challenges faced in new product service development

Challenges faced in new

product/service development

Not all new products are successful

So, What all obstacles do they face in the process?

INNOVATION IMPERATIVE

Constant innovation is a necessity

Need to quickly seize new market opportunities

Ignored/misinterpreted Market Research

Over estimates of Market size

Shortage of

Higher cost of development

Capital Shortages

Fragmented Markets

Smaller segments means lower sales and lower profit per product

Organizational support

May not mesh with corporate culture/receive financial support

Other drawbacks

• Poor Launch timing

• Shorter product life cycles

• Social, economic and governmental constraints

References

• Marketing Management, Kotler Keller• thecomputerspirit.com• http://m-bossed.com/2011/11• smallbiztrends.com• http://tweakyourbiz.com• http://dev.kitrx.com• www.sodahead.com

Disclaimer

Created by S Varadharajan, IIT Madras, during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com