Launching a new product: analysis of strategy formation and common launching mistakes

Abstract

Launching a new product in the market within any economic environment is always associated with risks. The article is devoted to describing various methods that allow avoiding or minimizing the possibility of economic fiasco when launching a new brand. First of all, these are various areas of preliminary analysis, namely a thorough analysis of the market size and its demographic characteristics, analysis of demand, competition in the market, the ratio of its size to saturation, analysis of legislation, infrastructure and logistics, the mentality of the potential consumers, the economic component analysis and exploration of channels for promoting a new product. This research also covers the study of the initial behavior of a new product on the market. Such information can also be reproduced in figures, and makes it possible to understand from which competing brands buyers were switched, what share of sales the new product took from the products of its own brand. The article also describes 5 mistakes when launching a new brand on the market, which, according to the authors, are the most common. The paper also examines concepts such as penetration strategy and skimming, which are part of the strategy for bringing a new product to the market.