Handling Marketing of Product Launches
Amongst many products in clothing, entertainment, and other markets, we see the audience being enticed by launch dates, and the products quickly being sold out. Rather than launching a full fledged campaign through retailers with a large inventory, we sometimes see success through a limited retail inventory, which is purchased online, and a small stock of more products being sold on the company’s website, being launched on all platforms at a time, and potentially quickly selling out. Today, we will review the pros and cons of running this strategy, and how to execute it properly.
To start, running these launch campaigns, or one or two launches before having a full inventory available, gives the seller awareness of their market. They know, without their own interference, how much interest their product is garnishing. For example, Nike will frequently launch sneaker releases on their app, “SNKRS”, and their product will swiftly sell out, creating not only interest in the product, but online media attention, which becomes free marketing for the company. Not only will you have interest in a second launch from people who missed out initially, but plenty of new consumers who frequently buy into products in the market and were initially unaware or uninterested. This is a great way for companies to control a limited amount of stock, and turn it into an eventual profit compared to if they were rich in resources. However, downsides do exist. If you do not act quickly enough on a second outrole of the product, those in your market who have a high supply of their competing product can take advantage of this. Also, a black market of your own product could form in some cases, as people who initially bought the product selling it at a much higher price. This can cause people to buy the product, or look to competitors, and it can dismay initial projects of sales.