In the introduction to this article, you learned that a majority of product launches fail. The same study found that less than 3% of consumer packaged goods managed to exceed $50 million in first-year sales.But what could be the reason why so many others experienced failure? Maybe it’s due to lack of preparation. Or maybe because the product failed to deliver. Understanding the reasons behind these failures can help you prepare accordingly.
Let’s take a closer look at some of the reasons why your product launch may fail:
1. You fail to target the right market – When developing a new product, it’s only natural that you need to deliver something that people will want to buy. However, the same product may experience different levels of acceptance or appreciation in different target markets. Some marketers may be targeting their product to the wrong market and experience failure. Maybe their target audience isn’t interested in the product, or they don’t have the funds for it.
Remember, that just because that target market needs the product, it doesn’t mean that they’ll buy it. In fact, a lot of advertisers could be missing out on their potential audience by targeting the wrong market according to Google’s VP of Marketing, Lisa Gevelber. For example, only 31% of mobile searchers for video games are men between the ages of 18 and 34.
2. You launched before the product is ready – One of the biggest mistakes companies make is in launching the product before it’s thoroughly ready. Maybe you’re getting pressure from higher-ups or maybe your competitors just launched something similar. You might feel compelled to launch the product despite not having tested it thoroughly.So you’re just delivering a product that has a huge chance of being flawed or incomplete.
3. Your product didn’t live up to the hype – In their excitement, many marketers end up building too much hype about their upcoming product launch. When a product is already so hyped up, you risk failing to live up to the consumers’ expectations. You may overstate the benefits of the product, or promise capabilities and features without being able to deliver on them. This means you’ll have a bunch of disappointed customers when your product fails to live up to the hype.
4. Your company can’t support fast growth – You may have gotten everything right – you built and launched your product successfully, but what’s next? Do you have a plan in place in case the product takes off? Some marketers fail to think beyond the product launch and end up being unable to support the fast growth resulting from the product’s success. Will you be able to deliver the same quality of products if you need to produce more units due to high demand? If not, there’s a chance that your product will fail in the long run. There could be many other factors contributing to the failure of a product. These are the biggest and most common causes. And you should prepare yourself for them.
In the next article, you’ll get a step-by-step guide to help prepare you for a product launch, and
combat these issues.