Causes of failure of new products - Innovative management

Reasons for the failure of new products

In conclusion of this topic, we will consider the typical reasons for the provocation of new products. Of course, in each case it is your case, but there are several groups of reasons for the failure of new products.

The first reason is the dilution of novelty goods, when the company could clearly show the target market, what, in fact, is the novelty. Not seeing the novelty, the consumer simply does not respond to marketing incentives and, accordingly, does not purchase products.


More recently, General Meals brought to market a unique product based on sophisticated technology - flakes in small packages that differed from ordinary ones in that they were originally saturated with milk and did not require the use of liquid, so they were a useful snack. However, the company failed to reflect the unique feature of this product either on the packaging or in the advertising message, and the consumer, continuing to use this product as regular flakes, was unable to appreciate the novelty and did not take this product.

The next reason for the failure of the product is the lack of goal-setting before the start of R & amp; D. A typical situation is the practice when the firm in the R & D department independently develops itself, since the employees of this department have the status of people of science who are excluded from business. And when projects are ready, the time and resources already spent require that this new technology or a new product be introduced. In this case, the lack of communication with the marketing department, as a rule, leads to the fact that the product is needed for the market, but although it has already been developed and spent, it should be brought to the market, and marketers try to artificially create conditions favorable for the withdrawal of this product on the market.

The third reason for the failure of new products are errors in the choice of the target market, and in analyzing its potential and capacity. The greatest difficulties are experienced by companies that enter unfamiliar geographical markets. Insufficient analysis of the target market can become a prerequisite for the failure of the product and, possibly, the complete withdrawal of the company from this market.

The fourth reason is the problems associated with the weak marketing-mix complex. These may be miscalculations and errors in commodity, price, sales or communication policies.


An example is the failure of the novelty of Coca-Cola, , which, once again emphasizing the image of a company friendly ( society strong> friendly), brought to market a useful product - a concentrate of orange juice. The production technology was unique and allowed to create a concentrate, which when diluted with water turned into a glass of freshly squeezed orange juice. According to the company, the product completely retained vitamins and nutrients and, in consistency and taste, did not differ from natural juice. However, when putting the product on the market, Coca-Cola has made a number of marketing mistakes. In particular, when developing the attributes of the goods and packaging, the instruction for the use of this product was not given due attention. Incorrect dosage of the concentrate led to a deterioration in taste, and the product never reached the growth stage.

Among other reasons for failure is the discrepancy between the quality characteristics of the new product to the expectations of the target consumer, the errors in determining the time of release of a new product on the market, and the discrepancy between the planned and actually necessary budget. A typical marketing mistake is to try to adjust a limited budget to achieve certain marketing goals. For example, according to statistics, on average in supermarkets there are 40 thousand product categories of products and, as a rule, 10-30 new products appear per day. This leads to the fact that retailers have the opportunity to choose manufacturers and require certain conditions for entry into retail. Excessive requirements can lead to a situation where the planned budget is much less than what is actually needed to reach the planned level of penetration.

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