Project NewProd: Factors in New Product Success

Abstract

Bases itself on the findings of Project NewProd — which was an investigation of almost 200 new product cases to probe what separates winners from losers. Presents results from the managerial perspective, showing how selection of new products and particularly that of potential 'winners' is undertaken. Outlines key factors that underlie new projects and the influence of these on product success. Examines merits of emphasizing certain new product activities, using information that helps to launch, with impact, product launch success. States that product development is critical to the firm strategically, beside its cost. Documents that of every 58 product ideas that enter the process just two reach commercialisation stage, and only one is a success. Proclaims that new product failure rates are estimated at between 30 and 60 per cent and of 100 products developed 21.9% are killed prior to launch, 18.7% are commercial failures and 59.4% are successful. Investigates and explores the reasons for failures and successes in great detail with use of figures and tables for further explanation. Concludes that Project NewProd has identified specific properties and dimensions differentiating industrial new product success and failure.