumes, the expected degree of recognition and brand popularity... The reliability and relevance of such a study may be influenced by the volatile market behavior during the financial crisis.
New product evaluation helped improve service
Mikhail Safran, Marketing Director, ROSNO Group of Companies, Moscow
We test any idea without fail. Theoretical research can be inaccurate, we pay attention to how our consumers relate to new services, master them. Recently we have offered our clients such a product as "European Service". It consists in comprehensive support for OSAGO and includes a service for an emergency commissioner to visit the scene of an accident involving the client's car. The Commissioner oversees the conduct of an independent examination and takes over communication with representatives of insurance companies of other participants in the accident.
The product fully met our expectations, successfully tested. As a result, demand, sales and our market share for such services have grown. We managed to convey to the clients the benefits of cooperation with our company (they do not need to waste their time and nerves), which contributed to the expansion of the client base.
- Cross-marketing: how to attract customers easily and cheaply
Further, in order to get feedback from consumers, the company's employees called each client who used the new service and asked to rate the service, express their comments and wishes, and ask questions. Difficulties that arose for several clients at the same time were eliminated, the service was improved. So, in the course of the polls it turned out that we missed such an important moment as the evacuation of the vehicle from the scene of the accident (in the case when the possibilities of independent movement of the car are limited). The error was fixed, the service was added.
What should be the price for a new product
There is a tendency for new products to be equipped with understated price. How to determine the adequate cost of a new product or service? It is better to overestimate it initially in order to be able to lower it if necessary. Undervaluation leads to the loss of possible income and incorrect positioning of the product on the market. Many companies were convinced from their sad experience that after fixing a certain value, its increase takes place with great difficulties.
Targeting the most popular market niches seems promising to many, but large sales volumes do not yet guarantee high income. Here are 4 factors that need to be considered when choosing a pricing policy for a new product:
1. Starting point. The price of the product minus discounts and taking into account other promotions is the starting point of reference, which shows how the manufacturer himself positions his product on the market.
A low benchmark has a negative effect on potential profits: an undervalued product helps to quickly conquer the market, but at the same time, income will be low. Difficulties can also arise when the low price does not correspond to the level that the company would like to occupy in the market.
2. The reaction of competitors. The low cost of the product and the rapid conquest of the market leads to a negative reaction from competitors, confrontation with them, because these actions will oblige them to lower the price and lose profits as well. The high benchmark demonstrates the company's focus on revenue rather than cheap popularity. This position is met with a rather neutral assessment of competitors.
3. Life cycle strategy. When consumers who are actively interested in novelties are willing to pay an inflated price for a product, the manufacturer can take advantage of these conditions to generate additional profit, and in the future, reduce the cost and thereby expand the sales market. Also, this strategy will allow you to assess the ratio of demand and production capabilities.
4. Cannibalization. The manufacturer should analyze the possible impact of the new product on previously introduced products. If the old product is in constant demand, it makes sense to inflate the new product and try to push it to the next level for a different target audience. Conversely, if the product is outdated, a low starting point will be more effective because in a short time will attract a large number of customers.
What are the risks of a new product
1. "Inadequate idea" of a new product from the leadership of the organization. Often, the head of the company, using his unlimited power, inspired by the success of the company, tries to impose his opinion and his view on the idea and methods of promoting a new product on the team, ignoring the results of research, not taking into account the objections of specialists.
2. The new product solves a technological problem, but does not meet the needs of consumers. Sometimes, when developing a new product, its technical improvement becomes a priority. A kind of "arms race" and the endless release of new generation models is becoming a gamble for manufacturers, they are too addictive. Unfortunately, the needs of end users go unnoticed.
3. Entering the market without preliminary marketing research, or their implementation at a low level. In order to save money, companies ignore the importance of marketing research or conduct it superficially, unprofessionally. As a result, the market is estimated inadequately, and failed plans and strategies are adopted.
4. The alienation of senior management from the process of creating a new product. If the company's management does not show interest in the development and implementation of a new product, does not exercise sufficient control over the stages of its creation, employees vaguely understand their tasks, they may incorrectly assess the goals and principles of work, and understand them in their own way. The initiative can pass into the hands of active employees pursuing their individual goals that run counter to the goals of the company.
- Sales by phone: examples, scenarios, step-by-step algorithm
5. Expectation of an immediate effect from the introduction of a new product. Not having received profit and recognition as quickly as we would like, some manufacturers draw false conclusions about the insolvency of the product, its futility, and abandon it. Naturally, conquering the market takes time and patience, especially if it is a revolutionary product that consumers must appreciate and master.
6. Lack of control over all stages of the process. If several organizations are involved in the development of a new product, the process of controlling the stages of work becomes more difficult for the manufacturer. This applies, to a greater extent, to small companies that use the services of third-party companies and specialists.
7. Compromise product as a result of consensus. Sometimes, in the process of creating a new product, developers are guided not by the needs of target groups and market demands, but by solutions that have been approved by the majority, the so-called compromise product. Such an averaged option will lose out to competitors aimed at the consumer.
8. Wrong pricing policy. Inflated or understated prices for a new product.
9. Poor quality control. An initially successful idea suffers for various reasons from the poor quality of the final product.
10. Untimely launch of the product on the market. The manufacturer missed the moment to launch a new product, or, conversely, introduced it too early, when the market is not yet able to accept it.
11. Weak distribution of a new product. Dealers are not ready to take an unknown, poorly selling product. Weak sales organization negates all advertising and promotion efforts.
3 examples of new product launch
1. A pseudo product enters the market. In connection with the increase in prices for ingredients, one of the well-known domestic producers of yoghurts decided to change the composition of its product, reducing its cost. This made it possible to leave the selling price unchanged and win the competition from manufacturers who were forced to raise the cost of their products under the influence of the changing dollar exchange rate. As a result of replacing ingredients with cheap analogues, the quality of the product suffered, which led to a decrease in consumer demand and a loss of market position. Well-done marketing research would help predict this outcome and prevent similar losses.
