Challenges faced in new product service development

1. Challenges faced in
new product/service
development

2. Not all new products are successful

3. So, What all obstacles do they face in
the process?

4. INNOVATION
IMPERATIVE
Constant innovation
is a necessity
Need to quickly
seize new market
opportunities

5. Ignored/misinterpreted Market Research
Over estimates of Market size

6. Shortage of

7. Higher cost of development
Capital Shortages

8. Fragmented Markets
Smaller segments means
lower sales and lower profit
per product

9. Organizational support
May not mesh with corporate
culture/receive financial support

10. Other drawbacks
• Poor Launch timing
• Shorter product life cycles
• Social, economic and governmental
constraints

11. References
• Marketing Management, Kotler Keller
• thecomputerspirit.com
• http://m-bossed.com/2011/11
• smallbiztrends.com
• http://tweakyourbiz.com
• http://dev.kitrx.com
• www.sodahead.com

12. Disclaimer
Created by S Varadharajan, IIT Madras,
during an internship by Prof. Sameer
Mathur, IIM Lucknow.
www.IIMInternship.com