Launching products without a market; time and manufacturing issues, as well as insufficient or poor research, are just a few reasons for the failure of product launches. According to statistics, 80% to 85% of product releases fail to overcome these obstacles. For a new product to win an initial trial and then get repeat customers, it must bring something new to the market. Potential customers need an incentive, such as fringe benefits or some form of diversity, to persuade them to try a new product. If there are no real differences, the new product is likely to fail.
Why do some businesses succeed and others fail? After seeing both sides here are some pitfalls to watch out for:
- Poor pricing structure: New products may be affected by a poor pricing structure. Sometimes companies try to market something new and develop a product with many features. As a result, these products are expensive to manufacture but expect the market to pay more for better products. This may or may not happen.
- The product has no clear market demand or perceivable benefits: For products that have just entered the world, they are more concerned about whether their benefits/functions really meet market needs. In its essence, this classification of new products (new inventions) is a new thing on the market, providing different solutions to established needs, and sometimes providing solutions to needs that do not exist in the minds of consumers.
- Perseverance: One of the best qualities of a strong brand is consistency. But consistency often encounters complacency, leading to one of the worst qualities a brand can embody: stagnation. Now, the market waits for no one. Your brand must be agile, dynamic, and keep up with current trends. Avoiding failure means avoiding irrelevancy
- Over-marketing: Over-marketing makes the brand too common, so the brand may lose value due to brand fatigue. Excessive exposure can also make a brand unpopular.
- Not relevant — Branding can be irrelevant for many reasons. One of the most common reasons is technology. Yesterday’s latest technology is today’s ancient history. Nokia, for example, has lost market share as a brand by failing to provide its customers with the latest technology. Android was all the rage at the time, and Nokia cooperated with Microsoft instead of Android, resulting in brand redundancy because the software was not developing as fast as its competitors.
- Intensifying Competition — Intensifying competition reduces brand value. For example, many soap and shampoo brands come and go without leaving a mark in the industry. Competition is so fierce that brands cannot survive, and declining brands are driven out of the market.
- Weak teams and internal skills: Lack of skills can limit the solutions a team can develop. Similarly, a lack of internal resources and support can make it difficult to create custom products.
- Poor Implementation: Poor design, poor user experience, poor performance, poor functionality, and poor quality control all-cause product failure.
- Too few resources and too much expansion: Compared with the resources they have or the potential of the brand to provide so many products, some companies aim to expand quickly.
- Reduced brand recalls-in this case, in fact, the marketing department should be blamed. The company must work hard to ensure that it has a high brand recall value, and the brand will repeatedly bombard customers to increase brand recalls and avoid brand failure. The positioning of the brand must also be competent. However, when brand recalls decrease, customers will slowly switch to another brand. This may cause the brand to fail because the recall rate is too low for the brand to continue.
So, in general, there are many reasons for brand failure. However, it all boils down to the fact that product failure cannot be attributed to brand efforts. The product must have intrinsic value for the brand to work. Knowing what to pay attention to is the best first step to prevent brand failure. However, creating a suitable brand is more than just avoiding the pitfalls listed above. This is where the experts come in. By cooperating with brand companies that are good at brand science, you can ensure that your company is not the next one. In the long list of victims of the brand.
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Originally published at https://www.brandsandu.com on June 10, 2021.