Product Development: Pt 1

Product Development. Product Introduction. Product Launch.

Whatever you call it, if you don’t do it right you or your client may fall into the 2/3 of all industrial firms that are disappointed or downright disgusted with their new product success rate.

Did you know that the ROI (return on investment) for a successful product averages 96.5%, but for a failed product it is a measly 8.3%? No wonder CEO’s are pulling their hair out.

Other amazing comparisons: Payback period is 2.5 years for a successful product launch, and over 65 years for a failed launch. And market share approaches 50% for a successful product versus around 10% for a failed product.

Get the picture? A failed product introduction doesn’t necessarily mean that the product simply disappears. It may stick around for years, sapping resources needed elsewhere and giving you a shoddy reputation.

So how do the best firms ensure success?

By developing the Right Product for the Right Market at the Right Time using the Right Methods in the Right Way!

All right(s)! What does that mean? Stay tuned. We will blog on each of the “rights” in days to come.

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2 Responses

  1. In the 1950’s Mead Johnson came out with Metracal a baby formula to supplement mother’s milk. It was introduced in drug stores and received no sales. The belief at that time was that mother’s milk was the ultimate nutritional substance. The marketing people at Mead Johnson repositioned the product as a weight loss supplement, but still sold it in drug stores. Sales were still very low. They finally decided that if Metracal was to be a food supplement then it should be on the shelves in grocery stores, where people bought their food. This final change was an enormous success and started the diet supplement a craze that still exist today.
    If you believe your product as value and benefit to the buying public keep changing your marketing thrust until you find the right venue.

  2. Thanks, Kent, for that insightful story. It’s not the cards you have been dealt, it is how you play them. And different market forces sometimes sharpens our creative, customer-focused product introduction strategy.

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