There are various different stages at which a new product can fail. Let’s take a look at each of them separately:
- At this stage, products usually fail because sufficient market research has not been conducted. Consumers are usually well informed due to the internet and they are not going to hesitate to show their disapproval if the product does not meet expectations. It;s imperative to conduct extensive research before a product launch.
- There are a number of people who also underestimate the amount of money that they are going to be spending during product development and this may cause them to run out of money by the time the need for marketing arises. This is why it is necessary to budget expenses properly when launching new products. Create extensive budgets which will allow you to know the amount of money which you will have for each of your business decisions. A sample budget will also help improve your chances with investors.
- If is very important not to rush into this phase since there are a number of things which may go wrong in this process. You will need to identify all of the risks and develop contingency plans for each potential pitfall. One of the biggest risks is that of the manufacturer not being able to keep up with their quality claims. Products may become defective and may even become dangerous. The products may get banned altogether at this point. That certainly isn’t good.
- There is nothing more frustrating for customers than to see commercials for products and not being able to buy it. This is even worse when the demand for a product isn’t high. Ensure that your wholesalers, retailers, manufacturers, etc. are all well stocked and continually inform each other of when more stock is required.