Launching a new product to the market in any company can be hectic and disturbing. It, therefore, need some set strategies are set up and planned out and the steps to be followed when launching the new product should be in place. Some of the factors that any entrepreneur will need to consider include ideal customers, competition, testing, media campaigns as well as understanding the life cycle of the product that you need to introduce. Therefore, when a company or an entrepreneur gets to understand this factor that is required so that a new product can be successfully introduced into the market the need for market plan needs to be created for the success of the new product. The introduction of new products is always vital and therefore required for the long run success of the company. When introducing a new product it is critical to understand the competition that is out there for the new product. Therefore enough research needs to be carried out and understand how your competitors in the market are selling their products and goods. If it is a food company and want to introduce a new type of food in the company but not new in the market one requires doing a research on how other food companies are marketing it. Another very crucial aspect is to test the product. Your perception on the new product can be different from that of your customers, hence it will require one to carry out a test on a cer6tain group of consumers and from their feedback, one can get the market direction.
A brand leveraging long-term brand uses the brand power of the existing brand name in supporting the company entered into a new but in a related product category. MacDonald uses its brand name to strengthen its product and launching its new food categories. The Brand name plays a role in supporting the company new entry or new product to the market. Brand leveraging communicates the value of product idea in consuming the new products. A company must make efforts on having direct impacts on the market share as well as sales. Any positive brand image is very crucial for the marketing of the product and it is familiar than the traditional advertising strategies.Positive brand equity helps in facilitating the company long-term growth since most of the customers will remain loyal to the company for a number of years (“Bookshelf Online”, 2018).
The long-term brand awareness has a relative role in the market mix that is advertising, promotion, product as well as a place for the long-term maturation of the brand rather than the emphasis made on advertising and the price promotion. All the products move through a product life cycle and from this point we consider that products and services are interchangeable and both have a life cycle. Some products have can have an extremely short life cycle while others have a lifetime life cycle therefore while moving through the life cycle a marketing approach must be adapted. Through all the four stages of [product life cycle it is crucial since they help the marketer to determine prices, compete with other businesses in the predictability.
Product extension is a product that is brought to market using the same product category that the company produces already to its market. It mostly occurs in large shops and supermarkets as well as other convenience stores. It is simply the slight variation where an original brand is launched into a number of smaller segments of the already existing markets (“Bookshelf Online”, 2018).
Advantages
Product extension has various advantages, for instance, it creates the acceptance for the new product. It makes the new product in the market to be accepted so easily. It increases the brand image by reducing the perception of the consumers on the product. Since the new product is introduced to the market through an already established market hence reading the trial and increases the consumers’ willingness and interest in using the product. The advertising and promotion cost reduces the product will use the core brand in its advertisement. The cost of developing a new brand is saved packaging labelling effective and packaging. It is always expensive and costly to introduce a new product to the market but with product extension, it helps in reducing marketing program costs.
Disadvantages
A brand extension of the unrelated products in the market may lead to blossom reliability. If a brand name extension is taken too far it will, therefore, requires some research to be carried out by the company. In addition, there is a risk that the new product may damage the image of the existing product. Due to the less time during the introduction and trial process awareness may not be enough to sale the product hence leading to retailers’ resistance. This is due to the assumption that the old product will generate market door the new product the new product can confuse the consumers.
Coca-cola has done this severally especially with its coke product where it introduced cherry coke and vanilla but the consumers differed especially with the flavour therefore it did not work.
When a brand extension I used to sell a certain new product it is associated with a certain number of risk especially if the marketer has zero ideas on the product. Most of the new products that are introduced by the brand extension can fail and cease to exist within the shorter time after its launch. More so during the introduction and investment during the brand extension, the product can fail since consumers are not aware of what to do with it. They are not aware of its function, and if it is food related products consumers may not like its taste, since there was no trial process so that the producers understand the consumer’s favorite test. Therefore, there is need to avoid jumping into the market with the new product without having a knowledge of it. It requires the marketers to be aware of the new products before introducing it to the consumers (“Bookshelf Online”, 2018).
A loved and recognized the brand and loved one is one of the most valuable assets in accompany owns. One may have a small business but may be competing against devoted customers as well as big brands. The foundation for building a brand is first identifying the audience which will be focusing on. You need to understand the value of the business hence one can build a brand that your audience keep trusting it. For instance, Nike has gone in taking their mission to a further step by adding statements if you have a body you are an athlete. As a sports company has built its reputation and its mission is trying to accommodate each and everybody. My suggestions are to decide their performance goals. The company needs to develop a marketing mix n each service and products they offer. When there are opportunities to improve the existing products then grab it. When one improves the existing products there must be a payback. Whether new or old each product requires being improving and developing so as to create the competitive advantages which will improve the sales customer loyalty as well as drive long-term business. A brand signifies the quality as well as inspiring the confidence and the performance loss of the underperforming product is magnified.
References
Bookshelf Online. (2018). Phoenix.vitalsource.com. Retrieved 9 March 2018, from https://phoenix.vitalsource.com/#/books/9781323108826
