To answer that question, I went straight to the people who are responsible for developing and launching new housewares products. I surveyed the movers and shakers in the housewares industry.

Key Reasons for New Product Failure

24 industry leaders responded, providing more than 100 answers. My analysis of their answers revealed that there are four key causes of new product failure:

  • Poor product concept
  • Poor planning
  • Poor execution
  • Poor use of research

key reasons for new product failure

Poor Product Concept

New products can fail when the concept is fundamentally flawed.

A product will fail if:

  1. If the product doesn’t meet a consumer need or solve a consumer problem.
  2. If the product is a me-too product, it’s highly likely that it will sell well. After all, if your new product is pretty much the same as what is already on store shelves, why would retailers take your product? Why would consumers buy it?

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Poor Planning

New products can fail due to poor planning

A product will fail if:

  1. It is launched at the wrong time.
  2. If the channel strategy is wrong.
  3. If the financial planning, budgeting, forecasting process is inadequate or based on incorrect assumptions.
  4. If the process is poorly managed.

Poor Execution

New products can fail due to poor execution.

A product will fail if:

  1. The package does not grab the shopper’s attention and make them want to buy
  2. The product fails to deliver promised claims/benefits or does not perform to the expectations of the consumer
  3. The product has the wrong feature package or is the wrong color, or the product design is not appealing or user friendly
  4. The product is the wrong price
  5. There is not enough marketing support or the wrong kind of marketing support,
  6. There are sales or sell-in issues

Poor Use of Research

New products can fail due to poor use of research

  1. If not enough consumer research is done the company may overestimate consumer demand.
  2. If not enough market analysis is done the company may underestimate competitive reaction.

With so many mistakes that can be made at the concept, planning, and execution stages, you may be wondering how you can possibly increase the likelihood that the new products you launch will be successful.  Stay tuned for the answer!

Click Here to Download the Beat the Odds eBook.