Predicting New Product Success
The following list provides 20 indicators of the likelihood of new product success. 11-14 "yes" answers indicates probable success. 8-10 "yes" answers indicates even probability. Less than 8 "yes" answers indicates a very low probability of success. So if you can honestly answer "yes" to better than half of the questions, success is likely. If not, strategy and process should be your focus.
- Has the product been in development for a year?
- Does your company now make a similar product?
- Does your company now sell to a related customer market?
- Is research and development at least 1/3 of the product budget?
- Will the product be test marketed for at least 6 months?
- Does the person in charge have a private secretary?
- Will the ad budget be at least 5% of anticipated sales?
- Will a recognized brand name be on the product?
- Would the company take a loss on it for the first year?
- Does the company "need" the product more than it "wants" it?
- Have 3 samples of advertising copy been prepared?
- Is the product really new, as opposed to improved?
- Can the decision to buy it be made by only one person?
- Is the product to be made in fewer than 5 versions?
- Will the product not need service and repair?
- Does the development team have a working code name?
- Will the company president (or business unit manager) see the project leader without an appointment?
- Did the project leader make a "go" of the last two projects?
- Will the product be on the market for at least 10 years?
- Would the project leader quit and take the product along if the company said it wouldn't back it?
Published by The Wall Street Journal, Sept 24, 1981
