Here’s the thing, people have deep relationships with certain brands.
In some cases, consumers fall in love with one brand and will exclusively buy their product for years. You’ll meet someone who will only buy Evian water when given the choice. This is why new companies that are planning a product launch may be nervous to do so. To develop, launch, and have the public welcome your product requires a delicate mix of innovation, motivation, precision, and luck.
It’s no wonder why a great product marketing strategy is essential throughout every stage of a launch. This isn’t to say that pulling off a successful product launch is just about the strategy. Developing a product is so difficult because of a variety of reasons. It can be because of a lack of resources, poor communication across the team, and even a failure to gain investors.
A product launch is a critical part of your company’s success, especially if you expect to source new clients, expand your reach, and increase revenue. It’s not uncommon to see new product launches fail, sometimes before they take off in the first place. Check out 31 statistics about the reality of product launches.
Product launch statistics to inform your next campaign
Every company and product will achieve different levels of success so it’s best to do your research on how competitors are doing before you launch a product. The following 32 statistics will give you insight into the complications and obstacles that come with launching a new product.
31 product launch statistics for 2019
- According to Harvard Business School professor Clayton Christensen, each year more than 30,000 new consumer products are launched and 95% of them fail. (Harvard Business School)
- Only 40% of developed products make it to market and of that 40%, only 60% will generate any revenue at all. (Marketing Research Association)
- 63% of survey respondents said they like it when manufacturers offer new products. (Nielsen)
- Only 11% of new product consumers remain engaged after 52 weeks. (Catalina)
- 75% of survey respondents would be willing to pay more for automotive innovation. (Lab42)
- 57% of survey participants reported they purchased a new product during their last grocery shopping trip. (Nielsen)
- Nine in 10 customers agree that brand innovation needs to impact society. (Forbes)
- More than four-in-10 survey respondents (42%) say economic conditions and recent world events make them less likely to try new products. (Nielsen)
- Nearly 62% of respondents have purchased a 1st generation product at least once. (Lab42)
- 43% of survey respondents say they wish more affordable products were available. (Nielsen)
- The failure rate for new products launched in the grocery sector is 70-80%. (University of Toronto)
- 44% of participants reported wanting products at affordable prices while 24% reported wanting new food products. (Nielsen)
- 56% of global survey respondents cite friends and family recommendations as sources of new product awareness. (Nielsen)
- 21% of survey respondents buy new products as soon as they come out compared to 63% who prefer to buy them once they have been out for a while. (Lab42)
- 27% of consumers reported that they wished more products could make their life easier. (Nielsen)
- The biggest problem companies encountered when launching a new product is lack of preparation. (Harvard Business School)
- 76% of franchise (brand) buyers never even try that brand’s new products. (Catalina)
- 42% of shutdown start-ups that launched a product didn't solve a valid customer problem. (CBInsights)
- It takes an average of 28 weeks for a new product to reach 75% of its highest distribution. (Catalina)
- 28% of manufacturing and industrial companies in the U.S. are planning on launching a new product or service this year. (Thomas)
- American families, on average, repeatedly buy the same 150 items, which constitute as much as 85% of their household needs. (Harvard Business Review)
- Less than 3% of new consumer packaged goods exceed first-year sales of $50 million. (Harvard Business Review)
- On average, the cost of launching a new product is in the neighborhood of $15 million. (Forbes)
- 84% of customers say it is somewhat or very important that the company they buy from is innovative. (Lab42)
- Customers are willing to pay more for innovative products. For instance, 83% of customers indicate that they would pay more for innovation in electronics. (CustomerThink)
- 69% of customers expect brand innovation to improve society. (Forbes)
- 43% of business executives agreed that innovation is a “competitive necessity” in a product launch. (PWC)
- 65% of consumers who purchase products as soon as they come out are men. (Lab42)
- 59% of consumers who are more likely to purchase a product once it has been out for a long time are women. (Lab42)
Are you ready for takeoff?
As you develop a new product, your marketing team should consider a few things:
- Why you’re launching your product
- Who the competitors are within the market
- How your product differs from theirs
- Who the product is made for
- If there’s an actual need for the product
- How you’ll get customers to buy the product
- How you'll measure success
Keeping track of this list while you develop, launch, and promote your new feature will help you stay on track throughout the product management process. Take time to research the landscape of the industry to determine if the launch is a good investment or not. You can also run trials with a panel of customers to get their feedback. After all, their opinion is the one you need most.
Developing products that skyrocket to massive success isn’t easy. Do your research, plan accordingly, and know your audience. Social media monitoring listens, tracks, and gathers relevant audience information across accounts. It can be the best way to tap into the market and see what’s missing. Check out the best social media monitoring software and try one out today.
Eager to start planning for your launch? Discover how to launch a product and how to throw an unforgettable launch party.