Sometimes, a product borne from hard work and creativity of the manufacturer and promoted by experienced marketers does not perform well in the market due to reasons many entrepreneurs do not know. This has caused the end of a number of businesses and discourages budding entrepreneurs from launching their ideas into wonderful products. With this in mind, the risk involved in bringing new products to market and the losses incurred when products fail are due or amplified by the following:

• Poor market research

When thorough market research is not done prior to launching a new product to the competitive market, sale of such product is bound to be very low. Market reseach would answer a number of questions that could be the reasons why the product may not sell in the future. Questions on the market size and the viability of the product can be tested with market research. When research is not done, there is high chance the product would fail.

• Extreme competition in the market

For a product just released into the market, competition is an unfavorable factor especially when it is extreme. In a market where there are many other products with better features and with lower price,  a new product will not attract buyers. For this reason, it is important for a manufacturer to make sure his product is unique and comes with attractive features so that it can fare well in competition.

• Poor or no post-sale service

Poor after-sale service or absence of such services discourages potential buyers from purchasing some products. In fact, individuals with poor customer service experiences are unlikely to recommend your product to their friends and family. Some product would need the expertise of the manufacturers for servicing and repair. Absence of this service means a buyer has to abandon it when it breaks down. Hence, a manufacturer who is serious about making headway in market must offer quality customer service.

• Poor quality of the product

It is crystal clear that a low quality product gives owners headaches and regrets. This can definitely work against the performance of the product in the market and of course lower sales. Buyers of such products feel it is not worth their money and would never recommend the product to their family and friends. Also, buyers would conclude that any other product from the manufacturer is substandard even if it is not. This spells doom for the manufacturing company. Therefore, if your product is not selling in the market, ask yourself if it’s because quality.

• Ineffective distribution channel

No matter how good a product is, if it is not well distributed, the sales will be low. There are important persons in business who make up the business chain. The distributor is one of them. When he influences the price and availability of the product negatively, the product will not sell. The implication of this is that the effort of the manufacturer will be wasted and the company will fail in no time. Therefore, it is important to engage trusted distributors only.