According to a leading market research firm, about 75% of consumer packaged goods and retail products fail to earn even $7.5 million during their first year. This is in part because of the intransigence of consumer shopping habits.
The consultant Jack Trout has found that American families, on average, repeatedly buy the same 150 items, which constitute as much as 85% of their household needs; it’s hard to get something new on the radar. Even P&G routinely whiffs with product rollouts. Less than 3% of new consumer packaged goods exceed first-year sales of $50 million—considered the benchmark of a highly successful launch.
And products that start out strong may have trouble sustaining success: This excellent article on HBR looked at more than 70 top products in the Most Memorable New Product Launch survey for the years 2002 through 2008. A dozen of them are already off the market.
Read the full article here on HBR