The theory of a “cheap and expensive idea” for a product launch

Think of a cheap and expensive idea for a product launch involves finding ways to scale your launch strategies to match the available budget while achieving maximum impact.

Here’s how it works.

Cheap Idea

A low-budget approach focuses on creativity, leveraging existing resources, and maximising word-of-mouth.

Dropbox avoided traditional advertising and instead incentivised users to invite friends by offering free storage space.

1. Tactic: Referral program, a Viral Sensation.
2. Impact: It went viral because the cost of “free space” was much lower than traditional marketing expenses. Dropbox grew to millions of users primarily through referrals.

Dropbox was launched, and it introduced cloud technologies, which revolutionised file sharing at the time. For people to trust this revolution, they had to do their market research and know their target market and potential customers very well. Dropbox’s initial challenge was introducing a new product to a naturally skeptical target audience. They needed to build anticipation and overcome potential prejudice.
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Still in the pre-launch stage, they used a demo video as a teaser that explained Dropbox as a new product, looking into its features and basically tapping into its value proposition.

The video was shared on online platforms, where the target audience for this new product launch could see it. Online communities like Reddit and Digg buzzed like crazy and Dropbox saw numbers going from 5,000 to over 75,000 almost overnight.

But you can’t entrust your new product launch go-to-market strategy to a viral video and call it a day and Dropbox knew this. So they paired their early spotlight with a referral program and nailed not only their pre-launch but also their post-launch strategies. And that’s what makes Dropbox a product launch marketing genius and a massively successful product launch.

Expensive Idea

A high-budget approach often involves significant financial investments in paid media, events, and collaborations.

Apple’s product launches include meticulously produced live events, celebrity endorsements, and massive global advertising campaigns.

1. Tactic: High-profile launch events.
2. Impact: The hype created by such events ensures a high level of anticipation and immediate customer demand.

The Rock x Siri Dominate the Day – 2018

We can’t think of a better way to show off Apple’s new and improved virtual assistant than with the world’s highest paid actor. In this high budget Apple ad/short film, Dwayne ‘The Rock’ Johnson shows us that it does, in fact, matter what your name is (that one’s for the wrestling fans). Especially if your name is Siri. During this masterpiece, we see The Rock and Siri team up to take on the day. Together, they order a Lyft, fly to Rome, and pop to space for a selfie, showcasing Siri’s vast improvement since the days of “Hey, Siri, who let the dogs out?”.

Mission Impossible – 1996

In 1996, Apple partnered with Mission: Impossible, providing Ethan Hunt with all the tech he’ll ever need. The PowerBook ad, starring Tom Cruise as Hunt, is a compilation of footage pulled from the first installment of the franchise that features Apple’s products. This is a perfect example of Apple’s continuing relationship with celebrities and how they utilise it for powerful advertising.

Each year, Apple typically holds three or four events to unveil new products. There’s generally a spring event around March or April, the Worldwide Developers Conference in June, a September event focused on the iPhone and Apple Watch, and sometimes, an October event that usually includes Macs and iPads
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Key Considerations

To determine whether to apply a Cheap Idea or an Expensive Idea in a product launch, consider the following criteria:

Cheap Idea Criteria

1. Budget Constraints: Suitable when the marketing budget is small or the product is in the early stages of testing market interest.
2. Niche Audience: Effective for targeting specific, highly engaged communities or early adopters.
3. Organic Growth Potential: Works well when the product has features or benefits that encourage word-of-mouth or virality.
4. High Experimentation Flexibility: Best for testing multiple small-scale strategies to find what resonates before scaling.
5. Brand Awareness Level: Ideal when brand recognition is low and you want to build awareness incrementally.

Example: A startup launching a productivity app uses social media content and referral rewards to engage early users at a low cost.

Expensive Idea Criteria

1. Ample Budget: Feasible when resources allow for large-scale campaigns or premium initiatives.
2. Mass Appeal: Best for products designed for a broad or global audience where scale matters.
3. Established Brand: Works when a brand has enough recognition to justify a big splash and ensure significant ROI.
4. Speed of Impact: Necessary when immediate awareness, demand, or dominance is required (e.g., during a competitive launch window).
5. Complex Value Proposition: Effective when the product needs a sophisticated narrative (e.g., through high-quality video ads or experiential marketing) to explain its benefits.

Example: A luxury car manufacturer unveils a new model through a lavish event featuring influencers and prime-time ads.

Decision-Making Questions

1. What is the budget and timeline for the launch?
2. Is the target audience narrow or broad?
3. How much brand awareness exists?
4. What is the primary goal: slow growth or instant impact?
5. How scalable is the idea?

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