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 Most New Products Will Fail —
Will Yours?
Practical thoughts on improving your success.
Many companies have come up with ideas for new products, but unfortunately an idea by itself is rarely enough. To be sure, even a top-notch product does not easily translate into a successful product launch.
Beyond the Idea
The first thing you need to do is identify the opportunity, or “size the prize.” That is, get a clear understanding of the opportunity before you. Early investment in market research can define the white space for a new product and determine the market potential. Once you have “sized the prize” from a market point of view, ask yourself if the opportunity aligns with your company’s competencies, strategic objectives, and fits your financial goals.
There are two big pitfalls in this stage. First, be careful not to fall into the “sample size of one” trap. It is easy to become enamored of a new product. Even if by the rare chance you are a member of the target market, remember you are only a single voice. Objective market research keeps the product’s potential in perspective.
A second pitfall is failing to fully understand the implications of pursuing a new product – does the concept justify the magnitude of future investments in the project? Without objectively sizing the market potential, you can fail to make the necessary investment to capitalize on the opportunity before your competitors, or, on the flip-side, you can invest overwhelmingly in a project with little upside potential. This analysis will also help you understand competitors’ strengths and weaknesses – and anticipate their response to your new product entry. A detailed business case should be an integral part of this phase.
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