Launching High-End Products in Tough Economic Times
Joseph P. Kennedy, American businessman and ambassador once said, “When the going gets tough, the tough get going.” These are wise words to keep top-of-mind even during a recession.
You have invested much time in developing a great, high-end product, and are in the process of planning the launch. Then, as with Murphy’s Law, if anything can go wrong, it will. An economic crisis hits and you face the possibility of not launching the product at all!
This is what happened to us recently with the launch of our new high-end line of kitchen appliances. Instead of scrapping years of hard work getting to the launch point, we “got going.”
Along the way, we learned a few valuable lessons:
• Success can often be viewed as a failure if you don’t set clear expectations with internal and external stakeholders for your volume and pricing goals. Establish a clear benchmark at the very beginning so that everybody within the organization is on the same page.
• Are your retail customers capable of selling your high-end products during a tough economy? Focus on core retailers that have a strong share in your target market segment.
• Create short- and long-term marketing plans. Create a modest marketing plan for the immediate product launch, keeping in mind retailers’ possible difficulties in investing in inventory. Think of creative ways you can support retailers during this time. Plan ahead for future marketing activities as economic tough times will end and consumers will potentially be seeking out your product.
• Adjust the balance between emotional and functional benefits. During poor economic periods, consumers are looking for product features that offer real value and meet their needs, rather than items that just offer them a perceived status.
