The four Ps – Product, Price, Place and Promotion – are the key elements that both affect one another and play an important role in making any product a success.
When launching a product, it is essential to get the pricing and promotion right. But first, it’s paramount to look at your finances so you know what you’re working with.
Financing the product
It is often the case that you begin by financing your dream and then need to secure a loan or investment to grow further. If you do decide to get a loan, it’s important to pay it off in full very quickly. Later on, you could look for outside investment in your product, but in the early stages, this is unlikely to happen as most investors only want to give money to tried-and-tested products. Even then, investment might not be for your business because it can compromise your product for profits.
When it comes to profit margins and costs, you essentially have to work out how much it costs to produce and promote your product, and factor this into the price. Carry out some competitor research; what are their products priced at? Work out how much each product will make when you factor in production and promotion costs, as well as the cut your distributor or retailer is entitled to.
To ensure the survival of your product it is vital to think about who you need to reach to get your product out there on the shelves. Then it’s time to source personal email addresses of the store product buyers or distributors because people only reply to a personalised approach. Sending an email to an address beginning ‘info@’ almost never bears any fruit. It will be time-consuming to track down the right email addresses, and you’ll probably be disappointed in the response rate. However, it is important to not give up. You only have to receive one yes and it could change everything for your brand. Hiring a freelancer to help share the load could be a worthwhile investment.
Once your product has launched, you need to ensure that your promotions and communication are on point. Here are a few great ways to get your product out there to your target market and keep potential customers up-to-date with what you’re doing:
Newsletters can create a communication channel you didn’t expect, putting your product at the forefront of a buyer’s mind, and can increase traffic to your website. Once you have compiled a database of email addresses, sending out a regularly updated newsletter keeps potential customers in the loop, too. Take the time to make it look professional, using eye-catching graphics and revealing the latest news. You don’t want to overload the reader with information, so making it quick and easy to read is key. The aim is to inform them, not annoy them.
If someone replies, they will often want to know more, and fast. A press pack at the ready is vital to give them all the information they need. But nothing sells quite like a sample of your brilliant product.
Brand endorsement and celebrities
There is nothing like a celebrity endorsing a product as a way to boost sales. Sales can skyrocket within hours of a celebrity promotion and it’s a powerful way to secure free marketing. Today, Instagram is the place to find influencers for businesses.
There are many things to consider when it comes to getting the price and promotion right for your product. Remember, the first impressions of your product and brand count, so everything you do should reflect your values and ethos. Taking the time to make the all-important decisions isn’t time wasted, it’s essential for your product’s survival.