Launching products can be exciting and grow your business. But it needs to be approached correctly to achieve success. There are various statistics on the failure rate of new product launches ranging from 50% to 75%. A study form 1997 (Marketing, Witchcraft or Science, July 1997) showed that the:
o failure rate for new product launch for the retail grocery industry is 70-80%
o top 20 food companies in the US have a 76% success rate for new product launches
o bottom 20,000 U.S. food companies have an 11.6% success rate for new product introductions
o major difference between the top 20 and bottom 20,000 was the apparent lack of research and strategic marketing planning performed by bottom 20,000
A lot of research has been performed on the success or failure of new product launches. There were many common mistakes made by those failed product launches which include:
o Lack of early planning around marketing and product launching. Most companies devoted the majority of their time planning and developing their new product and overlooking their marketing plans. Most would realize prior to product completion that they did not include a marketing plan, and they did not have the experience or resources to perform a product launch.
o Non-existent or poor marketing strategy. Many companies focus on their product launch but fail to have a complete marketing strategy to enable continued growth after their initial product launch.
o Not defining a target market for your product. Many companies overlook defining their consumer and prospect market or what that consumer would even want or need in your product offering.
o Launching too soon. Some companies want to be first to market with their product to beat out their competition but often overlook important aspects of a launch, their product or their campaign.
o Poor quality product. Sometimes companies are so anxious to be first and get ahead of their competitors that they do not fully develop and mature their product before launching.
o Inflexible and rigid launch plan. Launching a product successfully is an art rather than a science. Many companies are not flexible in their approach and could cause failed launches.
o Insufficient funding. This is often a mistake companies make with their product launches by failing to ensure sufficient funds necessary to get through launch and projected profits and timeframes.
o Overestimating product launch results. Make sure your company sets realistic expectations, rather than assuming your dreams of having the perfect product and launch will become a reality.
o Not delegating. There is no way you can do everything yourself and but companies still set unrealistic expectations for themselves thinking they are the experts.
o Neglecting to have a crisis or risk mitigation plan. Most companies panic if something starts to go wrong and have not adequately planned for the various scenarios that could happen during launch.
Companies need to be aware of these common mistakes and plan in advance to eliminate or reduce the risk. Avoiding some of these mistakes are almost impossible but being aware and planning ahead can help reduce that risk. Create a comprehensive strategy and work the plan.
The Top Ten New Product Launch Mistakes
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