Product Launch: Definition, Advantages, and Disadvantages of Product Launch
Its essence, Product Launch is an activity carried out by the company to launch its new product or service on the market. The product or service launched can be truly a new product or old product that has been rejuvenated.
Product Launch is also often used as one of the effective marketing strategies to attract consumers in large numbers and also to increase product sales.
In addition, Product Launch can also be used to introduce new features, changes, new packaging, or advanced innovations from a product or service.
In the business world, companies must be able to use various strategies that can maximize the sale of their products. For this reason, companies must want to spend a lot of time launching a product.
In this competitive environment, companies must use various possible strategies to maximize their product sales, starting from marketing communication, branding, etc.
In conducting a product launch, several elements must be prepared by the company so that this strategy can succeed. Some of these elements are as follows:
- The segment and target market will be addressed.
- Product positioning and also the key message.
- Product features and functions according to the needs, desires, and market expectations
- The impact that can be caused by the activity
- Time and also the right place.
Advantages and disadvantages of Product Launch
When a company decides to carry out the product launch, the company must be able to know the advantages and disadvantages of the product launch activity, namely:
Advantages of Product Launch
The product launch activities carried out properly will be able to help companies in achieving various things below:
1. Creating brand awareness (brand awareness)
Product Launch activities carried out properly can be used as one of the means of marketing communication to build brands, especially in the aspects of brand awareness. The crowd of an event and also very much coverage by the media crew will be able to create very large and widespread excitement.
In addition to the target audience attending the event, the public will also be affected. At least, those who do not know the brand and the product of the brand will become familiar, so the company will be positively affected.
2. Creating needs or desires
In addition to being able to create brand awareness, consumers will also be able to learn the features or functions of the products offered. So that there will be many consumers who buy these products because they realize that they need or at least want the product.
So, if before the audience doesn’t understand the function or how to use a product, seeing the event, then they will know how to use it.
For example, the Product Launch event of a beauty product is accompanied by a series of events, such as product demonstrations. At moments like this, consumers can learn how to use or benefit from a product.
With the right product launch activities, consumers will be helped in making decisions to buy products.
3. Improve the company’s positive image
Product Launch activities held properly will be able to improve the positive image of the company offering the product.
This condition is certainly very profitable for the company because, with a positive image, it will be able to provide a lot of convenience for the company itself. Including if there will be another product launch event, so the effort needed will be relatively smaller.
4. Increase sales at the beginning of the product launch
Because the audience or consumer has realized the features and benefits of the product, the level of purchase that comes from consumers will also be high after the product is launched on the market. In this way, the company can get most of the expenses they spend in producing and marketing.
Some early time after product launch activity is a very important time to increase product sales.
Most companies have even implemented this strategy, which new products have new features that must be sold at full prices. Along with the development of these products, later the company must reduce the price of products to maintain a high level of sales.
For this reason, efforts are needed to recover maximum costs at the beginning of the launch of new products.
5. Creating publicity
The well-planned product launch activity is a good source of publicity for the product itself. The audience will assume that the product will have a high value if it can carry out the right marketing tactics following the product and also target markets.
For example, if you invite artists or celebrities to launch the product, then most fans of the artist will automatically like your product too.
In addition, you can also use the media to cover and also broadcast your product launch event, so it can reach more audiences.
6. Planning resource requirements for products
When done Product Launch, you must be able to estimate your product needs. In addition, you must also be able to design, implement strategies and other needs, such as the staff needed and also special training that you must give to them
Other resources that you must prepare are all elements that can support the process of distribution of your product.
7. Increase competitive advantage
By making a Product Launch event, you can create a competitive advantage over your competitors on the market.
If you can plan product launch well, and at the right time and place, it will be able to increase the consumer base, even getting customers is an easy thing. This will certainly make the audience more want to choose your product than competitor products.
8. Opportunities and ease of portfolio development
The right product launch activities can provide you better opportunities in developing business. For example, if you have a startup company, then by doing product launch activities, you will be able to get a lot of business offers from companies on a larger scale.
Disadvantages of Product Launch
1. Additional work that is not easy
For some companies, especially small-scale companies, Product Launch activities are not an easy activity, because it requires extra energy. Some of these companies have no experience in producing launches because this work is not a work of their expertise.
So, they prefer to use third parties or handled themselves but with assistance from various parties.
When done alone, the staff will feel that the activity is very heavy. Not to mention the demand that the process must be successful, so this activity is not an activity that is easy to do.
2. External experts
If you want the maximum results of the Event Product Launch, you must be able to plan the event correctly. Good planning is likely to require you and a more expert team in compiling the event successfully.
3. Additional expenses
Planning, preparation, and organizing product launch events can be very expensive events and need a budget.
However, not all companies have a separate budget, so that the form of procurement of this event can be a burden.
4. Can have a negative impact
As explained earlier, Product Launch is not an easy job for several companies. When applied incorrectly, it will be able to hurt the company’s brand.
5. Ideas can be imitated by competitors
Product Launch activities did not only introduce products that are ready to be sold to consumers. Often, some companies issue the initial version of the product with a minimum load feature so that they can get feedback from consumers directly.
So, the product has not been ready to be launched on the market. This condition is often used by competitors to imitate or steal the product’s ideas so they can be applied to their products.
This not only harms the income of your company but will also provide options for the audience to choose various options on the market.
Thus the explanation of us about Product Launch. By understanding the advantages and disadvantages of the product launch above, it is hoped that you can maximize excess and can also suppress the shortcomings when carrying out product launch activities.
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