Accenture Research indicates that 25% of a consumer product company’s revenue comes from items  introduced within the most recent three years. Given the nature of product life cycles, a firm is constantly thinking of, developing or launching new products. Yet only 2/3’s of new products meet the projected revenues. Is this the fault of product design, marketing or a combination of these factors?

Accenture cites AMR 2008 research when listing the top four reasons for product failure:

  • Product did not meet customer needs 27%
  • No clear product differentiation 23%
  • Failure of the commercialization process 11%
  • Use of wrong marketing tactics 11%

While a large portion of Accenture’s study relates to the product development process and efficient sourcing of consumer perspectives, it also encourages functional collaboration. Leaders in consumer product development include the marketing function at the following levels during steps of the product development cycle:

  • Conception 82%
  • Development 76%
  • Testing/Validation 71%
  • Launch 81%

As your agency works with clients in the product development cycle, insist on playing a role in each major phase to ensure success after launch.

[Source: Innovation in Consumer Products, Accenture, 2008]