The Secrets of a Successful Product Launch Want to break into a market full of competitors? No matter how crowded the field, you can still leap way out in front.
By Don Debelak
Opinions expressed by Entrepreneur contributors are their own.
The Entrepreneurs: Scott Androff, 44, and Bruce Hilsen,56, co-founders of Twin Star Industries in Bloomington, Minnesota
The Product: Atmosklear Odor Eliminator, introduced in1998, is a nontoxic, biodegradable spray that eliminates odors. Theproduct is different from other odor fighters because itdoesn't just mask an odor; rather, it chemically attackswhatever is causing the odor. Androff developed the product in 1997after his grandmother broke her hip and couldn't let her dogout regularly.
About 30 percent of Atmosklear's customers are individualswho buy from Twin Star's toll-free number or Web site; the restare businesses with odor problems, such as hotels and cardealerships, and retailers such as hardware stores. Atmosklear isalso sold on a private-label basis to GM. Spray bottles sell for$9.99 each, while a case of Atmosklear runs $200. Atmosklear is nowlooking for entrepreneurs who want an exclusive territory to expandtheir sales.
Startup: approximately $5,000
Sales: $800,000 in 2003; $1.5 million projected for2004
The Challenge: Introducing a new product into a crowdedmarket and competing against giants like Procter & Gamble
New inventors tend to lose heart when they realize howchallenging it can be to launch a product that competes directlywith well-known goods from large corporations. Clearly, ScottAndroff and Bruce Hilsen's odor-eating spray faced its share ofcompetitors, but that obstacle didn't deter these businesspartners from achieving success. They were determined to get theirproduct in front of customers to prove it worked. The strategysucceeded, and it didn't break their budget. Here's howthey built a million-dollar business in a market already teemingwith odor sprays.
Steps to Success
1. Demonstrate that your product works. There are atleast 15--and probably dozens more--odor-fighting products on themarket. People can't tell by looking at the bottle whether theproduct works, so the only way to sell the product is through aconvincing demonstration. Androff's strategy was simple:"I knew cat urine was an obnoxious odor that most peoplerecognize. We spray a small amount of liquid with a cat-urine-likeodor in a [paper] cup. People can smell how bad it is. Then wespray some Atmosklear, and the odor is gone. People smell nothingat all."
Prior to doing demonstrations at trade shows and receiving mediapublicity, sales had been slow. Says Hilsen, "We tried ads afew times, but each ad generated very few sales."
2. Find where you can make a difference. Of course, ademonstration won't help if people don't want to see it. SoAndroff and Hilsen chose prospects for whom they knew odor was apersistent problem. Androff describes their early sales: "Istarted calling hotels, because Bruce knew from previous experiencethat they were always trying to get rid of smoke odor. I'd callto set up an appointment, and Bruce would give a demonstration.Then I would call back and get the order."
Hilsen feels it has been important for Atmosklear to target theright markets. "Our product can be used everywhere, but we aretoo small to sell everywhere," he says. "So we try toconcentrate on markets where we know people need us and the salesare easiest to make." Other key markets targeted were car,boat and RV dealerships.
3. Use low-cost promotion tactics. Androff used the mediato generate early product exposure. (In fact, articles aboutAtmosklear have appeared in more than 120 magazines andnewspapers.) His strategy, though, was more complex than sendingthe same release to every magazine. "I started by deciding ona market," he says. "Then I found out what odors wereparticularly troublesome. In the car industry, for example, it wasmildew and smoke odors. Once I knew the odor problems, I figuredout a protocol, or how the product should be used. Only then wouldI send the release to the magazine, and I followed up every releasewith a phone call to the editor."
Androff used a Bacon's Directory, a media directoryfrom Bacon's Information Inc., to find magazines for histargeted industry. Bacon's has the best information aboutmagazine and submission policies, but the resource is typicallyfound only at large libraries. The directories can be orderedonline here, but the cost is several hundred dollars each.You can also use the Standard Periodical Directory OxbridgeCommunications) and the Gale Directory of Publications andBroadcast Media (Gale)--available at libraries--to findmagazines focused on your target industry.
4. Add a personal touch. Androff and Hilsen answer mostof the calls that come in to the company. According to Androff,"We depend heavily on personal referrals. To get that, we haveto be sure that everyone who uses the product succeeds. We explainwhat the product is like, how to use it, and [we] tell people tocall us if they have any problems."
That kind of customer care is also what has helped them landbigger deals, says Hilsen. "When a cruise ship or a hotelchain calls, they get to talk to Scott or me," he says."We find out exactly what they want and give it to them. Weare able to [convert] a high percentage of calls to orders becausewe don't rely on telemarketers. We know the product and how toexplain why it is better."
5. Leverage your breaks. Androff and Hilsen haven'tconcentrated on retailers, because it's difficult for aone-product company to break into a retailer when the productcategory is crowded. However, they do use press releases topenetrate some retailers in a market. Androff details how thestrategy worked after a recent release in Charlotte, NorthCarolina: "Once we knew [an article was coming] out, we calledhardware stores in Charlotte, [told them] about the article andasked them to stock the product. Then, when we ship the product topeople, we mail out postcards telling them what local retailers nowcarry the product. That's been our most effective tactic forestablishing retail distribution on limited marketingdollars."
Lessons Learned
1. Customers with needs keep looking. After trying dozensof different air fresheners, why are potential customers stillwilling to try yet another new product? It's because theyhaven't been able to find a product that works for them andbecause they have a need that won't go away. Customerswon't keep looking if they are happy with the productsthey're using or if the problem just isn't that importantto them. But a smelly room in the house is a problem that won'tgo away--and people will keep trying products until they find onethat really works.
2. Allow your business to evolve. When you're upagainst heavy competition, you can't just force your way intothe market, especially if you are under-financed. Instead, keepplugging away, and take advantage of opportunities as they presentthemselves. Otherwise, you'll spend a whole lot of money beforeyou figure out how to sell your product. Inventors who are tooanxious for success are usually disappointed.
3. Sell products over the Internet. Plenty of Internetretailers have collapsed, but that doesn't mean the Internetwon't work for you. The secret to Internet sales is to havecustomers who are looking for you. A product with strong publicityand good word-of-mouth sales will often do well online. TheInternet also works when customers have to find a solution to aproblem. Androff's contact with GM started when a dealer hadvehicles with a mildew odor due to leaking water seals. Thedealer's service person tried everything to solve the problem,including all kinds of products he found on the Internet.
4. Let customers try your product. When people aren'tsure whether a product will work, they like to try it out. Theyaren't comfortable buying a product in a bottle if theycan't be sure it works. Publicity works because you are gettingan endorsement that a product works from an impartial party.Demonstrations work because they offer prospects firsthandexperience with the product. But with many products, you also needto be prepared to send out free samples so people can test theproduct. Otherwise, they just won't be convinced it willwork.
Need Some Help?
These sites are chock-full of useful information for bothfirst-time and experienced inventors:
- Invent Now:This is the website of the National Inventors Hall of Fame inAkron, Ohio. The site has stories about famous and successfulinventors as well as a short online workshop on the patentingprocess, which gives new inventors a good overview of patents.
- Lemelson-MIT program: This site features an onlineinventor's workbook that's useful for all inventors, nomatter what their experience level.
DonDebelak is author of Entrepreneur magazine'sStart-Up Guide #1813, Bringing Your Product to Market.
