Every year, new medical devices are introduced to the market by means of a “product launch”. As the market becomes saturated, it is increasingly difficult for the launch to make an impact on the market and the company’s bottom line.
Although the term used for market entry is always “product launch” the reality is that there are different sorts of product launches.
I’ve already discussed the success factors of a new product launch and itemized the new product classification and its consequences.
Today, I would like to cover the types of product launches and help you understand their differences.
Different kinds of product launch
The different types of product launches have strict ties to the various kinds of products the company developed and their characteristics.
The strategic decisions taken at the beginning of the new product’s development determine the product strategy and the product launch.
In my opinion, the value generated by the product is the key element in deciding the launch strategy.
As already discussed, the value of a new product has its distinct dimensions (clinical, economic and emotional, or psychological value), and the different stakeholders (HCP, patients, payers, etc.) can have diverse perspectives regarding the value created.
Product Launch (full scale or hard launch)
A product launch is a consistent and coordinated effort to bring a new product to the market. The goal of the product launch is to communicate the value proposition, build awareness, facilitate acceptance from early adopters, and eventually create a successful product.
The product launch requires the involvement of the entire company with different teams working together in a highly coordinated manner to maximize the launch potential. The senior management should orchestrate the launch, aligning all the involved departments, including sales, marketing, customer service, supply chain, event management, etc.
Furthermore, the product launch is not a single event but a process. Thinking of the product launch as a process may change your entire perspective about launching products. In fact, it is better to think of the launch as a series of marketing campaigns following the product life cycle.
A successful product launch not only leads to greater interest in the new product and sustained revenues. But it can also increase brand equity and boost the sales of the other products revamping a sleeping product portfolio.
The risk of a failed product launch is not limited to lost sales opportunities. Product launch failure can damage your brand as a whole and provide a poor return on the investment made to develop and register the product.
Soft Launch or limited launch
In our business, especially in some specific situations, companies prefer to limit the launch of a product, for example, geographically or to a chosen segment of customers.
In this case, we frequently refer to a soft or limited launch as a limited release of the product.
Although after the soft launch the company may adjust the product thanks to customer feedback, it is worth noting that from a regulatory point of view, the soft launched product is approved and registered.
There are different reasons for a soft launch; for instance, you need to collect more data to obtain reimbursement in a country, so you postpone entry into that market and focus your effort on other markets in the same region. It could also be that you want to check the acceptance and the performance of the product before scaling up. Soft launch can also be required because the availability of the product is limited. So, you release the product gradually or in phases.
The main difference between a soft launch and a proper launch is the level of preparation and investment. A soft launch introduces the product to a narrower market or a limited group of customers.
The results of hard launch and soft launch are different. If the product is soft-launched, it will take some time until the target market is significantly affected in terms of sales, brand awareness, and customer acquisition.
Furthermore, during a soft launch, the company can test the full marketing strategy to see what is most effective with its target audience. So, the marketing can adjust the message the company wants to use in the hard launch, allowing them to advance in the campaign testing stage.
Product Release
Product release is different from a product launch. Companies where market orientation is low frequently produce product releases and not product launches. The major difference between a product launch and a product release is that the second is not considered a process and entails a limited marketing campaign.
If the product is not able to create a substantial clinical and/or economic value, the product should be released and not really launched.
In today’s market, the big players that have powerful marketing capacities launch every new product building a compelling value proposition even if the value generated is not substantial. Whereas small and medium-sized companies, very often technology-oriented, tend to release products, missing the opportunity to launch.
Conclusion
My perspective regarding product launches is:
The product launch is a process starting at the beginning of the product development and continuing along the product life cycle. The product launch must be seen in relation to the development process on a time and process axis at the end and in relation to the product life cycle at the beginning. This is because the strategic decision made at a very early stage will have an impact on the launch and the life cycle of the product.
Next, the product release is less sophisticated compared to a full-scale product launch; it encompasses some of the activities of the launch, but it is not a full go-to-market activity. The risk with SME companies, where the marketing is less developed, is to confuse product release with product launch and consequently miss the opportunity.
Still on the key takeaways, remember that a soft launch is a limited launch. It can be useful to discover essential lessons in order to test messaging and campaign strategies for the product launch. A soft launch’s value will help to inform and direct a hard end, increasing its chances of success.
What do you think about the different kinds of new product launches? Share your thoughts below. Also, remember to subscribe or follow me on LinkedIn to stay up-to-date with future posts, and if you find this blog interesting, forward it to a friend.
Thanks for reading.