It is a very well-known fact that consumers tend to have a very close relationship with brands; particularly the brands they like or prefer using on a general basis. Most of the consumers tend to stick to one particular brand and buy products that belong to that one particular brand only. For instance, a consumer might prefer Evian water and would always buy the same when given a choice. Although most of the companies see consumer loyalty as a pro, however, this indeed acts as a major setback for the new companies who are planning to launch new products in the already existing market. Here are some Product Launch Statistics that will help businesses understand the market better before launching a new product.
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Why are Product Launch Statistics Important?
Most companies tend to be nervous before launching a new product in the market as to get customers to like, buy and pick their product over their default choices; it needs a proper mix of motivation, precision, innovation, and of course luck!
Therefore, for a successful product launch, pulling off an excellent product marketing strategy is a must. Poor communication, lack of resources, or a failure to gain investors might in turn result in turning things upside-down resulting in a not-so-desirable outcome.
A product launch plays a very crucial role in deciding the future of the product in the market. The launch helps the company in gaining new consumers along with giving competition to the already existing competitors; It further helps in expanding one’s company by increasing its reach. However, although it is a crucial step and must not go wrong, it is a common scenario to see product launches fail miserably. Below mentioned are the statistics regarding the same; kindly study the same in order to understand the reality of product launches in the present world of business.
Top Products Launch Statistics to keep in mind for 2022
Every product is different and so is its competition in the market. Therefore, based on the market conditions every product launch turns out to be different from the previous one. Therefore, instead of relying on anyone particular statistics, it is always advised to do proper research work in your concerned field, study your competitor’s patterns and strategies before making a final launch deal.
Below mentioned are 31 statistics that will help you gain a basic idea as to the functioning as well as obstacles faced by companies during their product launches.
31 Product Launch Statistics for 2022
- Professor Clayton Christensen from Harvard School of Business School claims that each year an approx. of 30,000 new products are released into the market for the customers to use. At the same time, almost 95% of them tend to fail. (Harvard Business School)
- According to rough statistics, out of all the products developed by the companies only 40% of them tend to make it to the market. Further, out that 40% only a sum of 60% manage to get any sort of revenue. (Marketing Research Association)
- According to a survey, around 63% of the testimonials claimed that they like when they are being offered a new product. (Nielsen)
- However, after a time stretch of 52 weeks, only 11% of the actual count of consumers tends to stay loyal. (Catalina)
- Talking about Automotive innovation, a survey states that around 75% of people wouldn’t mind paying more for it. (Lab42)
- A percentage of around 57% of the survey participants claimed to have bought new products during their last trip to a grocery store. (Nielsen)
- A fraction of 9 out 10 people tend to think that innovation, specifically brand innovation must have an impact on the buying force i.e. the society. (Forbes)
- A percentage of 42% (4 out of 10) consumers claim that they are less likely to purchase or try any other new product in the present times due to the current world events and the economic conditions. (Nielsen)
- Talking about the purchase of a brand new product or let’s call it the first-generation product, the percentage adds up to 62%. (Lab42)
- About the affordability of products, around 43% of consumers feel the need for a set of more affordable products. (Nielsen)
- The rate of failure for any new product launch in the market is as high as 70-80%. (University of Toronto)
- Out of the total count, while 24% of consumers wanted to explore better new food products, the other 44% of participants were in search of affordable products. (Nielsen)
- Around 56% of consumers claimed that their friends or families were helpful as a source of new product launch awareness. (Nielsen)
- While 63% of people tend to buy products that have been in the market for a long, the other 21% tend to buy them as soon as they are launched. (Lab42)
- A sum of 27% of consumers tends to believe that maybe a greater amount of products in the market might make their life a little easier. (Nielsen)
- ‘Lack of preparation’ is indeed one of the most common problems faced by most companies during any product launch. (Harvard Business School)
- Talking about the franchise (people who buy from a particular brand only) also tend to avoid any new products even the ones released by the same brand. (Catalina)
- Although startups claim to be the solution for the existing consumer problems yet around 42% of them fail to solve any evident consumer problem. (CBInsights)
- After a sum of almost 28 weeks, a product reaches 75% of its maximum distribution. (Catalina)
- A new product will be launched by 28% of manufacturing as well as industrial US-based companies. (Thomas)
- Most of the American households tend to the same sum of 150 items which is equal to almost 85% of their household needs. (Harvard Business Review)
- Only 3% of newly launched goods exceed $50million in the first-year sales. (Harvard Business Review)
- An average of $15 million is spent on the launching of a new product. (Forbes)
- 84% of consumers believe that the company they buy from must be innovative in nature. (Lab42)
- Around 83% of customers claim to be willing to pay more for innovative electronic products. (CustomerThink)
- A sum of 64% of consumers believes that an efficient new brand innovation can play a crucial role in improving society. (Forbes)
- According to business executives, around 43% of them agree that innovation is the mandatory competitive necessity for any product launch to be successful. (PWC)
- Out of the total count of consumers, the ones who purchase products as soon as they come out i.e. new products adds up to 65% and they are all men. (Lab42)
- While on the other hand, women (adding up to 59%) tend to buy products only when they have been out in the market for quite some time. (Lab42)
Is your Product ready for Launch?
Before actually launching your new product into the market for a harsh judgment by the public as well your competitors, there are a few things that your marketing team must take into serious considerations. A few can be listed down as-
- What is the main motto behind the launching of this product?
- Who are you competing against in the real world?
- How is your innovation different and better from the already existing products in the market?
- Which section or age group does your product concern?
- If the release of this product will serve an actual need or not?
- What strategy would you put into action in order to attract the customers and make them loyal to your product?
- What is your measure of success?
Wrapping It Up
Keeping these key points in your mind will help you focus better. This list will keep reminding you of the very purpose of this launch and will help you plan better. It will help you enhance your launching and promoting process with a clear-cut set target. Furthermore, along with these points, research is obviously the best step. Research your competitors, research the landscape and range of your company, and determine whether this particular launch will be fruitful for your company or not, research by sending out trial products to the customers and get their feedback on the same. Make the suggested changes, if any. Use social media monitoring and tracking to your benefit.
Developing a product to immediately hit the skyrocket of marketing is not an easy cakewalk. It requires research and planning. It is important to know your audience and their needs; after all, they are going to be the best judge of your products. It is always better to stay up to date with the market and figure out the un-served needs of the public. Further, act accordingly on the same. Research, indeed, is the best go-to option for any successful product launch!