2. Unsuccessful conclusion of a "good" product. A large Russian manufacturer of dairy products has launched a new bio-yoghurt of excellent quality on the market. Even the high popularity of the brand in its region did not affect the fact that the product turned out to be unclaimed and did not interest buyers. The fact is that consumers are already accustomed to the taste and consistency of previously imported yoghurts on the market. Subsequent studies have shown that buyers did not even understand what kind of product it was. The manufacturer missed the time to introduce a new product, but with thorough testing, he could find ways to solve this problem.
3. Refusal to bring the product to the market. The European producer of soft drinks is preparing to launch a new juice on the Russian market with a composition unexpected for our public: apple, carrot and banana. The product was positioned as a natural drink capable of satisfying the daily vitamin requirement of an adult. But, the studies have shown that for the Russian consumer, the composition of the juice turned out to be too exotic, and the abundance of vitamins in their understanding was associated with the addition of artificial ingredients to the composition. Thanks to these conclusions, the manufacturer was able to avoid spending on the promotion of a deliberately unsuccessful product by abandoning it.
Information about the author and company
Vladimir Mozhenkov, General Director of the "Audi Center Taganka" company, Moscow. Graduated from the Bryansk Institute of Transport Engineering, the Institute of Management and Entrepreneurship (Moscow). He completed training and internships in Great Britain, Germany, Italy and the USA. "Audi Centre Taganka". Field of activity: auto retail. Form of organization: part of the group of companies "AutoSpecCentre". Location: Moscow. Number of personnel: 267. Length of service of the General Director: since 1998.
Participation of the General Director in business: shareholder.
Mikhail Safran, Marketing Director, ROSNO Group of Companies, Moscow. Open Joint Stock Company Insurance Company ROSNO-MS is an insurance medical organization specializing in compulsory and voluntary medical insurance. OJSC ROSNO-MS was registered on November 18, 1994. The authorized capital of the company has been fully paid up and amounts to 600 million rubles.
Each new product at a certain stage of its life cycle goes through the procedure of bringing it to the market. As you know, this is preceded by measures to develop the concept of the product itself, which are not touched upon in this work.
In preparation for the introduction of a new product to the market, the marketing group, based on the available marketing tools, must make a forecast of sales at certain time intervals when penetrating the target market segment, assess the volume and saturation of this segment, corresponding to the achievement of a given profitability. In addition, it is necessary to take into account the costs of the activities of the marketing communications complex.
New product sales forecast is based on the analysis of the following market factors:
Analysis of the company's own potential,
Competitor analysis,
Target market analysis,
Analysis of the macroenvironment,
Analysis of the strengths and weaknesses of the product (competitiveness),
Risk assessment
The purpose of this analysis is to identify the company's own capabilities (both tangible and intangible) to assess the available resources and their compliance with the strategic goals set for the enterprise, in particular, the introduction of a new product and capture of market share. First of all, here it is necessary to consider the worldview, the entrepreneurial culture and philosophy of the company and its leaders, since they are the determining ones both for the structural organization of the enterprise and for the very goal-setting of the business. The following factors influence the formation of the entrepreneurial culture of a particular firm:
Internal standards and rules specific to the company,
Informal communication channels,
Ideas and values prevailing in the whole society,
Personal potential of the company's leaders,
Examples to follow.
With the help of experts, it is necessary to assess the accumulation, the ability to change and the mobilization power of the company, to check the degree of its compliance with the basic principles of modern business: the principles of competition, intrafirm planning, innovation, contract and consumer dictate.
In addition to displaying corporate culture, this analysis should include data on all aspects of the already ongoing activities of the company, as well as the material reserves necessary for the promotion of a new product.
For entering a new market, this analysis has one of the most important values. The successful introduction of a new product presupposes an unambiguous identification of all firms that can be attributed either to real competitors already operating in the selected market, or to potential competitors that have the opportunity to enter the market with a competing product.
This issue is especially important when considering highly profitable growing promising markets, for example, markets for certain consumer goods, or markets to which access is quite easy, that is, markets with a low level of competition.
To be able to compare the parameters of your own firm with the parameters of competing firms, you need to analyze the same parameters that were considered when analyzing the potential of your own firm. Collecting sufficient information on competing firms is usually not possible, but data such as goals, development strategies, market behavior and employee incentive systems are especially valuable for analyzing and deciding how to prepare a response.
Target market analysis refers to the systematic examination of all other aspects of the market not covered by the competition analysis. First of all, this is consumer analysis. First, you need to highlight the target market segment of interest, and then research its characteristics. For this, special marketing research is used, in particular, segmenting consumers, defining market characteristics, as well as reports from the sales service, the press and other possible sources of information. The following quantitative indicators are considered as necessary information for market analysis:
market potential,
market volume,
market saturation level,
market elasticity,
market growth rates,
shares of main competitors,
stability, etc.
The qualitative indicators of the market include the following indicators:
structure of customer needs,
purchase motives,
view of the purchase process
ways of obtaining information by the consumer,
prevailing preferences, etc.
In addition to considering the quantitative and qualitative characteristics of consumers, it is necessary to have data on available suppliers, business partners, trade and intermediaries who are also included in the microenvironment of the firm. Information about these market entities allows you to adjust marketing policies and plan activities.
This analysis is aimed at studying the surrounding macroenvironment, which has no direct connection with the market, but equally affects all enterprises in this field of activity in this particular region. It is customary to divide the macro-environment into economic, socio-cultural, physical, political, legal and technological components. Each of these components is made up of a very large number of factors that affect certain product groups in different ways.
