Launching a new product can be an exciting new venture for companies. New product development (NPD) can help companies understand their place in the market and what customers want most. However, new products do not always succeed; of the 30,000+ new products launched each year, 80% of them are considered failures.
The cause of many product launch misses is the failure to adhere to a rigorous NPD process. For successful new product development, companies must answer discrete questions at each phase based on carefully selected market data. With the average new product launch costing $15 million, it is crucial for companies to get NPD right to avoid major financial consequences.