Launching a new product – why is so easy to fail?

It’s estimated that new products fail in half of the cases. The other estimates indicate that it happens in 95% of cases in USA and 90% of cases in Europe. Why? A number of factors are involved in any particular failure, starting with a bad interpretation of market research, and ending with a mismatched price. You’ll find out how to create new products here and today we’ll look closer at problems connected with a new product failure.

Creating a new product can be easy, but you’ll be fully satisfied only when your product succeeds. Here are some factors:

  • overestimated market size
  • high costs of development works
  • ignored or misconstrued market research
  • poor project
  • inadequate parameters
  • incorrect advertising or price
  • poor product positioning
  • insufficient distribution support
  • unhesitating competition reply

As you can see there are many factors. However we don’t have an influence on everything. To launch your product successfully you’ll need a lot of determination.

It’s only the beginning

I’ve got some bad news for you. It’s not all what you have to face.  Let’s have a closer look at it.

the beginning of a way - product's failure

No crucial ideas. Don’t cheat ourselves- it’s difficult to invent a wheel again 😉  In some product groups (such as for example steel) it’s difficult to make innovations or improvements.

Market fragmentation. Unfortunately the market is also starting to specialise, that is why companies must aim their products to smaller market segments. It can results in lower sales and smaller profits.

Social, economic and regulatory restrictions. Remember also that new products should meet requirements in safety and ecology. If you launch your product abroad, remember about foreign habits and meaning of different colours, symbols and names. Your product should survive tough economic times.

coinsCosts of development works. Unfortunately generating many ideas and choosing the only one, which is worth launching onto the market, costs a lot of money – research and development costs as well as production and marketing costs. When you plan a new product you must remember about that.

No funds. Some companies have a lot of great ideas, however they aren’t able to raise funds for research and development of new products and services. That is why they can’t start a project.

Requirement of shorten development cycle. The times are changing and technology is moving forward. That is why, companies have to learn how to shorten the time of development works by using new technologies, strategic partners, conceptual tests or working with the customer at the very early stage.

Launching product at the wrong time. New products occur too late or too early on the market. Remember that if your product is the first in a particular segment, you’ll have to put a lot of effort into education of your recipients. If you do it too slowly, your competition may  overtake you.

Shorter product life cycle. Competition copy successful ideas and products very quickly. It’s worth having ‘B’ plan or well written out product development plan, which will raise the bar and the quality of a product itself.

Company’s support. A new product must be supported by a company. Unfortunately it doesn’t often match company’s culture, lacks understanding and doesn’t get necessary support.



The failure is an integral element of a new product or service implementation. Truly innovative companies accept failure as something without what they can’t succeed. Companies should allow workers make mistakes, but of course some conclusions should be drawn from these mistakes and taken into consideration during further works. One of Silicon Valley’s experts, Seth Godin, says that ‘failure is not bad, it’s something necessary’. There are many examples of that, even Facebook wasn’t a huge social networking service at once. That is why treat the failure as a lesson, draw conclusions and move forward. That’s probably the best way.