How to Create a Commercialisation Strategy for Success
April 6, 2017
#StrategyforSuccess No.3: As we’ve heard so far, having a solid commercial strategy is critical to the success of a product or service. So how exactly can you go about building a commercialisation strategy for a new product or service? In the final blog of the series, we drill down and take a look at how you do just that.
When launching a new product or service to the market, it can be difficult to know where to begin. Here’s a step-by-step guide to help you to create a solid commercialisation strategy for your latest product or service.
1. Lay out your goals
The term commercialisation strategy may sound intimidating, but can be easily understood as the means by which you can manoeuvre your organisation from point A (where you currently area) to point B (where your company wants to be).
The first step of creating any commercialisation strategy, therefore, is to lay out your business proposition and determine your objectives. Try and think about your innovations as business prospects. What exactly does your product or service offer your customer? How does this align with your overall business objectives? Once your goals are set, you can then work out the steps you need to take in order to meet those objectives.
Questions to consider:
– What do you want to achieve as an organisation?
– What is your business proposition?
– How much revenue and profit are you hoping to generate through your product or service and by when?
– What do you want your product or service to achieve in the short- and long-term?
2. Scope out the landscape
The next step is to research and understand the market landscape. Who are your customers? Who are your competitors? How can you stand out from the competition? Where will your product or service be positioned in the market? What can your product or service offer customers in comparison to your competitors?
By taking a long, hard look at what is going on around you, you will be able to better understand and more effectively exploit the market in which you are operating. Use this detailed analysis to inform your route to market and service and operations strategy.
Questions to consider:
– What is the overall market value?
– What percentage of the market share does your organisation hold?
– Who are your target customers and how should you meet them?
– Who are your competitors and how can you out-perform them?
3. Plan your route to market
You’ve got your destination goals in mind and sussed out the market, so now it’s time to plan out how you are going to get your product or service out there. For this part of your commercialisation strategy, try to lay out exactly how you will launch your product or service to market. Will you pitch to big retailers in the aim of getting your product on their shelves? Will customers buy through your own website, or that of another online retailer? Use your market, competitor and customer research to think about how you will most effectively sell your product to your customers, and how they will purchase your product or service from you.
Questions to consider:
– How are you going to launch your product or service?
– Where and how are you going to sell your product or service?
– How are you going to distribute your product or service?
4. Develop your service and operations strategy
Service and operations are crucial yet often neglected parts of a commercialisation strategy. Planning for what happens once your product or service is out there in the marketplace is as important as planning for your product or service launch. Consider your value chain, and whether you are going to outsource certain elements of production, distribution, or customer service.
Also, ensure that your business has a solid organisation structure in place, and factor in any additional resources that will be required to guarantee the smooth running of your service. Last but not least, think about your pricing structure, and how many sales are required to make enough revenue for you to meet your targets. Processes and procedures are also important to make sure that services are run sustainably and that any problems are swiftly mitigated in the appropriate way.
Questions to consider:
– What is the value chain for your product or service?
– How will you look after your customers post-purchase?
– What processes and procedures do you have in place for when things go wrong?
– Will your business require any additional resources in order to meet your objectives?
– What is your business model?
– What is your pricing structure?
5. Marketing
Finally, consider how you will promote your product or service. Whether you are going with an agency or in-house, put together a clear budget and strategy for how you will spread the word about your new products or services. Be aware that not all marketing channels are effective for all products or service, so focus your time, energy, and money on the ones that matter.
Questions to consider:
– How will you spread the word about your product or service in order to drive sales?
– How much money are you willing and able to spend on marketing?
– In-house or agency?
– Which marketing channels will be most effective?
Good luck!
Check out the previous blog in our #StrategyforSuccess series here:
How to take your product or service to market
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