When a business is planning a new product launch, it is very easy to go wrong with the designing process. This mainly because businesses often get hyped up about the introducing a new product to the market and miss out some important new product development factors that they need to consider. This haste proves to be costly when they face failure with their new product.
Majority of businesses come up with great concepts and ideas but when it is developed into a new product it ends up being a failure. Although there are several mistakes and shortcomings in the development process that can hinder the success of development of a new product. Here are some of the main factors that contribute to new product development failures:
One thing that can both make or break a new product is market research. While a successful new product is developed on the basis of useful information gathered from the market, there is no serious effort to collect market information in case of products that fail. It is usually seen that most of the new product start with a very good base in terms of ideas or concept but they get stuck in the development phase. This is because businesses fail to put in the right amount of research required. And due to the lack of effort, a product without any serious idea about the demand among the customers is launched in the market. Such products face setbacks and as it is difficult to withdraw a new product from the market, the prices are dropped down.
Businesses tend to focus on competitors and their products rather than developing their ideas. Commercialisation of products and lack of substance in the approach can result is a failed new product. There are chances of products not being tested properly or being launched with faults.
It is essential that businesses focus on providing value to customers rather than offering value to the customers. Customers not only accept but are also attracted to the products that provide a solution to an existing problem. They look for benefits in new products. Another mistake that businesses make with new products are making the features highly complex but without much advantages. Customers reject the products that are all talks with little value.
Communication is the key to success in any sector. And when it comes to new products, not only should your product have a unique concept and set of benefits but customers should also know about it. Buyers need to know that your product is available and where it is available. The features and benefits of the product should also be properly communicated.
The product should have a demand in the market and it should be made available easily. Pricing is also a factor that should justify the new product development both in term of cost and profit making chances. It is seen that customers refrain from buying the products that are highly priced for the benefits that are offered. On the contrary, they also reject the product that is priced at too low.
