Issues with a new product: Product failures may be caused due to issues with a new product. Functional issues, poor appearance or design, inferior packaging, clumsy sizing, poor performance and poor quality are some types of product problems that can easily lead to product failure.
Problems with distribution and channelling: A product can also fail if there are issues with distribution and channelling. Poorly chosen channels and outlets, a weak distribution system and non-cooperative middlemen are certain distribution and channelling issues that can cause product failure.
Setbacks to promotions: A poorly managed promotional campaign can also cause a setback to a product, leading it to fail. Ineffective campaigns, improper promotional methods and targeting the wrong market offer poor appeal to a product. Improperly setup distribution systems and inadequate sales force training can also cause promotional setbacks.
Wrong pricing: Wrongly pricing a product where the price is not compatible with product quality can cause product failure. Making poor price estimates, asking too high a price and not offering enough margins to middlemen can cause a product to fail.
Timing problems: Introducing a product either too late or too early in the market can cause it to fail.
Problems with the competition: Many products fail because of immense competition in the market. Aggressive competitive strategies encompassing distribution, pricing and promotion can easily kill a product. In such situations, businesses react in a defensive manner to the competition rather than in an aggressive manner.
There are several reasons which may cause product failure. This suggests that product success relies on various factors. Not only does it rely on the schemes and skills related to product innovation, but it also relies on the marketing strategy and its implementation. It is very important for management to consider the target market carefully during product innovation.
About the Author:
A founder of multiple startups Hader Ali is an innovation & business consultant.
Hader Ali Consultancy works with startups, SMEs, and large organisations. Specialising in business strategy, product/service development, sales & marketing.
To future-proof your business. Hader Ali Consultancy will work with your company to create an innovation portfolio by providing a framework for structured innovation. All while creating an ecosystem of ideas and a culture of innovation.