Top Ten New Product Launch Mistakes

New product launches are a key driver of business growth. Launching a new product or service can be an exciting time but it has to be done right or the chances of success are severely diminished. Although difficult to find exact statistics for new product launches in general, the failure rate for new product launches ranges from an estimated 50% to 75%. A 1997 study showed that[1]:

*The failure rate for new product introduction in the retail grocery industry is 70-80 percent;
*The U.S. Top 20 food companies enjoy a 76 percent success rate for their new product introductions;
*The "Bottom 20,000" U.S. food companies have an 11.6 percent success rate for new product introductions;
*A major difference between Top 20 new product introductions and Bottom 20,000 introductions is the apparent lack of research and strategic marketing done by the Bottom 20,000.

Here is a list of the ten most common mistakes businesses make when planning and executing a new product launch:

1. Not planning early enough: Companies often devote most of their time to planning and developing their new product, not planning the launch. Several weeks before the launch date they realize that they don't have a plan in place, that they don't have the expertise or resources that they need to successfully carry out the launch.

2. Poor or non-existent marketing strategy: Sometimes companies focus all of their efforts on planning their launch but pay little attention to develop a marketing strategy to carry sales in for the long-term. The launch doesn't go well and they wonder why.

3. Failing to define your target market: If you haven't clearly defined your target market, how can you be sure what they want and how to reach them?

4. Launching too soon: Companies are often so eager to be first to market that they overlook important aspects of the launch and it doesn't go well.

5. Poor quality product: This goes along with launching too soon. I've seen it time and time again-a company is so anxious to launch its new product that they overlook critical flaws.

6. A rigid, inflexible launch plan: Successfully launching a new product is an art not a science. Because of that, you need to be flexible. Companies that aren't flexible pay the price with unsuccessful launches.

7. Insufficient funding: This is a common mistake not just in product launches but in small companies in general-they fail to ensure that they have sufficient funding in place to carry them until they develop a regular cash flow.

8. Overestimating results: Sure, it's great to daydream about the perfect product launch where you spend a few thousands dollars on publicity and the next thing you know, you're the toast of radio and television programs across the country and everyone is raving about your new product. A nice fantasy yes, but that rarely ever happens in real life.

9. Not delegating (trying to do everything yourself): No one is an expert at everything. Particularly in small businesses, CEOs tend to think of themselves as jacks of all trades with the expertise to do everything. Unfortunately, that's not usually the case.

10. Not having a crisis plan: What do you do when things go wrong? A lot of people just panic but that strategy usually doesn't help. While obviously no one can plan for every possible catastrophe, having a crisis plan in place can be a huge help.

Paying attention to these common errors and planning ahead so you can avoid them can be an extremely important part of planning and executing a successful new product launch.

Turner Group Marketing, Inc. has more than 20 years experience successfully launching products in the mass market.

[1] Linton, Matysiak & Wilkes, Inc., Marketing, Witchcraft or Science, July 1997