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A Question of Timing – More Answers

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How do you ensure that you launch your new product at the right time?

My immediate answer to this question from an eager MBA student described factors such as overall business plans, product readiness, competitive launches, and seasonal cycles. What many of us tend to ignore is that successful timing of a new product launch is very often not within the control of the company. Yes, you can set a deadline and get your internal team to stick to exact timelines, you can even get suppliers to adhere to your timeline, but the market is constantly changing.

This means that the risk of a timing error is always present.

There are ways to mitigate that risk. These include conducting a soft launch rather than a much-trumpeted splash, executing a phased rollout rather than an all-out launch, engaging in activities that win customers over a period of time rather than in the first go, and staying in the market for longer than you initially planned to.

Conducting a soft launch often goes against the grain of current thinking, where movies are launched with much hype in order to capture as much revenue as possible in the opening weekend. Using every possible channel to publicise is the norm. However, a slow process of selling through a limited set of channels, encouraging word of mouth and building consumer pull might be a better option if the risk of timing error is serious.

Executing a phased rollout could mean enhancing your offer over a period of time. India’s only profit-making airline IndiGo launched with a single aircraft, with a plan to add one new plane every six weeks. A similar option is to launch the offer in a few selected markets at a time, although the goal might be to serve the national market.

Engaging in activities that win customers over time means that while the launch itself might be low-key, the company is in the market for the long run. This requires being consistent, and if communicated well, will lead to loyal customers. It also requires a set of success metrics that are not necessarily the typical ones of awareness, trial, usage and repeat purchase. It also might mean staying with the market for longer than you initially planned to, so that you tap into favorable conditions when they arise.

Very easy to say, not so easy in practice. But then again, the answer to the question of perfect timing lies with the team behind the launch.

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A Question of Timing

Posted on by

How do you ensure that you launch your new product at the right time?

We had neared the end of my lecture to a class of first year MBA students: an hour of what to expect in b-school and an hour on the success and failure of a new product launch, covering the gamut of Ford Edsel to New Coke. It struck me that, quite naturally and somewhat disappointingly, I did not have a “right” answer to that question.

The timing of a new product launch is often determined by factors such as overall business plans, product readiness, competitive launches, and seasonal cycles. The 10-year growth strategy might have specific time points for particular new launches. The new product development team would have certain limitations and capabilities that determine when the product would be ready. The new product might be launched quickly in order to be the first to market, it might be launched later in order to take a competitive launch head on. Several product categories such as consumer goods are in higher demand during particular times of the year, and launching them then would make the most business sense.

But what do you just before the rains if the technology for your new umbrella is yet to be transferred from China? What if your R&D department has gone through multiple rounds of development but is nowhere near a good product, with only two more months to go before your scheduled deadline? What if your competitor got there faster?

The real world includes delays and uncertainties, risks and new developments. Timing the launch of a new product is not always within the control of the company. More on this in my next post ‘A Question of Timing – More Answers.’

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