Question

Write one to two pages about why new products succeed and why they fail. Please give examples of each.

Answer 1

New Product Development

New Product development means when the company going to add new products in the market or adding a new product line in its existing for example when Pepsi Company adds new flavor in its existing cold drink. New Product development plays an important role in the success and face completion in the market. Its play an important for every company to maintain its effective market share by maximizing sales it will help the company to increase profit.

Benefits to Company- launch New Product

• To Increase Sale
• To capture market share
• To Increase Profit
• To growth of the firm
• To Face competition
• To Stability of Business

Why New Product Success?

Ther are lots of reasons for the success of New Product in the market, some of them given below

• New and updated Technology

The new product is useful in the exiting market due to new and updated technology attract the customer and public for purchasing the product and even many customers purchase the product only to taste the new product and its quality

• Marketing & Advertising

The company spends lots of money and promotion for selling their product which helps the company to boast sell but also attract the audience for buying it

• Existing Product become obsolete

Customer buy New product because the existing product become obsolete and not more useful as per the need of Today Market

• Extra feature than an existing product

New Products come with a new extra feature which helps to attract a new customer as well as to buy the product like iPhone launch its new Model every year which a combination of old feature and addition of more feature like camera quality and display size

• Need for Customer

Due to change and need of a customer, customer willing to buy the product which gives them satisfaction as well as a bundle of new features

Example of Success of New Product Development

Apple iPhone is the Good example for the Success of new product development, when company launch iphone 1(2G), after the success of its model company always try to add new version every year with new feature which attract the customer that's why iPhone is Sucessful in the market due to adding feature every year with new Model

Why New Product Fail?

Ther are lots of reasons for the failure of New Product in the market, some of them given below

• Lack of Finance

When company going to add new product in the existing market its face many challenge and problem, fiance is the blood of every company without an adequate level of finance company unable spend require expenses on their product development

• Lack of Marketing Efforts

Without proper marketing and sales promotion company unable to launch a new product in the market, so before launching the product, the company should aware the customer about the quality and feature without its New Product fail in the market

• Inadequte Research

Company lauch new product after complete analysis and understand the need and taste of the customer

• Obsolete Technology

When a company going to add new product in the market it should properly check current technology and how much updating is required to sale product

• Service Quality

Bad service quality is a symbol of the fail of New products in the market, so the company should keep updated and monitor the qulity of the product.

Example of Fail of New Product Development

Few year ago Pepsi Company add new flabuor- Blue Pepsi in its product chain but due to lack of good taste and customer interest. company stop its production and work on the existing Chain of Pepsi product.