No company can be successful in the market for a long period of time without taking action to develop and improve its products. First, each product has its own life cycle. Second, consumer needs are constantly changing. Third, external factors beyond the control of the organization, such as the economic crisis, push the company to change its activity in the market.
Leaders and employees of the organization have to look for answers to many questions. Should you launch a “new product”? What should it be? How much will it cost to create and bring a new product to market? How much profit will the new product bring?
In order for the release of the product to be successful, it is necessary to contact a design firm, which can help both with the appearance and presentation, as well as with the implementation. A good option for this would be a custom 3d modeling service.
Reasons for Failure of New Products on the Market
1. “Inadequate idea” of a new product from the leadership of the organization
Quite often, a leader has unlimited authority in his organization (this is especially true for entrepreneurial companies and companies that have become successful under this leader). In this case, a situation is possible when the manager believes that he is well versed in the market situation and does not pay attention to negative factors, and the organization’s personnel does not pay his attention to possible problems.
2. The new product solves a technological problem, but does not meet the needs of consumers
Technologically advanced companies are characterized by a focus on continuous improvement of their technological capabilities and the introduction of new developments. Technicians working on the creation of new products are “carried away” by the development process itself and concentrate all their efforts on improving new technologies when creating a product, rather than on whose needs the future product will meet.
3. Entering the market without preliminary marketing research or their implementation at a low level
When a firm skimps on research and does not conduct it or does it at an insufficiently professional level, the result is inadequate market information and poor management decisions.
4. The alienation of senior management from the process of creating a new product
The reluctance or inability of the leader to direct and control the process of all activities to create a product can lead to the fact that the goals and directions of work become vague, incomprehensible to employees. And the process of product development and its implementation depends very much on the ambitions of individual employees, which can be aimed at achieving personal goals and at odds with the goals of the organization.
5. Expectation of an immediate effect from the introduction of a new product
Some Product Development Company, having created a new product, expect an immediate effect from bringing it to market (big profits), and not getting a quick return, they abandon this product, believing that the product is “unsuccessful”. Sometimes (especially with regard to technical innovations), it takes a certain time for a new product to “take root” on the market.
6. Lack of control over all stages of the production process and promotion of a new product
When several organizations are involved in the creation and implementation of a new product, the main manufacturer does not always have the ability to control all stages of this process. This is especially true for small companies that use contractors involved in various stages of product manufacturing.
7. Compromise product as a result of consensus
When the decision on the steps to create and launch a new product is made collectively, it often leads to the emergence of a compromise product that suits everyone. A “compromise” product is not intended for a clearly defined market segment, but is a “for all” product. In this case, the new product often loses to competitors’ products, which have a clear positioning and satisfy specific, specific needs of consumers.
8. Wrong pricing policy
Product prices are set too high or too low.
9. Poor quality control
Attractive product idea, but not enough capacity to maintain consistent product quality.
10. Late launch of the product on the market
The product is released too early, when the market is not ready yet, or late, when the market no longer needs this product.
To avoid these mistakes, first of all, you need to work on the design, and then just analyze the market, find more info and find the best time to launch. And then the new project will definitely be successful!