PBA :: Progress :: Spring2007 :: Launching a New Product
Professional beauty industry experts will readily agree that launching a new item and/or product line is very challenging in today's business environment. Surprisingly, many new launches fall short due to the lack of the proper preparation and knowledge regarding the marketplace.
Today, distributors (as well as salons) are taking a hard look before they take on new items. They want to be sure it fits into their business strategies. The consensus is that there is too much duplication and too many new products that do not serve a purpose. (That is why I am a strong advocate for promoting and revitalizing existing products that have already proven successful.)
In bringing a new product to market, a manufacturer must be prepared to furnish the distributor with the following support components:
1. Proof that the product makes sense
2. Evidence that the product works and lives up to its claims
3. Creativity in the product and the product promotion
4. Support for distributor shows and other forms of education (if applicable)
5. Effective marketing material and samples for DSCs and stores
6. Meaningful motivation for the DSCs and store personnel
7. Realistic pricing and profit structures
8. Added value for the end user
9. Product support in national trade magazines and distributor publications
10. Shipment of product and support material in a coordinated and timely manner (no backorders)
All of the above support is a very costly investment on the part of a manufacturer. The manufacturer has to realize that the ROI on new launches will be long term and not immediate. In today's world, it is unrealistic to tell a distributor that they only have only an extra 2 to 5 percent to cover the cost of introducing a new product.
When taking on a new product, the distributor, in turn, has the obligation to support the manufacturer's efforts 100 percent and must be willing give it the necessary time and attention. Many of today's successful distributors also invest time and money into new lines to partner with a manufacturer.
The good news for manufacturers that utilizes manufacturer reps is that they have a "knowledgeable, independent consultant" at their disposal. No one is more attuned to the marketplace than a good rep. In addition, if the rep agency is involved in the planning, they shoulder more of the responsibility in making the new product launch a success!
Our industry thrives on new, innovative and exciting products. It is still a place where small and large manufacturers have the opportunity to launch new items. One may have the best product in the world, but if it is not marketed in the correct manner, it will fall by the wayside. You usually have only one chance for a successful new product introduction; therefore, it is essential that you "get it right" the first time!
Gary Udell is President of Gerry Udell, Inc., a manufacturer's rep group based in the Northeast.
The firm is celebrating its 47th year in business. Gary is currently the only rep serving on PBA's
Manufacturer Leadership Council.
