You spend a lot of money and time in the research of a new product and when you get it out on the market, it doesn`t sell as much as you waned, what do you do? Well, you have two options:
1. You change something : design, price
2. You get it out of the market – in the world 30 % of new products are taken out of markets within the first year.
I would suggest a combination: get the product out of the market, is much more cheaper and doesn`t involve as much risks, and then when you revise your marketing strategy and position the product better, with small modifications you release the product again. This strategy is called: “turnaround strategy”, it is believed that a brand restyling is cheaper than launching a new product.
The product must have something new, to attract more clients and to satisfy new needs, people won’t buy a product that has old features. But be careful you could launch a much more innovative product that the market is demanding, you could be ahead of your time, and that is not good either.
Every product has a life cycle, from the day he is launch till the day it is no longer produced. Usually engineers and designers begin work on a new product with a couple of years before launching. In the car industry they start working on a new project before the latest model is launched.
So try to stay in front of your competition, but not in front of your customers.
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