Reasons for new product failures
Overestimation of the market size
Disregarding market research
Higher than expected product development costs
Poor product design
Incorrect positioning
Unsuitable launch timing
Inappropriate pricing
Aggressive competition from competitors
Poor promotion
Lack of preparation (Schnieder and Hall)
Flaws
- The company cannot support fast growth
- The product falls short of its claims and gets bashed
- The new item exists in 'product limbo'
- The product defines a new category and requires a substantial consumer education - but it doesn't get it.
- The product is revolutionary, but there is no market for it.
Lessons
- Have the plan to ramp up quickly if the product takes off
- Delay your launch until the product is really ready
- Test the product to make sure its difference will sway the buyers
- If consumers cannot quickly grasp how to use your product, it's doomed.
- Don't gloss over the basic questions 'who will buy this and at what price'.