For a specific type of product, it makes sense to single out several factors, the significance of which is maximal in a given region, and then consider only them. For example, for imported products in a group of political and legal components, factors such as customs duty rates and import quotas, the status of the exporting country, excise taxes on goods, sales rules, payments for a license to trade in certain goods, etc. will be most significant. This analysis usually requires the assistance of independent experts.
This analysis compares the results of the analysis of the firm's own potential (or product) with the analysis of competing firms (or competing products) and is aimed at identifying the strengths and weaknesses of the firm in relation to competing firms. For this, the method of engineering forecasting, or another method of assessment, can be used.
Based on the results obtained, those characteristics of the product are highlighted that give the maximum advantage over competing products. At the same time, the identification of the most competitively weak sides of the product makes it possible to adjust either the product itself or the methods of its presentation and positioning on the market.
Risk in entrepreneurship arises in a situation of uncertainty and is a probabilistic quantity. The risk assessment combines the results of all previous market and firm analyzes. The purpose of this assessment is to warn as early as possible of changes in market conditions, internal causes in the firm and the situation in the macro environment, which are related to the strengths and weaknesses of the product.
Risk analysis begins with identifying possible sources of risk, its causes and locations. In all cases, the risk is associated with the sufficiency or inadequacy of information support of the firm's activities. The resulting risk assessment is the basis for choosing an action scenario.
When conducting a risk analysis, the points and places of possible occurrence of the risk should be identified. At these points, the time characteristics, causes and duration of the risk actions are determined. The final result of a quantitative risk assessment is the construction of a system of critical values of the main risk indicators. Naturally, different firms have different resistance to risk. Diversification of the firm's activities contributes to the reduction of risks, but without dispersing funds and resources. When conducting a risk assessment, it is necessary to consider trends in the development of the situation.
Products placed on the market must meet specific consumer needs. When using only economic indicators (such as sales volume, profit, coverage of fixed costs), it is impossible to establish how this new product will meet these needs at the time of bringing a product to market. Therefore, in order to understand the needs that push a person to make a purchase, it is necessary to determine their economic importance. It is these economically significant needs that must ultimately lead the consumer to purchase a product.
The purchase of a certain brand of goods directly depends on how much the desires of consumers are concentrated on this brand. The direction of consumers' desire to a certain brand is the result of the influence of all marketing tools, therefore the object of desire is not a product in the narrow sense, but the result of the complex influence of marketing means. However, the desire itself does not yet determine the acquisition of goods, it must be transformed into demand, which at this stage of planning is limited by purchasing power.
An important element in the process of purchasing a product is the degree of its availability, that is, its availability at the point of purchase. This is especially important for the first test purchase, which often determines the volume and frequency of subsequent ones. Hence the importance of a broad presentation of the new product in the sales system and the availability of sufficient inventory.
In the presence of competing goods on the market, the buyer will spend energy on searching for this particular product only if he has a strong desire to purchase this particular brand (with repeated purchases, it will be possible to talk about loyalty to the brand). In consumer markets, where competing products are very widely represented and can be easily substituted with each other, the issue of proper distribution of newly introduced goods to the market is especially acute.
As a result of all of the above, the product can be subjected to tests for attractiveness to consumers before being placed on the market. The most common models for assessing the attractiveness of a product are the following:
Rosenberg model
This model is based on the fact that consumers evaluate a product in terms of its suitability for meeting specific needs.
Q j = S X k Y jk,
where Q j - consumers' assessment of brand j;
X k - the importance of the characteristic k (k = 1, n) brand j from the point of view of consumers;
Y jk - characteristic estimate k stamps j from the point of view of consumers.
Different customer requirements for products provide ideal prerequisites for market segmentation, as well as information on the importance of individual product characteristics.
Ideal point models
In contrast to Rosenberg's model, an additional component is introduced into the model with an ideal point - the ideal (from the point of view of the consumer) value of a product characteristic.
Q j = S W k | B jk - I k | r,
where Q j is the assessment by consumers of the brand j;
W k - the importance of the characteristic k (k = 1, n);
B jk - characteristic evaluation k stamps j from the point of view of consumers;
I k - the ideal value of the characteristic k from the point of view of consumers;
r - parameter showing at r= 1 constant, and for r= 2 decreasing
marginal benefit.
It is logical that the consumer will prefer the product that is closest to the ideal point. Thus, this method gives an idea of the ideal, from the point of view of the consumer, product.
Another variation of this method is to measure the degree of customer satisfaction, in which it is found out what value is expected by buyers and what was perceived in reality.
One of the latest models for describing and evaluating a product complex is the so-called. " Commodity system "- a set of components that unambiguously and self-sufficiently describe a certain set of needs underlying competing products.
In the course of modeling the commodity system, hypotheses about the components are made i-th level (starting from the first). The model assumes that the needs included in the commodity system are important to the consumer in different ways; their relevance differs for different consumer segments. Naturally, their implementation in competing products is not the same. As a result, the weight of the component (requirement) and the component valuation for a segment are determined.
In the figure below, the letters represent the following:
TS - commodity system
A, B, C, D - components (needs) of the first level.
A i, B i, C i, D i - the needs of the n-th level.
From the point of view of the economic efficiency of bringing a product to the market, it makes sense to consider the following quantitative goals:
sales volume,
coverage of fixed and variable costs,
profit and cost savings,
enterprise growth,
market share.
Qualitative goals such as image and publicity can be controlled based on consumer judgment.
When evaluating the cost-effectiveness of a merchandise withdrawal, the sales volume structure indicator is used.
