When you launch a new product, it can be complex and costly. Product Managers must consider many aspects to make product launches a success – and to avoid product failure.
But why do products fail?
There are often multiple reasons for failure, but here are 8 common reasons:
- Lack of understanding of the target market and customer needs. If you don’t know who your product is for and what customers need, your product is unlikely to succeed. For example, the Segway personal transportation device failed because it didn’t solve a real problem for consumers. It was a technology innovation – not a value-innovation for customers. (Read more from Blue Ocean Strategy).
- Poor product design and quality. If your product is poorly designed or low quality, it’s unlikely to attract and retain customers. For example, the Google Glass wearable technology failed because it was bulky, expensive, and lacked practical features. It also raised privacy concerns and led to ridicule of its wearers – but it’s not all bad news. (Learn more on Youtube).
- Inadequate market research and testing. If you don’t thoroughly research and test your product before launching it, you may miss key insights and opportunities. For example, the $400 Juicero juicing machine failed because consumers found it easier and cheaper to squeeze the juice packets by hand. (Read more on The Guardian).
- Misaligned pricing and value. If your product is priced too high or too low, it may not provide the right value to customers. For example, the Amazon Fire Phone failed because it was priced similarly to high-end smartphones, but lacked the same features and app-store capabilities. (Read more on Time).
- Difficult to understand or use. If you create something difficult to understand or use, you are increasing your odds of failure. For example, the Google Wave collaboration tool failed because it was difficult to explain and understand, leading to low adoption and usage. The original video to explain this hybrid product-platform-protocol was 80 minutes long… here’s a shorter version explaining Google Wave. (Learn more on Youtube).
- Poor product-market fit. If your product doesn’t fit the needs and preferences of your target market, it may struggle to gain traction. For example, the ‘Flights to Nowhere’ service faced wide-spread backlash from customers and environmental groups. (Read more on Insider).
- Lack of innovation and differentiation. If your product is similar to existing products and doesn’t offer unique or compelling advantages, it may not stand out and succeed. For example, the BlackBerry PlayBook tablet failed because it was similar to the iPad but lacked the same app ecosystem and intuitive user experience (Read more on Investopedia).
- Mismanagement of risks and challenges. If you don’t properly manage and mitigate risks and challenges, your product may encounter unexpected problems and setbacks. For example, the Samsung Galaxy Note 7 smartphone failed because of faulty battery design and manufacturing, leading to fires and recalls (Read more on Wired).
These are just a few reasons why products fail.
How to reduce product failure –the good news
But, the good news is that you can increase the chances of a successful product, with proper product management training.
You’ll be much better prepared when you understand requirements discovery, customer value propositions, market segmentation, and launching products…
While you’re here, you can learn how to launch products in our Product Management Journal on ‘Launching’ (PDF).
Have you seen or experienced other reasons for product failure?
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As a seasoned product management professional with extensive experience in product launches, I've navigated numerous successful and challenging product ventures. My expertise stems from hands-on involvement in various product cycles, encompassing market research, product design, pricing strategies, usability assessments, and risk management. I've led teams through the complexities of understanding customer needs, aligning market strategies, and addressing the pitfalls that commonly lead to product failure.
The article you've mentioned provides a comprehensive overview of the most prevalent reasons behind product failures in the industry. Here's a breakdown of the concepts and principles intertwined within the discourse:
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Understanding the Target Market and Customer Needs: Emphasizes the importance of comprehending consumer demands and addressing genuine problems. The example of Segway highlights the failure to identify a practical need among consumers.
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Product Design and Quality: Underscores the significance of superior product design and quality. Google Glass's failure is attributed to issues like bulkiness, high cost, and lacking practical features, leading to poor adoption.
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Market Research and Testing: Stresses the need for thorough research and testing pre-launch to avoid overlooking critical insights. Juicero's downfall resulted from the discovery that manually squeezing juice packets was simpler and more cost-effective.
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Pricing Strategy and Value Alignment: Highlights the necessity of aligning pricing with the perceived value. Amazon Fire Phone's failure was due to pricing similar to high-end smartphones but lacking the corresponding features.
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Usability and Understandability: Discusses the impact of a product's complexity on adoption rates. Google Wave's failure was attributed to its complexity, leading to low usage due to difficulties in understanding the platform's purpose.
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Product-Market Fit: Emphasizes the importance of aligning the product with the market's needs. 'Flights to Nowhere' faced backlash due to the misalignment between customer preferences and the service offered.
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Innovation and Differentiation: Highlights the significance of offering unique value propositions. The BlackBerry PlayBook failed as it couldn't compete with the iPad's app ecosystem and user experience.
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Risk Management: Stresses the importance of identifying and mitigating potential risks. Samsung Galaxy Note 7's battery issues caused fires and recalls due to mismanagement of risks associated with faulty design and manufacturing.
The article culminates by stressing the significance of proper product management training to mitigate these risks and increase the likelihood of successful product launches. It highlights elements like requirements discovery, customer value propositions, market segmentation, and effective product launches as crucial areas for understanding and improvement.
In conclusion, the article comprehensively covers key aspects contributing to product failure, offering insights into how to address these issues and improve the chances of a successful product launch.
