5 Reasons Companies Fail in Launching New Products
Almost everyday weather you are driving down the road, in a local grocery store picking up a few things for dinner, or even sitting at home watching TV there is always a business trying to advertise there product to receive more sales. There are many reasons companies fail in launching new products. In having a successful product the needs of a precise protocol containing specific steps that identifies a well defined target market, specific customer’s needs, wants, and preferences; and what the product will be and do to satisfy customers. There are marketing reasons for new product failures that are factors from marketing and nonmarketing problems. Let’s look at 5 important reasons.
- Insignificant point of difference
General Mills launched “Fingos” in the mid 1990’s. It was suppose to be a product where you could snack on without milk but instead the consumers didn’t see it that way. The product failed due to the fact not having a difference between potato chips and popcorn.
2. No economical access to buyers
This video is the perfect example of why new product failure is super easy due to the fact of existing products taking up all the shelf space. If you do get the opportunity of shelf space in a store it could cost up to millions of dollars, even if after spending millions your product is not guaranteed in making any profit. Your product must displace an existing product.Failure to meet enough sales for a requirement could get your product thrown off the shelves.
3. Not satisfying customer wants and needs
Just like any company they are looking to expand and grow there company. Colgate thought it would become a great idea to create frozen dinners. It didn’t grab alot of customers attention due to fact when you hear the word “Colgate” you think of toothpaste or mouth wash not frozen dinners. Many found it unappetizing.
4. Bad timing
Timing in launching a product could be just as crucial as product quality. The success of your product depends on the demands of the market at the time. Companies try to launch new products in the market that are similar to each other which is just gonna make customer choose of which is better. For example the Zune Vs Apple Ipod. Zune launched no longer after Apple but customers preferred Apple due to the fact it had more features.
5. Poor execution of the marketing mix: brand name, package, price, promotion, and distribution
This video is a great example of poor execution. Many marketing mixed pricing and promotions are found in cell phone companies. I don’t know about anyone else but I think cell phone companies are robbing everyone blind. They grasp your attention with promotions that only last up to a certain amount of time and once that time is up they raise your pricing up. If you are one of the unlucky ones there is nothing you can do, due to the fact you signed a contract. Not only that the hidden fees starts to add up.