Reasons for Failure of New Products

The new products fail irrespective of the efforts from the manufacturers due to the following reasons:

1. "Me Too" Product: The product get unable to differentiate itself from all the other products that are there in the market.
2. Lack of genuine superiority leads to the failure of the new product.
3. Price resisitance from the product one major issue and reason for the failure of new product.
4. Poor market research leads to wrong decisions related to new product and hence relates to failure.
5. Sometimes, certain products are launched ahead of the time. It means the consumers are not prepared for the same.
6. Ignoring what competition is doing can be a major reason for the failure of the product.
7. Over promise made by the product can also lead to its failure.
8. No adequate resource can also sometimes lead to failure.

What is Product Innovation?

The Product innovation is customers perspective can be defined in the following way:

1. Continuous Innovation: It means least disruption or no disruption in consumer learning or consumption behaviour pattern.
2. Discontinous Innovation: Total disruption in the learning different consumption pattern.
3. Dynamically Continuous Innovation: Some disruption on consumer learning, change in behavioral pattern.

What is a new product?

The defination of a new product is very essential inorder to avoid the failure of the product and the organization. There are the different things considered to call a new product.

1. Its should be totally new to the world. e.g. Fairness Cream for Men.
2. It may be a new product line all together.
3. It can also be an addition to the existing product line/Product mix. e.g Surf Excel Blue.
4. Repositioning of the product. e.g. the repositioning of Dalda in a new package.
5. Cost Reduction

Why do we need New Products???

There are certain reasons why a company needs to bring new products into the market. The reasons are:

1. To sustain growth of the organization.
2. Response to competition.
3. Excess Capacity.
4. To increase the cash flow.
5. Cost Reduction
6. Creativity of Management

Define Product

Lets Understand what is a product?

Product can be defined as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need.

Components of Products

1. Core Component
2. Prackaging Component
3. Support Service Component
4. Brand

Introduction

This suject of Product and Brand Management was taught to us by Mr. Ravi during our 4th Trimester of Management. The objective of the bolg is to shift the details and learning from the faculty from the hard copy to a soft copy so that i can keep referring it in future.