Failed Products
Marketers know that they’ve got to keep a steady stream of new products and/or services flowing—if for no other reason than to keep up with the competition. As circumstances, needs, wants, and trends change, no one wants to get left behind. At the same time though, marketers also know that innovation these days is the pretty risky business.
Less than a quarter of the new products introduced in 2008 broke the $7.5 million in sales mark their first year of availability and less than one-half of 1% earned more than $100 million in sales. Though estimates of new product and service failure rates vary widely by company, category, industry, and reporting agency, the best-case-scenario chances of introducing a successful new product or service don’t get much better than 50-50.
About 10%-20% of new products and services succeed; it means they remain in the market generating profits for the company three years after introduction.
There are many reasons why the products fail and you will report your findings in a report.
Instruction:
Please prepare a report that will address the following:
Generally speaking, what are some of the reasons that products fail?
Choose three products that have failed and explained how and why they failed.
If you were the marketing manager promoting the product, what would you have done differently so that the product would not have failed?