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How can you evaluate the appropriate level of risk when launching a new product?

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Launching a new product is an exciting but challenging process that requires creativity and innovation. However, it also involves a certain level of risk, as you may face uncertainty, competition, and potential failure. How can you evaluate the appropriate level of risk when launching a new product? Here are some tips to help you balance risk and reward in your product development.

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1 Define your goals

Before you launch a new product, you need to have a clear vision of what you want to achieve and how you will measure your success. What problem are you solving for your customers? What value are you delivering? What are your key performance indicators (KPIs) and milestones? Having well-defined goals will help you focus your efforts and assess your progress.

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2 Research your market

Another way to evaluate the risk of launching a new product is to conduct thorough market research. You need to understand the needs, preferences, and pain points of your target audience, as well as the trends, opportunities, and threats in your industry. You also need to analyze your competitors and identify your unique selling proposition (USP). Market research will help you validate your product idea and refine your value proposition.

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Larry Gaynor

Founder & CEO @ TNG Worldwide | Gallup-trained, 100% Customer Success, Best-Selling Author, Amazon Top200 Beauty Reseller
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Thanks for reading my second article! USP is critical for success. My favorite tool for assessing USP? Amazon. As a Top200 reseller, I daily dive into the Amazon world to unleash new ideas, competitive data, opportunities and what’s trending. Why? It’s the everything store and everything is sold on the platform including your competitors products. This is your gateway to define your product attributes that will make AZ customers buy your product. What is your key differentiator? Highlight it in your title, on the packaging and in the bullet points. Then advertise at your max budget to get it on the first page. Tip: AZ has thousands of product categories. Make sure you select the right one, you can’t change later!

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3 Test your assumptions

One of the biggest sources of risk when launching a new product is making assumptions that are not based on evidence. You may assume that your product will meet customer expectations, solve their problems, and generate demand. However, these assumptions may not be true or accurate. To reduce the risk of launching a product that no one wants or needs, you need to test your assumptions with experiments, prototypes, and feedback. You need to gather data and insights from real or potential customers and use them to improve your product.

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Larry Gaynor

Founder & CEO @ TNG Worldwide | Gallup-trained, 100% Customer Success, Best-Selling Author, Amazon Top200 Beauty Reseller
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In my third and final article on this subject, testing and learning on AZ is the best. Why? Selling to retailers suck and mostly impossible to get into. Your own website has no eyeballs. Local stores have little need for your product. Launch AZ FBA. You bought the smallest quantity that made sense knowing you can reorder at any time. For an entrepreneur, these are our favorite two words: Sold Out! Don’t worry about being knocked off, your competitors have plenty other matters on their mind. Tip: Invest in advertising as mentioned earlier. It could take up to 3 months to get traction. After that time, you will know if your product is tracking or needs to be written off. Don’t ignore market fundamentals. Good luck in your launch!

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Victor Camon

Export Manager ALFAPARF MILANO Skincare -, America, Spain & Portugal - ?? Focus on Skincare and Medical Business
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Una parte fundamental es sin duda la de validar las suposiciones. Os pongo un ejemplo. Al lanzar un producto solar para deportistas al aire libre quisimos validar nuestra hipótesis: "el deportista no se protege cuando hace deporte" Tras varias entrevistas y ejercicios el 40% de los deportistas no solo mencionó que sí se protegía sino que no podía hacerlo con frecuencia al no tener el sistema que le permitía usar la protección frecuentemente. Por eso es importante validar cualquier propuesta si lo que quieres es vender a un público objetivo.

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4 Plan your launch strategy

Another aspect of evaluating the risk of launching a new product is planning your launch strategy. You need to decide how, when, and where you will introduce your product to the market. You need to consider your pricing, distribution, promotion, and positioning strategies. You also need to anticipate the possible challenges, obstacles, and risks that may arise during the launch phase and prepare contingency plans. Planning your launch strategy will help you optimize your resources and minimize the risk of failure.

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Victor Camon

Export Manager ALFAPARF MILANO Skincare -, America, Spain & Portugal - ?? Focus on Skincare and Medical Business
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Una buena estrategia es la que conlleva lograr vender el mayor número de unidades con el menor coste y esfuerzo. Sin duda algo ideal y lógico por lo que previamente tienes que haber estudiado bien tu público objetivo y mercado. Tendemos a hablar demasiado de nuestro producto cuando no somos capaces ni de entender a nuestros clientes. Aquí algunas ideas: - Crea un programa de afiliados pues te generará mucha visibilidad. - Trabaja una estrategia omnicanal donde tu exposición esté en el canal online, físico, B2b, B2C... - Busca embajadores de marca, le dará credibilidad. - Sé claro, simple y conciso. Sobre todo al inicio da más de lo que esperas.

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5 Learn from failures

Finally, one of the most important ways to evaluate the risk of launching a new product is to learn from failures. No matter how careful and prepared you are, launching a new product is never a guaranteed success. You may encounter unexpected problems, negative feedback, or low sales. However, instead of giving up or ignoring the failures, you need to embrace them as opportunities to learn and improve. You need to analyze the root causes of the failures, identify the lessons learned, and apply them to your next product launch.

Launching a new product is a risky but rewarding endeavor that requires creativity and innovation. By following these tips, you can evaluate the appropriate level of risk when launching a new product and increase your chances of success.

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Victor Camon

Export Manager ALFAPARF MILANO Skincare -, America, Spain & Portugal - ?? Focus on Skincare and Medical Business
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El mundo empresarial está lleno de estigmas y al fin y al cabo el objetivo no es disfrutar del camino. El objetivo es poder tener el éxito que necesitas y obviamente cuanto más entretenido sea mejor. Hay muchos modos de fracasar y obviamente eso puede ser un aprendizaje pero enfócate en trabajar en algo que conozcas - te lo digo por experiencia pues fracasé en un sector que desconocía -, no se trata de ser único y diferente sino de encontrar el público objetivo y darle lo que necesita. La constancia va a ser clave y rodearte de personas que te hagan mejor mucho más. Yo no perdería mucho el tiempo en temas burocráticos o propuestas inacabables de ayudas, céntrate en tu negocio y prepárate para tener que pivotar si no funciona.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Victor Camon

Export Manager ALFAPARF MILANO Skincare -, America, Spain & Portugal - ?? Focus on Skincare and Medical Business
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Una gran estrategia para validar una idea es realizar un smoke test. Se refiere a una prueba rápida y básica que se realiza en el producto antes de su lanzamiento oficial. El objetivo principal de esta prueba es verificar que las funciones clave del producto están operativas y que no hay fallas graves que impidan su funcionamiento básico. El "smoke test" en un lanzamiento de productos ayuda a garantizar que el producto cumpla con los requisitos mínimos de funcionamiento antes de ser presentado al público. Te permite verificar que tu producto funciona y al mismo tiempo que tu público objetivo está dispuesto a pagar por él. Y todo esto antes de lanzarte al vacío.

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How can you evaluate the appropriate level of risk when launching a new product?

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1 Define your goals

2 Research your market

3 Test your assumptions

4 Plan your launch strategy

5 Learn from failures

6 Here’s what else to consider

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How can you evaluate the appropriate level of risk when launching a new product?

1

2

3

4

5

6

1 Define your goals

2 Research your market

3 Test your assumptions

4 Plan your launch strategy

5 Learn from failures

6 Here’s what else to consider

Creativity Skills

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