11 Reasons Why New Products Fail

11 Reasons, Why New Products Fail:

11 Reasons Why New Products Fail

11 Reasons Why New Products Fail


Intense competition exists between companies. So every company wants to capture the new market. This is why companies want to satisfy buyers by developing new products. For this reason, new product development is very important for the company to survive in the market.

The reasons for the failure of the new product are given below:-

  1. Development without research.
  2. Production as per plan.
  3. Determining the market position.
  4. Lack of publicity.
  5. Intense competition.
  6. Lack of working concept.
  7. Fractured market.
  8. Excess of expenditure.
  9. Shortage of capital.
  10. Shortness of time.
  11. Purchase decision.

Briefly Explain:

1. Development without research:

Although the concept of product development is very good, if the product is developed without any research on the product market, the new product may fail.

2. Production as per plan:

It may not be possible to produce the product exactly as it was designed or planned. This is also a cause of failure.

3. Determining the market position:

If the market position of the product is not determined properly then the product may not be marketable.

4. Lack of publicity:

The product may fail because it is not as effective as it should be to promote the new product in order to succeed in the market.

5. Intense competition:

It is possible that the product may fail if the competition is much greater than it should have been.

6. Lack of working concept:

New product development work becomes difficult due to a lack of effective concept in some cases. This has happened in the past with the invention of computers, life-saving medicines, or automobiles.

7. Fractured market:

The market for any product is fragmented due to intense competition. As a result, new product development is not considered profitable for such a small market segment.

8. Excess of expenditure:

The huge amount of money spent on research and development, materials, and marketing in the process of developing new products is hampered in the way of development of new products as it is not possible for many companies to bear it.

9. Shortage of capital:

Despite the fact that some companies have good markets and effective product concepts, new product development is not possible due to a lack of capital alone.

10. Shortness of time:

Many companies have good product ideas, the market cannot even develop new products before the competitor despite having capital. As a result, competing companies take over the market. This shortens the life of the new product and the development of new products in the short term is therefore not considered profitable for the organization.

11. Purchase decision:

After evaluating the products and services of different alternative brands, the buyer identifies the brand that matches their expectations and decides which brand they think is suitable to meet their needs. However, in this case, two products affect the purchase decision. For example, attitudes of others towards products and services and unexpected surroundings, such as the possibility of receiving the expected benefits of the family income and fair price, etc.


From the above discussion, it can be said that if new products are marketed for development then they cannot occupy the market. Then in most cases, the market will fail.

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