There are thousands of resources on new product development online and offline. Most recommend the classic (or its variants) development process: Idea Generation, Screening, Concept Development, and Testing, Marketing Strategy Development, Business Analysis, Product Development, Market Testing, And Commercialization. And if well executed, the process is most effective. They all end at commercialization.
But because new product development is not exact science, no amount of preparation and research can predict with absolute certainty that a product will succeed in the market. Which invariably means that some products will bomb (New Coke is always a good example).
How do you know your newly launched product is bombing, why is it bombing? Can it be salvaged and how? Should it be salvaged or shelved?
In other words, you need to do a post-launch review. This is a model I developed for a client. Hope you find it useful:
The product review will be performed on two levels:
- Performance vs. projection measurement
- Market feedback
Performance Vs Projection
Compare actual performance with projection as regards: Volume, market share, and revenue
- Volume: Has the product been able to meet the projected volume of sales within a stipulated time?
- Market share: Has the product captured the projected market share?
- Revenue: Has it met its revenue targets?
Data and information sources:
Volume: sales and accounting; Market share: external industry sources; Revenue: accounting; Product Concept Document, PCD
- 100% + =Surpass expectations
- 100% = meet expectations
- 75-99% = good
- 50-74% = fair
- 40-50% = poor
- Below 40% = disastrous
Calculate the cumulative score and use score to make decision
- 100+ score: Retain the product without changing any variable
- 75-99%: Retain the product but make changes to some variables( as identified in the market feedback)
- 50-74%: Major changes in both marketing and product concept if the product is to be retained
- 40-50%: Drop except market feedback show a strong product relevance and positive market perception
- Below 40%: Drop
Use review channels to gather feedback on:
- Customer Satisfaction—to gauge how satisfied customers are with the product
And to know whether the product performed to its promise
- Product Relevance—to gauge whether the product meets a need gap in the customers lives
- Attitude—to measure customers dispositions to the product–positive or negative and to what degree
- Product Awareness—to measure (product and its benefits) awareness level in the market