The volume and structure of sales are one of the most important parameters of the company. Analysis of sales planning should show the absolute and relative shares of products in terms of total sales of the company, on the basis of which the marketing policy of the company can be adjusted. A convenient way to assess the structure of sales is ABC analysis, with the help of which all the goods of the company are divided according to certain criteria (sales volume, profit, etc.) into three categories. ABC analysis provides important information about the balance between products with different profitability and range of products. ABC analysis is a form of Paret's law.
Naturally, when launching a new product, not only its economic characteristics are considered. Design, color, shape, packaging, etc. are of absolute importance both in qualitative and quantitative indicators of the economic efficiency of a product. The trademark of the product deserves a separate discussion.
Most goods are consumed outside of their place of production. Sales structures are called upon to deal with the solution of the problems that arise.
The first thing that must be decided is the choice of the type of sales organization: direct sales or sales with the involvement of intermediaries. In the second case, many tasks are transferred to wholesalers, who develop their own marketing concepts, which do not always coincide with the concepts of the manufacturer.
Typically, a manufacturer uses wholesale or retail trade for the delivery of goods, which entails solving the problem of the number and type of enterprises that need to be attracted to cooperation. Decisions on the selection of trading partners are closely related to the organization of the sale.
When choosing distribution channels, the firm decides which customer segments will be reached through certain intermediate sales stages. For most products, there are many alternative marketing routes, but the choice of a particular channel, in addition to its profitability, is influenced by the image of the product and the company.
Channel planning for a new product is a strategic task and cannot be overhauled in a short time.
There are two principal types of marketing. At direct sales the product goes directly to the consumer. Direct marketing makes sense in large transactions, as well as in the sale of large high-tech goods that need guarantees, technical support, etc. Often in international trade the concept of direct marketing is used - sales without the participation of intermediary firms in their country.
But for most goods, especially for consumer goods, it is still the most preferable indirect marketing.
Most manufacturing firms should use the services of intermediaries and traders, since traders can perform marketing functions more efficiently and less costly than the manufacturer itself.
The use of wholesale trade allows you to reduce the number of contacts. Centralized trading is more efficient because it reduces the number of actions needed to match supply and demand.
The wholesaler has the ability to distribute its costs across several producers by grouping their offers together, which results in a reduction in distribution costs.
With the help of wholesalers, the volume of products is coordinated with the number and volumes of small orders, which leads to an increase in costs. The introduction of an additional link in the chain allows it to adapt to the orders of individual buyers.
Resellers play an important role in ensuring the variety of products offered, which allows buyers, saving time, to purchase several products in one transaction. Whether the manufacturer himself can harm the offer of a range of related products.
Despite all the undeniable advantages of introducing intermediaries into the distribution channel, manufacturers want to influence sales for many reasons. Among the main ones is the manufacturer's image policy, which intermediaries are not always ready to support. In order to influence intermediaries, manufacturers follow the path of concluding licensing agreements and franchising, which are beneficial to the intermediaries themselves, since the manufacturer takes on the organization of nationwide advertising, providing the necessary information and, in some cases, financial assistance.
On the socio-economic situation of St. Petersburg and the Leningrad region in January - April 1996 Goskomstat of the Russian Federation, St. Petersburg Committee of the State. Statistics, St. Petersburg, 1996. |
J.R.Advans, B. Berman. Marketing., M., "Economics", 1990. |
V. Blagoev. Marketing in definitions and examples. SPb, "TwoTrI", 1993. |
E. Dichtl, H. Hörschgen. Practical marketing. M., "High School", 1995. |
Jean-Jacques Lambin. Strategic Marketing. SPB, "Science", 1996. |
E.V. Pesotskaya Marketing of services, SPb, Publishing house SPbUEF, 1997. |
Bagiev G.L. Methods for obtaining and processing marketing information, St. Petersburg, SPbUEF Publishing House, 1996. |
Afanasyeva N.V., Bagiev G.L., Leidig G. Concept and tools of effective entrepreneurship, SPbUEF Publishing House, 1996. |
Bagiev G.L., Arenkov I.A. Fundamentals of Marketing Research, SPbUEF Publishing House, 1996. |
Microsoft Encarta Atlas, Microsoft Corporation, 1996. |
Russian Business Monitor, 1995 "2. The Russian market of alcoholic beverages. |
A company successfully operating in the consumer market is necessarily guided in its activities by the developed product policy of the company. One of the most important components of a product policy is the development and release of new products. In modern conditions of ever-increasing competition, it is a prerequisite for a firm to survive in an increasingly competitive market. Indeed, according to the concept of the product life cycle adopted in marketing, almost any product, for various reasons, sooner or later “leaves” the market and new products appear. The life cycles of a product and the associated profit and loss of the company are presented in Figure 1,.
Rice. 1
As can be seen from the above figure, the financial costs at the stage of introducing a new product to the market are quite significant. Therefore, before starting to produce a new product, the company needs to conduct comprehensive marketing research and clearly determine what new product will be in demand on the consumer market in the segment where the products manufactured by the company are presented. "In the conditions of developed market relations, it is necessary to know in advance the needs and requirements of the buyer, his orientation towards the purchase and motives."
Usually, five levels of product novelty are considered:
A completely new product, that is, a product that has no analogues;
New product for the company;
A new generation product, an improved product with new properties;
Expansion of the product group of an already manufactured product;
Repositioning a product, presenting an existing and manufactured product in a new way.
“The main criterion of novelty is, however, that new products should be so different from existing ones that the existing differences could serve as the basis for the formation of the preferred attitude of consumers towards them”.
Numerous marketing studies on this topic have yielded approximately the following results: about 27% of products expanding the existing range fail, 31% of products obtained from innovations in brands and 46% of new products themselves.
These figures contain a considerable share of mistakes made when introducing new products to the market due to insufficient attention to marketing research in this area and due to the use of the wrong strategy for introducing new products.
