New product metrics will help managers measure the overall performance of the product they’ve already just launched. These will likewise, assist them in formulating strategies to sustain new product growth.
Launching a new product amidst an exceptionally competitive business industry is a very challenging feat. To guide ensure success, relevant new product metrics would have to possibly be determined.
Launching a new product to the market is a big gamble on the part of a manufacturer or distributor. This is so because substantial investment might need to be spent in marketing and advertising this new item. This activity is very crucial as some of the ways prospective clients or target customers are informed about the solution.
Without these promotional activities, it would be very difficult, or maybe impossible even, to create demand for the product once it hits the stores along with retail outlets. Likewise, these promotional activities would also have for being done in a regular basis to maintain customer demand especially from the early stages of product distribution.
These days, new products are introduced either to be a brand extension or a product extension. Brand extension, also termed as brand stretching, is a well-used marketing strategy wherein this company uses an existing brand to market a new product that is certainly usually belonging to another product category. This is usually done by companies make use of sustained brand equity or a brand’s long-term sustainability and net worth on their advantage.
The effectiveness of brand extension however, depends on how consumers strongly depend on the values and goals of certain brands. In the 1990s, it was revealed that about 81% of the new products already in the market were launched through this strategy. This was seen as an affordable way of reducing financial risk resulting for promotional activities as very well as improving the perception of consumers on core brand importance.
Nevertheless, companies that use brand extension as a strategy should certainly focused on the successful launch and promotion of new product as this can also potentially damage brand equity or lower the value connected with core brand.
A new product may also be launched to be a product extension. This marketing strategy paves way for the introduction of any new product serving another market segment but is closely regarding an existing product.
In short, it is a new version on the parent product. Several firms have taken on this strategy to exploit brand awareness and brand loyalty. Normally, consumers are likely to obtain a new product if it carries with it a company that they trust. Among the companies that have successfully implemented it is Coke when it launched its Diet Coke product.
Unfortunately, brand extension or product extension seriously isn’t a recourse that all companies can use. Many companies have had to start from scratch as they put together new and innovative products to offer the public. For they then, it is mandatory that their managers should come up with new product metrics that they may use to assess how well the product is doing with regard to sales and market reach.
In addition Feature Articles, these metrics will supply an accurate information support that managers can use as basis with regards to future actions regarding their new product offering.