Stories of new products rarely have happy endings. For every blockbuster, hundreds of innovations with great potential flame out.
We say “hundreds” because the exact number of new product failures is difficult to pinpoint. Depending on the source, data suggest that anywhere from 67% to 95% of new products fail. Even when a new product is not an outright failure, its launch often falls short of expectations, and significant infusions of human and financial capital are required to achieve acceptable performance.
Why do most new product launches fail?
We conducted a four-year study to identify proven methods of securing both the launch and the long-term sales success of new products. The study examined the product launch efforts of companies in industries as diverse as aerospace and pharmaceuticals.