How To Plan For New Product Launching In New Year? Read Now

 Today we will talk about what planning is needed to launch a new product in the market. Let us understand with the help of an example

Suppose you go fishing. Put the fish feed in the water and then check after some time then you do not find a single fish

This does not mean that the fish feed was bad. The problem was in the fishing planning

This means either you did not put the fish bait in the right way or you did not put it in the right place, there can be many such reasons.

Similarly, when you try to sell your product or service in the market without a proper execution plan and market strategy, you may not be successful and then you will get failure.

Product Launch Process

The thing to understand here is that your product is also like fish feed, but when you launch your product in the market by following the new product launch strategies in the right way, then you will definitely get success.

What Is New Product Launch Planning?

Production of new products. And then through small and big retailers to reach the customer successfully,

There are many things which should be taken into consideration such as - Production of new products, Selection/Filtering of retailers, Product sampling planning, Advertising on the shop related to the product, sales team group creation, etc.

These measure collective plans are called New Product Launch planning.

Six Important Parts of New Product Launch Plan

New Product Launch Strategy

1. ECO Planing
2. Volume Planing
3. Sampling Planing
4. Stock Planing
5. Visibility Planing
6. Capability Planning

1. ECO Planing

Effectively Coverage Outlet (ECO) This term may sound complicated to you. But there is no need to panic.

Effective coverage outlet means "in how many stores you can sell your products and services".

Let us understand the role of ECO Planning in product and service with the help of an example: -

Let's assume that I have many salesmen who sell products in different areas. One of them is a salesman, John, who works as a salesman in 6 areas.

Now I will tell him "John you have to launch this new product in the market and ECO should be 60% of all the shops you are in contact with

Since John has 6 Beats (Areas), each Beat has different types of shops. In which John sells various types of products.

John has to place orders (New Product) in 60% of those stores

Now John will be planning Beats & Outlets wise to place orders for the new product

Let's assume the areas John covers are
Salesman	Beats (Areas)	Outlets (Shops)
John	Albany	46
	Syracuse	37
	Valley Stream	36
	Cheektowaga	35
	Garden City	30
	West Nyack	27
		210

Suppose we are launching Hairwash shampoo, as we all know shampoo is a daily product, it will be sold in general stores only.

Now, what will John do with all the stores?

among them will filter, whatever general stores there are 

Then the filtered general stores will make a list.

Example:

Beat (Area)	Outlets (Shops) Names	New Product to be placed
Albany	General Store	Yes
	Medical Shop	No
	Daily Shop	Yes
	Store Mart	Yes

Now if John has a total of 210 shops, then according to the instructions given to him, 60 percent means he will have to place orders for new products in 126 shops anyhow.

You will have many salespersons like John. The same will be ECO planning for them as well. You have understood the ECO planning process. Now let's know further about volume planning

2. Volume Planing

As we told you in the previous example, John's filtered 126 outlets. One of them will be an A-class outlet, some B class, and some C class outlet.

John's products will be selling much more in many of those stores, some stores will sell a little less than that, and then in some stores, even less than that.

So in such a situation, John will have to create a list of High, Medium & Low sell outlets category-wise.

Will make some rules in the outlets made according to high, medium and low sales

Suppose 

20 new products are to be ordered into the per outlet from A class outlets, 

8 products are to be placed in per outlet out of B class outlets, 

3 new products are to be placed in per outlet out of C class outlets

Salesman	Outlet Class	No. Of Outlets	Volume (Pieces Minimum Sell In)	Total Quantity
John	A	21	18	388
	B	35	9	315
	C	70	4	280
		126		983

For the Entire Sales Group

Outlet Class	No. Of Outlets	Volume (Pieces Minimum Sell In)	Total Quantity
A	100	18	1800
B	180	9	1620
C	250	4	1000
	530		4420

The topic of volume planning is not over yet, it will end in the topic of Stock Planning. So, we are moving to the Sample planning topic

3. Sampling Planing

Many businessmen also do a sampling of their new products and this is also considered a good way for marketing plans/strategy.