Each type of new product requires its own special approach to this task, its own individual withdrawal strategy, each type of new product will have its own buyer, and it is necessary to accurately represent its character in order for the proposed novelty to interest the consumer and win his trust.
As the famous marketing classic F. Kotler said: “We hope that the company views its consumers as a strategic
the starting point is that she sees in them not just customers or customers, but full-fledged people with all their needs and desires. "
After the company has carried out all the necessary product marketing research of the consumer market, has decided which product needs to be produced and organized the production of the developed new product, the final and very important stage begins - the launch of the new product on the market. This is the stage when you need to do everything so that the new product is accepted by consumers, is successfully sold and has, possibly, a longer life cycle, so that the funds invested in the development and creation of the product do not disappear, and the company makes a profit.
The withdrawal phase begins with the selection and strategy of the process. This choice is very important, as it is associated with the financial costs that the company will have to go to when introducing a new product to the market and further stimulating sales.
The choice can be made both from the number of already developed withdrawal strategies, and to develop your own, a certain type of strategy is directly related to what kind of product of novelty the company has decided to produce. At the same time, the developers of the strategy rely on those marketing research of the market that the company necessarily conducts before starting to create a new product.
After a company has made certain financial investments in the development and production of a new product, it is determined with a very important indicator of any strategy - the market retail price of the product, since the price is considered in marketing as the main tool for influencing the buyer.
"Pricing strategy - the possible level, direction, speed and frequency of price changes in accordance with the market objectives of the company"
At this stage, the following main withdrawal strategies and conditions for the application of these strategies are considered, which are given in the table (Appendix 1)
In order to test new products on the market, adjust the chosen strategy and avoid possible financial losses, many modern companies use trial marketing as part of their chosen strategy for introducing new products.
Its essence is that, even before the start of commercial production, they produce prototypes or a pilot batch of a product and conduct a trial implementation of this product in some part of the market, but of such a scale that later the conclusions obtained can be extended to the entire market. This is one of the common methods of bringing new products to the market, while the methods of such “market testing” of new products vary depending on the type of product. The most important and distinctive feature of trial marketing is customer feedback. It allows you to get answers to many of the doubts and questions that can be obtained only by starting the actual sale of a new product.
Test marketing provides a lot of additional information, but, at the same time, it has a number of disadvantages, the main of which are: the complexity of the organization - it may not always fully represent the main market; rather high cost of conducting; the possibility of borrowing ideas by competitors.
As a result of product marketing research, a developed pricing strategy for new products, trial marketing, the company receives "reverse" information from consumers and the market about its new products - like the new product or not, whether you like the name, appearance, packaging, whether the price suits , whether a new product stands out in the total mass of similar goods, etc., that is, it is revealed how much the preliminary estimates and calculations coincided with reality.
After a thorough analysis of the data obtained, either the parameters of the new product are adjusted, or, despite the invested funds, the company still decides to abandon serial production in order to avoid even greater financial losses.
To implement a special project, you need to determine the usefulness of the product for buyers, since the existence of the highest demand is possible only with its functionality. However, many do not attach importance to the very process of bringing the latest product to market.
This article will present an algorithm of actions for bringing a new product to the market, the nuances and features of this topic, possible problems and errors, as well as ways to solve them and useful tips.
To bring new products to the market, it is necessary to spend a lot of time, effort, and invest a certain amount of money. This leads to the fact that most entrepreneurs decide not to take unnecessary risks, but to act according to proven schemes. Most often this is inherent in beginners.
It is necessary to develop the right marketing strategy that will allow you to achieve success in the shortest possible time, this process is quite feasible and not as difficult as it seems. It is important to remember that initially it will not be possible to receive income from this type of product for some time, this is absolutely normal.
Competent strategy
Existing practice shows that the process of introducing a new product to the market is always accompanied by significant risk. This leads to the fact that the implementation of an idea is far from always successful.
The answers to 4 basic questions necessary to promote a product / service can be seen in this video:
It is very important to apply the right marketing and use the necessary techniques to help promote a new little-known product. This will help increase sales in the early stages and make it more widespread.
To achieve results, you need to choose the right marketing tools.
It is also very important to consider the implementation environment and the acceptable cost to buyers. Since there are a lot of ways to effectively bring new products to the market, you need to analyze and study all of them, and also gradually apply them in practice.
Of course, most of the tested techniques and strategies for promoting goods and services are subject to correction by every businessman, you need to take into account the existing conditions and various features.
The classic technique will show itself in the most effective way if it is adapted to a specific occupation and specialization. Passing the main stages is a mandatory element of all new products even before they are introduced to the market.
First of all, you need to think about concepts, devote time to commercialization, etc. You can adhere to several strategies at once, but one of them should prevail to some extent.
Search for ideas
The beginning of all popular projects are spontaneous or intentionally generated ideas. They are based on surrounding organizations, academics, customers, competitors, dealers, senior management, etc.
Initially, it is very important to determine the needs and desires of people, then start thinking about ways to satisfy them. It is the buyers who are inherent in the feature of an objective analysis of any product, comments on its advantages and disadvantages, as well as thoughts for improvement.
Organizing surveys is considered to be the best way to determine the overriding needs and wants of people. You can also use projective tests, group discussions, consideration of complaints and consumer suggestions.
The company needs to pay attention to proactive employees who are trying to put forward some new ideas, it is necessary to encourage this process in every possible way and contribute to its development. This method is actively used in many large organizations.
Another effective way can be to study the products of competitive companies. This can be done with the help of dealers, sales representatives of manufacturers. Due consideration should also be given to inventors, commercial and university laboratories, trade publications, etc.
Choosing an idea
Absolutely all companies should analyze all the collected material, highlighting the best offers. The idea leader needs to tackle splitting all ideas into several groups:
- Promising.
