New product launches are a vital growth lever for brands, especially given the shortening product lifecycles and increasing consumer demand across diverse categories in India. Keeping the business challenges in mind, Amazon Ads released a thought-paper titled ‘New Product Launch Strategies to Drive Business Growth.’ This paper provides a deep dive into the various types of new product launches - from refreshing existing products to expanding into entirely new categories - and the tailored marketing strategies that can be applied for each approach. By understanding the objectives, audiences, and optimal launch channels for different launch types, companies can plan their strategies in an ever competitive and dynamic scenario.
What’s the purpose of announcing the thought-paper on new product launches?
New product launches have always been a key growth lever for brands. In recent times, they have become all the more important. In the last three years, an average 50 per cent of annual company revenues were derived from new product launches across sectors. However, a successful product launch depends on a number of factors, the most important being the launch strategy. This thought paper provides a structured way of thinking towards product launches, that can help brands plan new product launches. This comprehensive paper is a starting point for brand managers, business leaders, and marketers who are looking to launch a new product.
Why have new product launches become even more critical for brands?
New product launches have become increasingly important due to several key trends. Today, product lifecycles have shortened driven by faster technology disruption and consumer preferences are rapidly changing. Consumers, especially young adults, are more willing to try new products that meet their requirements. Additionally, the number of new brands across categories are increasing because digital-first business models have lowered barriers to entry. This helps in meeting unique needs of consumers.
What are the key objectives that companies have in mind when launching a new product?
New product launches are a significant source of revenue for companies and they can help a brand achieve several business objectives. First of all, in today’s evolving landscape, introducing a new product can help a brand gain competitive edge in its category, that can help increase overall revenue. Secondly, a new launch can also address portfolio gaps by either matching or exceeding competition’s offerings. Additionally, when a product experiences stagnation or decline, a new launch can help extend the lifecycle of the existing product. Further, launching a new product could help reach previously untapped audiences and diversify customer base. By aligning new product launches with key objectives, companies can drive sustained growth and maintain a competitive edge.
Can you explain the different types of new product launches outlined in the paper?
How does a business decide which launch type is most suited for their goals? In this thought-paper, we highlight four types of new product launches. First, Refresh through feature or design upgrade. This can be considered when a business wants to extend the lifecycle of existing products to maintain competitiveness. Second, extend where companies launch new product variants or extend into other categories. This is best suited when a business wants to expand addressable audiences. Next is Innovate which introduces industry first disruptive products. A brand that wants to establish a competitive edge through radical innovation may take this approach. The fourth one is Expand which launches a brand into a completely new unrelated category, ideal for a company that wants to drive transformative growth beyond the core business.
Can you walk us through the journey of a new product launch and the marketing priorities in each?
New product launch essentially has a three-phase journey. Pre-launch focuses on building awareness, interest and generating pre-launch leads or registrations through immersive content, and lead generation campaigns among others. In the Launch phase, there is an emphasis on driving immediate footfall, trials and early sales through high-impact media, influencer partnerships and promotions. The Post-launch balances brand-building and performance marketing to drive sustained sales, leveraging always-on advertising, endorsements and promotions. Investments and marketing strategies may vary across these phases based on each launch type.
Which Amazon Ads products can help brands effectively execute their marketing strategies at each launch stage?
Amazon Ads offers a range of products and solutions that can help businesses achieve their advertising goals. With our insights, reach, and premium entertainment properties, brands can connect with the right audiences in the right places, both on Amazon or wherever they spend time. With our suite of products, we can support brands across all phases of a new product launch journey. For instance, in the Pre-launch phase, display, video ads and branded stores can help build awareness. During Launch, when sales are important, product placements, sponsored products, sponsored brands, and Amazon Live can help drive trials and drive sales. For sustained long-term performance, in the Post-launch phase, sponsored products, display ads, and Alexa ads can help. A brand can effectively integrate these Amazon Ads solutions into their marketing strategies for optimal impact
To download the thought-paper and learn about the strategies for effective new product launch, click here