So you can also do some specified number of sampling in A class, B class, and C class outlets and this sampling product number will be added directly to the volume numbers.

For example let's assume that if in A class outlets do 2 sampling at each outlet, in B class outlets do 1 sampling at each outlet and C class outlets do no sampling.

Outlet Classes	No. Of Outlets	No. Of Outlets	Total Quantity
A	2	100	200
B	1	180	180
C	0	250	0
		530	380

Till now we have crossed the first path of new product launch checklists. Let's talk about Stock planning...

4. Stock Planing

If you want to maintain your product's stock in a good way, then you have to keep the product stock loaded for at least 2 weeks, only then you will be able to build a successful lodge.

To maintain stock, a marketer needs to maintain stock of the number of products obtained by multiplying it by 2 by its volume quantity.

Suppose if you have started a new business and for the first time, you have promoted your product well as well as reached all the small and big retailers.

All the hard work you put into the product launch date/time will be in vain when the customer wants to buy the product again and when the customer will go back to that shop but due to the out of stock in the stores, you will not only lose the customer but also the shopkeeper's confidence will go away to you.

So somewhere in this, you may have to face a huge loss and you will also be out of the running market. That's why you need to maintain your stock quantity

Outlet Classes	No. Of Outlets	Volume (Pieces Minimum Sell In)	Total Quantity	At least 2 weeks Stock (*2)
A	100	18	1800	3600
B	180	9	1620	3240
C	250	4	1000	2000
	530		4420	8840

Now, we will do the final Stock Planing

Outlet Classes	No. Of Outlets	At least 2 weeks Stocks	Sampling Units Required	FINAL TOTAL VOLUME
A	100	3600	200	3800
B	180	3240	180	3420
C	250	2000	0	2000
	530	8840	380	9220

So finally we got the answer of Volume Plans to make our successful product launch.

5. Visibility Planing

Whatever the business, it matters whether it is an old or a new startup, it is necessary to have visibility.

You cannot gain trust from people until the information about your product reaches the people.

And visibility is one way you build a trusting connection with your customers. And when we are talking about launching new products, then of course we will talk about visibility here too. 

There are mainly 4 types of visibility window, poster, dangler, countertop. Not all visibility needs to be provided in all outlets

You should use the visibility only in the outlets where visibility is required. But let me give you some examples below in terms of visibility, which will give you an idea to use visibility like Window, Poster, Dangler, and Countertop

Outlet Classes	No. Of Outlets	Windows (Top 50 Outlets)	Posters (A & B - 2 per outlet, C -1 per outlet)	Danglers (1 per Outlet)	Counter Tops
A	100	50	200	100	50
B	180	0	400	200
C	250	0	300	300
	530	50	900	600	50

Now you must have got a good idea of visibility for your product launch success, so whenever you launch your new product in the market, keep the visibility in mind.

6. Capability Planning

When you have completed all the things for launching a new product and have not taken care of the capability, 

then all your hard work will be in vain because without good capability your business product will not be able to present well among the buyer persona.

For this, you have to train your sales team and distribution team with good knowledge about your product.

So that every salesperson in your sales team can present the product well among the retailer, there are some main things that a salesperson should definitely keep in mind

• Key messages: Product Features, Benefits, Margins
• Scheme Details and Retailer Profit
• product management/placement
• Where to use the visibility element and how much
• Must be aware of the company's customer support
• And also, how to solve the retailer's objection in an easy way

If you train your sales team keeping these things in mind and also launch your new product keeping in mind all the main points given above, then you will definitely get success.

Conclusion

Today you have understood the strategy of the Fast Moving Consumer Goods (FMCG) New Product Launch Planning process very well. You now know all the information that was necessarily related to the New Product Launch.