Ten Keys to Successful New Consumer Products
Lane J. Anderson
Creating and launching new products successfully isn't easy. In fact, the industry track record for new product success is dismal. A couple of recent studies place the failure rates as high as 95% in the United States1 and at 90% within two years in Europe.2 Getting beyond the five-year mark with a strong, profitable business is an accomplishment. While there are no golden paths to new or existing product success, there are a number of principles that greatly improve the odds. This is designed to outline some of the most important factors in marketing new and existing products successfully. * Key #1: Meet a genuine consumer need.
Too many products are in search of a market. Consumer research is critical. Products that meet a genuine consumer need have a basis for long-term consumer interest and purchase. Sometimes those needs are latent and are created with an innovation in the market, such as with the invention of the internet or cell phones. Do your homework. Talk to consumers. Make sure there is a genuine consumer need to fulfill and that the market need is large enough to warrant the introduction. * Key #2: Make sure product performance measures up.
Products that don't fulfill on their promise or fulfill the wrong need miss the mark and the market. Test the product in the lab and with consumers to ensure that the product not only delivers on the need but that the consumer perceives it to deliver on the need. Prospecting for new customers is expensive. Keeping good customers who are satisfied with the product's performance and who will tell their friends is invaluable for the long-term health of the product. It is also critical that the product is in step with the competitive market. If it performs well but another product is superior, product life may be short. * Key #3: Ensure strong price-value relationship.
Consumers generally want to make the best buying decision possible...
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