Businesses spend millions of dollars every year creating, endorsing, and presenting new products into the market. From new Apple products to new food brands, there seems to always be a new product gaining customers. However, throughout all of the chaos surrounding the products entrance into the consumer world, companies often make mistakes involving technology and estimations. This leads to the product flopping in the market or, in some cases, the product getting banned in multiple companies. Here are the top 4 errors that businesses make when they introduce their products.
1. Attempting to Bypass the FDA
The FDA stands for the Food and Drug Administration and is responsible for protecting public health. Their role is to ensure the safety, and security of human and animal drugs, biological products, and medical devices. They are also in charge of checking the safety of non-edible products like cosmetics, and products that emit radiation. In short, the FDA is what ensures that the food, medical drugs, and other products are safe through FDA Adverse Event Reporting. Sometimes, businesses get worried that their products aren’t going to pass the test that the FDA is going to put their products through and so they attempt to skip the product altogether or mislabel the product to avoid certain exams. Sadly, this can cause health problems for people who buy the products and result in the products being completely banned from the market.
2. Not Creating a Marketing Plan
This is issue happens most often with electrics and technology sales. People love technology and when a new type of tech is released into the market, it usually gains enough buzz to drive sales for the first week. This often leads companies to make a huge mistake–they assume that the release of the hyped product will continue to drive their sales. When the hype dies out after the first week, the sales plummet and the company loses millions of dollars because the product stopped selling. This has happened again and again with iPhones, laptops, and apps because the company overestimates how long the “hype” period will last for the product.
3. Trying to Pass off Poor Quality as High Quality
No matter the price that you buy something at, you expect it to be good quality. This especially holds true when the price is higher. If you buy something expensive, you expect it to be exponentially better than something that is a few hundred dollars cheaper. What companies try to do here is save money by giving their customers a poor quality product–even though the customer paid a high-quality price. Not only is this deceitful to the customer, but it gives the company a bad name. The customers feel lied to and so they move onto a company that will tell them the truth. People want to pay for what they’re getting and they don’t want to feel like they’ve been cheated.
4. Inadequate Funding
The next mistake that companies make is that they don’t plan for the right amount of funding. This issue hurts the company much more than it hurts the customers. They launch the product only to realize that they don’t have enough money to fund to the enterprise. The company then must go into debt or go bankrupt in order to keep the product alive–or they are forced to drop the product. This problem can be avoided by better accounting for the cost of a product and the revenue that it will make through ROI (return on investment) analysis.
Businesses should try to avoid all 4 of these mistakes when planning to release a new product. For the most part, you can avoid them if you prepare in advance, and you don’t try to cut corners. Be honest with your customers and they will support you.