- Doubtful.
- Unpromising.
The first category includes projects that have the greatest chance of being successful, which is why they are further tested on a large scale. This process must be followed very carefully as it can be very costly to make mistakes.
Product formula creation diagram. It should be remembered that companies have a quality that makes them immediately reject a good idea and give preference to unpromising projects instead. Hire purchase is the clearest example of this phenomenon.
Making decisions regarding the release of goods
After completing the process of classifying all existing projects of the organization, you need to pay attention to:
- The expected profit from the date of sale;
- The ability of the company to take the idea into production;
- The likelihood of investing in a new project;
- A rough estimate of the volume of consumer demand;
- Formation of the average cost;
- Distribution channels;
- Probabilities in a patent;
- Assessment of the required level of resource and financial investments for the purchase of equipment.
Conceptual component
The next steps will be to draw up a product concept, it must be thought out to the smallest detail in order to successfully pass all future quality checks. The form of a developed version of a promising project is considered a concept, it should mean a lot to buyers.
To consider this important stage, you need to analyze an example of an organization whose specialization is the food industry.
It must be assumed that the managers decide to launch the production of an impurity that can be added to milk, increasing its taste and nutritional value. At this stage, this can only be considered an idea of a possible product.
After that, you can start developing one, but preferably several, concepts. To do this, you need to do the following:
- Determine the portrait of the consumer of this product. This example should include infants, children, adolescents, and adults.
- Establish the benefits of the product. The idea in question boasts a refreshing effect, nutritional value, pleasant taste and a boost of energy.
- Set the time of day when the product will be consumed by consumers. Can it replace breakfast, lunch, lunch, dinner or late evening snack?
Only after solving all the tasks, you can start to launch the creation of a product concept.
The concept of the case study will include the following elements of the objectives achieved:
- Since the product is characterized by such quality as solubility, it is ideal for adults and children.
- The product can be consumed for breakfast, snack or lunch, as it is very nutritious and healthy.
- Since the product is aimed at improving health, elderly people can safely use it in the evening.
Thinking over distinctive qualities
Further, the drink must be endowed with distinctive properties, characteristic features, so that it does not resemble most of the existing products on the market. It is necessary to establish its average calorie content and price.
Verification phase
At the next stage of the marketing strategy, you need to check the selected concept. This can be done by making it possible to evaluate the product. Their reaction will be a key indicator and show what points need to be finalized.
Drawing up a certain conceptual form of the product is one of the elements of the plan for bringing new products to the market. It is subdivided into symbolic and material.
Company employees must draw up a graphic or verbal description of the product, all of its characteristics.
It is necessary to design a project using computer skills, to make a plastic dummy of each option. Ultimately, several toys or small household appliances can be created. Such mock-ups will help customers to form an idea of the external qualities of new products.
Market analysis and verification. Virtual reality is another element that deserves attention, as it allows you to complement all the previous processes. It allows you to simulate objects of the surrounding world using a computer, you just need to connect sensory devices, namely, use glasses or gloves.
Such a program is often used for informational purposes, establishing the client's attitude to the planned project, for example, it is very important in drawing up an interior design before carrying out construction work and buying furniture and decor elements.
Marketing strategy and its creation
This structure can be modified in the future, it all depends on possible situations, very often developers have to make adjustments.
Developing a strategy should include three parts.
- Part No. 1. Providing information about the structural and volumetric components of the target market, characteristics of all buyers. You also need to think about product descriptions, possible sales volumes, projected income. This should be calculated over the next four years.
- Part No. 2. Entering data on pre-formed product prices into the generated one, you also need to take into account information on costs and sales in the first year from the start of the sale.
- Part # 3. This is where you tackle the metrics to drive product development and focus on increasing your future income.
Production and sales
This stage involves considering the business attractiveness of the proposals. It is necessary to analyze the calculation of the received data on costs, income and sales.
It is necessary to achieve full alignment with the goals of the organization. When a positive effect is achieved after such checks, you need to start developing a specific product.
Product creation
The initial stages include the preparation of production points for the successful release of the planned products. It is necessary to carry out the development of technology, to manufacture the required equipment, to acquire additional tools and materials.
After that, you need to start making a prototype, with its complete perfection, for several batches. These points are final.
Next, you need to do the preparation and implementation of test sales. This is the realization of a small part of the experimental production. Such a step will help in conducting additional market validation, clarifying the needs of people for the developed products.
From the very beginning, you do not need to place high hopes on achieving the planned income targets. This is just a way to check the attitude of customers to the product in order to correct its shortcomings and implement its promotion.
You will learn what social marketing is and according to what rules it is carried out.
Market entry stage
This moment of introducing the latest product to the market involves the participation of all departments and affects each of the functions of the organization. This includes the production process, sales, purchasing and financial matters, distribution of work among staff, etc.
Usually this stage is considered the most unprofitable, the organization manages to receive only a small fraction of the expected income. Most of the money will also have to be spent on promoting the product and improving it if necessary.
In addition to everything presented above, you need to properly analyze the target audience, make up its characteristics, you can even classify buyers into separate subgroups.
The implementation system is determined by the features and distinctive properties of the product, the company's image, its reputation and place among competitors.
When developing marketing strategies, you need to pay attention to:
- Direct distribution. This option assumes direct delivery of the product to consumers from manufacturers. It is best suited for companies specializing in high-tech goods and those looking to make expensive and big deals.
- Distribution with the participation of an intermediary firm. Very often, a trading organization can boast of the resources that will be able to bring the product to the end consumers. In addition, they are able to provide customers with a wide range of products of different brands, which is very popular with many customers because of the time-saving potential.
