By Julian Steinforth, Expedition PR
Every year companies launch roughly 30,000 new consumer products. A staggering 95 percent of the new products end up failing, according to Harvard Business School professor Clayton Christensen. We also only read and hear about a small percentage of all these new products – mostly the breakthrough successes and the worst product flops.
It’s hard to get a new product on the peoples’ radar, especially for startups. Marketing flops, and ultimately product launch failures, are not only costly, they can be fatal. Startups and early growth companies simply don’t have the resources at hand like larger competitors to absorb those financial backlashes. Hence it does not astonish that according to NASBP, 46 percent of all US-based businesses failures occur due to a lack of marketing knowledge or management incompetence. And of course the reasons for startups to fail are numerous: from running out of cash, gabs in the strategy, wrong market positioning over to wrong leadership there are many hurdles for entrepreneurs out there. For consumer products, another hurdle is a person’s buying habit. Consultant Jack Trout stated that American families, on average, repeatedly buy the same 150 items, which constitute as much as 85% of their household needs. The challenge to get something new on the people’s radar, might be one of the toughest, but it can be achieved with the right marketing and PR strategy.