This is one big question that ponders the mind of most of the entrepreneurs before they plan to invest in a new product.
As per a study from Harvard
Business, every year a minimum of 30000 new products are introduced to the
market, with 95% of them, failing to make the cut. Certainly, there are few
exceptions, what we call as the breakout product success such as Absolut Juice,
Snapchat, Zoom, Uber to name a few. But such success rate is still low.
Considering this success-failure
rate, it becomes absolutely imperative that entrepreneurs ensure that their
product meets the needs, desires and pain points of large number of prospective
customers.
Here are the three key ways that as
an entrepreneur you can employ to determine your product achieves acceptance in
market before you invest in the idea.
1. Make use of your customers to develop your product
New product development can be
costly and time consuming, so it is always wise to leverage your customers
before investing, and then finding out whether your product will achieve market
acceptance. At the end of the day, your whole business revolves around solving
your customer’s pain points and making their lives easier. So, ask your
customers to gain a better insight of what products they feel you should offer.
Take the case of Crystal Pepsi, a clear cola introduced by Pepsi. After
spending millions of dollars on development, it realized that there was no
requirement of carbonated drink with atypical color by their customers, and the
new product failed miserably
2. Identifying and understanding your early adopters
It is essential to identify your
“early adopters” as these actually tend to be an extremely valuable resource
within any market space. After all this segment are the risk-takers and
trendsetters, thereby having a strong influence on the success or failure of a
new product. Once you have identified them, you can pursue feedback from them
for your upcoming product; thereby getting the much-valued insights on how the
product will function.
3. Find out your actual market acceptance & adoption
The success of your product in the
long run will be based on its acceptance & adoption by your targeted
market. So, before coming out with your product you need to define your target
customers, determine market size and undertake the viability and valuation of
your offering to get a better determination of your market acceptance. If your
product meet the needs of a large number of customers, know that you can go
ahead with its development.
Final Thoughts
There is no fixed way to know
whether your product will be successful or not. But by using these practices
you can definitely improve your odds radically!
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