Posts Tagged ‘how to launch a business’

Cause of Failure in New Product Launching

One important requirement is that the launching of new products being launched is to be differentiated and far superior compared to competitors (stand out and differentiate). Products like that that have achieved value innovation. In launching a new product, of course, you want to be successful. You can visit our website and get a launch evolution bonus. There are several causes of the failure of new products, which are:

First, due to market failures such as the size of the potential market, there is no clear product differentiation, product positioning is weak, lack of comprehension on the needs of consumers, the lack of support from the distribution channel as well as the aggressive reaction of competitors. Examples abroad, despite the failure of the PEPSI Crystal, won the award for best new drink products in 1992 but only gain market share below 3 percent.

Second, due to the financial failure in the form of a low level of return on investment or ROI. Examples abroad how the Concorde supersonic aircraft failed because operational costs are expensive, so only a slight advantage even losses in the long term.

Third, is a failure in terms of time. Entered the market late or too early to enter the market while the market has not been developed in order to receive the new product.

Fourth, technical failures which cover the product does not work properly and poor product designs. The best example is the product of the Apple Newton which is positioned as a PDA (Personal Digital Assistant) but consumers can not understand the existence of the new category.

Fifth, organisational failures caused by the inability to adjust to the culture of the organisation as well as the lack of organisational support.

Sixth, the failure of the government and the regulatory environment in the form of macroeconomic factors.

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