Reasons for Product Failure

New Product Failures

New Product Fails when they cannot generate adequate sales and products as per the set targets. The reasons for product failure are:

1. Wrong analysis about business and market gives way for product failure.
2. Drawbacks in the product features, like design, colour, flavour, packaging, appearance etc., can make the product a failure.
3. Wrong understanding of market requirements and needs higher prices to the product can also fail the product.
4. Selecting wrong time for introducing the product in the market.
5. Inadequate promotions and poor advertising media selection can fail a new product.
6. Having inadequate distribution channel and also faulty choice of middlemen leads to product failure.

Avoiding New Product Failure

New Product Failure can be avoided through following ways:

1. Ensuring adequate demand exist for the product.
2. Developing that product idea which is acceptable in the society.
3. Selecting a product that would properly fit into existing market structure of a company.
4. Selecting suitable promotional and physical distribution activities.
5. Checking product failure through product modification.

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