Have you ever wondered why new products fail in the market?
Every entrepreneur wants his/her product to stand out from the crowd but as time goes on, it crashes.
According to a research conducted by harvad business school professor, Clayton Christensen, more than 30,000 new products are launched every year; and 95% of these new products fail.
Many may think that it’s as a result of bad luck which I’ve never believed. If you are out there thinking that the moment you create a product and put it up for sale, and customers will start buying, its time you change that mindset.
But the question remains,
Why do some products succeed and others fail?
However this article will stress on why new products fail in the market and remedies to make your product stand out in the market and also your industry.
WHY NEW PRODUCTS FAIL IN THE MARKET
1. THE PRODUCT IS NOT ON DEMAND
You cannot sell a product when the clients do not exist.
Many entrepreneurs make the mistake of creating a product just to make money as quick as possible without first of all looking into the market to know people that need it.
How do you expect to sell and umbrella during dry season when no one needs it?
How do you expect your clients to buy an eBook from you when they cannot make money after reading your eBook?
Do the first thing first. If you want your product to succeed in the market, do a research about the current trends and create products that fit to these trends.
2. THE PRODUCT CAN’T SOLVE A PROBLEM
Products fail due to inability to solve problems. You cannot expect a customer to buy a product that cannot add value to his life.
For example, drugs are meant to cure health problems, and when it does not, it’s now useless.
3. THE PRODUCT HAS NO QUALITY
Quality matters in the production of any product but many entrepreneurs and business owners neglect it.
The reason why consumers will leave Pepsi and go for a product like Coca-Cola or leave Nokia products and go for Android/iPhones is as a result of difference in the quality rather than the quantity.
Now how can you solve this problem?
“Try to be consumer centered”
Relate and interact with your clients and discover what they really need i.e. the taste they want from a product.
4. THE ENTREPRENEUR HAS NO MARKETING PLAN
Your product will fail in the market because you have no marketing plan.
When there is no plan on how to market your product then you created it for yourself and not for the people out there.
When the consumers don’t know the product then it means that the products do not exist.
This marketing plan involves how you are going to inform the consumers that the products exist and also be able to convince them to purchase the product.
Here are two ways you can effectively market your products in 21st century
- Advertize: To generate sales from your product, there is need to advertize. Starting from Complementary cards, hand bills and to both the print and electronic media.
- Online presence: Every product today needs an online presence for it to generate sales. Technology has made it possible for people to purchase products online and get it delivered to their address. If you want your products to reach more people, why not sell on eBay, Amazon, Aliexpress or Nigerian companies like Jumia, Jiji and Konga.
Another important thing is having a social media account and a website for your product.
5. THE ENTREPRENEUR DID NOT SET THE RIGHT PRICE
The price of products is very important because this is where a consumer decides whether to purchase a product or not.
- Very high price can scare customers away
Don’t set your price too high just because your want to make more gain
- Very low price can make customers devalue the product
Many entrepreneurs make the mistake of setting a very low price just to make it affordable by the consumers. But the truth is, if you set low price, you are simply telling your clients that your product is of low quality.
To set the right price, analyze your expenses and set a price that is equal to the value of the product.
6. THE ENTREPRENEUR HAS NO SALES STRATEGY
When an entrepreneur has no sales strategy, the products fail before coming to the market. The sales strategy includes
- How to sell: How will you make people know and buy your products? Refer back to the marketing plan
- When to sell: The best time to sell your products is when there is scarcity of such a product. So before you start selling, monitor the market and know when people are greatly in need of the product.
However be careful in order not to bring a product too early to the market or too late to the market.
- Where to sell: It is left for you to choose where you want to sell your products.
7. THERE IS NO UNIQUE DIFFERNCES FROM OTHER PRODUCTS
When your product is the same thing consumers has already been seeing in the market, and then there is no need buying your product because you are just offering a duplicate of someone else’s product.
However to make your product unique, you have to start from the packaging. Package your product in a way that is physically attractive. This is one of the secret of getting people to buy the product.
8. THE ENTREPRENEUR IS NOT COMMITTED TO THE PRODUCT
When an entrepreneur loses interest in his product, it is prone to failure. You must be able to finish what you’ve started. You created the product, then be ready to face the real world.
You need to be committed to your product and consistent in promoting it. No new product rises to become the best when there is no commitment
Know that competitors are out there trying to make their products overshadow yours. Only commitment can determine the future of a product
These slight mistakes can make your product go down giving your competitors the opportunity to dominate the market or industry.
Would you be idle and watch your product to fail just like that? I guess no. However if you can deal with these issues, you can dramatically increase your product’s chance of being successful in the market.