On 1st February 2013 Netflix released a new show.
It was a big deal. The first show to be produced by a studio directly for Netflix.
The show was ‘House of Cards’.
It was the story of Frank Underwood, an ambitious, immoral politician and his equally ambitious wife Claire. It was based on the 1989 novel by Michael Dobbs which had been adapted into a TV series shown on the BBC in 1990.
The show wasn’t original. But the way it was released was.
The series contained 13 episodes. Netflix released all 13 at the same time. It was the first time this had ever been done. Now there was no need to wait for a week until the next episode. You could just watch them one after another.
This fundamentally changed the way TV series were released. It also fundamentally changed the way we watch them.
Binge watching became a big thing.
So much so, that when a TV show releases one episode per week (a model some have gone back to) you probably wait until all the episodes are available before watching it.
Binge watching is still a big thing.
Why are we talking about this? There are thousands of new FMCG products launched each year. A huge amount of resource is invested in developing these products. Then persuading retailers to list them. Then launching them.
However, most new products fail. Some are poor products that shouldn’t have been launched in the first place. But many are good products that could (should…) succeed, yet don’t.
We believe that one of the biggest reasons for this is the way that most new products are launched. Most new launches follow a similar set of (explicit or implicit) rules. These rules often increase the chances of failure.
To change this, the approach to new launches needs to be different. To be different, you need to do different things. To do different things, you need to break the new product launch rules.
So, what are some examples of the standard launch rules and how can you break them?
When you communicate. Most communication happens once the product has launched. Yet most new products have a very narrow launch window. The typical cycle runs something like this. All quiet (you don’t want your competitors to know about it – though they likely already do.). Then boom. The big 3-4 week communication burst. Then all quiet again.
This is a BIG problem. The launch window for most products is much shorter than the average purchase cycle in the category. Your communication burst has been and gone before most shoppers have had a chance to see it. Even once.
Instead you need to extend the launch window. Prime shoppers. Tell shoppers that your new product is coming in advance. Tell them when you are arriving – e.g. “in store from X date.” Tell them where to find you. Which stores. Where in store. Tell them what to look for – e.g. “look for the big blue bottle.”
Shoppers can only buy a product if they know it’s there.
How you communicate. Because you are so familiar with the product (you’ve been working on it for the last few months) it is easy to assume that shoppers are too. So, you assume that the big “new” barker at shelf will do the job. Or you use a very clever message. Something that tested well in the concept test when studied in some depth. But doesn’t make sense for shoppers glancing at the product briefly.
Instead you need to spell things out. Make sure that shoppers understand the product. What it is – something that is becoming more important as categories blur. Why it is good – a compelling reason to buy it instead of the product they usually buy. When to use it – give it a role such as a snack, in a meal, after a shower.
To get bought, you need to be understood.
How you support it. Most new products launch with a (deep…) price discount. It might encourage some shoppers to buy. But they have bought at the promoted price, not the true price. Now you’ve set an expectation of the price they are prepared to pay. They have to really like the product to buy it again at full price. So, if they want to buy it again they wait until you are next on deal. Your promoted price effectively becomes your base price.
Instead you need to give shoppers different incentives to try & buy. Incentives that make it easier for shopper to try. Ones that reduce the financial risk of trial but don’t set future expectations of price. It could be introductory pricing. It could be a smaller pack. A reduced count. A trial size. A sample. It could mean giving money off coupons for the new product when shoppers buy one of your existing products.
The easier you are to try, the more likely shoppers are to buy.
So, take a step back. Look at your new product launch plans.
Ask yourself a question. Are they following the standard launch rules? If so, break them.
Don’t play the game, change the game.
Feel free to forward. Have a great weekend. We’re taking our summer break from blog writing so we can focus on sun cream & sangria. We’ll be back in September.