New product introductions: An assortment of success & setbacks
Encompassing everything from Bic’s range of “for her” biro pens to Nokia’s N-gage, a dismal attempt at a games-console-phone hybrid, according to the Guardian, there is now a whole museum dedicated to product failures. Whilst nostalgic, this tourist attraction highlights the real risk businesses take when introducing new items to their assortment. Given the costs associated with introducing a new product, commercial failures always come at a high price. But what can businesses do to ensure their exploding assortments are as successful as possible?
Even for products with multi-million-pound marketing budgets, success is never guaranteed. Consequently, businesses must do their homework before introducing a new product to their assortment. Through reviewing historic sales data for similar products already within their assortment and then combining this with market intelligence gathered from across the businesses, decision makers can begin to assess whether there is a sufficient demand to support another product.
With this in mind, what processes do you have in place to minimise your exposure to risk when introducing new products?