Smaller organizations are characterized by a lack of cash in the first couples. Therefore, they often use word of mouth, contextual advertising, social networks, etc.
What determines the success of a product launch on the market - see the details here:
This stage also needs to determine the amount of costs for a marketing campaign, drawing up promotion programs, finding ways of interaction to carry out such work.
From the very beginning, the right decision will be the method of selling products using an online store or your own website. You can also use social networks.
You can find out what event marketing is and what are its key features.
Conclusion
Many businessmen strive to create a new unique product. They are inspired by the fact that competitors cannot compete with them in this case due to the lack of such a product.
The successful market launch of new products is determined by many important points. Each stage of the development process of all elements of a product should be carried out in an integrated manner.
This will enable the new product to become in demand among buyers and will bring the company a stable income.
Elena Nasobina, project manager at the Tochka bank for entrepreneurs
Not so long ago we launched a product for calculating taxes for individual entrepreneurs. Some customers enthusiastically accepted the new service. They understood that the probability of an error in the calculation of the "machine" is much lower. But among the clients there were also those who were wary of the new service. For many years, some entrepreneurs have trusted all calculations only to their accountants and did not want to “trust” the soulless machine. The main snag was that it was very important for them to have their own person, whom they could turn to at any time.
In many cases, we managed to overcome the skeptical attitude due to the fact that we sat down with clients and described in detail all the calculations. Or they counted together according to the formula from the tax authorities why such an amount of contributions was accrued.
There are also such clients who liked the service exactly - they did not really want to go into the details of the calculations, but they warned: “If something happens, you will be answered!”.
It is difficult to say why this particular product has caused skepticism from customers. It is not necessary to say that people are simply not ready for innovations, because cloud accounting has been on everyone's lips for a long time.
2. We were not ready for high demand
Ekaterina Makarova, co-founder of BelkaCar car sharing
When the premium car sharing BelkaBlack was launched, they did not expect such a boom. On the day of the announcement, the number of applications exceeded ten thousand - no one was ready for such a development of events. We sat day and night and solved the problem only a week later, when the number of verifiers doubled.
When you bring a new product to the market, you should work out as many potential situations as possible: what to do if an emergency occurs, where to get people, from which departments to attract employees, which relatives to call if the team cannot cope. You should have a ready-made solution for all these problems so that you don't waste time working through the situation later.
3. Clients did not understand the logic of price formation
Dmitry Zubkov, CEO at Dostavista
Our express delivery service now operates in 10 countries around the world. In 2016, we launched in India - before that there were delivery services, but our service was a new product: crowdsourced door-to-door delivery in 60-90 minutes.
At first, there was a problem with addresses: in Indian cities, only districts and streets are indicated on the map. The buildings have no numbers. This created difficulties for couriers and customers.
The former often could not find the address they needed, or Google Maps showed them the wrong point on the map, and they just came to the wrong place. And the clients did not understand how the tariff was formed. The same delivery could cost differently today and tomorrow.
Again "helped": if you change at least one letter in the address description, they will consider it a different point. For example, today a client could write: "Mumbai, Link Road, the house is opposite the grocery store", and tomorrow - "Mumbai, Link Road, the house is red, there will be a grocery store across the street." The service, according to the order of Google Maps, calculated different costs.
We solved the problem by changing the algorithm for calculating tariffs: now the cost is calculated based on the distance between specific small areas, and not points that were previously determined incorrectly. It is still difficult for couriers to find a specific house; the ability to contact the client via chat or by phone helps out.
4. We wanted to receive money immediately (but it didn’t work)
Sergey Shalaev, founder and CEO of Relap.io
In 2014, the Surfingbird team and I started working on a new (then still) Relap.io project. We had internal fears - if before we were engaged in a b2c project, now we decided to switch to b2b, because even then we felt an increase in demand for the native one. But no matter how big Surfingbird was, we realized that we were about to hit the ceiling in terms of inventory growth and were afraid that by doing everything at the same time, we would not succeed anywhere, but nevertheless decided to discover new opportunities for ourselves. And, as it turned out, not in vain.
The main problem was that we wanted to immediately receive money for using recommendation technology with the media. But it didn’t work that way, since those were not the best times: the media managers simply didn’t have extra money, and it was very difficult to convince editors and journalists that our algorithms would be able to suggest more interesting content to the reader than the editor.
As a result, we decided to provide our technology for free, which we do to this day.
And the problem with the installation of the widget and the conservatism of the market was solved by time - the journalists really saw that readers like our recommendations, they fit into the content of the site natively and do not cause rejection. Readers began to spend even more time on the site, which affected the amount of advertising inventory at the sites. Subsequently, we offered partners to mix recommendations with advertising and make money with us.
5. Launching a new product is a lottery
Yuri Galtykhin, product manager of "Firm" MMS "JSC (PROLOGY brand)
Launching a new product on the market is always a lottery. You never know how customers will accept a new product until it's on the shelf. But before the product is in the store, there is a long way to go - from the development of the product concept to the delivery of the finished batch. And at each stage there are difficulties.
In electronics manufacturing, the biggest headache is the design of the electronics itself. Let's say we decided to release a new model based on the existing one - but we need to reduce the dimensions of the case and add several functions. For car radios, in theory, this is not very difficult: they usually have a lot of free space inside. We breed a new main board, check: the sensitivity of the radio tuner has decreased. We figure it out, we found a place where the phonite is a microcircuit. We added a metal screen, the board was slightly different. We check that the radio is now in order, but the maximum current on the USB ports is not enough to charge the phone. We figure it out, found out the reason, again put the board in a new way. We check if everything is fine with the radio and USB ports, but we found a new problem. And so it can be twenty more times. And this is not counting the problems with the software, there are also many interesting things.
