Planning to launch a new product in the market, then you need to keep a few things in mind before you take the final launch. A new product can be a totally beginning concept for businesses just starting. As new technology emerge it offers higher shift in product development which can also help inÂ
Also, a new product is some product or service which is different from the existing product in the market. A new product for a business or startups is something which is introduced to the market for the first time. In this blog, we will learn more about New product and their importance in detail.
What is a New Product?
A New Product is something which is different from the existing products in the market and is introduced in the market for the first time. These new products can have improved interface, advanced features, security firewalls, or more. These new products can also be an extension of the existing product in an organisation.
However, these product can also be a software, business model, or services. For instance, a new service model was Zomato, Swiggy which revolutionised the food delivery services with food delivery at home within minutes while sitting at home.Â
Read More:Â Product Vision: How To Define Yours In 4 Steps?
Why Is New Product Important?
A new product is important as it can have a wider impact on organisation conditions or economics as a whole. Check some of the major impacts of new products.
1. Economic Growth
The introduction of new products in the market can take a strong shift in job opportunities, sales figures, and more. This fosters economic growth for the business launching their product with innovation and relevant concepts.
2. Technological Advancement
New products in the market often are the improved version of the existing products or services. They integrate smart features with the help of technological advancement which attracts the interest of a new group of people.
For example, When Apple introduces its new variants in the market it always has some add on features or technical advancement which just turn the reaction of the people like wow!
3. Improved Quality of Life
New products with improvement in the existing or the older version also makes life easier by simplifying the long term pain points and more. It has a positive impact on society as a whole which find its application in energy appliances, medical devices, communication tools, and more improves the quality of life.Â
4. High CompetitionÂ
A new product in the market has the potential of improving the ranking in the market. With new improved product or services you can move ahead of your competitors with continuous improvement and innovation which benefits the customer and gain higher customer satisfaction along with retention rates.
5. Adaptation
A new variants in the market undergoes technical advancements, customer satisfaction, technological advancements, personalized view of customers and more. Organisations adopting to new and advanced features in their product or services have higher chances of standing tall in the market.Â
Read More:Â Product Manager vs Project Manager: What Is the Difference?
Types of New Product In BusinessesÂ
Let us check some of the major classification of new products with a small overview on each.
1. Smart ProductsÂ
The products are generally categorised as product development which went through a series of planning, research and invention making it an innovative product in the market. Other alternatives to this version of the product are not available in the market making it more user friendly.Â
2. New Product Lines
This type of new product in businesses includes products which never happened before despite others already using it. It might already be present in the market but not necessarily a new concept for customers.
3. Revisions
New products can also make a positive impact in the market by introducing advanced features on top of the existing product which is already increasing on the natural. These new revisions can have improved features, quality and advanced integrated technologies inside.Â
Read More:Â Technical Product Manager | Definition and Overview
4. Low Priced ProductsÂ
These products include the same features with very minimal or no enhancement in the existing one but available at a lower cost. The major target in this type of new product launch are the customers with tight budgets or people looking for cheaper alternatives.
Challenges In New ProductÂ
Check some of the major challenges faced by businesses in the market.
- When product owners fail to understand the customer needs and pain points then the new product might not perform well in the market.Â
- Adding new functionalities or improvement in the product requires a lot of money for research, design, testing, and production. If not managed properly it can lead to product failure.
- There is a huge competition in the market with all major companies improving and working on the current status of the product.
- Sometimes even with a great product customer reactions stay very weak which can also slow down the sales and growth of a business.
- There is often a continuous rush to launch new products in the market before competitors which might set compromises in the quality of the product.
- Sometimes a new product also fails when the product development life cycle lacks proper research and planning.
- Distribution and marketing game often fails to set up properly through proper distribution channels and reach customers.
- When the target people and market segment is wrongly selected then it can also fail a product.Â
- Many times due to technical complexity the product lacks to implement the objective which often leads to failures.
Reasons for Product Failures
Let us check some of the main reasons behind failure of well planned new product launches.
1. Lack of Quality
When products in the organisation fails to deliver the quality expectations as per the user then there is a high chance of product failure. Using low quality, less features, and compromised technical aspects might not attract the users.
2. Strong Competition
Many organisations working in the same field might already implement the features to stay in the market. Companies which cannot fulfil the demand as per expectations might get ruled out from the market.Â
3. Government Regulations
When the new product does not follow the government norms or guidelines then restrictions are imposed. This happens when a product is against the norms or guidelines set by the government.
4. Poor Technology
When companies fail to implement the product as per expectations of the user with proper technology integration then there is a higher chance of product failure. Products become unsuccessful due to weak technology in the market. Many new products lack basic knowledge of technology which does not satisfy user needs and hence have higher chances of failures.
5. Higher PriceÂ
When product prices do not match the expectations of the user or justify the features in the new product then it might underperform in the market. In many circumstances the price of the new product fails to attract buyers and block sales improvement.Â
6. Target Groups
When the target people and market segment is wrongly selected then it can also fail a product. In many cases due to lack of proper planning the market segment is wrongly selected which eliminates the success chance of the product.Â
7. Poor ManagementÂ
Sometimes due to lack of proper management products fail to perform in the market. Management needs to take care of all major stages in the product development. But when implementations become weak then new products become unsuccessful.
Read More:Â What is Product Marketing? The Ultimate Guide
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New Product FAQs
Q1. What is a new product?
Ans: A New Product is something which is different from the existing products in the market and is introduced in the market for the first time. These new products can have improved interface, advanced features, security firewalls, or more.
Q2. What is the need for a new product?
Ans: New products can solve the functionality gap and improve the product overall experience. It can lead to economic growth, technical advancements, improved quality, and more.
Q3. What are the major types of new products in the market?
Ans: Sometimes based on the approach or ideation of the new product are smart products with innovation, new product lines, revisions, u[dates, and low priced products.
Q4. What is the objective of new product development?
Ans: New product development aims to fil the gap in the existing product enhancing the technical feasibility, features, and other components to get higher customer satisfaction and retention rates.
