The Doctor is in

Why Product Launches Almost Always Fail

                                                                                                                            By Michael W. Lodato

When was the last time, if ever, that you observed a successful launch of a product?  Almost every company, including IBM, botches the launch.

Actually, it's no wonder.  A product launch is a huge project management challenge.  All the components of your offering: product, service, support, distribution, promotion, etc. have to be in place and coordinated at launch time.  Execution of each function must be crisp... on time and on target.

The Better Mouse Trap -- a Myth

Build a better mouse trap, and the world will beat a path to your door is a myth -- always has been.  But the small amount of detailed attention that a lot of companies give to a product launch seems to indicate that they think that having a great technical product is enough.  Superior technology may be a necessary condition for success but it is not sufficient.  It must be matched by first rate marketing, sales, and support.

The Launch Project Plan

No project can be successfully managed until the work content has been defined, broken down into chewable bite-sized tasks, estimated and staffed.  Task durations need to be calculated and task dependencies (i.e. precedence relationships) must be made explicit so that a realistic schedule can be projected.

There are many, many deliverables, besides the product itself, that must be produced by the launch project.  For example, there are press releases, ads, product sheets, telemarketing scripts, and much, much more.  It's obvious that most of the deliverables are interrelated,  Making their creation even more challenging.  At a minimum, you should have a checklist of all the deliverables and activities for the launch.  The checklist found in my book: Management of New Product Launches contains over 100 items

All that sounds very complicated, doesn't it?  Well, that's because it is.

Fail to Plan, Plan to Fail

In my opinion, the main reason why product launches fail is the unwillingness, or inability, of management to prepare detailed product launch plans, monitor performance against those plans, and take corrective action when it is called for.

The attitude seems to be: when the product is ready, so will everything else.  When I've conducted audits of launch readiness, not only were key tasks not completed, they weren't even defined and/or assigned.

I've seen product launches conducted in the absence of a documented product plan.  And so, there were no clear documented answers to questions like:

The Remedy -- A Product Launch Methodology

What every company that launches products needs is a product launch methodology that guides the whole launch management effort in a way that leaves nothing to chance.  It should be comprehensive enough to identify everything that should be done for a launch to be successful, the order in which they should be done, the effort and lead times involved, and the interrelationships among tasks (coordination).  The methodology should guide in addressing strategic issues -- such as target markets, pricing, and positioning -- and tactical ones -- such as PR and advertising, training of the sales people, lead handling, sales and product literature and the like.  All of this has to be planned and managed so that things come together at the right times.

Developing a methodology is tough work, but it is worth doing.  A well executed launch makes the difference between a product that survives and prospers and one that falls short of expectations.

Benefits

With a launch management methodology you can expect to develop comprehensive launch plans with less effort and in less time.  The availability of sound launch plans will make it possible for you to coordinate all launch activities better and to execute launches at much lower cost and higher efficiency.

The better management of launches that sound plans make possible, will put you in a better position to: 

     *      generate more leads from qualified your promotion efforts sooner;

     *       handle the business volume and convert it into sales;

   *       support the product once it is shipped; and finally

   *       increase company profitability

You can garner these benefits from following the complete product launch methodology contained in my book Management of New Product Launches.

Conclusion

If you are convinced that you have a product that the market needs, you still may not be successful with it if it isn't introduced properly.

Don't settle for less than:

     x   a company-wide understanding of who and where your prospects are, how to reach them and why they will buy the product;

     x   a well thought out statement for positioning the product;

     x   an advertising program ready to go, with:

    x   a marketplace and media conditioned by public relations to expect the product;

    x   trained sales and support staff;

    x   comparisons with competitive offerings (price, features, technology);

    x   well informed sales channels;

    x   an advance list of prospects;

    x   sound procedures for inquiry handling and lead management;

    x   sales brochures, price lists, contracts, sales manuals,  product sheets,

    x   scripted sales presentation materials,

    x   demo packages and other sales tools; and of course,

    x   a fully tested, quality assured product, ready for delivery.