If you already have a successful product line available in brick-and-mortar stores, then you know how challenging it is to launch new products. However, the needs and wants of customers are constantly changing. This means that FMCG brands need to adapt to these trends and changes by releasing new products or making changes to existing products.
In this article, we are going to focus on how to successfully launch a new CPG product on the market. In this competitive environment, a product launch in-store has various benefits and pitfalls. We plan on shedding some light on this topic and offer valuable suggestions on how to launch your new product innovatively.
What is a product launch?
A product launch refers to a retailer introducing a new product on the market, online or in physical stores. This needs to be a coordinated plan that will raise awareness of the new product and delight customers. On average, over 30,000 new CPG products launch each year.
A product launch can be anything from adding a new flavor of chips to creating a new plant-based alternative to one of your top-selling products. Depending on the products you currently sell in stores, you need to create a plan that will lead to a successful launch. Before we offer our tips and tricks for a successful product launch in-store, let’s see what are the benefits and challenges of product launches.
Benefits and challenges of new product launches
If you plan on launching a new product, you already know that you have a few things to benefit from. The main benefits of product launches include:
The more products you can offer your customers, the bigger your potential sales are. As you might expect, sales of a new product might not match the ones of your current products. Why? There are a few things you need to consider, including the fact that people might be reluctant to try new things. However, if you have done extensive research and you know that there’s a gap in the market that your product can fill, then you can expect a raise in sales after launching.
You probably have a loyal client base by now and you want to keep these customers satisfied. Statistics show that ⅓ of US consumers are actively looking for new products to try. By launching new products, you increase the variety of your assortment. A wide range of products can be beneficial, especially if you are a big, well-known brand. However, if you own a smaller brand, it might be best to focus on a smaller assortment until you increase brand awareness and sales.
Chance to increase brand awareness
A product launch is also a chance for you to increase brand awareness. Since you are promoting your new product, more people will be able to come into contact with your brand. Depending on the type of campaign, you can attract new customers that might be interested in testing out your products.
We know that everything comes with its pitfalls and disadvantages. In the case of a new product launch, here are some of the negative things you need to consider:
No need for your product
If you didn’t perform extensive market research, then it might be best to hold off on the product launch. Your new product might not fill a gap in the market, which means that customers will not be interested in trying it out.
Too many variations
If you plan on introducing a new product on the market, but you decide to launch it in 15 different flavors or versions, it might be excessive. You will overwhelm customers with the assortment and they might not purchase any of the products.
Not the right time
Another pitfall you might encounter is launching the right product at the wrong time. As you know, timing is everything. When you release a product, especially a seasonal one, you need to make sure that you introduce it at the right time.
Now that we know what the challenges and opportunities of launching a new product are, it’s time to see how to plan the launch and the promotion in-store.
How to launch and promote your new product in-store
Considering that nearly 95% of food and beverage sales and 90% of total grocery sales are transacted in-store, we are going to focus on how to successfully launch your product in physical stores. Here are some tips that will help you create an astonishing launch campaign for your new CPG product.
1. The go-to-market strategy is essential
No matter if we are talking about a CPG product or software, a GTM strategy needs to be thoroughly planned. Based on your budget, you will need to be strategic about the channels, tactics, and assets you plan to use for the launch.
A GTM strategy for a launch should include:
- Buyer persona and customer profiles
- Distribution channels
- Marketing and sales tactics
2. Create buzz in-store
If you want to attract the attention of shoppers in-store, you will need to consider using various promotional tactics. A great way to convince people to try new products is to offer samples. After all, who doesn’t love free food?
Another great way to create buzz in-store is to use a robotic POP display. Tokinomo can help you attract the attention of shoppers and engage with them right at the point of sale. A campaign implemented with Tokinomo raises awareness, increases sales by up to 200%, and brings your product to life.
A more traditional approach is to offer customers incentives, including discounts or BOGO-type promotions. However, these types of promotions could end up hurting your brand’s image since customers could perceive your product as being on the lower end.
3. Monitor and adapt
If you plan on having an extensive product launch campaign, it is important to monitor it constantly. When you are using robotic POP displays like Tokinomo, you can monitor your campaign from anywhere, on the Cloud-based platform. There, you can even adapt your campaign by changing the message of the campaign.
4. Collect feedback to better understand your customer
After the product launch, make sure to collect feedback from your customers. See it as an opportunity to better understand the needs of your shoppers. Their feedback might change your perspective and it will help you launch more products successfully.
Successful product launch campaign
Hard seltzer is becoming more popular all over the world. That’s why Asahi Group decided to launch a product in this new category in Romania. Viper, the hard seltzer, needed a launch campaign that could raise awareness, especially in-store. Asahi Group decided to use Tokinomo for the in-store launch.
Their in-store activation, implemented by IPP Romania, took place in 25 Auchan stores in Romania, to generate trial among shoppers. For 14 days, the Viper hard seltzer was the drink that literally spoke to shoppers inside grocery stores.
This campaign managed to raise awareness, generate trial among shoppers, and increase sales by 60%!
George Preda, the senior channel manager at URSUS Breweries SA shared the results of the campaign:
“Apart from the 360 launch campaign was the in-store activation using the Tokinomo solution. The stand-out generated trial among shoppers which led to a sales increase of more than 60%.”
Ready for a product launch?
Launching a new product can be a challenge. However, with the right solutions and enough market research, any brand can successfully launch a new product in-store. If you want to raise awareness at the point of sale and generate trial among customers, Tokinomo is the right solution for your product launch.