Question

Based on what you analyzed, what is the most important factor in a successful new product and why? What are three reasons why products would fail?

Answer 1

The most important factor for a successful new product is different based on different considerations. For instance, in the eyes of the stakeholder, a successful product is the one that creates the most sale.whereas, in the eyes of the consumer, a successful product is the one that presents the most value to them. While for a company, a successful product is the one that has the combination of both the other factors of the products.

Therefore, it is easy to say that a product might fail if:-

1. There is a low amount of sales figure for the product.

2. There is no customer value or satisfaction that the product has achieved.

3. The product is hard to sell due to the profit margins being low and therefore, if people don't purchase it at a higher price, the company will end up losing a lot of cash rather than generating profit. Also, the product has a huge amount of competition and presents no sort of differentiation, contributing to a perfect competition in the market.