We’ve all heard this stat around NPD: ’80% of all new product launches fail’.
Understanding why new products fail is often as important as understanding why they succeed.
Having worked with many businesses over the years both her & abroad from breakfast cereals, beauty products, soft drinks & alcoholic beverages right through to medical devices here are some of the top reasons we have come across as to why NPD fails:
- The product simply doesn’t do what it says on the tin. It doesn’t live up to its claim / promise & doesn’t deliver! We see this a lot when we have people test the product in-home or in-situ. When it is testing in a real world situation by Joe Blogg it simply fails & doesn’t do what it is suppose to do or work in the way the consumer expected to.
- The price point being proposed is at odds with the product / service offering i.e. the client is pitching the product at too high a price point vs. the perceived benefits to the end user / consumer.
- The positioning of the product within the marketplace is wrong & ill conceived. This is vital! Where is the product positioned within the market place vs. competitor products & why is it being positioned in this way. Is the business clear around what market the product is going to be sold in & why?
- The proposed name isn’t liked or received well & doesn’t fit the product or service being evaluated.
- The product’s positioning in-store is wrong & consumers cannot find it or the proposed packaging doesn’t lend itself well to being stacked or positioned well in –store! We see this a lot with new food products if for example I’ve always bought that type of product in an ambient / dry foods aisle & all of a sudden a new product similar to it is now being chilled will I go looking for it in the chilled section? What cues will you be giving the consumer in-store to highlight where your new product is?
- The product isn’t different enough to what is already out here – it has no POD (point of difference) – therefore why am I as a consumer going to change from buying the product I usually buy to buy this product? What’s in it for me?
We’re here to help you with any of your new product development research needs!