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Essay Details:
Essay text:
Because all products decline in popularity and sales companies must find new products to replace aging ones.
One recent study estimated that new consumer packaged goods fail at a rate of 80%. Many of these new products fail not because of technical shortcomings but because they have no market. Product failure rates are dropping however this can be attributed to companies playing it safe and launching less truly unique products.
The new-product development process:
Why do new products succeed?
? A superior product has been developed
? The product concept is well defined
? Support from Senior Management
? The company understands the market, consumers and competitors
? Researchers have identified successful products and found out what they have in common
? Structured new-product development process in place
? An effective organisational structure for planning and launching new products has been established
? New products developed with features that are unique and the customer can easily recognize
? Consistent commitment of resources to new product development
? Goals or objectives for the total new product development strategy
? Technology or new product strategy firmly linked to business strategy...
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