New-to-the-world products are one of several classifications of new products (please see separate article). Other classifications of new products include: new categories, product line extensions, product improvements and product repositioning.
As suggested by the name, a new-to-the-world product is one that is introduced by a company or an organization that has never been marketed all been made available to consumers before. In other words, the best way to think about a new-to-the-world product is to think of it like and new invention.
When it comes to inventions, we automatically think about technology and computers and science – typically where we would find a research and development area inside a large company. But new-to-the-world product can also be quite simplistic, such as a very unusual flavor of food, such as curry flavored ice cream.
Reasons to introduce a new-to-the-world product
There are several reasons to introduce a new-to-the-world product. Sometimes this is described as a “first mover advantage”, but here is a summary of the potential benefits of being first to market:
By introducing a new-to-the-world product the company should have a “monopoly” advantage for a short period of time. If it is some sort of technical or physical product, the company may be able to get a patent and prohibit other competitors from copying their technology or design for a period of time.
However, monopoly situations are generally short lived, as competitive companies simply need to develop alternative approach, design or technology.
Energize the brand
By bringing something unique the marketplace, it demonstrates that the firm/brand is exciting and innovative. This will help to build brand equity, should enhance customer loyalty and deliver increase profitability over time.
An exciting new product, that is attracting consumer demand, will make it much easier to penetrate retailers and gain a wider distribution and market coverage for the company.
Hand-in-hand with the monopoly situation (above) is the ability to charge a premium price and increase profitability, as there are no direct substitute products available.
These days there are a wide choice of professional and social media opportunities when bringing something new to the market. It is likely to generate product reviews and commentary from mainstream papers to an array of blogs and personal commentary by individuals through social media.
This enhances the ability to promote the product widely on a limited and/or cost effective promotional budget.
Risks of new-to-the-world products