I. New Product Launches Need Promotions

  1. Product Promotion Promotions can prompt consumers to make risky purchase decisions. Buying a new product is inherently risky, but with promotional incentives, consumers naturally weigh benefits against risks, change habits, and make new purchase decisions. Thus, promotions strongly promote products, especially during market entry.
  2. Incremental Profit Promotions may encourage consumers to establish buying (consumption) habits. Based on the economic principle of "path dependence," consumer purchase decisions are heavily influenced by the inertia of previous purchases (especially the first three and the most recent). If promotions induce purchases and consumers are satisfied, habitual buying may form. Additionally, if the promotion period is short or conditions are targeted, consumers may advance or bulk-buy to secure extra benefits. Therefore, effective promotions can generate incremental profits.
  3. Countering or Attacking Competitors Promotions can be a quick and effective way to counter or attack competitors. As market competition intensifies, many companies are forced into price wars. Promotions are an effective form of disguised price competition. Based on market needs, well-designed promotions can reduce competitive impact, create barriers, and render competitor attacks ineffective. Thus, most new product launches feature heavy promotions. However, beneath the surface, there are many misconceptions about new product launch promotions. II. Misconceptions After New Product Launch Promotions
  4. Substituting Promotions for Regular Sales After a new product launch promotion, sales rise significantly and the user base expands. Some companies become complacent and continue heavy promotions, substituting them for regular sales. This leads to promotion dependency, resulting in a vicious cycle: "sales only with promotions, no sales without." Promotions are a double-edged sword; used well, they win battles; used poorly, they harm the company. Substituting promotions for regular sales reduces consumer novelty, numbs the market, diminishes marginal returns, and ultimately damages profits.
  5. Disconnect Between Marketing and Sales Promotions are a marketing activity, but they ultimately serve sales. However, after promotions, marketing and sales often become disconnected. After a new product launch, promotions are led, executed, and summarized by marketing, leaving sales in a subordinate position. Many follow-up tasks require sales, such as post-promotion trade relations and improving regular shelf space. III. Post-Promotion Tasks for New Product Launches
  6. Expand Regular Shelf Space Regular shelves are where consumers frequently buy and where companies can display products long-term after initial investment. Expanding regular shelf space stimulates repeat purchases and generates profit. If companies focus on special displays but neglect regular shelves, they miss the opportunity to sustain sales growth through regular shelf visibility after promotions end.
  7. Improve Trade Relations In a sense, supermarkets and hypermarkets appreciate company promotions. On one hand, increased sales boost their profits; on the other, consumer traffic is a key performance indicator. Low promotional prices make consumers perceive the store as offering good value, attracting more shoppers. Sales staff should leverage this to build strong trade relations, which aids future product listings, shelf placement, and promotional materials. Good promotions, product placement, and materials also boost overall sales, creating a win-win for both company and retailer.
  8. Increase Store Penetration Promotions create strong sales momentum at the point of sale, making new products stand out. Sales staff should seize this opportunity to expand market coverage according to the marketing strategy. For chain supermarkets, use the promotion to expand across the entire system. For non-chain new stores, leverage the momentum to open new accounts, effectively utilizing promotional resources to increase store count.
  9. Build the Sales Team Terminal promotions bring benefits, but more importantly, they train the team and boost confidence. The success of each promotion depends not only on planning but also on execution capability—every stage, link, and detail must be handled meticulously. Promotions should progressively improve execution, establish correct work habits and awareness, and contribute to team building.
  10. Leverage Information Consumers are the target of promotions, and meeting their psychological needs is crucial. A successful plan does not mean the initial assumptions were correct. We must use every consumer interaction to gather feedback, summarize, and analyze, providing a basis for future promotions. Customer registration forms offer valuable data for product planning. By fully utilizing this information, companies can adjust promotional and marketing strategies, and fine-tune new product plans. In conclusion, terminal promotions should not be seen merely as a sales-boosting tool, especially for new products. If used solely for that, it leads to promotion dependency and haphazard promotions. Each promotion should combine various good purposes to maximize returns on fixed costs and improve cost-effectiveness. Therefore, abandon the old mindset where product promotion, sales increase, or competitor attack is the sole purpose. Instead, integrate promotional goals effectively, leverage the sales team's initiative, and execute accurately under a well-designed plan. Then every promotion will yield greater and longer-term benefits for the company!