“Five Reason Companies Fail in Launching New Products”
There are several reason that companies fail in launching new products. It’s depending on company and product. Here is five reason companies fail in lunching new products.
1. Failure to understand consumer needs and wants: a company don’t understand consumers need and wants. Such as, picture phone crated to hoping augmenting telephone services with long distance and video chat. Picture phone was great technology, but it’s so expensive. They make product for trial and get feedback from consumer. Company ignore consumer feedback, needs and wants and launching product that failed.
2. Fixing a non-existent problem: Americans drinks cup of coffee every day. There are lot of different brand name coffee and consumer love it. They buy coffee packet from grocery store, coffee shop, and online etc. The reason is if coffee company lunching coffee packet they want make sure customer need and want such as on packet they to put nice and clear direction so, consumer make coffee quicker than go to coffee shop and standing in the line.
3. Bad Timing: timing is action of trying right moment in condition to launching product. Companies try to lunch new products in market but some time consumer don’t need a product or similar product already launching in market. For example, Microsoft’s Zune player a few years after apple launched its iPod and other competitors offered their new MP 3 players. Zune reviewed a problem that customer had with product. They can do nothing because it’s was wrong time to lunch product.
4. Incorrect Pricing: some time price in market too high or too low. Most of customer like to buy product on low price and staring new business have setting low price to attract consumer. The apple newton PDA failed because price was too high. Consumer cannot afford to buy newton if price is high customer can give up them needs. Picture below give us better idea and price compression between Walmart and Harris teeter.
5. Poor Execution: there are several example of affected the product performance on the market. An example, Microsoft’s BOB trust on knowledge most of users didn’t have that time. After that they found product is not function correctly. From other customer review most customer don’t want buy that product which is not function correctly.