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New Product Development

Next to the building of existing brands, innovation in new product development is the most important single discipline of corporate America. New product investment today gives companies the identity and forward-spin they need to survive in a more competitive world. However, because new product failure rates are so high, new product innovation is too important a subject to be trusted to instincts or to gut-level emotion.

New product costs have skyrocketed in recent years--one of the reasons that marketers are increasingly interested in honing the discipline down to a science. By some estimates, the cost of introducing a new packaged-goods brand runs to $20 million or more. Historically, eight out of 10 products fail in the marketplace. With the astronomical costs of development programs, these failures are a significant drag on corporate earnings.

That is why one advertising magazine, Adweek, and Group EFO Limited of Weston, Connecticut, sponsors their annual Innovation Survey. It is American's most authoritative poll on new product development. It tracks not only the factors contributing to new product failure or success, but the marketing community's own views on American's most innovative companies and brands.

Since it was developed by Group EFO president Edward F. Ogiba, the Innovation Survey has become the most authoritative poll on new product development. Each participant in the survey receives a 50-page report with tabulated results and analysis. In addition, new product information is enhanced by up-to-date reports on the subject available.

In the 1991 Innovation Survey, for example, it was revealed that many interesting developments in new product trends. The product failure rate for that year was 86 percent. This was significantly below the 1989 failure rate, which registered 91 percent--but it was still much higher than the historical level of failure, which is 80 percent. The key reason fo...

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New Product Development. (1969, December 31). In LotsofEssays.com. Retrieved 02:10, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1680551.html