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 an 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 blow (New Coke is always a good example).
How do you know your newly launched product is blowing, why is it blowing? 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
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 customer s 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.
Follow this up with Marketing Lessons from a Bus Ride.