Don’t Let Your New Products Be Engulfed Among The “Ocean” Of Products!
Why do majority of new products fail? Originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Majority of products fail because of these reasons,
1-Companies fail to understand their customers and their needs, often inadequate research is done about their customers & their needs. Feedback is often not taken into consideration. one really great example of a company which actually realized this and worked towards this is One Plus. From their initial stages as a startup they have been asking customers their feedback and improvement suggestions. This has made them really popular in their customer base and have kept their customers loyal.
2- Companies, specially Start-ups try to fix a nonexistent problem in the society and fail to capture the interests of customers.
3-Market segmentation is not done properly and often failure to target the customers/intended audience properly would let the product or service to fail. Microsoft decided to take on the iPod in 2006. The company launched Zune which promised to do everything that Apple’s device could do too. But failed miserably because it didn’t give the customers any reason to switch from Ipod to Zune. Your product should always have distinguishing features and differentiating factors from already existing product.
4-Another important factor is positioning of the product in the market, if the product is placed in a position where your competition offers better product then the product is bound to fail. Pricing of your product plays an important role in its success or failure.
5-If the product development phase is longer and the competitors come up with an exact product and capture the market.
6-Poor execution and poor marketing of the product is an important factor in determining if the product fails or succeeds in the market.
These are some of the factors according to me which decides if a new product fails or succeeds in the market.
Contributed by Binu Presanth, studied Mechanical Engineering