Five Reason’s Companies Fail in Launching New Products
There are a multitude of ways a company can fail at launching a new product, here are the top 5 reasons for most fails.
- Insignificant point of difference: Have you ever heard the term “reinventing the wheel”? many companies come up with new products which essentially that, one example is Lays Stacks which are almost exactly the same as Pringles.
2. No economical access to buyers: What this entails is small brand vs. big brand, when it comes to getting your product in retail stores the big companies will always when, because space = money so to get just a few inches on a shelf at Walmart, Target, Harris Teeter etc. you need to be able to buy the space which is hard for companies that aren't already a big brand.
3. Incomplete market and product protocol before product development starts: This comes in during the R&D phase where a product must go through several steps to get approved and be ready for mass production. Where it goes wrong is when steps get skipped and the final product comes out bad, this can easily happen when a company is trying to beat another company for a release date. One example of rushing production is Chevrolet’s “Camaro Exorcist” that just came out on the same day as the new Dodge “Demon” now while its too early to see the results of this, you can predict there will be problems with the Camaro as it was rushed into production just so it could have the same release dates as the Dodge.
4. Not satisfying customer needs on critical factors: Where this is a key part is in branding. Would you buy a perfume from the brand Pennzoil? most people wouldn't and unfortunately companies think they will acquire customers by putting their brand on different products when in fact they actually hurt their brand image. One company that did a great job of this is kraft which actually owns well over 20 other brands, but keeps its name off the packaging so that the consumer would not know otherwise.
5. Bad Timing: Timing is everything, look at the new trend of fidget spinners, the nifty little product was actually invented back a long time ago in the 90’s and under patent, however at the time there was no demand for it, so the product didn't sell, however when the patent expired another individual bought it and now look its a $500,000,000 industry in 2017.