In China, on average, two new products are launched every hour, while at least two are withdrawn from the market. Whether it's a company with over ten billion in scale or a small workshop starting from scratch, new product launches are always a necessary path for business development. However, while the average success rate for new product launches among Chinese companies is a mere 5%, P&G's global success rate exceeds 64%, and in China, across 15 brands and over 100 new product launches, the success rate reaches as high as 85%–90%. This contrast begs the question: why? P&G believes that in the fiercely competitive daily chemical market, the management process for new product launches is the most important among all work processes. Over the past few decades, P&G has established a standardized new product launch process and has revised it three times to adapt to changes in the market environment. In fact, in P&G's new product launch practice, eight fundamental principles consistently run through the entire process, and these are the magic weapons that make P&G's new products "launch without failure." Principle 1: Do not treat new products as the growth point for the current year's sales This is a critical strategic issue. A new product is like a newborn child; its value typically manifests 12 months after launch. Although it will bring some sales after launch, if it is made part of the annual sales target, the rigidity of the annual target may lead to short-sightedness and overreaching to achieve the goal. This can easily result in shortened preparation time, reduced necessary work processes, and neglect of product quality and completeness. Therefore, at P&G, new product launches are usually not a means to achieve annual targets but are seen as preparation for market growth in the following year. Principle 2: Establish a management process oriented toward customer value The fundamental reason new products succeed is that customers find them more valuable or unique compared to competing products. Therefore, correctly discovering and defining customer value becomes the key to success. In China, many companies' new product ideas do not originate from customer analysis but mostly from technology or managers' personal judgment. Moreover, they are often not validated during the launch period. This leads to a mismatch between the product and customer value. For example, a company developed a product to remove fat from the blood vessels of middle-aged men. Without careful research, it was launched. But after launch, it was discovered that the vast majority of men did not believe there was fat in their blood vessels and typically did not check. Many thought that a slightly plump middle-aged man appears mature and steady. At that point, the product was already on the market, caught in a dilemma, ultimately leading to launch failure and heavy losses. To avoid such problems, P&G explicitly states in its new product launch process that the essence of a new product is the product "concept," and the concept is customer value. In practice, P&G treats the development of the product "concept" as the first step in the entire new product development, and product development, advertising, and channel planning are all based on the product concept. To ensure the quality of the concept, a standard seven-step concept development method has been established. Principle 3: Scientifically forecast sales In P&G's launch management process, there are four forecasts of sales within 12 months after launch, each based on quantitative market research data. Then, based on the four forecasts, the launch budget is further estimated. Many companies, lacking scientific methods, often use simple extrapolation during the launch process. For example, a company planned to launch a smoking cessation product. The leader thought: China has 300 million smokers; even if only 1% try this product, that's 3 million people. At a unit price of 100 yuan, annual sales should be 200–300 million yuan. But after launch, disappointment followed. Fewer than one in 100,000 tried the product, and two years of sales were a pitiful 3 million yuan. A marketing director vividly described this launch process as five stages: ecstasy, awakening, confusion, regret, and punishment. However, P&G's four forecasts effectively reduce the blindness of launch preparation and help reduce and correct erroneous decisions during the launch. Principle 4: Establish an independent new product launch team with full authorization In China, traditional patriarchal and leader consciousness leads many core leaders to interfere in major decisions of product launches. Due to their high positions and authority, their words carry weight. In such cases, power often replaces scientific research and analysis, and failure often stems from this. To avoid such problems, P&G has established decision models based on market research for every key link in the market—concept, product complex, market complex, and sales complex. To ensure full commitment to the launched product, P&G separates new product launch personnel into an independent organization similar to a small business unit, requiring all members to work full-time on the product launch. Typically, the manager responsible for the new product launch makes decisions directly based on data, while senior managers play a supportive role, providing help when resources and coordination are needed. Principle 5: Introduce project management New product launches are the most complex and composite activity in all marketing activities, typically involving various departments within the company. To ensure the quality of the complex work, a project management approach is essential. P&G introduces full project management throughout the launch process, breaking down all work modules into 80 to 100 tasks, unified under a new product launch plan. Each task is pre-scheduled with time, responsible person, resource estimates, and quantitative goals. During management, project meetings are used, and QC is performed after each task. This step-by-step management approach makes the launch process orderly and reliable. Principle 6: Conduct small-scale market tests Before national rollout, conducting small-scale market tests is a standard procedure in P&G's new product launches. Tests are typically conducted in one or two relatively closed cities, lasting 3–6 months. By analyzing the test market, P&G continuously revises and improves its marketing methods. In fact, at P&G, even though every new product is 100% diligently prepared, nearly 30% of new products encounter problems in the test market. Pampers baby diapers, for example, discovered a flaw in the product concept during the test market, thereby avoiding huge promotional losses from a national launch. Principle 7: Use quantitative analysis support tools During the launch process, from determining the target market to evaluating the test market, there are nearly 20 key decision points. A mistake at any point can lead to difficulties in the product launch. To avoid these problems, P&G uses various scientific analysis support tools—such as concept testing, pre-advertising testing, packaging testing, target market demand research, and early brand assessment studies—to analyze the new product launch. These tests are conducted quantitatively and are mostly standardized. Principle 8: Decisively terminate projects During the preparation phase of a new product launch, as understanding of the market and product deepens, there is nearly a 20% chance of discovering insurmountable problems. At this point, timely and decisive termination is often the wisest choice. Many new product managers find it hard to overcome face and environmental pressures, even when problems are discovered, and launch anyway with a fluke mentality, often turning an original loss of 2 million yuan into a loss of 50 million yuan. In P&G's new product launch process, conditions for project termination are formally defined, and new product managers who discover problems and terminate promptly are praised to encourage an objective and pragmatic attitude. No matter how great a corporate strategy is, it relies on multiple successful new product launches to be realized. The existence and development of a company, in a sense, depend on whether it masters a set of new product launch methods with a high success probability. Facts have proven that establishing scientific processes and suitable organizations is the key to successful new product launches, and treating new products as future management is exactly the experience many international companies have summarized from numerous painful failures. 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