I would also like to say that creating a new product is always a compromise. A trade-off between price and a set of functions and features, but not between price and quality.
Even when planning the release of a new product, we immediately assign it a place in the product line, set the maximum price and the desired set of functions or properties. And then we try to make sure that the price stays within the limits, and that the quality does not suffer. For example, let's take a case. Plastic parts are molded into special molds, and each of them has a maximum angle of inclination of the surface, above which it will be impossible to pull it out of the mold without damaging the part. If the design of the device involves the use of complex shapes, then expensive composite molds are used: the cost of the mold itself will be higher, as well as the price for the production of one part. If we come to the limit of the allotted budget, it would be more appropriate to redesign the case to use a one-piece mold.
The same goes for the selection of components. For automotive electronics, the highest requirements are imposed on reliability and resistance to external influences. While your home TV does not require very low temperatures or high vibrations, these are normal operating conditions for a car radio with display. Once in the car in winter at -20ºC, you won't wait half an hour for the display to warm up and start showing something? Therefore, when we choose, say, the same display, then we can sacrifice resolution (put a regular display instead of a high-definition display to reduce the price), but this display will still work at +60 and -20.
In conclusion, I will say that I cannot name a single product with which there were especially many problems during its creation. There are problems with every product at the time of launching to the market - without this, there have never been at all. But any problems can be solved. The main thing is to clearly understand what the product should be, and at all stages of development and production to control the quality and compliance with requirements, including the budget. After all, a low-quality or too expensive product will not be sold.
6. We are faced with the fact that the product must be "flexible"
Igor Eremin, Founder of the Mobile Doctor telemedicine service
When launching the MVP of our telemedicine platform, we were faced with the fact that the product must be super flexible in terms of customization, since insurance companies, banks, mobile operators and many others can act as partners in telemedicine. And each has its own tasks and "Wishlist" in terms of functionality.
The solution was to lay in the architecture of the service a lot of "custom" things that were not activated until the first partner appeared from one area or another. For example, the functionality of downloading monthly statistics on consultations, activated policies, recording, automatic counting, and so on. This made development more expensive initially, but saved a lot of time and money in the long run.
7. The main difficulty was in the business model itself
Andrey Myakin, Chief Operating Officer and co-founder of TNOMER
The biggest challenge when entering the market was that there were no analogues to our business model. Let me explain the peculiarity: the model of classic service retail is geared towards offering one service as a whole, for example, only a major overhaul of an apartment. We have about 50 services that cover all repair work in the apartment, in the house and on the site. That is, we strive to accompany the client at all his turns in life: after repairing the apartment, we will build a bathhouse, after the bathhouse - a fence, a gazebo, lighting on the site. Then repairs in a new apartment and so on.
At the same time, we are not a construction company, but a platform for three participants in the process: a client, a material manufacturer and a team. These three lines should not intersect with each other, we are the guarantor and representative. All this is completed by the TV channel of the same name, which is integrated into the business model to create trust and generate customers, but must exist separately and independently in order to increase the audience, and for this to produce interesting content.
We built such a difficult model in about six months, and we are still optimizing it.
Another difficulty is television filming at the facilities that we are repairing. To show viewers the renovation as it is, we film the renovation process accompanied by expert comments. And on small sites, surrounded by 5 tons of various materials, it is quite problematic to shoot. Therefore, it was necessary to create an interaction algorithm that would allow them to be carried out in such a way that it would not affect the quality and duration of the repair itself: find out in advance about the readiness of the object, figure out where to put cameras, how to combine the work of the film crew with the work of the construction team.
8. It was difficult to convince the clinics to work with us
Ekaterina Yakubchik, product manager of the mobile clinic DOC +
We have a partner system with clinics: through the application, you can make an appointment with highly specialized specialists. There were a number of problems at launch, which will be discussed below.
Problem: finding good clinics
We take care of our patients, therefore we carefully select doctors for the staff, train them and control the quality of each treatment. When we send clients to third-party clinics, we want to be sure that they will receive highly qualified medical care there.
Solution
First, we researched the market for medical services, where we paid attention to the business reputation of clinics, looked at the reviews of clients and doctors. After that, we went to each medical institution as ordinary clients, and at meetings with the management of the clinics, we found out how they look for doctors and control their quality.
We checked each clinic ourselves. How ordinary clients came to the reception and looked at how the organizations look from the inside: is it clean, is the receptionist communicating with you adequately, is the doctor a good doctor, does he sell unnecessary services, does he conduct a full examination, and does he explain his appointments. Then the diagnoses and the prescribed treatment were assessed by our head physician.
After connecting the clinic, everything does not end. We selectively check the quality of medical care according to medical records and take feedback on the quality of service from each client.
Challenge: integrating online scheduling and medical data
We wanted to make the product as convenient as possible for the user: you enter the application, choose the specialty of the doctor, a convenient time and place, make an appointment, and after the appointment you receive all the data in the application. No calls to the clinic, no paperwork - everything is through the app. This simplification of the patient's life "complicates" our life: we need to integrate with the medical information system of the clinic in order to have access to their online schedule and receive the results of the patient's admission. Our IT resources allow us to do this quickly, but from the side of MISs (medical information systems), everything turned out to be more complicated.
MISs are of two types: large players who install their systems to other clinics, and small clinics with self-written MISs. For large MISs, we are a third-party company that is not even their client, which means that by default we are at the very bottom of the priority list. In the case of self-made MISs, clinics are not IT companies, for them this is a completely non-core story, and the resources for any improvements are very limited. Both the first and the second are understandable, but integration has become a very serious obstacle for us.
Solution
As a result, the strategy worked only one - be patient and constantly get in touch until we achieve a result. For example, it took us about a year to convince one of the largest players in the market, but in the end we got access to a large number of partners. So just patience and no magic.
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