New products are a focus of virtually every major company. They regularly involve enormous investments in product development, consumer research and marketing, plus huge time commitments across organizations. Yet far too many innovations ultimately fail in market: In fact, more than 80 percent of new product launches are no longer on the shelf after only 24 months. Moreover, this figure hasn’t changed significantly in 40 years. Clearly, most companies are not getting noticeably better at bringing their innovations to market.
At PRS, we know that many of these new product disappointments are tied to “breakdowns” at the shelf. Frequently, we find compelling concepts are not translated into packaging that cuts through shelf clutter, conveys the proposition and drives trial. With that thought in mind, this article speaks to common sources of NPD failure, shares successful strategies for innovation and suggests how marketers can improve their processes and more consistently develop winning packages for new products.