Success of a new product development is hindered by many factors :
1.Shortage of important new product idea in certain areas :
There may be few ways to improve some basic product such as steel, detergents, etc.
Keen competition is leading to market fragmentation . companies have to aim their new product at similar segments and this means lower sale and profit for each product.
3.Social and Government constraints:
New product have to satisfy public criteria such as consumer safety and ecological compatibility. government requirements have slowed down innovation , e.g., during industry and have complicated product design and advertising decisions in industries such as chemicals , automobiles, industrial equipment’s and toys .
4.Costliness of the NDP Process :
A company typically has to generate many new product ideas in order to finish with a few good ones , the company has to face R&D, manufacturing and marketing costs.
5.Faster development time :
Many competitors are likely to get the same idea at the same time and the victory after all goes to the swiftest , Alert companies have to compress development time by using manufacturing techniques , joint partners , early concept test and advanced market planning, Japanese companies see the challenge as “achieving better quality at a cheaper price at a faster speed than competitors .”
Some companies with good idea cannot raise the funds needed to research them .
When a new product is successful , rivals are so quick to copy it, that the new product’s life cycle is considerably shortened , sony used to enjoy a three -yr. lead – time on its new product before they were extensively copied by competitors . Now matsushita and other competitors can copy product with six months , hardly leaving enough time for sony to recoup its investment .
8.Speed of implementation:
Speed of implementation indicates how fast the product can be implemented . this is the bigger challenge in the new product development where a product is implemented speedily . in a short period of time , there are advantages that a marketer can get
- The advantage of early ” Bird”.
- Saving in interest cost by launching the product early .
- The product starts earning for itself ,