When you study new products or marketing in your university degree, you will find that many new products fail to be successful in the marketplace and that evaluation of new product, prior to development and launch, is critical.
This is perhaps surprising given that professional and experienced companies bring products to market after significant research and consideration. So let’s examine the reasons why new products fail.
Reasons why new products fail
There are multiple of reasons for new product failure, some of these include:
- No product point-of-difference
- Limited retailer support
- Poor product design
- Established customer loyalty in the market
- Weak launch or poorly executed launch
- Adverse media attention
- Aggressive competitor actions
- Poor pricing or cost structure
- Weak supporting brand equity
- Small target market
- No clear market need or perceived product benefits
- Poor internal marketing
- Existing product cannibalization
- Weak sales for size of company
- Insufficient time for success
Details on the above list of reasons of why new products fail
Also refer to the separate article on the degree that these factors are controllable prior to development and launch.